Document:

exv10w1

 

EXHIBIT 10.1

DIRECTOR COMPENSATION

On April 20, 2006, Inter-Tel, Incorporated revised its director compensation to add
compensation policies for the advisory committee to the Board of Directors. Inter-Tel’s complete
director compensation schedule is set forth below as so revised:

	 	 	 	 	 
	Description	 	Compensation
	Each regularly scheduled Board of Directors meeting attended
	 	$	2,000	 
	Quarterly stipend for non-chairman committee members
	 	 	6,000	 
	Quarterly stipend for compensation committee chairman
	 	 	6,500	 
	Quarterly stipend for governance and nominating committee chairman
	 	 	6,500	 
	Quarterly stipend for non-employee chairman of the board of directors
	 	 	10,500	 
	Quarterly stipend for audit committee chairman
	 	 	10,500	 
	Each regularly scheduled compensation committee meeting attended
	 	 	1,500	 
	Each regularly scheduled governance and nominating committee meeting attended
	 	 	1,500	 
	Each regularly scheduled audit committee meeting attended
	 	 	2,000	 
	Each regularly scheduled advisory committee meeting attended
	 	 	1,500	 
	Each special meeting of the Board or committee of the Board, including
unanimous written consents in lieu of board meetings
	 	 	2,000	 
	Each special meeting of the advisory committee
	 	 	1,500	 
	Expenses of attending Board and Committee meetings
	 	As incurred
	The Company also allows each director to elect to participate in the health
benefit plans each year. Directors are offered participation in the same
plans offered to employees, subject to payment by each electing director at
employee participant rates, plus all applicable co-pays and/or deductibles.
	 	
Participation offered in Company plans
	Director continuing education expenses.
	 	
50% of eligible tuition plus expenses
	Annual stock option grants to purchase shares of Common Stock, pursuant to
the Company’s Director Stock Option Plan (as amended), at the
closing market price
five (5) business days after the Company’s annual meeting
of shareholders
	 	 	7,500	 

-5-Exhibit 4.1

    

     

    NEITHER
      THESE WARRANTS NOR THE COMMON STOCK ISSUABLE UPON EXERCISE OF THESE WARRANTS
      HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
      OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR
      TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH
      SECURITIES UNDER THE ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS
      AVAILABLE.

     

    
 

     

    
      	 5,000,000 Warrants 	
                April
                24, 2006

            

    

     

    

    CKRUSH,
      INC.

    

    WARRANTS

    

    

    

    Ckrush,
      Inc., a Delaware corporation (“CKRH”),
      certifies that, for value received, Trilogy Capital Partners, Inc.
      (“Trilogy”),
      or
      registered assigns (the “Holder”),
      is
      the owner of Five Million (5,000,000) Warrants of CKRH (the “Warrants”).
      Each
      Warrant entitles the Holder to purchase from CKRH at any time prior to the
      Expiration Date (as defined below) one share of the common stock of CKRH (the
      “Common
      Stock”)
      for
      $0.15 per share (the “Exercise
      Price”),
      on
      the terms and conditions hereinafter provided. The Exercise Price and the number
      of shares of Common Stock purchasable upon exercise of each Warrant are subject
      to adjustment as provided in this Certificate. 

     

    1.  Vesting;
      Expiration Date; Exercise

     

    1.1  
      Vesting.
      The Warrants shall vest and become exercisable as of the date of this
      Certificate.

     

    1.2  Expiration
      Date. The Warrants shall expire on April 23, 2009 (the “Expiration
      Date”).

     

    1.3  Manner
      of
      Exercise. The Warrants are exercisable by delivery to CKRH of the following
      (the
“Exercise
      Documents”):
      (a)
      this Certificate; (b) a written notice of election to exercise the Warrants;
      and
      (c) payment of the Exercise Price in cash, by check or by “net” exercise as
      contemplated by Section 1.4 of this Certificate. Within three business days
      following receipt of the foregoing, CKRH shall execute and deliver to the
      Holder: (a) a certificate or certificates representing the aggregate number
      of
      shares of Common Stock purchased by the Holder, and (b) if less than all of
      the
      Warrants evidenced by this Certificate are exercised, a new certificate
      evidencing the Warrants not so exercised.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.4  Net
      Exercise. In lieu of the payment methods set forth in Section 1.3 above, the
      Holder may elect to exchange all or some of the Warrant for the number of shares
      of Common Stock computed using the following formula:

     

    

     

    X
      =
Y
      (A-B)

                A

     

    Where
      X =
      the number of shares of Common Stock to be issued to Holder.

     

    Y
      = the
      number of shares of Common Stock purchasable under the Warrants being exchanged
      (as adjusted to the date of such calculation).

     

    A
      = the
      Market Price on the date of receipt by CKRH of the exercise
      documents.

     

    B
      = the
      Exercise Price of the Warrants being exchanged (as adjusted in accordance with
      the terms of Section 2 hereof).

     

    The
      “Market
      Price”
on
      any
      date shall be deemed to be average of the Daily Market Prices for the five
      trading days immediately preceding such date. The “Daily Market Price” on any
      trading day shall be the last reported sale price of the Common Stock on such
      day, or, in the case no such reported sales take place on such day, the last
      reported sale price on the preceding trading day on which there was a last
      reported sales price, as officially reported by the principal securities
      exchange in which the shares of Common Stock are listed or admitted to trading
      or by the Nasdaq Stock Market, or if the Common Stock is not listed or admitted
      to trading on any national securities exchange or the Nasdaq Stock Market,
      the
      last sale price, or if there is no last sale price, the closing bid price,
      as
      furnished by the National Association of Securities Dealers, Inc. (such as
      through the OTC Bulletin Board) or a similar organization or if Nasdaq is no
      longer reporting such information. If the Market Price cannot be determined
      pursuant to the sentence above, the Market Price shall be determined in good
      faith (using customary valuation methods) by the Board of Directors of CKRH
      based on the information best available to it, including recent arms-length
      sales of Common Stock to unaffiliated persons.

     

    1.5  Warrant
      Exercise Limitation. Notwithstanding any other provision of this Agreement,
      if
      as of the date of exercise CKRH has a class of securities registered under
      Section 12 of the Securities Exchange Act of 1934, as amended, Holder may not
      exercise Warrants under this Section 1 to the extent that immediately following
      such exercise Holder would beneficially own 5% or more of the outstanding Common
      Stock of CKRH. For this purpose, a representation of the Holder that following
      such exercise it would not beneficially own 5% or more of the outstanding Common
      Stock of CKRH shall be conclusive and binding upon CKRH.

     

    1.6 Restriction
      on “Net” Exercise. Notwithstanding any other provision of this Certificate,
      Holder shall not be permitted to effect a “net” exercise of the Warrants: (a)
      prior to one year from the date hereof and (b) after one year from the date
      hereof if on the date of exercise the resale of the underlying shares by Holder
      has been registered under the Securities Act of 1933, as amended, pursuant
      to a
      registration statement which is then in effect, and on such date the Holder
      shall be permitted to resell such shares pursuant to such registration
      statement, and the Common Stock shall be listed or quoted for trading on the
      OTC
      Bulletin Board, the Nasdaq Stock Market or an exchange or quotation
      system.

     

     

    
      
        
        

      

      
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    2.  Adjustments
      of Exercise Price and Number and Kind of Conversion Shares

     

    2.1  In
      the
      event that CKRH shall at any time hereafter (a) pay a dividend in Common Stock
      or securities convertible into Common Stock; (b) subdivide or split its
      outstanding Common Stock; (c) combine its outstanding Common Stock into a
      smaller number of shares; then the number of shares to be issued immediately
      after the occurrence of any such event shall be adjusted so that the Holder
      thereafter may receive the number of shares of Common Stock it would have owned
      immediately following such action if it had exercised the Warrants immediately
      prior to such action and the Exercise Price shall be adjusted to reflect such
      proportionate increases or decreases in the number of shares.

     

    2.2  In
      case
      of any reclassification of the outstanding shares of Common Stock (other than
      a
      change covered by Section 2.1 hereof or a change which solely affects the par
      value of such shares) or in the case of any merger or consolidation or merger
      in
      which CKRH is not the continuing corporation and which results in any
      reclassification or capital reorganization of the outstanding shares), the
      Holder shall have the right thereafter (until the Expiration Date) to receive
      upon the exercise hereof, for the same aggregate Exercise Price payable
      hereunder immediately prior to such event, the kind and amount of shares of
      stock or other securities or property receivable upon such reclassification,
      capital reorganization, merger or consolidation, by a Holder of the number
      of
      shares of Common Stock obtainable upon the exercise of the Warrants immediately
      prior to such event; and if any reclassification also results in a change in
      shares covered by Section 2.1, then such adjustment shall be made pursuant
      to
      both this Section 2.2 and Section 2.1 (without duplication). The provisions
      of
      this Section 2.2 shall similarly apply to successive reclassifications, capital
      reorganizations and mergers or consolidations, sales or other
      transfers.

     

    3.  Reservation
      of Shares. CKRH
      shall at all times reserve and keep available out of its authorized but unissued
      shares of Common Stock, such number of shares of Common Stock as shall from
      time
      to time be issuable upon exercise of the Warrants. If at any time the number
      of
      authorized but unissued shares of Common Stock shall not be sufficient to permit
      the exercise of the Warrants, CKRH shall promptly seek such corporate action
      as
      may necessary to increase its authorized but unissued shares of Common Stock
      to
      such number of shares as shall be sufficient for such purpose.

     

    4.  Certificate
      as to Adjustments. In
      each
      case of any adjustment in the Exercise Price, or number or type of shares
      issuable upon exercise of these Warrants, the Chief Financial Officer of CKRH
      shall compute such adjustment in accordance with the terms of these Warrants
      and
      prepare a certificate setting forth such adjustment and showing in detail the
      facts upon which such adjustment is based, including a statement of the adjusted
      Exercise Price. CKRH shall promptly send (by facsimile and by either first
      class
      mail, postage prepaid or overnight delivery) a copy of each such certificate
      to
      the Holder.

     

     

    
      
        
        

      

      
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    5.  Loss
      or Mutilation. Upon
      receipt of evidence reasonably satisfactory to CKRH of the ownership of and
      the
      loss, theft, destruction or mutilation of this Certificate, and of indemnity
      reasonably satisfactory to it, and (in the case of mutilation) upon surrender
      and cancellation of these Warrants, CKRH will execute and deliver in lieu
      thereof a new Certificate of like tenor as the lost, stolen, destroyed or
      mutilated Certificate.

     

    6.  Representations
      and Warranties of CKRH. CKRH
      hereby represents and warrants to Holder that:

     

    6.1  Due
      Authorization.
      All
      corporate action on the part of CKRH, its officers, directors and shareholders
      necessary for (a) the authorization, execution and delivery of, and the
      performance of all obligations of CKRH under, these Warrants, and (b) the
      authorization, issuance, reservation for issuance and delivery of all of the
      Common Stock issuable upon exercise of these Warrants, has been duly taken.
      These Warrants constitute a valid and binding obligation of CKRH enforceable
      in
      accordance with their terms, subject, as to enforcement of remedies, to
      applicable bankruptcy, insolvency, moratorium, reorganization and similar laws
      affecting creditors’ rights generally and to general equitable
      principles.

     

    6.2  Organization.
      CKRH is a corporation duly organized, validly existing and in good standing
      under the laws of the State referenced in the first paragraph of this
      Certificate and has all requisite corporate power to own, lease and operate
      its
      property and to carry on its business as now being conducted and as currently
      proposed to be conducted.

     

    6.3  Valid
      Issuance of Stock. Any shares of Common Stock issued upon exercise of these
      Warrants will be duly and validly issued, fully paid and
      non-assessable.

     

    6.4  Governmental
      Consents. All consents, approvals, orders, authorizations or registrations,
      qualifications, declarations or filings with any federal or state governmental
      authority on the part of CKRH required in connection with the consummation
      of
      the transactions contemplated herein have been obtained.

     

    7.  Representations
      and Warranties of Trilogy.
      Trilogy
      hereby represents and warrants to CKRH that:

     

    7.1  Trilogy
      is acquiring the Warrants for its own account, for investment purposes
      only.

     

    7.2  Trilogy
      understands that an investment in the Warrants involves a high degree of risk,
      and Trilogy has the financial ability to bear the economic risk of this
      investment in the Warrants, including a complete loss of such investment.
      Trilogy has adequate means for providing for its current financial needs and
      has
      no need for liquidity with respect to this investment.

     

    7.3  Trilogy
      has such knowledge and experience in financial and business matters that it
      is
      capable of evaluating the merits and risks of an investment in the Warrants
      and
      in protecting its own interest in connection with this transaction.

     

    7.4  Trilogy
      understands that the Warrants have not been registered under the Securities
      Act
      of 1933, as amended (the “Securities
      Act”)
      or
      under any state securities laws. Trilogy is familiar with the provisions of
      the
      Securities Act and Rule 144 thereunder and understands that the restrictions
      on
      transfer on the Warrants may result in Trilogy being required to hold the
      Warrants for an indefinite period of time.

     

     

    
      
        
        

      

      
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    7.5  Trilogy
      agrees not to sell, transfer, assign, gift, create a security interest in,
      or
      otherwise dispose of, with or without consideration (collectively, “Transfer”)
      any of
      the Warrants except pursuant to an effective registration statement under the
      Securities Act or an exemption from registration. As a further condition to
      any
      such Transfer, except in the event that such Transfer is made pursuant to an
      effective registration statement under the Securities Act, if in the reasonable
      opinion of counsel to CKRH any Transfer of the Warrants by the contemplated
      transferee thereof would not be exempt from the registration and prospectus
      delivery requirements of the Securities Act, CKRH may require the contemplated
      transferee to furnish CKRH with an investment letter setting forth such
      information and agreements as may be reasonably requested by CKRH to ensure
      compliance by such transferee with the Securities Act.

     

    7.6  Trilogy
      is an “accredited investor” as such term is defined under Regulation D under the
      Securities Act. 

     

    8.  Notices
      of Record Date

     

    In
      the
      event:

     

    8.1  CKRH
      shall take a record of the holders of its Common Stock (or other stock or
      securities at the time receivable upon the exercise of these Warrants), for
      the
      purpose of entitling them to receive any dividend or other distribution, or
      any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities or to receive any other right; or

     

    8.2  of
      any
      consolidation or merger of CKRH with or into another corporation, any capital
      reorganization of CKRH, any reclassification of the capital stock of CKRH,
      or
      any conveyance of all or substantially all of the assets of CKRH to another
      corporation in which holders of CKRH’s stock are to receive stock, securities or
      property of another corporation; or

     

    8.3  of
      any
      voluntary dissolution, liquidation or winding-up of CKRH; or

     

    8.4  of
      any
      redemption or conversion of all outstanding Common Stock;

     

    then,
      and
      in each such case, CKRH will mail or cause to be mailed to the Holder a notice
      specifying, as the case may be, (a) the date on which a record is to be taken
      for the purpose of such dividend, distribution or right, or (b) the date on
      which such reorganization, reclassification, consolidation, merger, conveyance,
      dissolution, liquidation, winding-up, redemption or conversion is to take place,
      and the time, if any is to be fixed, as of which the holders of record of Common
      Stock (or such stock or securities as at the time are receivable upon the
      exercise of these Warrants), shall be entitled to exchange their shares of
      Common Stock (or such other stock or securities), for securities or other
      property deliverable upon such reorganization, reclassification, consolidation,
      merger, conveyance, dissolution, liquidation or winding-up. CKRH shall use
      all
      reasonable efforts to ensure such notice shall be delivered at least 15 days
      prior to the date therein specified. 

     

     

    
      
        
        

      

      
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    9.  Registration
      Rights.
      

     

    9.1  Definitions.
      For
      purposes of this Section 9, the following terms shall have the meanings set
      forth below:

     

    9.1.1  A
      “Blackout
      Event”
means
      any of the following: (a) the possession by CKRH of material information that
      is
      not ripe for disclosure in a registration statement or prospectus, as determined
      reasonably and in good faith by the Chief Executive Officer or the Board of
      Directors of CKRH or that disclosure of such information in the Registration
      Statement or the prospectus constituting a part thereof would be materially
      detrimental to the business and affairs of CKRH; or (b) any material engagement
      or activity by CKRH which would, in the reasonable and good faith determination
      of the Chief Executive Officer or the Board of Directors of CKRH, be materially
      adversely affected by disclosure in a registration statement or prospectus
      at
      such time. 

     

    9.1.2  “Exchange
      Act”
shall
      mean the Securities Exchange Act of 1934, as amended.

     

    9.1.3  “Included
      Shares”
shall
      mean any Registrable Shares included in a Registration.

     

    9.1.4  “Registrable
      Shares”
shall
      mean the shares of Common Stock (or such stock or securities as at the time
      are
      receivable upon the exercise of these Warrants) issuable upon exercise of the
      Warrants and any other warrants and or other securities issued to Trilogy in
      connection with performing investor relations services for CKRH, and shares
      or
      securities issued as a result of stock split, stock dividend or reclassification
      of such shares.

     

    9.1.5  “Registration”
shall
      mean a registration of securities under the Securities Act pursuant to Section
      9.2 or 9.3 of this Agreement. 

     

    9.1.6  “Registration
      Period”
with
      respect to any Registration Statement the period commencing the effective date
      of the Registration Statement and ending upon withdrawal or termination of
      the
      Registration Statement.

     

    9.1.7  “Registration
      Statement”
shall
      mean the registration statement, as amended from time to time, filed with the
      SEC in connection with a Registration. 

     

    9.1.8  “SEC”
shall
      mean the Securities and Exchange Commission.

     

    9.2  
      Demand
      Registration. No later than June
      8,
      2006, CKRH shall prepare and file with the SEC a Registration Statement for
      the
      purpose of registering the sale of the Registrable Shares under the Securities
      Act, and shall use its commercially reasonable efforts to cause the Registration
      Statement to become effective within 60 days of the date of filing. Once
      effective, CKRH shall prepare and file with the SEC such amendments and
      supplements to the Registration Statement and the prospectus forming a part
      thereof as may be necessary to keep the Registration Statement effective until
      the earliest date on which (a) all the Included Shares have been disposed of
      pursuant to the Registration Statement, or (b) all of the Included Shares then
      held by Holder may be sold under the provisions of Rule 144 without limitation
      as to volume, whether pursuant to Rule 144(k) or otherwise. 

     

    
      
        
        

      

      
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    9.3  
      Piggyback Registration. Unless the Registrable Shares are then included in
      a
      Registration Statement or can be sold under the provisions of Rule 144 without
      limitation as to volume, whether pursuant to Rule 144(k) or otherwise, if CKRH
      shall determine to register any Common Stock under the Securities Act for sale
      in connection with a public offering of Common Stock (other than pursuant to
      an
      employee benefit plan or a merger, acquisition or similar transaction), CKRH
      will give written notice thereof to Holder and will include in such Registration
      Statement any of the Registrable Shares which Holder may request be included
      (“Included
      Shares”)
      by a
      writing delivered to CKRH within 15 days after the notice given by CKRH to
      Holder; provided, however, that if the offering is to be firmly underwritten,
      and the representative of the underwriters of the offering refuse in writing
      to
      include in the offering all of the shares of Common Stock requested by CKRH
      and
      others, the shares to be included shall be allocated first to CKRH and any
      shareholder who initiated such Registration and then among the others based
      on
      the respective number of shares of Common Stock held by such persons. If CKRH
      decides not to, and does not, file a Registration Statement with respect to
      such
      Registration, or after filing determines to withdraw the same before the
      effective date thereof, CKRH will promptly so inform Holder, and CKRH will
      not
      be obligated to complete the registration of the Included Shares included
      therein. 

     

    9.4  
      Certain
      Covenants. In connection with any Registration: 

     

    9.4.1  CKRH
      shall take all lawful action such that the Registration Statement, any amendment
      thereto and the prospectus forming a part thereof does not 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. Upon becoming aware
      of
      the occurrence of any event or the discovery of any facts during the
      Registration Period that make any statement of a material fact made in the
      Registration Statement or the related prospectus untrue in any material respect
      or which material fact is omitted from the Registration Statement or related
      prospectus that requires the making of any changes in the Registration Statement
      or related prospectus so that it will not contain any untrue statement of a
      material fact or omit to state a material fact necessary to make the statements
      therein, in light of the circumstances under which they are made, not misleading
      (taking into account any prior amendments or supplements), CKRH shall promptly
      notify Holder, and, subject to the provisions of Section 9.5, as soon as
      reasonably practicable prepare (but, subject to Section 9.5, in no event more
      than five business days in the case of a supplement or seven business days
      in
      the case of a post-effective amendment) and file with the SEC a supplement
      or
      post-effective amendment to the Registration Statement or the related prospectus
      or file any other required document so that, as thereafter delivered to a
      purchaser of Shares from Holder, such prospectus will not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make
      the statements therein, in light of the circumstances under which they were
      made, not misleading.

     

    9.4.2  At
      least
      three business days prior to the filing with the SEC of the Registration
      Statement (or any amendment thereto) or the prospectus forming a part thereof
      (or any supplement thereto), CKRH shall provide draft copies thereof to Holder
      and shall consider incorporating into such documents such comments as Holder
      (and its counsel) may propose to be incorporated therein. Notwithstanding the
      foregoing, no prospectus supplement, the form of which has previously been
      provided to Holder, need be delivered in draft form to Holder.

     

     

    
      
        
        

      

      
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    9.4.3  CKRH
      shall promptly notify Holder upon the occurrence of any of the following events
      in respect of the Registration Statement or the prospectus forming a part
      thereof: (a) the receipt of any request for additional information from the
      SEC
      or any other federal or state governmental authority, the response to which
      would require any amendments or supplements to the Registration Statement or
      related prospectus; (b) the issuance by the SEC or any other federal or state
      governmental authority of any stop order suspending the effectiveness of the
      Registration Statement or the initiation of any proceedings for that purpose;
      or
      (c) the receipt of any notification with respect to the suspension of the
      qualification or exemption from qualification of any of the Shares for sale
      in
      any jurisdiction or the initiation or threatening of any proceeding for such
      purpose.

     

    9.4.4  CKRH
      shall furnish to Holder with respect to the Included Shares registered under
      the
      Registration Statement (and to each underwriter, if any, of such Shares) such
      number of copies of prospectuses and such other documents as Holder may
      reasonably request, in order to facilitate the public sale or other disposition
      of all or any of the Included Shares by Holder pursuant to the Registration
      Statement.

     

    9.4.5  In
      connection with any registration pursuant to Section 9.2, CKRH shall file or
      cause to be filed such documents as are required to be filed by CKRH for normal
      Blue Sky clearance in states specified in writing by Holder; provided,
      however,
      that
      CKRH shall not be required to qualify to do business or consent to service
      of
      process in any jurisdiction in which it is not now so qualified or has not
      so
      consented.

     

    9.4.6  CKRH
      shall bear and pay all expenses incurred by it and Holder (other than
      underwriting discounts, brokerage fees and commissions and fees and expenses
      of
      more than one law firm) in connection with the registration of the Shares
      pursuant to the Registration Statement. 

     

    9.4.7  CKRH
      shall require each legal opinion and accountant’s “cold comfort” letter in
      connection with the Registration, if any, to be rendered to Holder as well
      as
      CKRH and/or its Board of Directors. 

     

    9.4.8  As
      a
      condition to including Registrable Shares in a Registration Statement, Holder
      must provide to CKRH such information regarding itself, the Registrable Shares
      held by it and the intended method of distribution of such Shares as shall
      be
      required to effect the registration of the Registrable Shares and, if the
      offering is being underwritten, Holder must provide such powers of attorney,
      indemnities and other documents as may be reasonably requested by the managing
      underwriter.

     

    9.4.9  Following
      the effectiveness of the Registration Statement, upon receipt from CKRH of
      a
      notice that the Registration Statement contains an untrue statement of material
      fact or omits to state any material fact required to be stated therein or
      necessary to make the statements therein not misleading in light of the
      circumstances under which they were made, Holder will immediately discontinue
      disposition of Included Shares pursuant to the Registration Statement until
      CKRH
      notifies Holder that it may resume sales of Included Shares and, if necessary,
      provides to Holder copies of the supplemental or amended prospectus.

     

    9.5  
      Blackout
      Event. CKRH shall not be obligated to file a post-effective amendment or
      supplement to the Registration Statement or the prospectus constituting a part
      thereof during the continuance of a Blackout Event; provided, however, that
      no
      Blackout Event may be deemed to exist for more than 60 days. Without the express
      written consent of Holder, if required to permit the continued sale of Shares
      by
      Holder, a post-effective amendment or supplement to Registration Statement
      or
      the prospectus constituting a part thereof must be filed no later than the
      61st
      day
      following commencement of a Blackout Event.

     

     

    
      
        
        

      

      
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    9.6  
      Rule
      144. With a view to making available to Holder the benefits of Rule 144, CKRH
      agrees, until such time as Holder can sell all remaining Registrable Shares
      under the provisions Rule 144(k), to:

     

    9.6.1.1  comply
      with the provisions of paragraph (c)(1) of Rule 144; and

     

    9.6.1.2  file
      with
      the SEC in a timely manner all reports and other documents required to be filed
      by CKRH pursuant to Section 13 or 15(d) under the Exchange Act; and, if at
      any
      time it is not required to file such reports but in the past had been required
      to or did file such reports, it will, upon the request of a Purchaser, make
      available other information as required by, and so long as necessary to permit
      sales of its Shares pursuant to, Rule 144.

     

    9.7  
      CKRH
      Indemnification. CKRH agrees to indemnify and hold harmless Holder, and its
      officers, directors and agents (including
      broker or underwriter selling Included Shares for Holder),
      and each
      person, if any, who controls Holder within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act from and against any and all
      losses, claims, damages and liabilities caused by (a) any violation or alleged
      violation by CKRH of the Securities Act, Exchange Act, any state securities
      laws
      or any rule or regulation promulgated under the Securities Act, Exchange Act
      or
      any state securities laws, (b) any untrue statement or alleged untrue statement
      of a material fact contained in any registration statement or prospectus
      relating to the Included Shares (as amended or supplemented if CKRH shall have
      furnished any amendments or supplements thereto) or any preliminary prospectus,
      or (c) caused by any omission or alleged omission to state therein a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading in light of the circumstances under which they were made, except
      insofar as such losses, claims, damages or liabilities are caused by any such
      untrue statement or omission or alleged untrue statement or omission based
      upon
      information furnished in writing to CKRH by Holder or on Holder’s behalf
      expressly for use therein.

     

    9.8  
      Holder
      Indemnification. Holder agrees to indemnify and hold harmless CKRH, its
      officers, directors and agents and each person, if any, who controls CKRH within
      the meaning of either Section 15 of the Securities Act or Section 20 of the
      Exchange Act to the same extent as the foregoing indemnity from CKRH to Holder,
      but only with respect to information furnished in writing by Holder or on
      Holder’s behalf expressly for use in any registration statement or prospectus
      relating to the Registrable Shares, or any amendment or supplement thereto,
      or
      any preliminary prospectus. 

     

    9.9  
      Indemnification Procedures. In case any proceeding (including any governmental
      investigation) shall be instituted involving any person in respect of which
      indemnity may be sought pursuant to this Section 9, such person (an
“Indemnified
      Party”)
      shall
      promptly notify the person against whom such indemnity may be sought (the
“Indemnifying
      Party”)
      in
      writing and the Indemnifying Party shall assume the defense thereof, including
      the employment of counsel reasonably satisfactory to such Indemnified Party,
      and
      shall assume the payment of all fees and expenses; provided that the failure
      of
      any Indemnified Party so to notify the Indemnifying Party shall not relieve
      the
      Indemnifying Party of its obligations hereunder except to the extent (and only
      to the extent that) that the Indemnifying Party is materially prejudiced by
      such
      failure to notify. In any such proceeding, any Indemnified Party shall have
      the
      right to retain its own counsel, but the fees and expenses of such counsel
      shall
      be at the expense of such Indemnified Party unless (a) the Indemnifying Party
      and the Indemnified Party shall have mutually agreed to the retention of such
      counsel or (b) in the reasonable judgment of such Indemnified Party
      representation of both parties by the same counsel would be inappropriate due
      to
      actual or potential differing interests between them. It is understood that
      the
      Indemnifying Party shall not, in connection with any proceeding or related
      proceedings in the same jurisdiction, be liable for the reasonable fees and
      expenses of more than one separate firm of attorneys (in addition to any local
      counsel) at any time for all such Indemnified Parties (including in the case
      of
      Holder, all of its officers, directors and controlling persons) and that all
      such fees and expenses shall be reimbursed as they are incurred. In the case
      of
      any such separate firm for the Indemnified Parties, the Indemnified Parties
      shall designate such firm in writing to the Indemnifying Party. The Indemnifying
      Party shall not be liable for any settlement of any proceeding effected without
      its written consent (which consent shall not be unreasonably withheld or
      delayed), but if settled with such consent, or if there be a final judgment
      for
      the plaintiff, the Indemnifying Party shall indemnify and hold harmless such
      Indemnified Parties from and against any loss or liability (to the extent stated
      above) by reason of such settlement or judgment. No Indemnifying Party shall,
      without the prior written consent of the Indemnified Party, effect any
      settlement of any pending or threatened proceeding in respect of which any
      Indemnified Party is or could have been a party and indemnity could have been
      sought hereunder by such Indemnified Party, unless such settlement includes
      an
      unconditional release of such Indemnified Party from all liability arising
      out
      of such proceeding.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    9.10  Contribution.
      To the extent any indemnification by an Indemnifying Party is prohibited or
      limited by law, the Indemnifying Party agrees to make the maximum contribution
      with respect to any amounts for which, he, she or it would otherwise be liable
      under this Section 9 to the fullest extent permitted by law; provided, however,
      that (a) no contribution shall be made under circumstances where a party would
      not have been liable for indemnification under this Section 9 and (b) no seller
      of Registrable Securities guilty of fraudulent misrepresentation (within the
      meaning used in the Securities Act) shall be entitled to contribution from
      any
      party who was not guilty of such fraudulent misrepresentation.

     

    10.  Nontransferability.
      Trilogy
      may not sell or transfer any Warrants to any person other than a director,
      officer, employee, manager or affiliate of Trilogy (or a person controlled
      by
      one or more directors, officers, employees, managers or affiliates of Trilogy)
      or
      to a
      person or entity that assists Trilogy in providing services to CKRH pursuant
      to
      the Letter of Engagement dated April 24, 2006 as the same may be amended from
      time to time, without
      the consent
      of CKRH.

     

    11.  Severability.
      If
      any
      term, provision, covenant or restriction of these Warrants is held by a court
      of
      competent jurisdiction to be invalid, void or unenforceable, the remainder
      of
      the terms, provisions, covenants and restrictions of these Warrants shall remain
      in full force and effect and shall in no way be affected, impaired or
      invalidated.

     

    12.  Notices.
      All
      notices, requests, consents and other communications required hereunder shall
      be
      in writing and shall be effective when delivered or, if delivered by registered
      or certified mail, postage prepaid, return receipt requested, shall be effective
      on the third day following deposit in United States mail: to the Holder, at
      Trilogy Capital Partners, Inc., 11726 San Vicente Boulevard, Suite 235, Los
      Angeles, CA 90049; and if addressed to CKRH, at Ckrush, Inc., 1414 Avenue of
      the
      Americas, Suite 406, New York, NY 10019, or such other address as Holder or
      CKRH
      may designate in writing.

     

    13.  No
      Rights as Shareholder. The
      Holder shall have no rights as a shareholder of CKRH with respect to the shares
      issuable upon exercise of the Warrants until the receipt by CKRH of all of
      the
      Exercise Documents. 

     

    CKRUSH,
      INC.

    
 

    By:___________________________________________        

    Its:
      ___________________________________________

     

    

    

 

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “A”

     

    NOTICE
      OF EXERCISE

     

    (To
      be signed only upon exercise of the Warrants)

     

    

     

    To: Ckrush,
      Inc.

     

    The
      undersigned hereby elects to purchase shares of Common Stock (the “Warrant
      Shares”)
      of
      Ckrush,
      Inc.
      (“CKRH”),
      pursuant to the terms of the enclosed warrant certificate (the “Certificate”).
      The
      undersigned tenders herewith payment of the exercise price pursuant to the
      terms
      of the Certificate. 

     

    The
      undersigned hereby represents and warrants to, and agrees with, CKRH as follows:
      

     

    1.  The
      undersigned is acquiring the Warrant Shares for its own account, for investment
      purposes only and not with a view to distribution in violation of the Securities
      Act of 1933, as amended (the “Securities
      Act”).

     

    2.  The
      undersigned understands that an investment in the Warrant Shares involves a
      high
      degree of risk, and the undersigned has the financial ability to bear the
      economic risk of this investment in the Warrant Shares, including a complete
      loss of such investment. The undersigned has adequate means for providing for
      its current financial needs and has no need for liquidity with respect to this
      investment.

     

    3.  The
      undersigned has such knowledge and experience in financial and business matters
      that it is capable of evaluating the merits and risks of an investment in the
      Warrant Shares and in protecting its own interest in connection with this
      transaction.

     

    4.  The
      undersigned understands that the issuance of the Warrant Shares to the
      undersigned has not been registered under the Securities Act or under any state
      securities laws. The undersigned is familiar with the provisions of the
      Securities Act and Rule 144 thereunder and understands that the restrictions
      on
      transfer on the Warrant Shares may result in the undersigned being required
      to
      hold the Warrant Shares for an indefinite period of time unless the transfer
      by
      the undersigned is registered under the Securities Act.

     

    5.  The
      undersigned agrees not to sell, transfer, assign, gift, create a security
      interest in, or otherwise dispose of, with or without consideration
      (collectively, “Transfer”)
      any of
      the Warrant Shares except pursuant to an effective registration statement under
      the Securities Act or an exemption from registration. As a further condition
      to
      any such Transfer, except in the event that such Transfer is made pursuant
      to an
      effective registration statement under the Securities Act, if in the reasonable
      opinion of counsel to the Company any Transfer of the Warrant Shares by the
      contemplated transferee thereof would not be exempt from the registration and
      prospectus delivery requirements of the Securities Act, the Company may require
      the contemplated transferee to furnish the Company with an investment letter
      setting forth such information and agreements as may be reasonably requested
      by
      the Company to ensure compliance by such transferee with the Securities
      Act.

     

    

     

    Each
      certificate evidencing the Warrant Shares will bear the following
      legend:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND
      MAY NOT BE EXERCISED, SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN
      EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT OR UNLESS
      AN
      EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

     

    6.  Immediately
      following this exercise of Warrants, if as of the date of exercise CKRH has
      a
      class of securities registered under Section 12 of the Securities Exchange
      Act
      of 1934, as amended, the undersigned will not beneficially own five percent
      (5%)
      or more of the then outstanding Common Stock of CKRH (based on the number of
      shares outstanding set forth in the most recent periodic report filed by CKRH
      with the Securities and Exchange Commission and any additional shares which
      have
      been issued since that date of which the
      undersigned is
      aware
      have been issued).

     

     

     

    Number
      of
      Warrants Exercised: ______________

     

    Net
      Exercise ____ Yes ___ No 

     

    Dated:
      ____________________ 

     

     

     

    11

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