Document:

exv10w16

 

EXHIBIT 10.16

EXECUTION COPY

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

     THIS AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of
September 1, 2004, is among DOLAN MEDIA COMPANY (f/k/a DMC II Company), a Delaware corporation (the
“Company”), each of the investors whose name appears on Schedule I attached hereto
who executes a counterpart of this Agreement (the “Initial Investors”) and each of the
investors whose name appears on Schedule II attached hereto who executes a counterpart of this
Agreement (the “Senior Preferred Investors” and, together with the Initial Investors, the
“Investors”). Certain capitalized terms used but not otherwise defined herein shall have
the meanings ascribed thereto in Section 2.

RECITALS

          A. A former affiliate of the Company (“Dolan”) merged (the “Merger”) with LND
Acquisition Corp. (“Merger Sub”), a Delaware corporation and wholly-owned subsidiary of
Reed Elsevier, Inc., a Delaware corporation (“Parent”), pursuant to that certain Agreement
and Plan of Merger, dated as of June 25, 2003, by and among Parent, Merger Sub, Dolan and the
Company.

          B. In connection with the Merger, the Initial Investors contributed to the Company certain of
their shares of common stock and preferred stock of Dolan in exchange for shares of common stock
and preferred stock of the Company pursuant to an Exchange Agreement, dated as of June 25, 2003
(the “Exchange Agreement”).

          C. The Company granted certain registration rights to the Initial Investors pursuant to a
Registration Rights Agreement, dated July 31, 2003 (the “Original Registration Rights
Agreement”).

          D. The Original Registration Rights Agreement provides that the Original Registration Rights
Agreement may be amended by the Company and the holder or holders of at least 60% of the
Registrable Securities (as that term is defined in the Original Registration Rights Agreement).

          E. On the date hereof, pursuant to a Stock Purchase Agreement dated the date hereof among the
Company and the Senior Preferred Investors (as in effect from time to time, the “Senior
Purchase Agreement”), the Senior Preferred Investors will purchase an aggregate of 25,000
shares of Series C Participating Convertible Preferred Stock of the Company, par value $0.001 per
share (the “Series C Preferred”), which is convertible into shares of Common Stock, Series
A Preferred Stock of the Company, par value $0.001 per share (the “Series A Preferred Stock”), and
Series B Preferred Stock of the Company, par value $0.001 per share (the “Series B Preferred
Stock” and, together with the Series C Preferred Stock, the “Senior Preferred Stock”).

          F. The Initial Investors executing this Agreement hold not less than 60% of the Registrable
Securities (as that term is defined in the Original Registration Rights Agreement).

 

 

          G. The Company, the Initial Investors and the Senior Preferred Investors desire to amend and
restate the Original Registration Rights Agreement in its entirety as follows:

AGREEMENTS

     In consideration of the foregoing and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

     1. Registration under the Securities Act, etc.

          1.1. Registration on Request.

          (a) Request. At any time subsequent to the Company’s Qualifying Public Offering of
Common Stock (i) Senior Preferred Investors holding a majority (by number of shares) of the Senior
Registrable Securities shall have the right to request in writing that the Company effect an
underwritten registration under the Securities Act (a “Demand Registration”) of all or part
of such holders’ Senior Registrable Securities and (ii) Initial Investors holding at least 35% (by
number of shares) of the Initial Registrable Securities shall have the right to request in writing
that the Company effect a Demand Registration of all or part of such holders’ Initial Registrable
Securities; provided, however, that (x) the Company shall not be obligated to effect more
than two Demand Registrations requested by the Senior Preferred Investors or more than two Demand
Registrations requested by the Initial Investors under this Section 1.1(a) (other than a short-form
registration on Form S-2, Form S-3 or any similar short-form registration (“Short-Form
Registrations”)) and the Company need not effect a Demand Registration pursuant to this Section
1.1(a) (other than a Short-Form Registration) unless the anticipated aggregate offering price in
such registration is $10,000,000 or more and (y) the Company shall not be obligated to effect more
than four Short-Form Registrations requested by the Senior Preferred Investors or more than four
Short-Form Registrations requested by the Initial Investors under this Section 1.1(a) and the
Company need not effect a demand Short-Form Registration pursuant to this Section 1.1(a) unless the
anticipated aggregate offering price in such registration is $3,000,000 or more.

          Each request for a Demand Registration shall specify the approximate number of Registrable
Securities requested to be registered, the anticipated per share price range for such offering and
the intended method of disposition of such Registrable Securities). The Company will promptly give
written notice of such requested registration to all other holders of Registrable Securities, which
holders shall be entitled to include their Registrable Securities in such registration subject to
Section 1.1(b) and Section 1.1(g). Thereupon the Company, subject to Section
1.1(g), will use its reasonable best efforts to effect the registration under the Securities
Act of:

	 	(i)	 	the Registrable Securities which the Company has been so
requested to register by the Investors requesting such Demand Registration; and
	 
	 	(ii)	 	subject to the terms hereof, all other Registrable Securities
which the Company has been requested to register by the holders thereof by
written 

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	 	 	 	request given to the Company within 30 days after the giving of such
written notice by the Company.

          (b) Registration of Other Securities. Whenever the Company shall effect a
registration pursuant to this Section 1.1, no securities other than Registrable Securities
held by the Investors shall be included among the securities covered by such registration unless
(i) the managing underwriter of such offering shall have advised the Investors in writing that the
inclusion of such other securities would not materially adversely affect such offering and (ii) the
holders of not less than 662/3% of the Registrable Securities held by the
Investors to be covered by such registration shall have consented in writing to the inclusion of
such other securities. Notwithstanding the foregoing, the Company shall be entitled to register
and sell the number of shares required to pay the expenses of the offering so long as the managing
underwriter of such offering shall have advised such Investors in writing that the inclusion of
such shares would not materially adversely affect such offering.

          (c) Registration Statement Form. Registrations under this Section 1.1 shall
be on such appropriate registration form of the Commission (i) as shall be selected by the Company
and as shall be reasonably acceptable to the Majority Initiating Holders and (ii) as shall permit
the disposition of such Registrable Securities in accordance with the intended method or methods of
disposition specified in their request for such registration by such Investors. Notwithstanding the
foregoing, after the Company has become subject to the reporting requirements of the Exchange Act,
the Company will use its reasonable best efforts to make Short-Form Registrations available for the
sale of Registrable Securities. The Company agrees to include in any such registration statement
all information which holders of Registrable Securities being registered shall reasonably request.

          (d) Expenses. The Company will pay promptly all Registration Expenses in connection
with the registration requests made pursuant to this Section 1.1.

          (e) Effective Registration Statement. A registration requested pursuant to this
Section 1.1 shall not be deemed to have been effected and shall not count as a requested
registration pursuant to Section 1.1(a) hereof (i) unless a registration statement with
respect thereto has become effective (unless such registration statement has been withdrawn at the
request of the Majority Initiating Holders, (ii) if after it has become effective, such
registration is interfered with, by any stop order, injunction or other order or requirement of the
Commission or other governmental agency or court for any reason not the fault of the Investors, and
fewer than all of the Registrable Securities covered thereby have been sold, or (iii) if the
conditions to closing specified in the selling agreement or underwriting agreement entered into in
connection with such registration are not satisfied by the parties thereto other than the Investors
holding Registrable Securities. Notwithstanding anything herein to the contrary, if a registration
statement is withdrawn at the request of the demanding Investors in accordance with clause (i)
above, but the Company’s fees incurred in connection with such registration statement are paid by
such Investors, the preparation and withdrawal of the registration statement will not be counted as
a demand registration by such Investors in accordance with clause (i) above.

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          (f) Underwriters. The managing underwriter or underwriters of any registration
effected pursuant to this Section 1.1 shall be selected by the Majority Initiating Holders
(subject to the approval of the Company, which approval shall not be unreasonably withheld, within
two (2) business days of notice of the prospective underwriter), and the price, terms and
provisions of the offering, shall be subject to the approval of, the Majority Initiating Holders.

          (g) Apportionment In Registrations Requested. If the managing underwriter of any
registration effected pursuant to Section 1.1 shall advise the Company in writing (with a
copy to each holder of Registrable Securities requesting registration) that, in its opinion, the
number of securities requested to be included in such registration exceeds the number which can be
sold in such offering without adversely affecting the marketability of the offering, the Company
will apportion as follows: the Company will include in such registration, to the extent of the
number of Registrable Securities that the Company is advised can be sold in such offering,
Registrable Securities held by the Investors to be included in such registration pro rata among all
holders of Registrable Securities requesting such registration on the basis of the percentage of
the Registrable Securities of the Company held by such Investors that have requested that such
Registrable Securities be included.

          In connection with any registration as to which the provisions of this clause (g) apply, no
securities other than the Registrable Securities requested to be registered by the Investors shall
be covered by such registration, and if the proration as aforesaid results in the exclusion of an
amount in excess of 15% of the Registrable Securities sought to be registered by the Investors
initiating such Demand Registration pursuant to Section 1.1(a)(i) or 1.1(a)(ii), the request shall
not be counted for purposes of determining the number of registrations pursuant to 
Section
1.1(a).

          (h) Restrictions on Requested Registrations. The Company shall not be obligated to
effect any registration pursuant to Section 1.1 within 180 days after the effective date of
a previous registration pursuant to Section 1.1. The Company may postpone for up to 60
days the filing or the effectiveness of a registration statement for a registration pursuant to
Section 1.1(a) if the Company reasonably determines that such registration would reasonably
be expected to have a material adverse effect on the Company or any of its subsidiaries or any
proposal or plan by the Company or any of its subsidiaries to engage in any acquisition of assets
or business (other than in the ordinary course of business) or any merger, consolidation, tender
offer, reorganization or similar transaction; provided, however, that in such
event, the holders of Registrable Securities initially requesting such registration shall be
entitled to withdraw such request and, if such request is withdrawn, such registration shall not
count as one of the permitted registrations pursuant to Section 1.1(a) and the Company
shall pay all Registration Expenses in connection with such registration. The Company may delay a
registration pursuant to Section 1.1(a) only once in any 12 month period. The Company will
have the right to preempt any registration pursuant to Section 1.1 with a primary
registration by delivering within 30 days after the Company has received a request for such
registration, written notice of such intention to the holders of Registrable Securities who have
requested such registration. In the ensuing primary registration, the holders of Registrable
Securities will have such piggyback registration rights as are set forth in Section 1.2
hereof. Upon the Company’s preemption of a requested

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registration under this Section 1.1(h), such requested registration will not count as
one of the registrations pursuant to Section 1.1(a).

          (i) Other Registration Rights. The Company will not grant to any Persons the right to
request the Company to register any equity securities of the Company, or any securities convertible
or exchangeable in to or exercisable for such securities, which would conflict or interfere in any
way with the rights granted to holders of Registrable Securities under this Agreement, without the
prior written consent of the holders of not less than 66-2/3% (by number of shares) of Registrable
Securities held by the Investors.

          1.2. Incidental Registration.

          (a) Right to include Registrable Securities. If the Company at any time proposes to
register any of its equity securities under the Securities Act (other than by a registration on
Form S-4, Form S-8 or any successor or similar form and other than pursuant to a registration
requested by an Investor pursuant to Section 1.1), whether or not for sale for its own
account, it will at each such time give prompt written notice to all holders of Registrable
Securities of its intention to do so and of such holders’ rights under this Section 1.2.
Upon the written request of any such holder made within 30 days after the receipt of any such
notice (which request shall specify the Registrable Securities intended to be disposed of by such
holder and the intended method of disposition thereof), the Company will use its reasonable best
efforts to effect the registration under the Securities Act of all Registrable Securities which the
Company has been so requested to register by the holders thereof, to the extent requisite to permit
the disposition of the Registrable Securities so to be registered, provided,
however, that if, at any time after giving written notice of its intention to register any
securities and prior to the effective date of the registration statement filed in connection with
such registration, the Company shall determine for any reason not to register or to delay
registration of such securities, the Company may, at its election, give written notice of such
determination to each holder of Registrable Securities and, thereupon, (i) in the case of a
determination not to register, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration (but not from its obligation to pay the
Registration Expenses in connection therewith), without prejudice, subject however, to the rights
of any Investor entitled to request that such registration be effected as a registration under
Section 1.1, and (ii) in the case of a determination to delay registering, shall be
permitted to delay registering any Registrable Securities, for the same period as the delay in
registering such other securities. No registration effected under this Section 1.2 shall
relieve the Company of its obligation to effect any registration upon request under Section
1.1. The Company will pay all Registration Expenses in connection with each registration of
Registrable Securities requested pursuant to this Section 1.2.

          (b) Apportionment in Incidental Registrations. If (i) a registration pursuant to this
Section 1.2 involves an underwritten offering of the securities being registered, whether
or not for sale for the account of the Company, to be distributed (on a firm commitment basis) by
or through one or more underwriters of recognized national or regional standing under underwriting
terms appropriate for such a transaction, and (ii) the managing underwriter of such underwritten
offering shall inform the Company and the holders of the Registrable Securities requesting such
registration by letter of its belief that the number of securities requested to be included in such

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registration exceeds the number which can be sold in (or during the time of) such offering or
that the inclusion would materially adversely affect the marketing of the securities to be sold by
the Company therein, then the Company may include (i) first, all securities proposed by the Company
to be sold for its own account (unless the registration is being effected pursuant to Section
1.1 of this Agreement in which case the provisions of Section 1.1(b) and Section
1.1(g) shall control) and may decrease the number of Registrable Securities and other
securities of the Company, (ii) second, Registrable Securities held by the Investors requested to
be included in such registration pro rata among all holders of Registrable Securities requesting
such registration on the basis of the percentage of the Registrable Securities of the Company held
by such Investors that have requested that such Registrable Securities be included and (iii) third,
other securities requested to be included in such registration pro rata among all holders of such
other securities requesting such registration on the basis of the percentage of the other
securities of the Company held by such holders that have requested that such other securities be
included.

          1.3. Registration Procedures. If and whenever the Company is required to use its
reasonable best efforts to effect the registration of any Registrable Securities under the
Securities Act as provided in Sections 1.1 and 1.2, the Company, among other
things, will as expeditiously as reasonably possible:

          (a) prepare and (as promptly thereafter as practicable and in any event within 60 days after
the end of the period within which requests for registration may be given to the Company) file with
the Commission the requisite registration statement to effect such registration and thereafter use
its reasonable best efforts to cause such registration statement to become effective (provided that
before filing a registration statement or prospectus or any amendments or supplements thereto, the
Company will furnish to the counsel selected by the Majority Initiating Holders, copies of all such
documents proposed to be filed), provided, however, that the Company may
discontinue any registration of its securities which are not Registrable Securities (and, under the
circumstances specified in Section 1.2(a), its securities which are Registrable Securities)
at any time prior to the effective date of the registration statement relating thereto;

          (b) prepare and file with the Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period not to exceed nine (9) months and to comply with the
provisions of the Securities Act with respect to the disposition of all securities covered by such
registration statement until such time as all of such securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers thereof set forth in
such registration statement;

          (c) furnish to each seller of Registrable Securities covered by such registration statement
such number of conformed copies of such registration statement and of each such amendment and
supplement thereto (in each case including all exhibits), such number of copies of the prospectus
contained in such registration statement (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 or Rule 430A under the Securities Act, in
conformity with the requirements of the Securities Act, and such other documents (in each case
including all exhibits), as such seller may reasonably request;

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          (d) use its reasonable best efforts to (i) register or qualify Registrable Securities and
other securities covered by such registration statement under such other securities or blue sky
laws of such jurisdictions as each seller thereof shall reasonably request, (ii) keep such
registration or qualification in effect for so long as such registration statement remains in
effect, and (iii) take any other action which may be reasonably necessary or advisable to enable
such seller to consummate the disposition in such jurisdictions of the securities owned by such
seller, except that the Company shall not for any such purpose be required to qualify generally to
do business as a foreign corporation in any jurisdiction wherein it would not but for the
requirements of this subdivision (d) be obligated to be so qualified, to consent to general service
of process in any such jurisdiction, to register in any jurisdiction where such registration will
subject the Company to state taxes or where the Company would be required to register as a dealer;

          (e) use its reasonable best efforts to cause all Registrable Securities covered by such
registration statement to be registered with or approved by such other governmental agencies or
authorities as may be necessary to enable the seller or sellers thereof to consummate the
disposition of such Registrable Securities;

          (f) furnish to each seller of Registrable Securities a signed counterpart, addressed to such
seller (and the underwriters, if any, including any “qualified independent underwriter”, if any) of

	 	(i)	 	an opinion of counsel for the Company, dated the effective date
of such registration statement (or, if such registration includes an
underwritten public offering, dated the date of the closing under the
underwriting agreement), of such matters that are customarily covered in an
opinion of counsel delivered to an underwriter including that the registration
is valid and effective and such other matters as such seller may reasonably
request, all of which is customary in form and substance, and
	 
	 	(ii)	 	a “comfort” letter, dated the effective date of such
registration statement (and if such registration includes an underwritten
public offering, dated the date of the closing under the underwriting
agreement), signed by the independent public accountants who have certified the
Company’s financial statements included in such registration statement,
addressed to each seller (and to the underwriters, if any, or qualified
independent underwriter, if any) covering substantially the same matters with
respect to such registration statement (and the prospectus included therein)
and, in the case of the accountants’ letter, with respect to events subsequent
to the date of such financial statements, as are customarily covered in
accountants’ letters delivered to the underwriters in underwritten public
offerings of securities and such other financial matters as such seller (or the
underwriters, if any, or qualified independent underwriter, if any) may
reasonably request;

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          (g) notify each seller of Registrable Securities covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the Securities Act, upon
discovery that, or upon the happening of any event as a result of which, the prospectus included in
such registration statement, as then in effect, includes an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances under which they were made, and at the
request of any such seller, promptly prepare, file with the Commission and furnish to such seller a
reasonable number of copies of a supplement to or an amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such securities, such prospectus
shall not include 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 not misleading in the light of the
circumstances under which they were made;

          (h) otherwise use its reasonable efforts to comply with all applicable rules and regulations
of the Commission, and make available to its security holders, as soon as reasonably practicable,
an earnings statement covering the period of at least twelve (12) months, but not more than
eighteen (18) months, beginning with the first full calendar month after the effective date of such
registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of
the Securities Act and Rule 158 promulgated thereunder;

          (i) provide and cause to be maintained a transfer agent and registrar for all Registrable
Securities covered by such registration statement from and after a date not later than the
effective date of such registration statement;

          (j) use its reasonable best efforts to list all Registrable Securities covered by such
registration statement on any securities exchange on which similar securities of the Company are
then listed and, if not so listed, to be listed on the Nasdaq National Market (“Nasdaq
Market”) and, if listed on the Nasdaq Market, use its reasonable best efforts to secure
designation of all such Registrable Securities covered by such registration statement as a Nasdaq
“National Market System security” within the meaning of Rule 11Aa2 of the Exchange Act or, failing
that, to secure Nasdaq Market authorization for such Registrable Securities and, without limiting
the generality of the foregoing, to use its reasonable best efforts to arrange for at least two
market makers to register as such with respect to such Registrable Securities with the National
Association of Securities Dealers;

          (k) enter into such customary agreements and take such other customary actions as the holders
of Registrable Securities shall reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities, (including, without limitation, effecting a stock split
or a combination of shares);

          (l) make available for inspection by any seller of Registrable Securities, any underwriter
participating in any disposition pursuant to such registration statement and any attorney,
accountant or other agent retained by any such seller or underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, and cause the Company’s
officers, directors, employees and independent accountants to supply all information

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reasonably requested by any such sellers, underwriter, attorney, accountant or agent in
connection with such registration statement; and

          (m) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any related prospectus
or suspending the qualification of any common stock included in such registration statement for
sale in any jurisdiction, the Company will use its reasonable best efforts promptly to obtain the
withdrawal of such order.

          The Company may require each proposed seller of Registrable Securities as to which any
registration is being effected to promptly furnish the Company in writing, as a condition precedent
to including such holder’s Registrable Securities in any registration, with information regarding
such seller and the distribution of such securities as the Company may from time to time reasonably
request in writing.

          Each holder of Registrable Securities agrees by acquisition of such Registrable Securities
that upon receipt of any notice from the Company of the happening of any event of the kind
described in subdivision (g) of this Section 1.3, such holder will forthwith discontinue
such holder’s disposition of Registrable Securities pursuant to the registration statement relating
to such Registrable Securities until such holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by subdivision (g) of this Section 1.3 and, if so directed
by the Company, will deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies, then in such holder’s possession of the prospectus relating to such
Registrable Securities current at the time of receipt of such notice.

          1.4. Underwritten Offerings.

          (a) Requested Underwritten Offerings. If requested by the underwriters or a qualified
independent underwriter for any offering by holders of Registrable Securities pursuant to a
registration requested under Section 1.1, the Company will enter into an underwriting
agreement with such underwriters, or an agreement with such qualified independent underwriter, for
such offering, such agreement to be satisfactory in substance and form to the Company, which
approval by the Company will not be unreasonably withheld, to the Majority Initiating Holders
(provided that for purposes of this Section 1.4(a), in the case of Demand Registrations initiated
pursuant to Section 1.1(a)(ii) hereof, “Majority Initiating Holders” shall mean the Initial
Investors holding more than 60% (by number of shares) of the Initial Registrable Securities
included in such registration). and the underwriters and to contain such representations and
warranties by the Company and such other terms as are generally prevailing in agreements of such
type, including, without limitation, indemnities to the effect and to the extent provided in
Section 1.7. The holders of Registrable Securities to be distributed by such underwriters
shall be parties to such underwriting agreement and may, at their option, require that any or all
of the representations and warranties by, and the other agreements on the part of, the Company to
and for the benefit of such underwriters shall also be made to and for the benefit of such holders
of Registrable Securities and that any or all of the conditions precedent to the obligations of
such underwriters under such underwriting agreement be conditions precedent to the obligations of
such holders of Registrable Securities. Any such holder of Registrable Securities shall not be

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required to make any representations or warranties to, or agreements with, the Company or the
underwriters other than representations, warranties or agreements regarding such holder, such
holder’s Registrable Securities and such holder’s intended method of distribution, any other
information supplied in writing by such holder to the Company specifically for use in the
registration statement and any other representation or information required by law.

          (b) Incidental Underwritten Offerings. If the Company at any time proposes to
register any of its securities under the Securities Act as contemplated by Section 1.2 and
its securities are to be distributed by or through one or more underwriters, the Company will, if
requested by any holder of Registrable Securities as provided in Section 1.2 and subject to
the provisions of Section 1.2(b), arrange for such underwriters to include all the
Registrable Securities to be offered and sold by such holder among the securities to be distributed
by such underwriters. The holders of Registrable Securities to be distributed by such underwriters
shall be parties to the underwriting agreement between the Company and such underwriters and may,
at their option, require that any or all of the representations and warranties by, and the other
agreements on the part of, the Company to and for the benefit of such underwriters shall also be
made to and for the benefit of such holders of Registrable Securities and that any or all of the
conditions precedent to the obligations of such underwriters under such underwriting agreement be
conditions precedent to the obligations of such holders of Registrable Securities. Any such holder
of Registrable Securities shall not be required to make any representations or warranties to, or
agreements with, the Company or the underwriters other than representations, warranties, or
agreements regarding such holder, such holder’s Registrable Securities and such holder’s intended
method of distribution, any other information supplied in writing by such holder to the Company
specifically for use in the registration statement and any other representation or information
required by law.

          (c) Participation in Underwritten Offerings. No Person may participate in any
registration hereunder which is underwritten unless such Person (i) agrees to sell such Person’s
securities on the basis provided in any underwriting arrangements approved by the Person or Persons
entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents required under the
terms of such underwriting arrangements; provided, however, that no Person shall be
required to furnish any information or make any representations or warranties, other than
information and representations and warranties regarding such Person, such Person’s Registrable
Securities and such Person’s intended method of distribution and any other information required to
be supplied by law. Such Person shall agree to indemnify the underwriters and other Persons
employed by, related to, or affiliated with, the underwriters in connection with such registration
with respect to any representation or warranty made by such Person if so required by the
underwriters provided that the indemnification obligation of such Person is pro rata with the other
selling security holders of the Company selling securities in such offering (based on the aggregate
number of securities being sold by such selling security holder) and is limited to the aggregate
proceeds received by such Person in connection with such offering.

          1.5. Preparation: Reasonable Investigation. In connection with the preparation and
filing of each registration statement under the Securities Act pursuant to this Agreement, the
Company will give the holders of Registrable Securities registered under such registration

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statement, the underwriters and qualified independent underwriter, if any, and their
respective counsel and accountants, the opportunity to participate in the preparation of such
registration statement, each prospectus included therein or filed with the Commission, and each
amendment thereof or supplement thereto, and will give each of them such access to its books and
records and such opportunities to discuss the business of the Company with its officers and the
independent public accountants who have certified its financial statements as shall be necessary,
in the opinion of such holders’ and such underwriters’ respective counsel, to conduct a reasonable
investigation within the meaning of the Securities Act.

          1.6. Rights of Holders of Registrable Securities. If any such registration statement
refers to any holder of Registrable Securities by name or otherwise as the holder of any securities
of the Company, then such holder shall have the right to require (a) the insertion therein of
language, in form and substance reasonably satisfactory to such holder, to the effect that the
holding by such holder of Registrable Securities does not necessarily make such holder a
“controlling person” or an “affiliate” of the Company within the meaning of the Securities Act and
is not to be construed as a recommendation by such holder of the investment quality of the
Company’s debt or equity securities covered thereby and that such holding does not imply that such
holder will assist in meeting any future financial requirements of the Company, or (b) in the event
that such reference to such holder of Registrable Securities by name or otherwise is not required
by the Securities Act or any rules and regulations promulgated thereunder or other law, the
deletion of the reference to such holder.

          1.7. Indemnification.

          (a) Indemnification by the Company. In the event of any registration of any
securities of the Company under the Securities Act, the Company will, and hereby does, indemnify
and hold harmless the holder of any Registrable Securities covered by such registration statement,
its directors, officers, employees, agents and affiliates, each other Person who participated as an
underwriter in the offering or sale of such securities, and such other Person, if any, who controls
such holder or underwriter within the meaning of the Securities Act, against any losses, claims,
damages, expenses or liabilities, joint or several, to which such holder or any such director,
officer, employee, agent, affiliate, underwriter or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages, expenses or liabilities (or
actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are
based upon any untrue statement or alleged untrue statement of any material fact contained in any
registration statement under which such securities were registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment
or supplement thereto, or 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, and the
Company will reimburse such holder, and each such director, officer, employee, agent, affiliate,
underwriter and controlling person for any legal or any other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, liability, expense, action or
proceeding; provided that the Company shall not be liable in any such case to the extent
that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in such registration statement,

11

 

any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement
in reliance upon and in conformity with written information furnished to the Company by and through
an instrument duly executed by such holder or underwriter, as the case may be, specifically stating
that it is for use in the preparation thereof and, provided, further that the
Company shall not be liable to any Person who participates as an underwriter in the offering or
sale of Registrable Securities or any other Person, if any, who controls such underwriter within
the meaning of the Securities Act, in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense arises out of such
Person’s failure to send or give a copy of the final prospectus, as the same may be then
supplemented or amended, to the Person asserting an untrue statement or alleged untrue statement or
omission or alleged omission at or prior to the written confirmation of the sale of Registrable
Securities to such Person if such statement or omission was corrected in such final prospectus.
Such indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of such holder or underwriter or any such director, officer, agent, affiliate or controlling
person of such holder or underwriter and shall survive the transfer of such securities by such
holder. The Company also agrees to make such provisions, as are reasonably requested by any
indemnified party, for contribution to such party in the event the Company’s indemnification is
unavailable for any reason.

          (b) Indemnification by the Holders. Each holder of Registrable Securities agrees, as
a condition to inclusion in any registration statement, to, and hereby does, indemnify and hold
harmless (in the same manner and to the same extent as set forth in subdivision (a) of this
Section 1.7) the Company, its directors, officers, employees, agents and affiliates and
each other Person, if any, who controls the Company within the meaning of the Securities Act, with
respect to any statement or alleged statement in or omission or alleged omission from such
registration statement, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, if such statement or alleged statement
or omission or alleged omission was made in reliance upon and in conformity with written
information furnished to the Company by and through an instrument duly executed by such holder
specifically stating that it is for use in the preparation of such registration statement,
preliminary prospectus, final prospectus, summary prospectus, amendment or supplement. Such
indemnity shall remain in full force and effect, regardless of any investigation made by or on
behalf of the Company or any such director, officer, employee, agent, affiliate or controlling
person and shall survive the transfer of such securities by such holder. Notwithstanding the
provisions of this paragraph (b), the obligation to indemnify will be several, not joint and
several, among such holders of Registrable Securities, and the liability of each holder will be
limited to, in any event, the net amount received by such holder from the sale of Registrable
Securities pursuant to such registration statement less the amount of any damages that such holder
has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission.

          (c) Notices of Claims, etc. Promptly after receipt by an indemnified party of notice
of the commencement of any action or proceeding involving a claim referred to in the preceding
subdivisions of this Section 1.7, such indemnified party will, if a claim in respect
thereof is to be made against an indemnifying party, give written notice to the latter of the
commencement of such action, provided that the failure of any indemnified party to give
notice as provided herein shall not relieve the indemnifying party of its obligations under the
preceding

12

 

subdivisions of this Section 1.7, except to the extent that the indemnifying party is
actually prejudiced by such failure to give notice. In case any such action is brought against an
indemnified party, unless in the reasonable opinion of counsel to such indemnified party a conflict
of interest between such indemnified party and indemnifying parties may exist in respect of such
claim, the indemnifying party shall be entitled to participate in and to assume the defense
thereof, jointly with any other indemnifying party similarly notified to the extent that it may
wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to such indemnified party for any legal or other expenses
subsequently incurred by the latter in connection with the defense thereof other than reasonable
costs of investigation. No indemnifying party shall, without the consent of the indemnified party
(which consent shall not be unreasonably withheld), consent to entry of any judgment or enter into
any settlement which, if an indemnified party is a party to such claim or action, does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect to such claim or litigation.

          (d) Other Indemnification. Indemnification similar to that specified in the preceding
subdivisions of this Section 1.7 (with appropriate modifications) shall be given by the
Company and each holder of Registrable Securities with respect to any required registration or
other qualification of securities under any Federal or state law or regulation of any governmental
authority other than the Securities Act.

          (e) Indemnification Payments. The indemnification required by this Section
1.7 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or expense, loss, damage or liability is
incurred.

          1.8. Adjustments Affecting Registrable Securities. The Company will not effect or
permit to occur any combination or subdivision of shares which would adversely affect the ability
of the holders of Registrable Securities to include such Registrable Securities in any registration
of its securities contemplated by Section 1 or the marketability of such Registrable
Securities under any such registration.

          1.9. Holdback Agreements. (a) Each of the holders of Registrable Securities agrees
not to effect any public sale (including sales pursuant to Rule 144) of equity securities of the
Company, or any securities convertible into or exchangeable or exercisable for such securities,
during the seven days prior to and the 90-day period beginning on the effective date of any
underwritten registration (except as part of such underwritten registration), unless the
underwriters managing the registered public offering otherwise agree or pursuant to registrations
on Form S-4 or Form S-8, provided that each holder of Registrable Securities agrees to extend the
90-day period to a period not exceeding 180 days if reasonably requested to do so by the
underwriters managing the registered public offering.

          (b) The Company agrees (i) not to effect any public sale or distribution of its equity
securities, or any securities convertible into or exchangeable or exercisable for such securities,
during the seven days prior to and during the 180-day period beginning on the

13

 

effective date of any underwritten registration (except as part of such underwritten
registration or pursuant to a registration on Form S-4 or Form S-8), unless the underwriters
managing the registered public offering otherwise agree, and (ii) use best efforts to cause each
holder of Registrable Securities and each other holder of 5% or more of its equity securities (or
any securities convertible into or exchangeable for such securities,) on a fully-diluted basis
purchased from the Company at any time (other than in a registered public offering) to agree not to
effect any public sale or distribution (including sales pursuant to Rule 144) of any such
securities during such period (except as part of such underwritten registration, if otherwise
permitted), unless the underwriters managing the registered public offering otherwise agree.

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

          “Commission” shall mean the United States Securities and Exchange Commission or any
federal agency at the time administering the Securities Act.

          “Common Stock” shall mean all shares now or hereafter authorized and designated as the
Common Stock of the Company and stock of any other class with which such shares may hereafter have
been exchanged or reclassified.

          “Company” shall have the meaning set forth in the Recitals.

          “Exchange Act” shall mean the United States Securities Exchange Act of 1934, as
amended, and any successor statute thereto.

          “Initial Investors” and “Investors” shall have the meanings set forth in the
introduction and shall include the successors and assigns of such Investors.

          “Initial Registrable Securities” shall mean the shares of Common Stock issued pursuant
to the Exchange Agreement and any securities issued or issuable with respect to any such Common
Stock by way of stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization or otherwise. Initial Registrable
Securities shall cease to be Initial Registrable Securities when (a) a registration statement with
respect to the sale of such securities shall have become effective under the Securities Act and
such securities shall have been disposed of in accordance with such registration statement, (b)
they shall have been distributed to the public pursuant to Rule 144, or (c) they shall have ceased
to be outstanding. For purposes of this Agreement, a Person shall be deemed to be a holder of
Initial Registrable Securities, and the Initial Registrable Securities shall be deemed to be in
existence, whenever such Person has the right to acquire directly or indirectly such Initial
Registrable Securities (upon conversion or exercise in connection with a transfer of securities or
otherwise, but disregarding any restrictions or limitations upon the exercise of such right),
whether or not such acquisition has actually been effected, and such Person shall be entitled to
exercise the rights of a holder of Initial Registrable Securities hereunder.

          “Majority Initiating Holders” means, (i) in the case of a Demand Registration
initiated pursuant to Section 1.1(a)(i) hereof, the Senior Preferred Investors holding a majority
(by number of shares) of the Senior Registrable Securities, and (ii) in the case of a Demand

14

 

Registration initiated pursuant to Section 1.1(a)(ii) hereof, the Initial Investors holding a
majority (by number of shares) of the Initial Registrable Securities.

          “Person” shall mean a corporation, an association, a partnership, a business, an
individual, a limited liability company, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency or political
subdivision thereof.

          “Qualifying Public Offering” shall mean the first underwritten offering of the Common
Stock by the Company to the general public pursuant to a registration statement filed with the
Commission and effective under the Securities Act, in which securities having a price to the public
of not less than $5,000,000 are sold to the public.

          “Registrable Securities” shall mean the Initial Registrable Securities and the Senior
Registrable Securities.

          “Registration Expenses” shall mean all expenses incident to the Company’s performance
of or compliance with its obligation to register securities under this Agreement, including, but
not limited to, all registration, filing and National Association of Securities Dealers, Inc. fees,
all fees and expenses of complying with securities or blue sky laws; all word processing,
duplicating and printing expenses, messenger and delivery expenses, the fees and disbursements of
counsel for the Company and of its independent public accountants, including the expenses of any
special audits or “cold comfort” letters required by or incident to such performance and
compliance, the fees and disbursements of one counsel to represent all holders of Registrable
Securities who shall be selected by in the case of a Demand Registration, the Majority Initiating
Holders, and, in the case of any other registration, a majority of the Registrable Securities
registered thereby, premiums and other costs of policies of insurance obtained by the Company
against liabilities arising out of the public offering of the Registrable Securities being
registered and any fees and disbursements of underwriters customarily paid by issuers or sellers of
securities (including fees paid to a qualified independent underwriter) and the fees and
disbursements of other Persons retained by the Company, but excluding underwriting discounts and
commissions and transfer taxes, if any.

          “Rule 144” shall have the meaning set forth in Section 3 hereof.

          “Securities Act” shall mean the United States Securities Act of 1933, as amended, and
any successor statute thereto.

          “Senior Preferred Investors” shall have the meaning set forth in the introduction and
shall include the successors and assigns of such Investors.

          “Senior Registrable Securities” shall mean the shares of Common Stock issued upon
conversion of the Series C Preferred Stock or thereafter pursuant to the Senior Purchase Agreement,
and any securities issued or issuable with respect to any such Common Stock by way of stock
dividend or stock split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization or otherwise. Senior Registrable Securities shall cease to
be Senior Registrable Securities when (a) a registration statement with respect to the

15

 

sale of such securities shall have become effective under the Securities Act and such
securities shall have been disposed of in accordance with such registration statement, (b) they
shall have been distributed to the public pursuant to Rule 144, or (c) they shall have ceased to be
outstanding. For purposes of this Agreement, a Person shall be deemed to be a holder of Senior
Registrable Securities, and the Senior Registrable Securities shall be deemed to be in existence,
whenever such Person has the right to acquire directly or indirectly such Senior Registrable
Securities (upon conversion or exercise in connection with a transfer of securities or otherwise,
but disregarding any restrictions or limitations upon the exercise of such right), whether or not
such acquisition has actually been effected, and such Person shall be entitled to exercise the
rights of a holder of Senior Registrable Securities hereunder.

     3. Rule 144. So long as the Common Stock shall be registered pursuant to the
requirements of Section 12 of the Exchange Act or a registration statement pursuant to the
requirement of the Securities Act, the Company will timely file the reports required to be filed by
it under the Exchange Act and the Securities Act (or, if after filing a registration statement
pursuant to the requirements of Section 12 of the Exchange Act or a registration statement pursuant
to the requirements of the Securities Act, the Company is not required to file such reports, will,
upon the request of any holder of Registrable Securities, make publicly available other
information) and will take such further action as any holder of Registrable Securities may
reasonably request, all to the extent required from time to time to enable such holder to sell
Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time
to time or (b) any similar rule or regulation hereafter adopted by the Commission (“Rule
144”). Upon the request of any holder of Registrable Securities, the Company will deliver to
such holder a written statement as to whether it has complied with the reporting requirements of
said Rule 144, the Securities Act and the Exchange Act; a copy of the most recent annual or
quarterly report of the Company; and such other reports and documents as such Person may reasonably
request in availing itself of any rule or regulation of the Commission allowing it to sell any such
securities without registration.

     4. Amendments and Waivers. This Agreement may be amended and the Company may take any
action herein prohibited or omit to perform any act herein required to be performed by it, only if
the Company shall have obtained the written consent to such amendment, action or omission to act,
of the Company and the holder or holders of (i) at least 60% of the Initial Registrable Securities,
provided, that no amendment shall be effective to the extent that it does not apply equally to all
holders of Initial Registrable Securities unless it is approved by all of the Initial Investors,
and (ii) the holders of a majority of the Senior Registrable Securities held by Senior Preferred
Investors. Each holder of any Registrable Securities at the time or thereafter outstanding shall
be bound by any consent authorized by this Section 4, whether or not such Registrable
Securities shall have been marked to indicate such consent.

     5. Nominees for Beneficial Owners. In the event that any Registrable Securities are
held by a nominee for the beneficial owner thereof, the beneficial owner thereof may, at its
election by written notice to the Company effective upon receipt by the Company, be treated as the
holder of such Registrable Securities for purposes of any request or other action by any holder or
holders of Registrable Securities pursuant to this Agreement or any determination of

16

 

any number or percentage of shares of Registrable Securities held by any holder or holders of
Registrable Securities contemplated by this Agreement. If the beneficial owner of any Registrable
Securities so elects, the Company may require assurances reasonably satisfactory to it of such
owner’s beneficial ownership of such Registrable Securities. Prior to receipt by the Company of
written notice contemplated hereby, any action taken by any nominee shall be binding upon any such
beneficial owner.

     6. Registration Rights. The Company will not grant any right of registration under
the Securities Act relating to any of its shares of capital stock or other securities to any Person
other than pursuant to this Agreement, unless holders of Registrable Securities shall be entitled
to have included in any registration effected pursuant to Section 1.2 all Registrable
Securities requested by them to be so included prior to the inclusion of any securities requested
to be registered by the Persons entitled to any such other registration rights.

     7. Notices. Any notice provided for in this Agreement must be in writing and shall be
deemed duly received (a) when personally delivered, (b) five (5) days after being deposited in the
United States mail, registered or certified mail, return receipt requested, or (c) one (1) business
day after being deposited with a reputable overnight courier service. Such notices shall be
delivered to (i) the Company at Dolan Media Company, 650 Third Avenue South, Suite 1650,
Minneapolis, Minnesota 55402, Attn: James Dolan, President, (ii) the Investors to the address
indicated on the stock record book of the Company, or (iii) such other address or to the attention
of such other Person as the recipient party shall have specified by prior written notice to the
sending party.

     8. Assignment. This Agreement shall be binding upon and inure to the benefit of and
be enforceable by the parties hereto and their respective successors and assigns. In addition, and
whether or not any express assignment shall have been made, the provisions of this Agreement which
are for the benefit of the parties hereto other than the Company shall also be for the benefit of
and enforceable by any subsequent holder of any Registrable Securities, subject to all the
provisions herein, including those respecting the minimum numbers or percentages of shares of
Registrable Securities required in order to be entitled to certain rights, or take certain actions,
contained herein.

     9. Descriptive Headings. The descriptive headings of the several sections and
paragraphs of this Agreement are inserted for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.

     10. Specific Performance. The parties hereto recognize and agree that money damages
may be insufficient to compensate the holders of any Registrable Securities for breaches by the
Company of terms hereof and, consequently, that the equitable remedy or specific performance of the
terms hereof will be available in the event of any such breach.

     11. Governing Law. This Agreement is governed by the laws of the State of Delaware
without regard to the conflicts of law provisions thereof.

17

 

     12. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all such counterparts shall together constitute one and
the same instrument.

     13. Delivery by Facsimile. This Agreement and any amendments hereto, to the extent
signed and delivered by means of a facsimile machine or other electronic transmission, shall be
treated in all manner and respects and for all purposes as an original agreement and shall be
considered to have the same binding legal effect as if it were the original signed version thereof
delivered in person. At the request of any party hereto, each other party hereto shall re-execute
original forms hereof and deliver them to all other parties. No party hereto shall raise the use
of a facsimile machine or other electronic transmission to deliver a signature or the fact that any
signature was transmitted or communicated through the use of a facsimile machine or other
electronic transmission as a defense to the formation or enforceability of a contract and each such
party forever waives any such defense.

     14. Entire Agreement. This Agreement sets forth the entire understanding of the
parties, and supersedes and preempts all prior oral or written understandings and agreements with
respect to the subject matter hereof, including, without limitation, the Original Registration
Rights Agreement, and shall not be modified or affected by any offer, proposal, statement or
representation, oral or written, made by or for any party in connection with the negotiation of the
terms hereof except in accordance with Section 4.

     15. Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision will
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

     16. No Inconsistent Agreements. The Company will not enter into any agreement which
is inconsistent with or violates the rights granted to the holders of Registrable Securities in
this Agreement.

[Remainder of Page Intentionally Left Blank.

Signature Pages to Follow.]

18

 

          IN WITNESS WHEREOF, the parties have caused this Amended and Restated Registration Rights
Agreement to be executed and delivered by their respective officers thereunto duly authorized as of
the date first above written.

	 	 	 	 	 	 	 
	 	 	DOLAN MEDIA COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James P. Dolan
 

	 	 
	 	 	Name: James P. Dolan	 	 
	 	 	Its: President	 	 

[SIGNATURE PAGE TO DOLAN MEDIA COMPANY

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

  

SIGNATURE BLOCK FOR INDIVIDUAL AND JOINT ACCOUNTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Mr.	 	 	 	 	 	 	 	 	 	 
	(1)

	 	Mrs.
	 	 

	 	 
	 	Signature:	 	 	 	 
	 

	 	Ms.
	 	 

	 	 
	 	Date:
	 	 

	 	 
	 

	 	 	 	 

(Print Name)
	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Joint Tenant/Tenant in Common (if applicable):	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Mr.	 	 	 	 	 	 	 	 	 	 
	(2)

	 	Mrs.
	 	 

	 	 
	 	Signature:	 	 	 	 
	 

	 	Ms.
	 	 

	 	 
	 	Date:
	 	 

	 	 
	 

	 	 	 	 

(Print Name)
	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	TYPE OF OWNERSHIP:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	                           Individual	 	                      	 	 Joint Tenants with Right of

Survivorship	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	                           Tenants in Common	 	                      	 	Community Property	 	 
	 	 	 	 	 	 	 	 	(check only if a resident of a Community Property State)

SIGNATURE BLOCK FOR ENTITIES

	 	 	 	 	 	 	 
	 

	 	 Print Name:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

           (Signature)
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	(Signer’s Printed Name)	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

                       Partnership

                       Corporation

                       Limited Liability Company

                       Trust

                       Bank

                       Other
(Please describe:            
             
              
             
              
              
                
     )

[SIGNATURE PAGE TO DOLAN MEDIA COMPANY

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT]

 

 

SCHEDULE I

The AB Two L.L.C

ABS Capital Partners, L.P.

ABS Employees’ Venture Fund Limited Partnership

BG Media Investors L.P.

Branco Weiss

Capital Communications CDPQ Inc.

Cherry Tree Ventures IV Limited Partnership

David J. Winton Trust

Deutsche Bank Alex Brown LLC

DMIC LLC

Evensong, L.L.C.

GS Pollei Irrevocable Trust for the Benefit of Joseph S. Pollei

GS Pollei Irrevocable Trust for the Benefit of Sara S. Pollei

GS Pollei Irrevocable Trust for the Benefit of Thomas J. Pollei

GS Pollei Irrevocable Trust for the Benefit of Mitchell J. Pollei

infoUSA, inc.

Jamestown Investments S.A.

Metcalf Family Limited Partnership

Ocean Assets LLC Florida Tangible Tax Trust

Parsnip River Company, L.P.

Pictet & Cie

Prudent A L.L.C.

S-1

 

The Prudential Insurance Company of America

Samuel E. Lewis, Jr. Trustee for Samuel E. Lewis, Jr. Revocable Trust dated July 21, 1997

Morgan Stanley DW Inc. C/F J. Allen Dougherty,

IRA Rollover A/C 616-031933-212

The Charles Schwab Trust Company TTEE

Schnader, Harrison, Segal & Lewis Retirement & Savings Plan

FBO Clinton A. Stuntebeck

Universal Computer Systems Inc.

USA Fund, LLLP

Vespers, L.L.C.

Von Graffenreid A.G.

Willou & Co

Jacquelyn Agee

Theodore H. Ashford

Jack L. Baylin

Stuart Bell

John Bergstrom

Patrick Boulay

Alan B. Campell

Patrick Cline

James P. Dolan

Michele A. Dolan

Craig J. Duchossois

Richard L. Duchossois

S-2

 

Christopher A. Eddings

James T. Farnham

Ellen D. Fleming

Robert Gilsdorf

Robert L. Gundling

Paul Hodnefield

Brian Hunt

John Kominicki

Earl L. Linehan

Brian Long

Joseph McAdams

Carolyn McLellan

Mary Melon

Peter Mio

John H. Moreton

Debra J. Nelson (Quaal)

Robert K. Packard

Norman Pearlstine

Joan A. Ray

A. Christine Robinson

Keith Rosenbaum

Benjamin Schapiro

David Mark Singletary

S-3

 

Donald K. Skinner

Nancy Lindberg Sloane

Mark Stodder

Ted Sutcliffe

Sara Sue Tedesco

Rob Wrubel

S-4

 

SCHEDULE II

ABRY Mezzanine Partners, L.P.

ABRY Investment Partners, L.P.

Caisse de Dépôt et Placement du Québec

Media Power Limited Partnership

David J. Winton Trust

DMIC LLC

Parsnip River Company, L.P.

S-5exv10w1

 

EXHIBIT 10.1

EXECUTION COPY

SECURITIES PURCHASE AGREEMENT

     SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of June 1, 2007, by and among
StarVox Communications, Inc., a California corporation, with headquarters located at 2728 Orchard
Parkway, San Jose, California 95134-2012 (the “Company”), U.S. Wireless Data, Inc., a Delaware
corporation, with headquarters located at 2728 Orchard Parkway, San Jose, California 95134-2012
(“Parent”), and the investors listed on the Schedule of Buyers attached hereto (individually, a
“Buyer” and collectively, the “Buyers”);

     WHEREAS:

     A. The Company is a wholly-owned subsidiary of Parent.

     B. Each of the Company, Parent and each Buyer is executing and delivering this Agreement in
reliance upon the exemption from securities registration afforded by Section 4(2) of the Securities
Act of 1933, as amended (the “1933 Act”), and Regulation D (“Regulation D”) promulgated by the
United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

     C. The Company has authorized the issuance of senior secured Debentures of the Company (the
“Debentures”). In connection with the sale of the Debentures and as an inducement to the Buyers to
purchase the Securities (as defined below), the Company desires to instruct Parent to issue to the
Buyers, upon the terms and conditions stated in this Agreement, a warrant to purchase the amount of
shares of Parent’s common stock (the “Common Stock”), $0.01 par value per share (as exercised, the
“Warrant Shares”), as set forth opposite such Buyer’s name in column (4) on the Schedule of
Buyers (which aggregate amount for all Buyers shall be 2,520,000 shares), in substantially the
form attached hereto as Exhibit A (the “Warrant”).

     D. Each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and
conditions stated in this Agreement, the Debentures, in substantially the form attached hereto as
Exhibit B, in the principal amount as set forth opposite such Buyer’s name in columns (3)
and (5) on the Schedule of Buyers (which aggregate amount for all Buyers shall be
$9,000,000).

     G. Contemporaneously with the execution and delivery of this Agreement, Parent and the Buyers
are executing and delivering a joinder to the U.S. Wireless Data, Inc. Registration Rights
Agreement, substantially in the form attached hereto as Exhibit C (the “Registration Rights
Agreement”), making the Buyers party to such agreement and pursuant to which Parent has agreed to
provide certain registration rights with respect to the Registrable Securities (as defined in the
Registration Rights Agreement) under the 1933 Act and the rules and regulations promulgated
thereunder, and applicable state securities laws.

     H. The Debentures, the Warrant and the Warrant Shares are collectively referred to herein as
the “Securities.”

     I. On the Initial Closing Date (as defined below), Parent and Capital Telecommunications,
Inc., a Pennsylvania corporation (“CTI”) (collectively, the “Guarantors”), are executing and
delivering a Guaranty, substantially in the form attached hereto as Exhibit D (the
“Guaranty”), pursuant to which the Guarantors have agreed to guaranty the obligations of the
Company under the Debentures.

     J. On the Initial Closing Date, the Guarantors are executing and delivering a Pledge and
Security Agreement, substantially in the form attached hereto as Exhibit E (the “Security

 

 

Agreement”), pursuant to which the assets and shares of the Subsidiaries will be pledged as
collateral to secure the Debentures.

     K. Contemporaneously with the execution and delivery of this Agreement, Parent, its
Subsidiaries and the Buyers shall execute and deliver a Post-Closing Letter Agreement,
substantially in the form attached hereto as Exhibit F (the “Post-Closing Letter
Agreement”), which will address certain matters to occur after the Initial Closing Date.

     L. Contemporaneously with the execution and delivery of this Agreement, Parent, the Company
and the Buyers shall execute and deliver a Letter Agreement, substantially in the form attached
hereto as Exhibit L (the “Maturity Extension Letter Agreement”), which will address certain
matters relating to the maturity of the Debentures.

     NOW, THEREFORE, the Company, Parent and each Buyer hereby agree as follows:

          (1) PURCHASE AND SALE OF DEBENTURES AND WARRANT.

               (a) Initial Closing. Subject to the satisfaction (or waiver) of the conditions set
forth in Sections 6 and 7 below, in consideration for the payment of each Buyer’s payment of its
pro rata share of the Initial Purchase Price (as defined below) (i) the Company shall issue and
sell to each Buyer, and each Buyer agrees to purchase from the Company on the Initial Closing Date
(as defined below), the Debenture in the principal amount set forth opposite such Buyer’s name in
column (3) on the Schedule of Buyers and (ii) the Company shall deliver or cause to be
delivered to each Buyer on the Initial Closing Date the Warrant to purchase the amount of Warrant
Shares as is set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers.
The closing (the “Initial Closing”) of the purchase of the Securities by the Buyers shall occur at
the offices of McDermott Will & Emery LLP, 340 Madison Avenue, New York, New York 10173. The date
and time of the Initial Closing (the “Initial Closing Date”) shall be 10:00 a.m., New York City
time, on the date hereof, subject to notification of satisfaction (or waiver) of the conditions to
the Initial Closing set forth in Sections 6 and 7 below (or such later date as is mutually agreed
to by the Company, Parent and the Buyers). The aggregate purchase price (the “Initial Purchase
Price”) of the Debentures and the Warrants to be purchased by the Buyers at the Initial Closing
shall be equal to $6,000,000. On the Initial Closing Date, (i) each Buyer shall pay its pro rata
share of the Initial Purchase Price to the Company for the Debenture and the Warrant to be issued
and sold to such Buyer at the Initial Closing, by wire transfer of immediately available funds in
accordance with Company’s written wire instructions, (ii) the Company shall deliver to the Buyers
(A) the Debenture which such Buyer is then purchasing, duly executed on behalf of the Company and
registered in the name of such Buyer or its designee and (B) the Warrant which such Buyer is then
purchasing, duly executed on behalf of the Parent and registered in the name of such Buyer or its
designee.

               (b) Second Closing. Subject to the satisfaction (or waiver) of the conditions set
forth in Sections 6 and 7 below, in consideration for the payment of each Buyer’s payment of its
pro rata share of the Second Purchase Price (as defined below) (i) the Company shall issue and sell
to each Buyer, and each Buyer agrees to purchase from the Company on the Second Closing Date (as
defined below), the Debenture in the principal amount set forth opposite such Buyer’s name in
column (5) on the Schedule of Buyers. The closing (the “Second Closing”) of the purchase
of the Securities by the Buyers shall occur at the offices of McDermott Will & Emery LLP, 340
Madison Avenue, New York, New York 10173. The date and time of the

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Second Closing (the “Second Closing Date”) shall be 10:00 a.m., New York City time, on the
date hereof, subject to notification of satisfaction (or waiver) of the conditions to the Second
Closing set forth in Sections 6 and 7 below (or such later date as is mutually agreed to by the
Company, Parent and the Buyers). The aggregate purchase price (the “Second Purchase Price”) of the
Debentures to be purchased by the Buyers at the Second Closing shall be equal to $3,000,000. On
the Second Closing Date, (i) each Buyer shall pay its pro rata share of the Second Purchase Price
to the Company for the Debenture to be issued and sold to such Buyer at the Second Closing, by wire
transfer of immediately available funds in accordance with Company’s written wire instructions,
(ii) the Company shall deliver to the Buyers the Debenture which such Buyer is then purchasing,
duly executed on behalf of the Company and registered in the name of such Buyer or its designee.

          (2) BUYERS’ REPRESENTATIONS AND WARRANTIES.

     Each Buyer represents and warrants, severally as to itself, that:

               (a) Authorization; Enforcement; Validity. Buyer has the requisite power and authority
to enter into and perform its obligations under the Transaction Documents (as defined below). The
execution and delivery of the Transaction Documents and the consummation by the Buyer of the
transactions contemplated hereby and thereby have been duly authorized by all necessary corporate
or similar action on the part of the Buyer. This Agreement and the other Transaction Documents of
even date herewith have been duly executed and delivered by the Buyer and constitute the legal,
valid and binding obligations of the Buyer enforceable against the Buyer in accordance with their
respective terms, except as such enforceability may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

               (b) No Public Sale or Distribution. Buyer is acquiring the Securities for its own
account and not with a view towards, or for resale in connection with, the public sale or
distribution thereof in a manner that would violate the 1933 Act, except pursuant to sales
registered or exempted under the 1933 Act; provided, however, that by making the representations
herein, Buyer does not agree to hold any of the Securities for any minimum or other specific term,
except as specified in the Registration Rights Agreement, and reserves the right to dispose of the
Securities at any time in accordance with or pursuant to a registration statement or an exemption
under the 1933 Act. Buyer is acquiring the Securities hereunder in the ordinary course of its
business. Buyer does not presently have any agreement or understanding, directly or indirectly,
with any Person to distribute any of the Securities.

               (c) Investor Status. Buyer is an “accredited investor” as that term is defined in
Rule 501(a) of Regulation D. Buyer has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Securities, and has so evaluated the merits and the risks of such investment.
Buyer is able to bear the economic risk of an investment in the Securities and, at the present
time, is able to afford a complete loss of such investment.

               (d) Reliance on Exemptions. Buyer understands that the Securities are being offered
and sold to it in reliance on specific exemptions from the registration requirements of

- 3 -

 

United States federal and state securities laws and that the Company and Parent are relying in
part upon the truth and accuracy of, and Buyer’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of Buyer set forth herein in order to determine the
availability of such exemptions and the eligibility of Buyer to acquire the Securities.

               (e) Information. Buyer and its advisors, if any, have been furnished with all
materials relating to the business, finances and operations of the Company and Parent and materials
relating to the offer and sale of the Securities which have been requested by Buyer. Buyer and its
advisors, if any, have been afforded the opportunity to ask questions of the Company and Parent.
Neither such inquiries nor any other due diligence investigations conducted by Buyer or its
advisors, if any, or its representatives shall modify, amend or affect Buyer’s right to rely on the
Company’s and Parent’s representations and warranties contained herein. Buyer understands that its
investment in the Securities involves a high degree of risk. Buyer has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with
respect to its acquisition of the Securities.

               (f) No Governmental Review. Buyer understands that no United States federal or state
agency or any other Governmental Authority has passed on or made any recommendation or endorsement
of the Securities or the fairness or suitability of the investment in the Securities nor have such
authorities passed upon or endorsed the merits of the offering of the Securities. As used in this
Agreement, “Governmental Authority” is any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory
organization (including, without limitation, the National Association of Insurance Commissioners,
the Federal Communications Commission and any State public utility commission or other State agency
or department with primary regulatory jurisdiction over common carrier telecommunications and pay
telephone services).

               (g) Transfer or Resale. Buyer understands that the Securities have not been and are
not being registered under the 1933 Act or any state securities laws, and may not be offered for
sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) Buyer shall
have delivered to the Company and Parent an opinion of counsel, reasonably acceptable to the
Company, to the effect that such Securities to be sold, assigned or transferred may be sold,
assigned or transferred pursuant to an exemption from such registration, or (C) Buyer provides the
Company and Parent with reasonable assurance, which may at the option of the Company include an
opinion of counsel reasonably acceptable to the Company, that such Securities can be sold, assigned
or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or, in each case,
a successor rule thereto); provided, however, that the Securities may be pledged in connection with
a bona fide margin account or other loan or financing arrangement secured by the Securities and
such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the
Securities hereunder, and provided, further, that if Buyer effects a pledge of Securities it shall
not be required to provide the Company or Parent with any notice thereof or otherwise make any
delivery to the Company or Parent

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pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b)),
including, without limitation, this Section 2(f).

               (h) Legends. Such Buyer understands that the certificates or other instruments
representing the Debentures and the Warrant and, until removed in accordance with the Registration
Rights Agreement, the stock certificates representing the Warrants Shares, except as set forth
below, shall bear any legend as required by the “blue sky” laws of any state and restrictive
legends in substantially the following form (and a stop-transfer order may be placed against
transfer of such stock certificates):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT
AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE ISSUER
OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT
SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE, INCLUDING A LOCK-UP PERIOD IN THE EVENT OF A PUBLIC OFFERING, AS SET FORTH IN A
REGISTRATION RIGHTS AGREEMENT, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
COMPANY.

The legends set forth above shall be removed and the Company or Parent, as applicable, shall issue
a certificate without such legends to the holder of the Securities upon which it is stamped, if (i)
such Securities are registered for resale under the Act, (ii) in connection with a sale, assignment
or other transfer, such holder provides the Company or Parent, as applicable, with an opinion of
counsel, reasonably acceptable to the Company, to the effect that such sale, assignment or transfer
of the Securities may be made without registration under the applicable requirements of the 1933
Act, or (iii) such Securities are sold, assigned or transferred pursuant to Rule 144, or such
holder provides the Company or Parent, as applicable, with reasonable assurance, which may at the
option of the Company include an opinion of counsel reasonably acceptable to the Company, that the
Securities can be sold, assigned or transferred pursuant to Rule 144(k).

               (i) Residency. Buyer is a resident of that jurisdiction specified below its address
on the Schedule of Buyers.

          (3) REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND PARENT.

     As an inducement to the Buyers to enter into this Agreement and to consummate the transactions
contemplated hereby, the Company and Parent jointly and severally represent and warrant to the
Buyers that each and all of the following representations and warranties (as modified by the
disclosure schedules delivered to the Buyers contemporaneously with the

- 5 -

 

execution and delivery of this Agreement (the “Schedules”)) are true and correct as of Initial
Closing Date and the Second Closing Date (each, a “Closing Date”). The Schedules shall be arranged
by the Company and Parent in paragraphs corresponding to the sections and subsections contained in
this Section 3.

               (a) Organization and Qualification. Parent and its “Subsidiaries” (which for purposes
of this Agreement means any entity in which Parent, directly or indirectly, owns capital stock or
holds an equity or similar interest, including the Company) are entities duly organized and validly
existing in good standing under the laws of the jurisdiction in which they are formed, and have the
requisite power and authorization to own their properties and to carry on their business as now
being conducted. Each of Parent and its Subsidiaries is duly qualified as a foreign entity to do
business and is in good standing in every jurisdiction in which its ownership of property or the
nature of the business conducted by it makes such qualification necessary, except to the extent
that the failure to be so qualified or be in good standing would not have a Material Adverse
Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on
the business, properties, assets, operations, results of operations, condition (financial or
otherwise) or prospects of Parent and its Subsidiaries, taken as whole, or on the transactions
contemplated hereby and by the other Transaction Documents, or on the authority or ability of
Parent and/or the Company to perform its obligations under the Transaction Documents. All capital
stock or equity or similar interests of the Subsidiaries is directly or indirectly owned by Parent,
and Parent has no Subsidiaries other than the Company and except as set forth on Schedule
3(a).

                    (i) The “Non-Material Subsidiaries” are set forth on Schedule 3(a)(i). Such Non-Material
Subsidiaries are not, and have not been, material in any way to the operations or the business of
Parent or the Company. The Non-Material Subsidiaries contain no assets and have conducted no
business or operations and maintained no employees since they were acquired by the Company. The
Non-Material Subsidiaries are not in good standing and may not validly exist under the laws of the
jurisdiction in which they were formed. The Non-Material Subsidiaries may not have made or filed
foreign, federal or state income or other tax returns, reports or declarations required by any
jurisdiction to which they are subject and such Non-Material Subsidiaries may be subject to unpaid
tax liabilities. Deficiencies in the good standing or foreign qualification of the Non-Material
Subsidiaries and any failure to pay taxes will not have a Material Adverse Effect.

                    (ii) For purposes of this Agreement and the other Transaction Documents, the definition of
Subsidiaries shall exclude the Non-Material Subsidiaries.

               (b) Authorization; Enforcement; Validity. Each of Parent and the Company has the
requisite power and authority to enter into and perform its obligations under this Agreement, the
Debentures, the Registration Rights Agreement, the Irrevocable Transfer Agent Instructions (as
defined in Section 5(b)), the Security Agreement, the Guaranty, the Post-Closing Letter Agreement,
the Maturity Extension Letter Agreement and each of the other agreements, documents, certificates
or other instruments entered into or delivered by any of the parties hereto in connection with the
transactions contemplated by this Agreement (collectively, the “Transaction Documents”) and to
issue the Securities in accordance with the terms hereof and thereof. The execution and delivery
of the Transaction Documents by the Company and Parent

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have been duly authorized by each of the Company’s and Parent’s Board of Directors and the
consummation by the Company and Parent of the transactions contemplated hereby and thereby,
including, without limitation, the issuance of the Debentures by the Company and the issuance of
the Warrants and the Warrant Shares by Parent, have been or will be at the time of issuance duly
authorized by Parent’s Board of Directors and (other than the filing with the SEC of a Form D and a
Current Report on Form 8-K and other than filings with “Blue Sky” authorities as required therein)
no further filing, consent, or authorization is required by the Company, its Board of Directors or
its shareholders or Parent, its Board of Directors or its stockholders. This Agreement and the
other Transaction Documents of even date herewith have been duly executed and delivered by each of
the Company and Parent, as applicable, and constitute the legal, valid and binding obligations of
the Company or Parent, as the case may be, enforceable against the Company or Parent, as the case
may be, in accordance with their respective terms, except as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies.

               (c) Issuance of Securities. The issuance of the Debentures and the Warrants is duly
authorized and is free from all taxes, liens and charges with respect to the issue thereof except
for restrictions under applicable securities laws and the terms and conditions of the Transaction
Documents. As of the Closing Date, Parent shall have reserved from its duly authorized capital
stock 100% of the maximum number of shares of Common Stock issuable upon exercise of the Warrants
(without taking into account any limitations on the exercise of the Warrant set forth in the
Warrants). Upon exercise in accordance with the Warrants, the Warrant Shares will be validly
issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens
and charges with respect to the issue thereof, except for restrictions under applicable securities
laws and the terms and conditions of the Transaction Documents, with the holders being entitled to
all rights accorded to a holder of Common Stock. Assuming the accuracy of the representations made
by the Buyers in Section 2, the offer and issuance by the Company and Parent of the Securities is
exempt from registration under the 1933 Act.

               (d) No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company and Parent and the consummation by the Company and Parent of the
transactions contemplated hereby and thereby (including, without limitation, the issuance of the
Debentures and the Warrants and the reservation for issuance of the Warrant Shares) will not (i)
result in a violation of Parent’s Certificate of Incorporation, Parent’s Bylaws, the Company’s
Articles of Incorporation or the Company’s Bylaws (each as defined in Section 3(r)) or the
governing documents of any of Parent’s Subsidiaries or the terms of any capital stock of Parent or
any of its Subsidiaries; (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both, would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to
which Parent or any of its Subsidiaries is a party; or (iii) result in a violation of any law,
rule, regulation, order, judgment or decree (including federal and state securities laws)
applicable to Parent or any of its Subsidiaries or by which any property or asset of Parent or any
of its Subsidiaries is bound or affected, except with respect to clauses (ii) and (iii) such as
would not have a Material Adverse Effect.

- 7 -

 

               (e) Consents. Neither the Company nor Parent is required to obtain any consent,
authorization, approval, order, license, franchise, permit, certificate or accreditation, or make
any filing or registration with, or give any notice to, or take any action in respect of, any
Governmental Authority (any, a “Governmental Approval”) or any regulatory or self-regulatory agency
or any other Person in order for it to execute, deliver or perform any of its obligations under or
contemplated by the Transaction Documents, in each case in accordance with the terms hereof or
thereof (other than (w) filing with the SEC of a Form 8-K and Form D , (x) filings with “Blue Sky”
authorities, and (y) filings required by the Security Agreement), except such as would not have a
Material Adverse Effect. All consents, authorizations, orders, filings and registrations which the
Company and Parent are required to obtain pursuant to the preceding sentence have been obtained or
effected on or prior to the Closing Date, and Parent and its Subsidiaries are unaware of any facts
or circumstances which might prevent the Company or Parent from obtaining or effecting any of the
registration, application or filings pursuant to the preceding sentence), except such as would not
have a Material Adverse Effect.

               (f) Acknowledgment Regarding Buyers’ Purchase of Securities. Each of the Company and
Parent acknowledges and agrees that each Buyer is acting solely in the capacity of an arm’s length
purchaser with respect to the Transaction Documents and the transactions contemplated hereby and
thereby and that (i) no Buyer is an officer or director of the Company or Parent, (ii) to the
knowledge of the Company or Parent, except for Trinad Capital Master Fund Ltd., no Buyer is an
“affiliate” of the Company or Parent (as defined in Rule 144) or (iii) to the knowledge of the
Company or Parent, except for Trinad Capital Master Fund Ltd., no Buyer is a “beneficial owner” of
more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the
Securities Exchange Act of 1934, as amended (the “1934 Act”)). Each of the Company and Parent
further acknowledges that except for SMH Capital Inc., no Buyer is acting as a financial advisor or
fiduciary of the Company or Parent (or in any similar capacity) with respect to the Transaction
Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or
any of its representatives or agents in connection with the Transaction Documents and the
transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the
Securities. Each of the Company and Parent further represents to each Buyer that the Company’s and
Parent’s decisions to enter into the Transaction Documents have been based solely on the
independent evaluation by the Company and Parent and their respective representatives.

               (g) No General Solicitation; Placement Agent’s Fees. None of the Company, Parent, nor
any of their affiliates, nor any Person acting on its or their behalf, has engaged in any form of
general solicitation or general advertising (within the meaning of Regulation D) in connection with
the offer or sale of the Securities. Parent shall be responsible for the payment of any placement
agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by
the Buyer or its investment advisors) relating to or arising out of the transactions contemplated
hereby. Parent shall pay, and hold each Buyer harmless against, any liability, loss or expense
(including, without limitation, attorneys’ fees and out-of-pocket expenses) arising in connection
with any such claim. The Company and Parent acknowledge that they have engaged SMH Capital Inc.
(formerly Sanders Morris Harris Inc.) as placement agent (the “Agent”) in connection with the sale
of the Securities, the fees for which are set forth on Schedule 3(g) attached hereto.
Other than the Agent, neither the Company nor Parent has engaged any placement agent or other agent
in connection with the sale of the Securities.

- 8 -

 

               (h) No Integrated Offering. None of Parent, its Subsidiaries, any of their
affiliates, or any Person acting on their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under circumstances that would
require registration of any of the Securities under the 1933 Act or cause this offering of the
Securities to be integrated with prior offerings by Parent or the Company for purposes of any
registration requirement under the 1933 Act or any applicable stockholder approval provisions,
including, without limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of Parent or its Subsidiaries are listed or
designated. None of Parent, its Subsidiaries, their affiliates or any Person acting on their
behalf will take any action or steps referred to in the preceding sentence that would require
registration of any of the Securities under the 1933 Act or cause the offering of the Securities to
be integrated with other offerings for purposes of any registration requirements under the 1933 Act
or any applicable stockholder approval provisions.

               (i) U.S. Real Property Holding Corporation. Neither the Company nor Parent is, nor
has it ever been, a U.S. real property holding corporation within the meaning of Section 897 of the
Internal Revenue Code of 1986, as amended, and the Company and Parent will so certify upon the
request of any Buyer.

               (j) Application of Takeover Protections; Rights Agreement. Each of the Company and
Parent and its respective board of directors has taken all necessary action, if any, in order to
render inapplicable any control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provision under the Company’s
Articles of Incorporation or Parent’s Certificate of Incorporation or the laws of the jurisdiction
of its formation which is or could become applicable to any Buyer as a result of the transactions
contemplated by this Agreement, including, without limitation, the Company’s issuance of the
Debentures, Parent’s issuance of the Warrants and Warrants Shares and any Buyer’s ownership of the
Securities. Parent has not adopted a stockholder rights plan or similar arrangement relating to
accumulations of beneficial ownership of Common Stock or a change in control of Parent.

               (k) SEC Documents; Financial Statements. Parent has filed all reports, schedules,
forms, statements and other documents required to be filed by it with the SEC pursuant to the
reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all
exhibits included therein and financial statements, notes and schedules thereto and documents
incorporated by reference therein being hereinafter referred to as the “SEC Documents”). Parent
has delivered to each Buyer or its representatives true, correct and complete copies of the SEC
Documents not available on the EDGAR system. As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the 1934 Act and the rules and
regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC
Documents, at the time they were filed with the SEC, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not
misleading. As of their respective dates, the financial statements of Parent included in the SEC
Documents, as amended, complied in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto. Such financial statements
have been prepared in

- 9 -

 

accordance with generally accepted accounting principles, consistently applied, during the
periods involved (except (i) as may be otherwise indicated in such financial statements or the
notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude
footnotes or may be condensed or summary statements) and fairly present in all material respects
the financial position of Parent as of the dates thereof and the results of its operations and cash
flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments). For the fiscal month April 2007, CTI’s contributory earnings before interest,
taxes, depreciation and amortization (EBITDA) was $400,000, calculated in accordance with the
foregoing.

               (l) Absence of Certain Changes. Except as disclosed in Parent’s Quarterly Report on
Form 10-QSB for the period ended February 28, 2007, since February 28, 2007, there has been no
material adverse change and no material adverse development in the business, assets, properties,
operations, condition (financial or otherwise), results of operations or prospects of Parent or its
Subsidiaries. Except as disclosed on Schedule 3(l), since February 28, 2007, Parent has not (i)
declared or paid any dividends, (ii) sold any assets or (iii) had capital expenditures,
individually or in the aggregate, in excess of $100,000, other than in the ordinary course of
business. None of Parent nor any of its Subsidiaries has taken any steps to seek protection
pursuant to any bankruptcy law nor does Parent nor any of its Subsidiaries have any knowledge or
reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any
actual knowledge of any fact which would reasonably lead a creditor to do so. Neither the Company
nor Parent is as of the date hereof, and after giving effect to the transactions contemplated
hereby to occur at the Closing, will be Insolvent (as defined below). For purposes of this Section
3(l), “Insolvent” means, with respect to the Company and all Guarantors on a consolidated basis (i)
the present fair saleable value of the Company’s or Parent’s assets, as applicable, is less than
the amount required to pay the Company’s or Parent’s total Indebtedness (as defined in Section
3(s)), as applicable, (ii) the present fair saleable value of the Company’s and Parent’s assets on
a consolidated basis is less than the amount required to pay the Company’s and Parent’s probable
liability on a consolidated basis on its existing debts as they become absolute and matured, (iii)
the Company or Parent, as applicable, intends to incur or believes that it will incur debts that
would be beyond its ability to pay as such debts mature or (iv) the Company or Parent, as
applicable, has unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted.

               (m) No Undisclosed Events, Liabilities, Developments or Circumstances. Except for the
transaction contemplated by the Transaction Documents, no event, liability, development or
circumstance has occurred or exists, or is contemplated to occur with respect to Parent, its
Subsidiaries or their respective business, properties, prospects, operations or financial
condition, that would be required to be disclosed by Parent under applicable securities laws on a
registration statement on Form S-1 filed with the SEC relating to an issuance and sale by Parent of
its Common Stock and which has not been publicly announced.

               (n) Conduct of Business; Regulatory Permits. Neither Parent nor any of its
Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation or
Articles of Incorporation, as the case may be, or Bylaws or other governing documents. Neither
Parent nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute,

- 10 -

 

ordinance, rule or regulation applicable to Parent or its Subsidiaries, or any of the rules,
regulations or requirements of the NASD OTC Bulletin Board (the “Principal Market”) applicable to
the Parent or its Subsidiaries, except such as would not have a Material Adverse Effect. During
the one (1)-year period prior to the date hereof, (i) the Common Stock has been traded on the
Principal Market or quoted on the “pink sheets” (the “Pink Sheets”), (ii) trading in the Common
Stock or quotation on the Pink Sheets has not been suspended by the SEC, the Principal Market or
the Pink Sheets and (iii) Parent has received no communication, written or oral, from the SEC or
the Principal Market regarding the suspension of trading of the Common Stock from the Principal
Market. Parent and its Subsidiaries possess all Governmental Approvals necessary to conduct their
respective businesses, and neither Parent nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate, authorization or
permit which, if revoked or modified, would have a Material Adverse Effect.

               (o) Foreign Corrupt Practices. Neither Parent nor any of its Subsidiaries nor any
director, officer, agent, employee or other Person acting on behalf of Parent or any of its
Subsidiaries has, in the course of its actions for, or on behalf of, Parent or any of its
Subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment or
other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful
payment to any foreign or domestic government official or employee from corporate funds; (iii)
violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as
amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or employee.

               (p) Sarbanes-Oxley Act. Parent is in compliance with any and all applicable
requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any
and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of
the date hereof, except such as would not have a Material Adverse Effect.

               (q) Transactions With Affiliates. Except as set forth in the SEC Documents filed at
least ten days prior to the date hereof, none of the officers, directors or employees of Parent or
any of its Subsidiaries is presently a party to any transaction with Parent or any of its
Subsidiaries (other than for ordinary course services as employees, officers or directors),
including any contract, agreement or other arrangement providing for the furnishing of services to
or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any such officer, director or employee or, to the knowledge of Parent or any of
its Subsidiaries, any corporation, partnership, trust or other entity in which any such officer,
director, or employee has a substantial interest or is an officer, director, trustee or partner.

               (r) Equity Capitalization. As of the date hereof, the authorized capital stock of
Parent consists of 19,000,000 shares of common stock, $0.01 par value per share, of which, as of
the date hereof, 11,459,730 shares are issued and outstanding, and 1,000,000 shares of preferred
stock, $0.01 par value per share, of which 600,000 shares are designated Series A Preferred Stock,
301,594 of which were issued and outstanding on the date hereof. All of such outstanding shares of
Parent have been validly issued and are fully paid and nonassessable. Except as disclosed on
Schedule 3(r) or reflected in the SEC Documents: (i) none of Parent’s or the Company’s
share capital is subject to preemptive rights or any other similar rights or any

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liens or encumbrances suffered or permitted by Parent or the Company; (ii) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable
for, any share capital of Parent or any of its Subsidiaries, or contracts, commitments,
understandings or arrangements by which Parent or any of its Subsidiaries is or may become bound to
issue additional share capital of Parent or any of its Subsidiaries or options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, or exercisable or exchangeable for, any share capital of Parent or any
of its Subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements,
credit facilities or other agreements, documents or instruments evidencing Indebtedness of Parent
or any of its Subsidiaries or by which Parent or any of its Subsidiaries is or may become bound;
(iv) there are no financing statements securing obligations in any material amounts, either singly
or in the aggregate, filed in connection with Parent or any of its Subsidiaries; (v) there are no
agreements or arrangements under which Parent or any of its Subsidiaries is obligated to register
the sale of any of its securities under the 1933 Act (except the Registration Rights Agreement);
(vi) there are no outstanding securities or instruments of Parent or any of its Subsidiaries which
contain any redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which Parent or any of its Subsidiaries is or may become bound to
redeem a security of Parent or any of its Subsidiaries; (vii) there are no securities or
instruments containing anti-dilution or similar provisions that will be triggered by the issuance
of the Securities; (viii) neither Parent nor any of its Subsidiaries has any stock appreciation
rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) Parent and
its Subsidiaries have no liabilities or obligations required to be disclosed in the SEC Documents
but not so disclosed in the SEC Documents, other than those incurred in the ordinary course of
Parent’s or its Subsidiaries’ respective businesses. Schedule 3(r) contains true, correct
and complete copies of (i) the Company’s Articles of Incorporation, as amended and as in effect on
the date hereof (“Company’s Articles of Incorporation”), (ii) the Company’s Bylaws, as amended and
as in effect on the date hereof (“the Company’s Bylaws”), (iii) Parent’s Certificate of
Incorporation, as amended and as in effect on the date hereof (“Parent’s Certificate of
Incorporation”), and (iv) Parent’s Bylaws, as amended and as in effect on the date hereof
(“Parent’s Bylaws”).

               (s) Indebtedness and Other Contracts. Except as disclosed in Schedule 3(s) or
reflected in the SEC Documents, neither Parent nor any of its Subsidiaries (i) has any
outstanding Indebtedness, (ii) is a party to any contract, agreement or instrument, the violation
of which, or default under which, by the other party(ies) to such contract, agreement or instrument
would result in a Material Adverse Effect, (iii) is in violation of any term of or in default under
any contract, agreement or instrument relating to any Indebtedness, or (iv) is a party to any
contract, agreement or instrument relating to any Indebtedness, the performance of which, in the
judgment of Parent’s officers, has or is expected to have a Material Adverse Effect, except as
otherwise disclosed in Schedule 3(s). Schedule 3(s) provides a list of the
outstanding Indebtedness, and the material terms of such Indebtedness are disclosed on the Form 8-K
filed by Parent on March 26, 2006. For purposes of this Agreement: (x) “Indebtedness” of any
Person means, without duplication (A) all indebtedness for borrowed money, (B) all monetary
obligations issued, undertaken or assumed as the deferred purchase price of property or services
(including, without limitation, “capital leases” in accordance with generally accepted accounting
principles) (other than trade payables entered into in the ordinary course of business), (C) all

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reimbursement or payment obligations with respect to letters of credit, surety bonds and other
similar instruments, (D) all monetary obligations evidenced by notes, bonds, Debentures or similar
instruments, including monetary obligations so evidenced incurred in connection with the
acquisition of property, assets or businesses, (E) all indebtedness created or arising under any
conditional sale or other title retention agreement, or incurred as financing, in either case with
respect to any property or assets acquired with the proceeds of such indebtedness (even though the
rights and remedies of the seller or bank under such agreement in the event of default are limited
to repossession or sale of such property), (F) all monetary obligations under any leasing or
similar arrangement which, in connection with generally accepted accounting principles,
consistently applied for the periods covered thereby, is classified as a capital lease, (G) all
indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage,
lien, pledge, charge, security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by any Person, even though the Person which owns
such assets or property has not assumed or become liable for the payment of such indebtedness, and
(H) all Contingent Obligations in respect of indebtedness or monetary obligations of others of the
kinds referred to in clauses (A) through (G) above; (y) “Contingent Obligation” means, as to any
Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to
any indebtedness, lease, dividend or other monetary obligation of another Person if the primary
purpose or intent of the Person incurring such liability, or the primary effect thereof, is to
provide assurance to the obligee of such liability that such liability will be paid or discharged,
or that any agreements relating thereto will be complied with, or that the holders of such
liability will be protected (in whole or in part) against loss with respect thereto; and (z)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization and a government or any department or agency
thereof.

               (t) Absence of Litigation. Except as set forth in Schedule 3(t) or reflected in
the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by
any court, public board, government agency (including the SEC), self-regulatory organization or
body pending or, to the knowledge of Parent or the Company, threatened against or affecting Parent,
the Company, the Common Stock or any of Parent’s Subsidiaries or any of Parent’s or its
Subsidiaries’ officers or directors, which would be required to be disclosed by Parent in its 1934
Act filings.

               (u) Insurance. Parent and each of its Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as management
of Parent believes to be prudent and customary in the businesses in which the Parent and its
Subsidiaries are engaged. Neither Parent nor any such Subsidiary has been refused any insurance
coverage sought or applied for and neither Parent nor any such Subsidiary has any reason to believe
that it will not be able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business at
a cost that would not have a Material Adverse Effect.

               (v) Employee Relations. Neither Parent nor any of its Subsidiaries is a party to any
collective bargaining agreement or employs any member of a union. Parent and its Subsidiaries
believe that their relations with their employees are good. No executive officer of

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Parent or any of its Subsidiaries has notified Parent or any such Subsidiary that such officer
intends to leave Parent or any such Subsidiary or otherwise terminate such officer’s employment
with Parent or any such Subsidiary. No executive officer of Parent or any of its Subsidiaries, to
the knowledge of Parent or any such Subsidiary, is in violation of any material term of any
employment contract, confidentiality, disclosure or proprietary information agreement,
non-competition agreement, or any other contract or agreement or any restrictive covenant. Parent
and its Subsidiaries are in compliance with all federal, state, local and foreign laws and
regulations respecting labor, employment and employment practices and benefits, terms and
conditions of employment and wages and hours, except where failure to be in compliance would not,
either individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

               (w) Title. Parent and its Subsidiaries have good and marketable title to all real
property and good and marketable title to all personal property owned by them which is material to
the business of Parent and its Subsidiaries, in each case free and clear of all liens, encumbrances
and defects except Permitted Liens (as defined in the Debentures) and such as do not materially
affect the value of such property and do not interfere with the use made and proposed to be made of
such property by Parent and any of its Subsidiaries. Any real property and facilities held under
lease by Parent and any of its Subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere with the use made
and proposed to be made of such property and facilities by Parent and its Subsidiaries.

               (x) Intellectual Property Rights. Parent and its Subsidiaries own or possess adequate
rights or licenses to use all trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and other intellectual property rights (“Intellectual Property
Rights”) necessary to conduct their respective businesses, taken as a whole, as now conducted.
None of Parent’s or any of its Subsidiaries’ Intellectual Property Rights have expired or
terminated, or are expected to expire or terminate, within any tine frame that would materially
affect the conduct of their respective business, taken as a whole. Neither Parent nor the Company
has any knowledge of any infringement by Parent or its Subsidiaries of Intellectual Property Rights
of others. There is no claim, action or proceeding being made or brought, or to the knowledge of
Parent or the Company, being threatened, against Parent or its Subsidiaries regarding its
Intellectual Property Rights. Each of Parent and the Company is unaware of any facts or
circumstances which might give rise to any of the foregoing infringements or claims, actions or
proceedings. Parent and its Subsidiaries have taken reasonable security measures to protect the
secrecy, confidentiality and value of all of their intellectual properties.

               (y) Environmental Laws. Parent and each of its Subsidiaries (i) are in compliance
with any and all Environmental Laws (as hereinafter defined), (ii) have received all permits,
licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses and (iii) are in compliance with all terms and conditions of any such permit,
license or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so
comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse
Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to
pollution or protection of human health or the environment (including,

- 14 -

 

without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws relating to emissions, discharges, releases or
threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or
wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters,
injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations
issued, entered, promulgated or approved thereunder.

               (z) Subsidiary Rights. Parent or one of its Subsidiaries has the unrestricted right
to vote, and (subject to limitations imposed by applicable law) to receive dividends and
distributions on, all capital securities of its Subsidiaries as owned by Parent or such Subsidiary.

               (aa) Investment Company. Neither the Company nor Parent is, or is an affiliate of, an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

               (bb) Tax Status. Parent and each of its Subsidiaries (i) has made or filed all
foreign, federal and state income and all other tax returns, reports and declarations required by
any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments
and charges that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and (iii) has set aside on its books
provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to
which such returns, reports or declarations apply. There are no unpaid taxes in any material
amount claimed to be due by the taxing authority of any jurisdiction, and the officers of Parent
and the Company know of no basis for any such claim.

               (cc) Off Balance Sheet Arrangements. There is no transaction, arrangement, or other
relationship between Parent and an unconsolidated or other off balance sheet entity that is
required to be disclosed by Parent in its 1934 Act filings and is not so disclosed or that
otherwise would be reasonably likely to have a Material Adverse Effect.

               (dd) Ranking of Debentures. Except as permitted by the Debentures, no Indebtedness of
the Company will rank senior to or pari passu with the Debentures in right of payment, whether with
respect to payment of redemptions, interest, damages or upon liquidation or dissolution or
otherwise.

               (ee) Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other
than income or similar taxes) which are required to be paid in connection with the sale and
transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully
paid or provided for by the Company or Parent, as applicable, and all laws imposing such taxes will
be or will have been complied with.

               (ff) Manipulation of Price. Neither Parent nor the Company has, and to its knowledge
no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or
to result in the stabilization or manipulation of the price of any security of Parent or the
Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased,
or

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paid any compensation for soliciting purchases of, any of the Securities (except for customary
placement fees payable in connection with this transaction), or (iii) paid or agreed to pay to any
Person any compensation for soliciting another to purchase any other securities of Parent or the
Company (except for customary placement fees payable in connection with this transaction).

               (gg) Disclosure. Each of Parent and the Company understands and confirms that each
Buyer will rely on the foregoing representations in effecting transactions in securities of Parent
and the Company. All disclosure provided to the Buyers regarding Parent, the Company, their
respective businesses and the transactions contemplated hereby, including the Schedules to this
Agreement, furnished by or on behalf of Parent and the Company is true and correct and does not
contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in the light of the circumstances under which they were
made, not misleading. Each press release issued by Parent and the Company did not at the time of
release contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they are made, not misleading. No event or circumstance has occurred or
information exists with respect to the Parent or any of its Subsidiaries or its or their business,
properties, prospects, operations or financial conditions, which, under applicable law, rule or
regulation, requires public disclosure or announcement by Parent or any of its Subsidiaries but
which has not been so publicly announced or disclosed, except for information that will be
contained within the Parent’s next due report under the 1934 Act and information relative to this
transaction.

          (4) COVENANTS.

               (a) Commercially Reasonable Efforts. Each party shall use commercially reasonable
efforts timely to satisfy each of the conditions to be satisfied by it as provided in Sections 6
and 7 of this Agreement.

               (b) Form D and Blue Sky. Each of the Company and Parent agrees to file a Form D with
respect to the Securities as required under Regulation D and to provide a copy thereof to each
Buyer promptly after such filing. Each of the Company and Parent shall, on or before the Closing
Date, take such action as the Company and Parent shall reasonably determine is necessary in order
to obtain an exemption for or to qualify the Securities for sale to the Buyers at the Closing
pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the
United States (or to obtain an exemption from such qualification), and shall provide evidence of
any such action so taken to the Buyers on or prior to the Closing Date. Each of the Company and
Parent shall make all filings and reports relating to the offer and sale of the Securities required
under applicable securities or “Blue Sky” laws of the states of the United States following the
Closing Date.

               (c) Reporting Status. Until the date on which the Buyers shall have sold all the
Warrant Shares and the Debentures are not outstanding (the “Reporting Period”), Parent shall file
all reports required to be filed with the SEC pursuant to the 1934 Act, and Parent shall not
terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act
or the rules and regulations thereunder would otherwise permit such termination.

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               (d) Use of Proceeds. The Company and Parent will use the proceeds from the sale of
the Securities for working capital. No proceeds from the sale of the Securities will be used to
repay any Indebtedness.

               (e) Financial Information. Parent agrees to send the following to each Buyer during
the Reporting Period: (i) unless filed with the SEC through EDGAR and available to the public
through the EDGAR system, within three business days after the filing thereof with the SEC, a copy
of all Annual Reports on Form 10-K or 10-KSB, any interim reports or any consolidated balance
sheets, income statements, stockholders’ equity statements and/or cash flow statements for any
period other than annual, any Current Reports on Form 8-K and any registration statements (other
than on Form S-8) or amendments filed pursuant to the 1933 Act of Parent, and (ii) copies of any
notices and other information made available or given to the stockholders of Parent generally,
contemporaneously with the making available or giving thereof to the stockholders.

               (f) Listing. To the extent the Company’s Registrable Securities (as defined in the
Registration Rights Agreement) are listed upon a national securities exchange or automated
quotation system that provides for the listing of securities, Parent shall promptly secure the
listing of all of the Registrable Securities upon each national securities exchange and automated
quotation system, if any, upon which the Common Stock is then listed (subject to official notice of
issuance) and shall maintain such listing of all Registrable Securities from time to time issuable
under the terms of the Transaction Documents. Parent shall meet its obligations to maintain the
Common Stock’s authorization for quotation on the Principal Market. Parent shall pay all fees and
expenses in connection with satisfying its obligations under this Section 4(f).

               (g) Fees. Parent shall reimburse the Buyers or their designee(s) for reasonable and
documented costs and expenses incurred in connection with the transactions contemplated by the
Transaction Documents (including reasonable legal fees and disbursements in connection therewith,
documentation and implementation of the transactions contemplated by the Transaction Documents and
due diligence in connection therewith), which amount shall be withheld by Buyers from the pro rata
portion of the Purchase Price paid by such Buyer on each Closing Date and additional reasonable
legal fees incurred post-closing in connection with perfecting Buyers’ security interest and any
additional filing or recording fees in connection therewith. Parent shall be responsible for the
payment of, and shall pay, any placement agent’s fees, financial advisory fees, or broker’s
commissions (other than for Persons engaged by any Buyers or their investment advisors) relating to
or arising out of the transactions contemplated hereby (including, without limitation, the Summary
of Terms and Conditions), and shall hold each Buyer harmless against, any liability, loss or
expense (including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses)
arising in connection with any claim relating to any such payment.

               (h) Pledge of Securities. Each of Parent and the Company acknowledges and agrees that
the Securities may be pledged by Buyer in connection with a bona fide margin agreement or other
loan or financing arrangement that is secured by the Securities. The pledge of Securities shall
not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer shall
be required to provide Parent or the Company with any notice thereof or otherwise make any delivery
to Parent or the Company pursuant to this Agreement or any other

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Transaction Document, including, without limitation, Section 2(f) hereof unless required in
connection with the registration of the Securities or by applicable law. Each of Parent and the
Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may
reasonably request in connection with a pledge of the Securities to such pledgee by a Buyer.

               (i) Disclosure of Transactions and Other Material Information. On or before 8:30
a.m., New York City time, not later than the fourth business day following the date of this
Agreement, Parent shall file a Current Report on Form 8-K describing the terms of the transactions
contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the
material Transaction Documents, including, without limitation, this Agreement, the form of
Debentures and the Registration Rights Agreement) (including all attachments, the “8-K Filing”).
Any material non-public information provided by Parent and/or the Company to Buyer in connection
with this transaction shall be disclosed by Parent in an 8-K Filing by the earlier of (A) thirty
(30) Business Days of the date hereof, and (B) four (4) Business Days following the consummation of
an equity offering by the Parent. From and after the filing of such 8-K Filing with the SEC,
Parent represents and acknowledges that no Buyer shall be in possession of any material, nonpublic
information received from Parent or any of its Subsidiaries, or any of their respective officers,
directors, employees or agents, that is not disclosed in the 8-K Filing. Parent shall not, and
shall cause each of its Subsidiaries and its and each of their respective officers, directors,
employees and agents not to, provide any Buyer with any material, nonpublic information regarding
Parent or any of its Subsidiaries from and after the filing of the 8-K Filing with the SEC without
the express written consent of such Buyer. In the event of a breach of the foregoing covenant by
Parent, any of its Subsidiaries, or any of its or their respective officers, directors, employees
and agents, in addition to any other remedy provided herein or in the Transaction Documents, a
Buyer may, but shall not be obligated to, notify Parent of such breach and the material, nonpublic
information the receipt of which resulted in such breach. Within two business days of receipt of
such notice, Parent shall either (a) deliver a notice to such Buyer certifying such material,
non-public information has already been publicly disclosed by Parent or (b) make a public
disclosure, in the form of a press release, public advertisement, Form 8-K, or otherwise, of such
material, nonpublic information. Subject to the foregoing, neither Parent, its Subsidiaries nor
any Buyer shall issue any press releases or any other public statements with respect to the
transactions contemplated hereby; provided, however, that Parent shall be entitled, without the
prior approval of any Buyer, to make any press release or other public disclosure with respect to
such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith
and (ii) as is required by applicable law and regulations (provided that in the case of clause (i)
each Buyer shall be consulted by Parent in connection with any such press release or other public
disclosure prior to its release). Without the prior written consent of any applicable Buyer,
neither Parent nor the Company shall disclose the name of any Buyer or its affiliates in any
filing, announcement, release or otherwise except in the 8-K Filing or other required SEC filing or
report, or as otherwise may be required by law.

               (j) Corporate Existence. So long as any Buyer beneficially owns any Securities,
Parent and the Company shall not be party to any Fundamental Transaction (as defined in the
Debentures) unless each of Parent and the Company is in compliance with the applicable provisions
governing Fundamental Transactions set forth in the Debentures.

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               (k) Conduct of Business. The business of Parent and its Subsidiaries shall not be
conducted in violation of any law, ordinance or regulation of any Governmental Authority, except
where such violations would not result, either individually or in the aggregate, in a Material
Adverse Effect.

               (l) Additional Issuances of Securities.

                    (i) For purposes of this Section 4(o), the following definitions shall apply.

                    (a) “Convertible Securities” means any stock or securities (other than Options)
convertible into or exercisable or exchangeable for shares of Common Stock.

                    (b) “Options” means any rights, warrants or options to subscribe for or purchase shares
of Common Stock or Convertible Securities.

                    (c) “Common Stock Equivalents” means, collectively, Options and Convertible Securities.

                    (d) “Holders” means the Buyers and any transferee of all or any part of the Debentures.

                    (ii) As long as any Debentures are outstanding, Parent shall not, directly or indirectly,
offer, sell, grant any option to purchase, or otherwise dispose of (or announce any offer, sale,
grant or any option to purchase or other disposition of) any of its or its Subsidiaries’ equity or
equity equivalent securities, including without limitation any debt, preferred stock or other
instrument or security that is, at any time during its life, and under any circumstance,
convertible into or exchangeable or exercisable for shares of Common Stock or Common Stock
Equivalents or debt securities (any such offer, sale, grant, disposition or announcement being
referred to as a “Subsequent Placement”) unless Parent shall have first complied with this Section
4(o)(ii).

                    (a) The Parent shall deliver to Holders a written notice (the “Offer Notice”) of any
proposed or intended issuance or sale or exchange (the “Offer”) of the securities being
offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall (w)
identify and describe the Offered Securities, (x) describe the price and other terms upon
which they are to be issued, sold or exchanged, and the number or amount of the Offered
Securities to be issued, sold or exchanged, (y) identify the Persons (if known) to which or
with which the Offered Securities are to be offered, issued, sold or exchanged and (z) offer
to issue and sell to or exchange with Holders the Offered Securities, allocated among such
Holders (a) based on such Holder’s allocable pro rata portion of the aggregate principal
amount of Debentures then held, and (b) with respect to each Holder that elects to purchase
its pro rata portion of such Offered Securities, any additional portion of the Offered
Securities attributable to the pro rata portion of other Holders as such Holder shall
indicate it will purchase or acquire should the other Holders subscribe for less than their
pro rata portions (the “Undersubscription Amount”). The Holders shall have the right to
participate as set forth above in any

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Subsequent Placements to the extent of 100% for any Subsequent Placement. For purposes
of this Agreement, each Holder’s allocable pro rata portion of any Offered Securities shall
be defined as the “Allocable Portion.”

               (b) To accept an Offer, in whole or in part, a Holder must deliver a written notice to
the Parent prior to the end of the tenth business day after a Holder’s receipt of the Offer
Notice (the “Offer Period”), setting forth the portion of such Holder’s Allocable Portion
that such Buyer elects to purchase and, if such Holder shall elect to purchase all of its
Allocable Portion, the Undersubscription Amount, if any, that such Holder elects to purchase
(the “Notice of Acceptance”). If the Allocable Portions subscribed for by all Holders are
less than the total of all of the Allocable Portions, then each Holder who has set forth an
Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in
addition to the Allocable Portions subscribed for, the Undersubscription Amount it has
subscribed for; provided, however, that if the Undersubscription Amounts subscribed for
exceed the difference between the total of all the Allocable Portions and the Allocable
Portions subscribed for (the “Available Undersubscription Amount”), each Holder who has
subscribed for any Undersubscription Amount shall be entitled to purchase only that portion
of the Available Undersubscription Amount as the Allocable Portion of such Holder bears to
the total Allocable Portions of all Holders that have subscribed for Undersubscription
Amounts, subject to rounding by the Parent to the extent its deems reasonably necessary.

               (c) The Parent shall have 90 days from the expiration of the Offer Period above to
offer, issue, sell or exchange all or any part of such Offered Securities as to which a
Notice of Acceptance has not been given by a Holder (the “Refused Securities”), but only to
the offerees described in the Offer Notice (if so described therein) and only upon terms and
conditions (including, without limitation, unit prices and interest rates) that are not more
favorable to the acquiring Person or Persons or less favorable to the Parent than those set
forth in the Offer Notice.

               (d) In the event the Parent shall propose to sell less than all the Refused Securities
(any such sale to be in the manner and on the terms specified in Section 4(o)(ii)(3) above),
then a Holder may, at its sole option and in its sole discretion, reduce the number or
amount of the Offered Securities specified in its Notice of Acceptance to an amount that
shall be not less than the number or amount of the Offered Securities that such Holder
elected to purchase pursuant to Section 4(o)(ii)(2) above multiplied by a fraction, (i) the
numerator of which shall be the number or amount of Offered Securities the Parent actually
proposes to issue, sell or exchange (including Offered Securities to be issued or sold to
such Holder pursuant to Section 4(o)(ii)(3) above prior to such reduction) and (ii) the
denominator of which shall be the original number or amount of the Offered Securities. In
the event that a Holder so elects to reduce the number or amount of Offered Securities
specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than
the reduced number or amount of the Offered Securities unless and until such securities have
again been offered to such Holder in accordance with Section 4(o)(ii)(1) above.

- 20 -

 

               (e) Upon the closing of the issuance, sale or exchange of all or less than all of the
Offered Securities, the purchasing Holder’s shall acquire from the Parent, and the Parent
shall issue to the purchasing Holder, the number or amount of Offered Securities specified
in the Notices of Acceptance, as reduced pursuant to Section 4(o)(ii)(4) above if the Holder
has so elected, upon the terms and conditions specified in the Offer Notice. The purchase
by the Holder of any Offered Securities is subject in all cases to the preparation,
execution and delivery by the Company and the purchasing Holder of a purchase agreement
relating to such Offered Securities reasonably satisfactory in form and substance to the
purchasing Holders and their respective counsel.

               (iii) Any Offered Securities not acquired by the Holders or other Persons in accordance with
Section 4(p)(ii)(3) above may not be issued, sold or exchanged until they are again offered to the
Holders under the procedures specified in this Agreement.

               (iv) The restrictions contained in subsection (ii) of this Section 4(o) shall not apply in
connection with the issuance of: (A) any Common Stock Equivalents issued pursuant to a employee
benefit plan which has been approved by the Board of Directors of Parent, (B) any security issued
in a bona fide underwritten public offering by Parent or any of its Subsidiaries, (C) any security
issued in connection with any acquisition by the Parent, whether through an acquisition of stock or
a merger of any business or assets the primary purpose of which is not to raise equity capital, (D)
any security issued in connection with a private placement to accredited investors the proceeds of
which shall be used to pay all amounts owed under the Debentures, or (E) any Common Stock
Equivalents issued pursuant to a commercial or strategic transaction (that is not a Fundamental
Transaction) the primary purpose of which is not to raise equity capital.

               (m) Allocation of Purchase Price for Federal Income Tax Purposes. In accordance with
Treasury regulations section 1.1273-2(h), the Company and Parent shall allocate the Purchase Price
between the Debentures and the Warrants based upon their relative fair market values. In making
such allocation, the parties hereto shall agree, based upon the advice of their financial advisors,
upon the appropriate methodology to be used for determining the relative fair market values of the
Debentures and the Warrants.

               (n) U.S. Real Property Holding Corporation. For as long as the Buyers hold any
Securities, and unless otherwise agreed to by the Buyers who own Securities at the relevant time,
the Parent will not cause its shares to be U.S. real property interests within the meaning of
Section 897 of the Internal Revenue Code of 1986, as amended.

               (o) Registration Rights. Parent agrees that in the event it completes a financing or
refinancing transaction (or related series thereof) of either debt or equity by the Company and/or
the Parent, it shall not grant to the purchasers of such debt or equity securities (the “Subsequent
Purchasers”) registration rights that are senior to or more favorable than those set forth in the
Registration Rights Agreement unless the Buyers are granted registration rights on parity with the
registration rights conferred upon such Subsequent Purchasers, provided, however, that each Buyer’s
right to be granted such registration rights shall be conditioned on such Buyer’s agreement to
terminate its rights under the Registration Rights Agreement.

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          (5) REGISTERS; TRANSFER AGENT INSTRUCTIONS.

               (a) Registers. The Company shall maintain at its principal executive offices (or such
other office or agency of the Company as it may designate by notice to each holder of Securities),
a register for the Debentures in which the Company shall record the name and address of the Person
in whose name the Debentures has been issued (including the name and address of each transferee)
and the principal amount of the Debentures held by such Person. The Company shall keep the
register open and available at all times during business hours for inspection of any Buyer or its
legal representatives. Parent shall maintain at its principal executive offices (or such other
office or agency of the Company as it may designate by notice to each holder of Securities), a
register for the Warrants in which the Company shall record the name and address of the Person in
whose name the Warrants have been issued (including the name and address of each transferee) and
the number of Warrants held by such Person and the number of Warrant Shares issuable upon exercise
of the Warrants held by such Person. Parent shall keep the register open and available at all
times during business hours for inspection of any Buyer or its legal representatives.

               (b) Transfer Agent Instructions. Parent shall issue irrevocable instructions to its
transfer agent, and any subsequent transfer agent, to issue certificates to the applicable balance
accounts at The Depository Trust Company (“DTC”), registered in the name of each Buyer or its
respective nominee(s), for the Warrant Shares, in such amounts as specified from time to time by
each Buyer to the Parent upon exercise of the Warrants in the form of Exhibit G attached
hereto (the “Irrevocable Transfer Agent Instructions”). Parent warrants that no instruction other
than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b), and stop
transfer instructions to give effect to Sections 2(f) and 2(g) hereof, will be given by Parent to
its transfer agent with respect to the Securities, and that the Securities shall otherwise be
freely transferable on the books and records of Parent, as applicable, and to the extent provided
in this Agreement and the other Transaction Documents. If Buyer effects a sale, assignment or
transfer of Securities in accordance with Sections 2(f) and 2(g), Parent shall permit the transfer
and shall promptly instruct its transfer agent to issue one or more certificates to the applicable
balance accounts at DTC in such name and in such denominations as specified by such Buyer to effect
such sale, transfer or assignment to be delivered within three business days. In the event that
such sale, assignment or transfer involves Securities sold, assigned or transferred pursuant to an
effective registration statement or pursuant to Rule 144, the transfer agent shall issue such
Securities to such Buyer, assignee or transferee, as the case may be, without any restrictive
legend. Parent acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to a Buyer. Accordingly, Parent acknowledges that the remedy at law for a breach
of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach
or threatened breach by Parent of the provisions of this Section 5(b), that a Buyer shall be
entitled, in addition to all other available remedies, to seek an order and/or injunction
restraining any breach and requiring immediate issuance and transfer, without the necessity of
showing economic loss and without any bond or other security being required.

- 22 -

 

          (6) CONDITIONS TO THE COMPANY’S AND PARENT’S OBLIGATIONS TO SELL.

               (a) The obligations of the Company and Parent hereunder to issue and sell the Debentures and
the Warrant to each Buyer at the Initial Closing or the Second Closing, as the case may be (each, a
“Closing”), is subject to the satisfaction, at or before the Closing Date of each of the following
conditions, provided that these conditions are for the Company’s and Parent’s sole benefit and may
be waived by the Company and Parent at any time in their sole discretion by providing each Buyer
with prior written notice thereof:

                    (i) Such Buyer shall have executed each of the Transaction Documents to which it is a party
and delivered the same to the Company and Parent.

                    (ii) Such Buyer shall have delivered to the Company its pro rata portion of the Initial
Purchase Price for the Debenture and Warrants being purchased by such Buyer at the Initial Closing
by wire transfer of immediately available funds pursuant to the wire instructions provided by the
Company.

                    (iii) Such Buyer shall have delivered to the Company its pro rata portion of the Second
Purchase Price for the Debenture being purchased by such Buyer at the Second Closing by wire
transfer of immediately available funds pursuant to the wire instructions provided by the Company.

                    (iv) The representations and warranties of such Buyer shall be true and correct in all
material respects as of the date when made and as of the Closing Date as though made at that time
(except for representations and warranties that speak as of a specific date, which shall be true
and correct as of such specific date), and such Buyer shall have performed, satisfied and complied
in all material respects with the covenants, agreements and conditions required by this Agreement
to be performed, satisfied or complied with by such Buyer at or prior to the Closing Date.

          (7) CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE.

               (a) The obligation of each Buyer hereunder to purchase the Debentures and the Warrants at the
Initial Closing and the Second Closing, as the case may be, is subject to the satisfaction, at or
before the Closing Date, of each of the following conditions, provided that these conditions are
for each Buyer’s sole benefit and may be waived by such Buyer at any time in its sole discretion by
providing the Company and Parent with prior written notice thereof:

                    (i) The Company and Parent shall have executed and delivered to Buyer (A) each of the
Transaction Documents, (B) the Debentures being purchased by such Buyer at such Closing pursuant to
this Agreement and (C) the Warrants being purchased by such Buyer at such Closing pursuant to this
Agreement.

                    (ii) Such Buyer shall have received the opinion of Wilson Sonsini Goodrich & Rosati, P.C., the
Company’s and Parent’s outside counsel, dated as of the Closing Date, in substantially the form of
Exhibit H attached hereto, and, with respect to the Second

- 23 -

 

Closing, such Buyer shall have received an additional “bring-down” opinion, in a form
reasonably acceptable to such Buyer, dated as of the Second Closing Date.

                    (iii) Parent shall have delivered to such Buyer a copy of the Irrevocable Transfer Agent
Instructions, in the form of Exhibit G attached hereto, which instructions shall have been
delivered to and acknowledged in writing by Parent’s transfer agent.

                    (iv) Parent shall have delivered to such Buyer a certificate evidencing the formation and good
standing of Parent and each of its Subsidiaries in such entity’s jurisdiction of formation issued
by the Secretary of State (or comparable office) of such jurisdiction, as of a date reasonably
proximate to the Closing Date.

                    (v) The Company shall have delivered to such Buyer a certificate evidencing the Company’s
qualification as a foreign corporation and good standing issued by the Secretary of State (or
comparable office) of each jurisdiction in which the Company conducts business, as of a date
reasonably proximate to the Closing Date.

                    (vi) Parent shall have delivered to such Buyer a certificate evidencing Parent’s qualification
as a foreign corporation and good standing issued by the Secretary of State (or comparable office)
of each jurisdiction in which the Parent conducts business, as of a date reasonably proximate to
the Closing Date.

                    (vii) The Company shall have delivered to such Buyer a certified copy of the Company’s
Articles of Incorporation as certified by the Secretary of State of the State of California
reasonably proximate to the Closing Date.

                    (viii) Parent shall have delivered to such Buyer a certified copy of Parent’s Certificate of
Incorporation as certified by the Secretary of State of the State of Delaware reasonably proximate
to the Closing Date.

                    (ix) The Company shall have delivered to such Buyer a certificate, executed by the Secretary
of the Company and dated as of the Closing Date, as to (i) the resolutions consistent with Section
3(b) as adopted by the Company’s Board of Directors in a form reasonably acceptable to such Buyer,
(ii) the Company’s Articles of Incorporation and (iii) the Company’s Bylaws, each as in effect at
the Closing, in the form attached hereto as Exhibit I.

                    (x) Parent shall have delivered to such Buyer a certificate, executed by the Secretary of
Parent and dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b) as
adopted by Parent’s Board of Directors in a form reasonably acceptable to Buyer, (ii) Parent’s
Certificate of Incorporation and (iii) Parent’s Bylaws, each as in effect at the Closing, in the
form attached hereto as Exhibit I.

                    (xi) The representations and warranties of the Company and Parent shall be true and correct as
of the date when made and as of the Closing Date as though made at that time (except for
representations and warranties that speak as of a specific date, which shall be true and correct as
of such specific date), and the Company and Parent shall have performed, satisfied and complied in
all respects with the covenants, agreements and conditions required by the Transaction Documents to
be performed, satisfied or complied with by the Company and

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Parent at or prior to the Closing Date. Such Buyer shall have received certificates by the
Chief Executive Officers of the Company and Parent, dated as of the Initial Closing Date and the
Second Closing Date, as applicable, to the foregoing effect and as to such other matters as may be
reasonably requested by Buyer in the form attached hereto as Exhibit J.

                    (xii) Parent shall have delivered to such Buyer a letter from Parent’s transfer agent
certifying the number of shares of Common Stock outstanding as of a date within five days of the
Closing Date.

                    (xiii) Parent or its Subsidiaries will not be in violation of any of the rules, regulations or
requirements of the Principal Market applicable to the Parent or its Subsidiaries.

                    (xiv) The Company and Parent shall have obtained all governmental, regulatory or third-party
consents and approvals, if any, necessary for the sale of the Securities.

                    (xv) Parent shall have obtained and delivered to such Buyer searches of Uniform Commercial
Code filings in the jurisdictions of formation of Parent and its Subsidiaries, the jurisdiction of
the chief executive offices of Parent and its Subsidiaries and each jurisdiction where any
Collateral (as defined in the Security Agreement) is located or where a filing would need to be
made in order to perfect the Buyer’s security interest in the Collateral, copies of the financing
statements on file in such jurisdictions and evidence that no Liens exist other than Permitted
Liens.

                    (xvi) Parent and its Subsidiaries shall have executed and delivered to such Buyer UCC
financing statements for each appropriate jurisdiction as is necessary, in such Buyer’s sole
discretion, to perfect such Buyer’s security interest in the Collateral.

                    (xvii) The lenders listed on Schedule 3(s) shall have executed and delivered to such
Buyer a subordination agreement in the form attached hereto as Exhibit K.

                    (xviii) At the Second Closing, Parent and its Subsidiaries shall have delivered evidence of
the approval by Pennsylvania Public Utility Commission of the execution and delivery of and
performance under the Guaranty and the Security Agreement by Parent and its Subsidiaries,
including, without limitation, of the pledge of the capital stock in the Subsidiaries.

                    (xix) At the Second Closing, such Buyer shall have received an opinion of the Company’s and
its Subsidiaries’ outside Pennsylvania counsel dated as of such Closing Date, in form and substance
satisfactory to such Buyer in its sole discretion.

                    (xx) The Company and Parent shall have delivered to such Buyer such other documents relating
to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably
request.

          (8) TERMINATION. In the event that the Initial Closing or the Second Closing, as the
case may be, shall not have occurred with respect to a Buyer on or before five business days from
the Initial Closing Date or Second Closing Date, as the case may be, due to the Company’s

- 25 -

 

or Parent’s or such Buyer’s failure to satisfy the conditions set forth in Sections 6 and 7
above (and the nonbreaching party’s does not consent to waive such unsatisfied condition(s)), the
nonbreaching party shall have the option to terminate this Agreement with respect to such breaching
party at the close of business on such date without liability of any party to any other party;
provided, however, if this Agreement is terminated pursuant to this Section 8, the Company and
Parent shall remain obligated to reimburse the non-breaching Buyers for the expenses described in
Section 4(g) above.

          (9) MISCELLANEOUS.

               (a) Governing Law; Jurisdiction; Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

               (b) Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to each other party;
provided that a facsimile signature shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an original, not a
facsimile signature.

               (c) Headings. The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement.

               (d) Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity
or enforceability of any provision of this Agreement in any other jurisdiction.

- 26 -

 

               (e) Entire Agreement; Amendments. This Agreement and the other Transaction Documents
supersede all other prior oral or written agreements between the Buyers, the Company, Parent, their
affiliates and Persons acting on their behalf with respect to the matters discussed herein, and
this Agreement, the other Transaction Documents and the instruments referenced herein and therein
contain the entire understanding of the parties with respect to the matters covered herein and
therein and, except as specifically set forth herein or therein, none of the Company, Parent or any
Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be amended other than by an instrument in writing signed by the
Company, Parent and the holders of at least majority of the aggregate principal amount of
Debentures issued hereunder (the “Majority Holders”), and any amendment to this Agreement made in
conformity with the provisions of this Section 9(e) shall be binding on all Buyers and all holders
of Securities, as applicable. No provision hereof may be waived other than by an instrument in
writing signed by the party against whom enforcement is sought. No such amendment shall be
effective to the extent that it applies to less than all of the holders of the applicable
Securities then outstanding. No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of any of the Transaction Documents unless the
same consideration also is offered to all of the parties to the Transaction Documents or holders of
Debentures, as the case may be. Neither the Company nor Parent has, directly or indirectly, made
any agreements with Buyer relating to the terms or conditions of the transactions contemplated by
the Transaction Documents except as set forth in the Transaction Documents. Without limiting the
foregoing, each of the Company and Parent confirms that, except as set forth in this Agreement, no
Buyer has made any commitment or promise or has any other obligation to provide any financing to
the Company or Parent or otherwise.

               (f) Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one business day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

     If to the Company:

StarVox Communications, Inc.

2728 Orchard Parkway

San Jose, California 95134-2012

Telephone: (408) 625-2700

Facsimile: (408) 943-0180

Attention: Thomas Rowley

- 27 -

 

     With a copy (for informational purposes only) to:

Wilson Sonsini Goodrich & Rosati, Professional Corporation

650 Page Mill Road

Palo Alto, California 94304-1050

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Andrew Hirsch, Esq.

     If to Parent:

U.S. Wireless Data, Inc.

2728 Orchard Parkway

San Jose, California 95134-2012

Telephone: (408) 625-2700

Facsimile: (408) 943-0180

Attention: Thomas Rowley

     With a copy (for informational purposes only) to:

Wilson Sonsini Goodrich & Rosati, Professional Corporation

650 Page Mill Road

Palo Alto, California 94304-1050

Telephone: (650) 493-9300

Facsimile: (650) 493-6811

Attention: Andrew Hirsch, Esq.

     If to the Transfer Agent:

American Stock Transfer & Trust Co.

59 Maiden Lane

New York, NY 10038

Telephone:

Facsimile:

Attention:

          If to a Buyer, to its address and facsimile number set forth on the Schedule of
Buyers, with copies to such Buyer’s representatives as set forth on the Schedule of
Buyers,

or to such other address and/or facsimile number and/or to the attention of such other Person
as the recipient party has specified by written notice given to each other party five days prior to
the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of
such notice, consent, waiver or other communication, (B) mechanically or electronically generated
by the sender’s facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by an overnight courier service shall
be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight
courier service in accordance with clause (i), (ii) or (iii) above, respectively.

               (g) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns. Neither the Company

- 28 -

 

nor Parent shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Majority Holders, including by way of a Fundamental Transaction
(unless the Company and Parent are in compliance with the applicable provisions governing
Fundamental Transactions set forth in the Debentures). A Buyer may assign some or all of its
rights hereunder in connection with transfer of any of its Securities with the consent of the
Parent and the Company, in which event such assignee shall be deemed to be a Buyer hereunder with
respect to such assigned rights.

               (h) No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.

               (i) Survival. Unless this Agreement is terminated under Section 8, the
representations and warranties of the Company, Parent and the Buyers contained in Sections 2 and 3
and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing.

               (j) Further Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as any other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

               (k) Indemnification. In consideration of each Buyer’s execution and delivery of the
Transaction Documents and acquiring the Securities thereunder and in addition to all of the
Company’s and Parent’s other obligations under the Transaction Documents, the Company and Parent
shall jointly and severally defend, protect, indemnify and hold harmless each Buyer and each other
holder of the Securities and all of their stockholders, partners, members, officers, directors,
employees and direct or indirect investors and any of the foregoing Persons’ agents or other
representatives (including, without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all
actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the
action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and
disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any representation or
warranty made by the Company or Parent in the Transaction Documents or any other certificate,
instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or
obligation of the Company or Parent contained in the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby or (c) any cause of action, suit
or claim brought or made against such Indemnitee by a third party (including for these purposes a
derivative action brought on behalf of the Company or Parent) and arising out of or resulting from
(i) the execution, delivery, performance or enforcement of the Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby, (ii) any transaction financed
or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of
the Securities, (iii) any disclosure made by such Buyer pursuant to Section 4(i), or (iv) the
status of such Buyer or holder of the Securities as an investor in the Company or Parent pursuant
to the transactions contemplated by the Transaction

- 29 -

 

Documents. To the extent that the foregoing undertakings by the Company and Parent may be
unenforceable for any reason, the Company and Parent shall make the maximum contribution to the
payment and satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. The indemnification provided in this Section 9(k) shall not apply to any
liabilities which are the subject of the indemnification provided for in the Registration Rights
Agreement, as well as shall not apply to those matters covered by the express exceptions to
indemnification provided by the Registration Rights Agreement. Except as otherwise set forth
herein, the mechanics and procedures with respect to the rights and obligations under this Section
9(k) shall be the same as those set forth in the Registration Rights Agreement.

               (l) No Strict Construction. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

               (m) Remedies. Each Buyer and each holder of the Securities shall have all rights and
remedies set forth in the Transaction Documents and all rights and remedies which such holders have
been granted at any time under any other agreement or contract and all of the rights which such
holders have under any law. Any Person having any rights under any provision of this Agreement
shall be entitled to enforce such rights specifically (without posting a bond or other security),
to recover damages by reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law. Furthermore, each of the Company and Parent recognizes that in the
event that it fails to perform, observe, or discharge any or all of its obligations under the
Transaction Documents, any remedy at law may prove to be inadequate relief to the Buyers. Each of
the Company and Parent therefore agrees that the Buyer shall be entitled to seek temporary and
permanent injunctive relief in any such case without the necessity of proving actual damages and
without posting a bond or other security.

               (n) Payment Set Aside. To the extent that the Company or Parent makes a payment or
payments to the Buyers hereunder or pursuant to any of the other Transaction Documents or the
Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or
the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required
to be refunded, repaid or otherwise restored to the Company, Parent, a trustee, receiver or any
other Person under any law (including, without limitation, any bankruptcy law, foreign, state or
federal law, common law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be revived and continued
in full force and effect as if such payment had not been made or such enforcement or setoff had not
occurred.

               (o) Independent Nature of Buyers’ Obligations and Rights. The obligations of each
Buyer under any Transaction Document are several and not joint with the obligations of any other
Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any
other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction
Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to
constitute the Buyers as a partnership, an association, a joint venture or any other kind of
entity, or create a presumption that the Buyers are in any way acting in concert or as a group with
respect to such obligations or the transactions contemplated by the Transaction Documents

- 30 -

 

and each of the Company and Parent acknowledges that the Buyers are not acting in concert or
as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Buyer confirms that it has independently participated in the negotiation of the
transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall
be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be
necessary for any other Buyer to be joined as an additional party in any proceeding for such
purpose.

[Signature Pages Follow]

- 31 -

 

     IN WITNESS WHEREOF, each Buyer, the Company and Parent have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above.

	 	 	 	 	 
	 	COMPANY:

STARVOX COMMUNICATIONS, INC., a California

corporation

 	 
	 	By:  	/s/ Thomas Rowley
 	 
	 	 	Name:  	Thomas Rowley    	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	PARENT:

U.S. WIRELESS DATA, INC., 

a Delaware corporation

 	 
	 	By:  	/s/ Thomas Rowley
 	 
	 	 	Name:  	Thomas Rowley    	 
	 	 	Title:  	Chief Executive Officer 	 
	 

[Securities Purchase Agreement Signature Page]

 

 

     IN WITNESS WHEREOF, each Buyer, the Company and Parent have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above.

	 	 	 	 	 
	 	BUYERS:

DKR SOUNDSHORE OASIS HOLDING FUND LTD.

 	 
	 	By:  	/s/ Barbara Burger
 	 
	 	 	Name:  	Barbara Burger 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Securities Purchase Agreement Signature Page]

 

 

     IN WITNESS WHEREOF, each Buyer, the Company and Parent have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above.

	 	 	 	 	 
	 	BUYERS:

SMH CAPITAL INC.

 	 
	 	By:  	/s/ Ben T. Morris
 	 
	 	 	Name:  	Ben T. Morris 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

[Securities Purchase Agreement Signature Page]

 

 

     IN WITNESS WHEREOF, each Buyer, the Company and Parent have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above.

	 	 	 	 	 
	 	BUYERS:

TRINAD CAPITAL MASTER FUND, LTD.

 	 
	 	By:  	/s/ Jay Wolf
 	 
	 	 	Name:  	Jay Wolf 	 
	 	 	Title:  	Director 	 
	 

[Securities Purchase Agreement Signature Page]

 

 

SCHEDULE OF BUYERS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	(3)	 	 	 	(5)	 	 
	 	 	 	 	 	 	Aggregate	 	(4)	 	Aggregate	 	 
	 	 	 	 	 	 	Principal	 	Aggregate	 	Principal	 	 
	 	 	 	 	 	 	Amount of	 	Number of	 	Amount of	 	 
	(1)	 	(2)	 	Debenture at	 	Warrant	 	Debenture at	 	Legal Representative’s
	Buyer	 	Address and Facsimile Number	 	Initial Closing	 	Shares	 	Second Closing	 	Address and Facsimile Number
	DKR Soundshore
Oasis Holding Fund
Ltd.	 	c/o DKR Oasis Management
Company L.P. 
1281 East Main Street	 	$	2,000,000	 	 	 	1,400,000	 	 	$	3,000,000	 	 	McDermott Will & Emery LLP

340 Madison Avenue
	 	 	Stamford, CT 06902	 	 	 	 	 	 	 	 	 	 	 	 	 	New York, New York, 10173-1922
	 

	 	Telephone:
	 	203-324-8378
	 	 	 	 	 	 	 	 	 	 	 	 	 	Telephone:
	 	 	 212-547-5400	 
	 

	 	Facsimile:
	 	203-324-8488
	 	 	 	 	 	 	 	 	 	 	 	 	 	Facsimile:
	 	 	 212-547-5444	 
	 

	 	Attention:
	 	Rajni Narasi, 
General
Counsel
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attention:

E-mail:
	 	

	 Stephen E. Older, Esq.

solder@mwe.com	

	 

	 	Residence:
	 	Cayman Islands
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attention:
	 	 	 Meir A. Lewittes, Esq.	 
	 

	 	E-mail:
	 	rnarasi@dkrcapital.com
	 	 	 	 	 	 	 	 	 	 	 	 	 	E-mail:	 	 	 mlewittes@mwe.com	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SMH Capital Inc.	 	SMH Capital, Inc.	 	$	2,000,000	 	 	 	560,000	 	 	$	0	 	 	John Unger, Esq.
	 	 	600 Travis, Suite 3100	 	 	 	 	 	 	 	 	 	 	 	 	 	SMH Capital, Inc.
	 	 	Houston, TX 77002	 	 	 	 	 	 	 	 	 	 	 	 	 	600 Travis, Suite 3100
	 

	 	Telephone:
	 	713-224-3100
	 	 	 	 	 	 	 	 	 	 	 	 	 	Houston, TX 77002
	 
	 

	 	Facsimile:
	 	[                    ]
	 	 	 	 	 	 	 	 	 	 	 	 	 	Telephone:
	 	 	 713-224-3100	 
	 

	 	Attention:
	 	Chief Executive Officer
	 	 	 	 	 	 	 	 	 	 	 	 	 	Facsimile:
	 	 	 713-220-5182	 
	 

	 	Residence:
	 	[                     ]
	 	 	 	 	 	 	 	 	 	 	 	 	 	E-mail:	 	 	 john.unger@smhgroup.com	 
	 

	 	E-mail:
	 	dean.oakey@smhcapital.com	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Trinad Capital
Master Fund, Ltd.	 	c/o Trinad Capital, LP

2121 Avenue of the Stars, Suite 1650	 	$	2,000,000	 	 	 	560,000	 	 	$	0	 	 	Mintz, Levin, Cohn, Ferris, Glovsky

   and Popeo, P.C.
	 	 	Los Angeles, CA 90067	 	 	 	 	 	 	 	 	 	 	 	 	 	666 Third Avenue, 25th Floor
	 	 	Telephone:	 	310-562-2537	 	 	 	 	 	 	 	 	 	 	 	 	 	New York, NY 10017
	 

	 	Facsimile:
	 	310-277-2741
	 	 	 	 	 	 	 	 	 	 	 	 	 	Telephone:
	 	 	 [                     ]	 
	 

	 	Attention:
	 	Jay Wolf
	 	 	 	 	 	 	 	 	 	 	 	 	 	Facsimile:
	 	 	 212-935-3115	 
	 

	 	Residence:
	 	[                     ]
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attention:
	 	 	 Kenneth R. Koch, Esq.	 
	 

	 	E-mail:
	 	jwolf@trinadcapital.com
	 	 	 	 	 	 	 	 	 	 	 	 	 	E-mail:
	 	 	 krkoch@mintz.com	 

 

 

EXHIBIT A

Form of Common Stock Purchase Warrant

 

 

EXHIBIT B

Form of Debenture

 

 

EXHIBIT C

Registration Rights Agreement

 

 

EXHIBIT D

Form of Guaranty

 

 

EXHIBIT E

Form of Security Agreement

 

 

EXHIBIT F

Form of Post-Closing Letter Agreement

 

 

EXHIBIT G

Irrevocable Transfer Agent Instructions

 

 

EXHIBIT H

Form of Outside Company Counsel Opinion

 

 

EXHIBIT I

Form of Secretary’s Certificate

 

 

EXHIBIT J

Form of Officer’s Certificate

 

 

EXHIBIT K

Form of Subordination Agreement

 

 

EXHIBIT L 

Maturity Extension Letter Agreement

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