Document:

Exhibit 10.7

 

EXHIBIT 10.7

YADKIN VALLEY BANK AND TRUST COMPANY

2007 GROUP TERM CARVE OUT PLAN

     This 2007 Group Term Carve Out Plan is made and entered into this 31st day of December, 2007,
by and between Yadkin Valley Bank and Trust Company, a North Carolina-chartered commercial bank
located in Elkin, North Carolina (the “Company”), and the participant selected to participate in
this Plan (the “Participant”).

     This Plan is separate from and in addition to the Company’s March 1, 2000 Group Term Carve Out
Plan.

Introduction

     The Company wishes to attract and retain highly qualified officers. To further this
objective, the Company is willing to divide the death proceeds of certain life insurance policies
which are owned by the Company on the lives of the participating officers with the designated
beneficiary of each insured participating officer. The Company will pay the life insurance
premiums from its general assets.

Article 1

Definitions

     Whenever used in this Plan, the following terms shall have the meanings specified:

     1.1 “Base Annual Salary” means the base annual salary of the Participant on December 31, 2006,
adjusted by 3% on each December 31 thereafter until the earlier of (x) the date of the
Participant’s death or (y) the date the Participant’s employment with the Company terminates.

     1.2 “Change of Control” means the transfer of shares of the Company’s voting common stock such
that one entity or one person acquires (or is deemed to acquire when applying section 318 of the
Code) more than 50 percent of the Company’s outstanding voting common stock.

     1.3 “Insured” means the individual whose life is insured.

     1.4 “Insurer” means the insurance company issuing the life insurance policy on the life of the
insured.

     1.5 “Participant” means the employee who is designated by the Board of Directors as eligible
to participate in the Plan, elects in writing to participate in the Plan using the form attached
hereto as Exhibit A, and signs a Split Dollar Endorsement, attached hereto as Exhibit
C, for the Policy in which he or she is insured.

     1.6 “Policy” or “Policies” means the individual insurance policy or policies adopted by the
Board of Directors for purposes of insuring a Participant’s life under this Plan.

     1.7 “Plan” means this instrument, including all amendments thereto.

     1.8 “Termination for Cause” means that the Company has terminated the Participant’s employment
for any of the following reasons:

 

 

(a) Gross negligence or gross neglect of duties;

(b) Commission of a felony or of a gross misdemeanor involving moral turpitude; or

(c) Fraud, disloyalty, dishonesty, or willful violation of any law or significant Company
policy committed in connection with the Participant’s employment and resulting in an adverse
effect on the Company.

Article 2

Participation

     2.1 Eligibility to Participate. The Board of Directors in its sole discretion shall designate
from time to time the Participants that are eligible to participate in this Plan.

     2.2 Participation. The eligible officer may participate in this Plan by executing an Election
to Participate and a Split Dollar Endorsement. The Split Dollar Endorsement shall bind the
Participant and his or her beneficiaries, assigns, and transferees to the terms and conditions of
this Plan. An officer’s participation is limited to only Policies where he or she is the Insured.
Exhibit B attached hereto sets forth the Insured Participants and the Policies on their
lives.

     2.3 Termination of Participation. A Participant’s rights under this Plan shall cease and his
or her participation in this Plan shall terminate if either of the following events occur: (x) if
there is a Termination for Cause or (y) if the Participant voluntarily leaves the employment of the
Company and becomes an employee of or a paid consultant or advisor to any financial institution
with a physical operating presence within 50 miles of any physical office of the Company. In the
event that the Company decides to maintain the Policy after the Participant’s termination of
participation in the Plan, the Company shall be the direct beneficiary of the entire death proceeds
of the Policy.

     2.4 Retirement. After the Participant’s employment termination, the Company shall maintain
the Policy in full force and effect and the Company shall not amend, terminate, or otherwise
abrogate the Participant’s interest in the Policy. However, the Company may replace the Policy
with a comparable insurance policy to cover the benefit provided under this Plan. The Policy or
any comparable policy shall be subject to the claims of the Company’s creditors.

Article 3

Policy Ownership/Interests

     3.1 Participant’s Interest. The Participant or the Participant’s assignee shall have the
right to designate the beneficiary of death proceeds of one or more Policies equal in the aggregate
to the lesser of (x) the net death proceeds, meaning total death proceeds of the Policies minus the
cash surrender value of the Policies, or (y) the applicable amount determined under clauses (a)
through (f) as follows:

(a) 2.0 times Base Annual Salary of the Participant upon execution of the Election to
Participate and Split Dollar Endorsement by the eligible officer.

(b) 2.4 times Base Annual Salary of the Participant upon the first anniversary of the
Participant’s election as an officer of the Company by the Board of Directors, provided the
Participant remains an officer of the Company on that date.

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(c) 2.8 times Base Annual Salary of the Participant upon the second anniversary of the
Participant’s election as an officer of the Company by the Board of Directors, provided the
Participant remains an officer of the Company on that date.

(d) 3.2 times Base Annual Salary of the Participant upon the third anniversary of
the Participant’s election as an officer of the Company by the Board of Directors,
provided the Participant remains an officer of the Company on that date.

(e) 3.6 times Base Annual Salary of the Participant upon the fourth anniversary of the
Participant’s election as an officer of the Company by the Board of Directors, provided the
Participant remains an officer of the Company on that date.

(f) 4.0 times Base Annual Salary of the Participant upon the fifth anniversary of the
Participant’s election as an officer of the Company by the Board of Directors, provided the
Participant remains an officer of the Company on that date.

     The different amounts of death benefits noted in clauses (a) through (f) are not cumulative;
the Participant’s interest can never exceed 4.0 times Base Annual Salary. Additionally, the
multiple of Base Annual Salary specified in clauses (a) through (f) shall not increase after the
Participant’s employment terminates.

     3.2 Company’s Interest. The Company shall own the Policies and shall have the right to
exercise all incidents of ownership, except that the Company shall not sell, surrender, or transfer
ownership of a Policy so long as a Participant has an interest in the Policy as described in
section 3.1 without replacing the Policy with a comparable insurance policy to cover the benefit
provided by this Plan. This provision shall not impair the right of the Company to terminate this
Plan. With respect to each Policy, the Company shall be the direct beneficiary of the remaining
death proceeds of the Policy after the Participant’s interest is determined according to section
3.1.

Article 4

Premiums

     4.1 Premium Payment. The Company shall pay all premiums due on all Policies.

     4.2 Imputed Income. The Bank shall impute income to the Participant in an amount equal to the
current term rate for the Participant’s age multiplied by the net death benefit payable to the
Participant’s beneficiary. The “current term rate” is the minimum amount required to be imputed
under Revenue Rulings 64-328 and 66-110, and the taxes calculated on the imputed income associated
with the Plan using Treasury Reg. §1.61-22(d)(3)(ii) or any subsequent applicable authority.

Article 5

Assignment

     Any Participant may assign without consideration all interests in his or her Policy and in
this Plan to any person, entity, or trust. If a Participant transfers all of his or her interest
in the Policy, all of that Participant’s interest in his or her Policy and in the Plan shall be
vested in his or her transferee, who shall be substituted as a party hereunder, and the Participant
shall have no further interest in his or her Policy or in this Plan.

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Article 6

Insurer

     The Insurer shall be bound only by the terms of the corresponding Policy. Any payments the
Insurer makes or actions the Insurer takes in accordance with a Policy shall fully discharge the
Insurer from all claims, suits and demands of all persons relating to that Policy. The Insurer
shall not be bound by the provisions of this Plan. The Insurer shall have the right to rely on the
Company’s representations with regard to any definitions, interpretations, or Policy interests as
specified under this Plan.

Article 7

Claims and Review Procedures

     7.1 Claims Procedure. A person or beneficiary (“claimant”) who has not received benefits
under this Plan that he or she believes should be paid shall make a claim for such benefits as
follows —

(a) Initiation — written claim. The claimant initiates a claim by submitting to the
Administrator a written claim for the benefits. If the claim relates to the contents of a
notice received by the claimant, the claim must be made within 60 days after the notice was
received by the claimant. All other claims must be made within 180 days after the date of
the event that caused the claim to arise. The claim must state with particularity the
determination desired by the claimant.

(b) Timing of Company response. The Company shall respond to the claimant within 90 days
after receiving the claim. If the Company determines that special circumstances require
additional time for processing the claim, the Company may extend the response period by an
additional 90 days by notifying the claimant in writing before the end of the initial 90-day
period that an additional period is required. The notice of extension must state the
special circumstances and the date by which the Company expects to render its decision.

(c) Notice of decision. If the Company denies part or all of the claim, the Company shall
notify the claimant in writing of the denial. The Company shall write the notification in a
manner calculated to be understood by the claimant. The notification shall set forth —

(i) the specific reasons for the denial,

(ii) a reference to the specific provisions of the Plan on which the denial is
based,

(iii) a description of any additional information or material necessary for the
claimant to perfect the claim and an explanation of why it is needed,

(iv) an explanation of the Plan’s review procedures and the time limits applicable
to such procedures, and

(v) a statement of the claimant’s right to bring a civil action under ERISA section
502(a) following an adverse benefit determination on review.

     7.2 Review Procedure. If the Company denies part or all of the claim, the claimant shall have
the opportunity for a full and fair review by the Company of the denial, as follows —

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(a) Initiation — written request. To initiate the review, the claimant, within 60 days
after receiving the Company’s notice of denial, must file with the Company a written request
for review.

(b) Additional submissions — information access. The claimant shall then have the
opportunity to submit written comments, documents, records, and other information relating
to the claim. The Company shall also provide the claimant, upon request and free of charge,
reasonable access to and copies of all documents, records, and other information relevant
(as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

(c) Considerations on review. In considering the review, the Company shall take into
account all materials and information the claimant submits relating to the claim, without
regard to whether the information was submitted or considered in the initial benefit
determination.

(d) Timing of Company response. The Company shall respond in writing to the claimant within
60 days after receiving the request for review. If the Company determines that special
circumstances require additional time for processing the claim, the Company may extend the
response period by an additional 60 days by notifying the claimant in writing before the end
of the initial 60-day period that an additional period is required. The notice of extension
must state the special circumstances and the date by which the Company expects to render its
decision.

(e) Notice of decision. The Company shall notify the claimant in writing of its decision on
review. The Company shall write the notification in a manner calculated to be understood by
the claimant. The notification shall set forth —

(i) the specific reason for the denial,

(ii) a reference to the specific provisions of the Plan on which the denial is
based,

(iii) a statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to and copies of all documents, records, and other
information relevant (as defined in applicable ERISA regulations) to the claimant’s
claim for benefits, and

(iv) a statement of the claimant’s right to bring a civil action under ERISA section
502(a).

Article 8

Amendments and Termination

     8.1 Amendment or Termination of Plan. Except as otherwise provided in sections 2.3 and 8.2,
the Company may (x) amend or terminate the Plan at any time and (y) amend or terminate a
Participant’s rights under the Plan at any time prior to a Participant’s death by written notice to
the Participant.

     8.2 Amendment or Termination of Plan Upon a Change of Control. Notwithstanding the provisions
of section 8.1, in the event of a Change of Control, the Company, or its successor, shall maintain
in full force and effect each Policy that is in existence on the date the Change of Control occurs
and shall not terminate or otherwise abrogate a Participant’s interest in the Policy. However, the
Company may replace the Policy with a comparable insurance policy to cover the benefit provided
under this Agreement. The Policy or any comparable policy shall be subject to the claims to the
Company’s creditors. This section 8.2 shall apply to all Participants in the Plan on the date the
Change of Control occurs, including a Participant whose employment is terminated as a result of a
Change of Control.

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     8.3 Participant Waiver. A Participant may, in the Participant’s sole and absolute discretion,
waive his or her rights under the Plan at any time. Any waiver permitted under this section 8.3
shall be in writing and delivered to the Board of Directors of the Company.

Article 9

Miscellaneous

     9.1 Binding Effect. This Plan in conjunction with each Split Dollar Endorsement shall bind
each Participant and the Company, their beneficiaries, survivors, executors, administrators, and
transferees and any Policy beneficiary.

     9.2 No Guarantee of Employment. This Plan is not an employment policy or contract. It does
not give a Participant the right to remain an employee of the Company nor does it interfere with
the Company’s right to discharge a Participant. It also does not require a Participant to remain
an employee or interfere with a Participant’s right to terminate employment at any time.

     9.3 Applicable Law. The Plan and all rights hereunder shall be governed by and construed
according to the laws to the State of North Carolina, except to the extent preempted by the laws of
the United States of America.

     9.4 Notice. Any notice, consent, or demand required or permitted to be given under the
provisions of this Plan by one party to another shall be in writing, shall be signed by the party
giving or making the same, and may be given either by delivering the same to such other party
personally or by mailing the same, by United States certified mail, postage prepaid, to such party,
addressed to his/her last known address as shown on the records or the Company. The date of such
mailing shall be deemed the date of such mailed notice, consent or demand.

     9.5 Entire Agreement. This Plan constitutes the entire agreement between the Company and the
Participant as to the subject matter hereof. No rights are granted to the Participant by virtue of
this Plan other than those specifically set forth herein.

     9.6 Administration. The Company shall have powers which are necessary to administer this
Plan, including but not limited to:

(a) interpreting the provisions of the Plan;

(b) establishing and revising the method of accounting for the Plan;

(c) maintaining a record of benefit payments; and

(d) establishing rules and prescribing any forms necessary or desirable to administer the
Plan.

     9.7 Designated Fiduciary. For the purposes of the Employee Retirement Security Act of 1974,
if applicable, the Company shall be the named fiduciary and plan administrator under the Agreement.
The named fiduciary may delegate to others certain aspects of the management and operation
responsibilities of the Plan, including the employment of advisors and the delegation of
ministerial duties to qualified individuals.

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     9.8 Compliance with Internal Revenue Code Section 409A. The Company intends that the exercise
of authority or discretion under this Plan shall comply with section 409A of the Internal Revenue
Code of 1986. If when a Participant’s termination of employment occurs the Participant is a
specified employee within the meaning of section 409A of the Internal Revenue Code of 1986 and if
any payments under this Plan will result in additional tax or interest to the Participant because
of section 409A, then despite any contrary provision of this Plan the Participant shall not be
entitled to the payments until the earliest of (x) the date that is at least six months after the
Participant’s employment termination for reasons other than the Participant’s death, (y) the date
of the Participant’s death, or (z) any earlier date that does not result in additional tax or
interest to the Participant under section 409A. As promptly as possible after the end of the
period during which payments are delayed under this provision, the entire amount of the delayed
payments shall be paid to the Participant in a single lump sum. If any provision of this Plan does
not satisfy the requirements of section 409A, such provision shall nevertheless be applied in a
manner consistent with those requirements. If any provision of this Plan would subject the
Participant to additional tax or interest under section 409A, the Company shall reform the
provision. However, the Company shall maintain to the maximum extent practicable the original
intent of the applicable provision without subjecting the Participant to additional tax or
interest, and the Company shall not be required to incur any additional compensation expense as a
result of the reformed provision.

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Amendment to the

Yadkin Valley Bank and Trust Company

2007 Group Term Carve Out Plan

Article 3

Policy Ownership/Interests

     3.1 Participant’s Interest. The Participant or the Participant’s assignee shall have the
right to designate the beneficiary of death proceeds of one or more Policies equal in the aggregate
to the lesser of (x) the net death proceeds, meaning total death proceeds of the Policies minus the
cash surrender value of the Policies, or (y) the applicable amount determined under clauses (a)
through (g) as follows:

(a) 1.0 times Base Annual Salary of the Participant upon execution of the Election
to Participate and Split Dollar Endorsement by the eligible officer.

Upon termination of service:

(a) 2.0 times Base Annual Salary of the Participant if less than one year of service were
completed by the Participant as an eligible officer prior to termination of service.

(b) 2.4 times Base Annual Salary of the Participant if at least one year of service were
completed by the Participant as an eligible officer prior to termination of service.

(c) 2.8 times Base Annual Salary of the Participant if at least two years of service were
completed by the Participant as an eligible officer prior to termination of service.

(d) 3.2 times Base Annual Salary of the Participant if at least three years of
service were completed by the Participant as an eligible officer prior to termination
of service.

(e) 3.6 times Base Annual Salary of the Participant if at least four years of service were
completed by the Participant as an eligible officer prior to termination of service.

(f) 4.0 times Base Annual Salary of the Participant if at least five years of service were
completed by the Participant as an eligible officer prior to termination of service.

     The different amounts of death benefits noted in clauses (a) through (f) are not cumulative;
the Participant’s interest can never exceed 4.0 times Base Annual Salary. Additionally, the
multiple of Base Annual Salary specified in clauses (a) through (f) shall not increase after the
Participant’s employment terminates.

8EX-10.28 Amended and Restated Common Stock Purchas

 

Exhibit 10.28

EXECUTION COPY

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO 180 CONNECT INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

Right to Purchase 450,000 Shares of Common Stock of

180 Connect Inc.

(subject to adjustment as provided herein)

AMENDED AND RESTATED COMMON STOCK PURCHASE WARRANT

      

			
	No. 002
	 	Issue Date: as of July 2, 2007

     180 Connect Inc., a Delaware corporation (“180 Connect”), hereby certifies that, for value
received, CREATIVE VISTAS, INC. or assigns (the “Holder”), is entitled, subject to the terms set
forth below, to purchase from the Company (as defined herein) from and after the Issue Date of this
Warrant and at any time or from time to time before 5:00 p.m., New York time, on July 2, 2012 (the
“Expiration Date”), up to 450,000 fully paid and nonassessable shares of Common Stock (as
hereinafter defined), at the applicable Exercise Price (as defined below) per share. The number
and character of such shares of Common Stock and the applicable Exercise Price per share are
subject to adjustment as provided herein. The Company (as defined herein) will have no obligation
to pay the Holder any cash or other consideration or otherwise “net cash settle” the Warrant.
Accordingly, the Warrant may expire or be redeemed unexercised and may be deprived of any value.

     As used herein the following terms, unless the context otherwise requires, have the following
respective meanings:

     (a) The term “Company” shall include 180 Connect and any corporation which shall
succeed, or assume the obligations of, 180 Connect hereunder.

     (b) The term “Common Stock” includes (i) the issued and outstanding common shares in
the capital of the Company and (ii) any other securities into which or for which any of the
securities described in the preceding clause (i) may be converted or exchanged pursuant to a
plan of recapitalization, reorganization, merger, sale of assets or otherwise.

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     (c) The term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise)
which the Holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or
which at any time shall be issuable or shall have been issued in exchange for or in
replacement of Common Stock or Other Securities pursuant to Section 4 or otherwise.

     (d) The “Exercise Price” applicable under this Warrant shall be a price of US$0.01 per
share.

     (e) The term “Purchase Agreement” means that certain Security and Purchase Agreement
dated as of July 31, 2006 between 180 Connect Inc., Mountain Center, Inc., JJ&V
Communications, Inc., Tumbleweed HS Inc., Piedmont Telecommunications, Inc., 180 Digital
Interiors, Inc., HD Complete, Inc., Ironwood Communications Inc., and Queens Cable
Contractors, Inc. and the Holder, as such may be amended, supplemented, modified or restated
from time to time.

     (f) The term “Exchange Rate” means, in relation to any amount of currency to be
converted into US dollars pursuant to this Warrant, the US dollar exchange rate as published
in the Wall Street Journal from time to time.

     All other defined terms have the meaning attributed to them in the Purchase Agreement.

     All amounts owing under this Warrant, the Purchase Agreement or any related agreement shall be
paid in US dollars. All amounts denominated in other currencies shall be converted in the US
dollar equivalent amount in accordance with the Exchange Rate on the relevant date of calculation.

1. Exercise of Warrant. 

     1.1 Number of Shares Issuable upon Exercise. From and after the date hereof through
and including the Expiration Date, the Holder shall be entitled to receive, upon exercise of this
Warrant in whole or in part, by delivery of an original or fax copy of an exercise notice in the
form attached hereto as Exhibit A (the “Exercise Notice”), shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4.

     1.2 Fair Market Value. For purposes hereof, the “Fair Market Value” of a share of
Common Stock as of a particular date (the “Determination Date”) shall mean:

     (a) If the Company’s Common Stock is traded on a stock exchange, then the volume
weighted average of the closing or last sale price reported for the twenty (20) trading days
immediately preceding the Determination Date.

     (b) If the Company’s Common Stock is not traded on a stock exchange but is quoted on
the NASD OTC Bulletin Board, then the mean of (i) the average of the closing bid price and
(ii) the average of the closing ask price, in each case reported for the twenty (20) trading
days immediately preceding the Determination Date.

     (c) Except as provided in clause (d) below, if the Company’s Common Stock is not
publicly traded, then as the Holder and the Company agree or in the absence of agreement by
arbitration in accordance with the rules then in effect of the American
Arbitration Association before a single arbitrator to be chosen from a panel of persons
qualified by education and training to pass on the matter to be decided.

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     (d) If the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to the Company’s
charter, then all amounts to be payable per share to holders of the Common Stock pursuant to
the charter in the event of such liquidation, dissolution or winding up, plus all other
amounts to be payable per share in respect of the Common Stock in liquidation under the
charter, assuming for the purposes of this clause (d) that all of the shares of Common Stock
then issuable upon exercise of the Warrant are outstanding at the Determination Date.

     1.3 Company Acknowledgment. The Company will, at the time of the exercise of the
Warrant, upon the request of the Holder hereof acknowledge in writing its continuing obligation to
afford to such Holder any rights to which such Holder shall continue to be entitled after such
exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any
such request, such failure shall not affect the continuing obligation of the Company to afford to
such Holder any such rights.

     1.4 Limitation on Sale of Common Stock. Holder shall not on or before July 2, 2008
sell any of the Common Stock issuable upon exercise of this Warrant.

2. Procedure for Exercise.

     2.1 Delivery of Stock Certificates, Etc., on Exercise. The Company agrees that the
shares of Common Stock purchased upon exercise of this Warrant shall be deemed to be issued to the
Holder as the owner of record of such shares as of the close of business on the date on which this
Warrant shall have been surrendered and payment made for such shares in accordance herewith. As
soon as practicable after the exercise of this Warrant in full or in part, and in any event within
three (3) business days thereafter, the Company at its expense (including the payment by it of any
applicable issue taxes) shall instruct its transfer agent for the Common Stock to issue in the name
of and deliver to the Holder, or as such Holder (upon payment by such Holder of any applicable
transfer taxes) may direct in compliance with applicable securities laws, a certificate or
certificates for the number of duly and validly issued, fully paid and non-assessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise bearing
a legend substantially in the form of the legend set forth on the first page of this Warrant, plus,
in lieu of any fractional share to which such Holder would otherwise be entitled, cash equal to
such fraction multiplied by the then Fair Market Value of one full share, together with any other
stock or other securities and property (including cash, where applicable) to which such Holder is
entitled upon such exercise pursuant to Section 1 or otherwise.

     2.2 Exercise. Payment may be made either (i) in cash or by certified or official bank
cheque payable to the order of the Company equal to the applicable aggregate Exercise Price, (ii)
by surrender of all or a portion of this Warrant in accordance with the formula set forth below in
this Section 2.2, or (iii) by a combination of any of the foregoing methods, for the number of
Common Shares specified in such Exercise Notice (as such exercise number shall be adjusted to
reflect any adjustment in the total number of shares of Common Stock issuable to the Holder in
accordance with the terms of this Warrant) and the Holder shall thereupon be entitled to receive

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the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common
Stock (or Other Securities) determined as provided herein. Notwithstanding any provisions herein
to the contrary, if the Fair Market Value of one share of Common Stock is greater than the Exercise
Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash,
the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or
the portion thereof being exercised) by surrender of this Warrant at the principal office of the
Company together with the properly endorsed Exercise Notice in which event the Company shall issue
to the Holder a number of shares of Common Stock computed using the following formula:

	 	 	 	 	 
	X=Y

	 	x
	 	(A-B)
	 

	 	 	 	   A

	 	 	 
	Where X =

	 	the number of shares of Common Stock to be issued to the Holder
	 
	 	 
	Y =

	 	the number of shares of Common Stock purchasable under the Warrant or, if
only a portion of the Warrant is being exercised, the portion of the Warrant being
exercised (at the date of such calculation)
	 
	 	 
	A =

	 	the Fair Market Value of one share of the Company’s Common Stock (at the date
of such calculation)
	 
	 	 
	B =

	 	Exercise Price (as adjusted to the date of such calculation)

3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

     3.1 Reorganization, Consolidation, Merger, Etc. In case at any time or from time to
time, the Company shall (a) effect a reorganization, (b) consolidate with or merge into any other
person, or (c) transfer all or substantially all of its properties or assets to any other person
under any plan or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition to the consummation of such a transaction, proper and adequate provision shall
be made by the Company whereby the Holder of this Warrant, on the exercise hereof as provided in
Section 1 at any time after the consummation of such reorganization, consolidation or merger or the
effective date of such dissolution, as the case may be, the Holder shall receive, in lieu of the
Common Stock (or Other Securities) issuable on such exercise prior to such consummation or such
effective date, the stock and other securities and property (including cash) to which such Holder
would have been entitled upon such consummation or in connection with such dissolution, as the case
may be, if such Holder had so exercised this Warrant, immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

     3.2 Dissolution. In the event of any dissolution of the Company following the
transfer of all or substantially all of its properties or assets, the Company, concurrently with
any distributions made to holders of its Common Stock, shall at its expense deliver or cause to be
delivered to the holder the stock and other securities and property (including cash, where
applicable) receivable by the Holder of the Warrant pursuant to Section 3.1, net of the aggregate
Exercise Price.

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     3.3 Continuation of Terms. Upon any reorganization, consolidation, merger or transfer
(and any dissolution following any transfer) referred to in this Section 3, 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 receivable on 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 of any such
stock or other securities, including, in the case of any such transfer, the person acquiring all or
substantially all of the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4. In the event this Warrant
does not continue in full force and effect after the consummation of the transactions described in
this Section 3, then the Company’s securities and property (including cash, where applicable)
receivable by the Holders of the Warrant will be delivered to the Holder as contemplated by Section
3.2.

4. Extraordinary Events Regarding Common Stock. 

     In the event that the Company shall (a) issue additional shares of the Common Stock as a
dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of
Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of
shares of the Common Stock, then, in each such event, the Exercise Price shall, simultaneously with
the happening of such event, be adjusted by multiplying the then Exercise Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding immediately prior to
such event and the denominator of which shall be the number of shares of Common Stock outstanding
immediately after such event, and the product so obtained shall thereafter be the Exercise Price
then in effect. The Exercise Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this Section 4. The number of
shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof as
provided in Section 1, be entitled to receive shall be adjusted to a number determined by
multiplying the number of shares of Common Stock that would otherwise (but for the provisions of
this Section 4) be issuable on such exercise by a fraction of which (a) the numerator is the
Exercise Price that would otherwise (but for the provisions of this Section 4) be in effect, and
(b) the denominator is the Exercise Price in effect immediately after the adjustment referred to in
the first sentence of this Section 4.

5. Certificate as to Adjustments.

In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities)
issuable on the exercise of the Warrant, the Company at its expense will promptly cause its Chief
Financial Officer or other appropriate designee to compute such adjustment or readjustment in
accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or readjustment is based,
including a statement of (a) stock, securities and other property to be received or received by
holders of Common Stock upon a transaction contemplated by Section 3.1 or a dissolution
contemplated by Section 3.2 in the ratio of subdivision or combination contemplated by Section 4
or the number of shares and Common Stock issued as a dividend or distribution as contemplated by
Section 4, (a) the number of shares of Common Stock (or Other Securities) outstanding or deemed to
be outstanding, and (b) the Exercise Price and the number of shares of Common Stock to be received
upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and
as adjusted or readjusted as provided in this
Warrant. The Company will forthwith mail a copy of each such certificate to the Holder of the
Warrant.

5

 

6. Reservation of Stock, Etc. Issuable on Exercise of Warrant.

The Company is authorized to issue an unlimited number of shares of Common Stock. If after the
Closing Date, the Company amends its articles or certificate of incorporation or similar charter
document to limit the number of shares of Common Stock that the Company is authorized to issue, it
shall at all times reserve and keep available, solely for issuance and delivery on the exercise of
the Warrant, shares of Common Stock (or Other Securities) from time to time issuable on the
exercise of the Warrant.

7. Assignment; Exchange of Warrant.

Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced
hereby, may be transferred by any registered Holder hereof (a “Transferor”) in whole or in part.
On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of
Exhibit B attached hereto (the “Transferor Endorsement Form”), together with evidence reasonably
satisfactory to the Company demonstrating compliance with applicable securities laws (which shall
include, without limitation, the provision of a legal opinion from the Transferor’s counsel
reasonably acceptable to the Company’s counsel that such transfer is exempt from the prospectus and
registration or equivalent requirements of applicable securities laws) and with payment by the
Transferor of any applicable transfer taxes, the Company will issue and deliver to or on the order
of the Transferor thereof a new Warrant of like tenor, in the name of the Transferor and/or the
transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the
aggregate on the face or faces thereof for the number of shares of Common Stock called for on the
face or faces of the Warrant so surrendered by the Transferor. Each new Warrant evidencing this
Warrant so transferred shall bear a legend substantially in the form of the legend set forth on the
first page of this Warrant unless such legend has, by its terms, expired.

8. Replacement of Warrant.

On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant,
on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the
Company or, in the case of any such mutilation, on surrender and cancellation of this Warrant, the
Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

9. Maximum Exercise.

Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to
convert pursuant to the terms of this Warrant an amount that would be convertible into that number
of shares of Common Stock which, when added to the number of shares of Common Stock otherwise
beneficially owned by the Holder including those issuable upon exercise of convertible securities,
warrants or options held by the Holder, would exceed 9.99% of the outstanding shares of Common
Stock of the Company at the time of exercise. For the purposes of the immediately preceding
sentence, beneficial ownership shall be determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Regulation 13d-3
thereunder.

6

 

10. Transfer on the Company’s Books.

Until this Warrant is transferred on the books of the Company, the Company may treat the registered
holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

11. Notices, Etc.

     All notices and other communications from the Company to the Holder of this Warrant shall be
personally delivered, sent by confirmed telex or facsimile or delivered by nationally recognized
overnight courier at such address as may have been furnished to the Company in writing by such
Holder or, until any such Holder furnishes to the Company an address, then to, and at the address
of, the last Holder of this Warrant who has so furnished an address to the Company.

12. Miscellaneous.

     This Warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver,
discharge or termination is sought and, if registered, with the approval of the stock exchange on
which the Common Stock is listed for trading. This Warrant shall be governed by and construed in
accordance with the laws of the State of New York without regard to principles of conflicts of
laws. Any action brought concerning the transactions contemplated by this Warrant may be brought
in the state courts of New York or in the federal courts located in the state of New York. The
individuals executing this Warrant on behalf of the Company agree to submit to the non-exclusive
jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to
recover from the other party its reasonable attorney’s fees and costs. In the event that any
provision of this Warrant is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any
other provision of this Warrant. The headings in this Warrant are for purposes of reference only,
and shall not limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or enforceability of
any other provision hereof. Nothing contained herein shall be deemed or operate to preclude the
Holder from bringing suit or taking other legal action against the Company in any other
jurisdiction to collect on the Company’s obligations to the Holder or to enter a judgment or other
court ruling in favour of the Holder. The Company acknowledges that legal counsel participated in
the preparation of this Warrant and, therefore, stipulates that the rule of construction that
ambiguities are to be resolved against the drafting party shall not be applied in the
interpretation of this Warrant to favour any party against the other party.

7

 

13. Rights of the Holder

     Prior to the exercise of this Warrant, the Holder shall not, by virtue hereof, be entitled to
any rights of a shareholder of the Company, including, without limitation, the right to vote, to
receive dividends or other distributions or to receive any notice of meeting of shareholders
or any notice of any proceedings of the Company except as may be specifically provided for herein.

14. Amendment and Restatement

     This Amended and Restated Common Stock Purchase Warrant amends and restates in its entirety,
and is given in substitution for and not in satisfaction of, that certain Common Stock Purchase
Warrant No. 002, dated July 2, 2007 issued by the Company in favor of Laurus Master Fund, Ltd.

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOLLOWS.]

8

 

     IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

	 	 	 	 	 
	 	180 Connect Inc., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Common Stock Purchase Warrant Signature Page

9

 

EXHIBIT A

FORM OF SUBSCRIPTION

(To Be Signed Only On Exercise Of Warrant)

TO:     180 Connect Inc.

           Attention:     Chief Financial Officer

          The undersigned, pursuant to the provisions set forth in the attached Warrant (No.___),
hereby irrevocably elects to purchase (check applicable box):

	 	 	 
	_________

	 	_________shares of the Common Stock covered by such Warrant; or
	 
	 	 
	_________

	 	the maximum number of shares of Common Stock covered by such Warrant pursuant
to the cashless exercise procedure set forth in Section 2.

     The undersigned herewith makes payment of the full Exercise Price for such shares at the price
per share provided for in such Warrant, which is US$______. Such payment takes the form of
(check applicable box or boxes):

	 	 	 
	_________

	 	US$______in lawful money of the United States; and/or
	 
	 	 
	_________

	 	the cancellation of such portion of the attached Warrant as is exercisable for
a total of _________shares of Common Stock (using a Fair Market Value of
US$  per share for purposes of this calculation); and/or
	 
	 	 
	_________

	 	the cancellation of such number of shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2.2, to exercise this Warrant
with respect to the maximum number of shares of Common Stock purchasable
pursuant to the cashless exercise procedure set forth in Section 2.

     The undersigned requests that the certificates for such shares be issued in the name of, and
delivered to _________whose address is _________.

     The undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable upon exercise of the within Warrant shall be made in reliance upon available
exemptions from the prospectus and registration or equivalent requirements of applicable securities
legislation.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Signature must conform to name of Holder as specified on the face of the Warrant)
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

A-1

 

EXHIBIT B

FORM OF TRANSFEROR ENDORSEMENT

(To Be Signed Only On Transfer Of Warrant)

     For value received, the undersigned hereby sells, assigns, and transfers unto the person(s)
named below under the heading “Transferees” the right represented by the within Warrant to purchase
the percentage and number of shares of Common Stock of 180 Connect Inc. into which the within
Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to
transfer its respective right on the books of 180 Connect Inc. with full power of substitution in
the premises.

	 	 	 	 	 	 	 
	 	 	 	 	Percentage	 	Number
	Transferees	 	Address	 	Transferred	 	Transferred
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Signature must conform to name of Holder as specified on the face of the Warrant)
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	SIGNED IN THE PRESENCE OF:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 
	 	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 	 	 
	[TRANSFEREE]	 	 	 	 
	 
	 	 	 	 	 	 
	 

(Name)
	 	 	 	 

B-1

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