Document:

exv10w4

 

EXHIBIT 10.4

THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), APPLICABLE STATE SECURITIES LAWS, OR
APPLICABLE LAWS OF ANY FOREIGN JURISDICTION. THIS NOTE AND SUCH SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE OFFERED, SOLD, PLEDGED,
HYPOTHECATED, RENOUNCED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND IN THE ABSENCE OF
COMPLIANCE WITH APPLICABLE LAWS OF ANY FOREIGN JURISDICTION, OR AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED AND SUCH FOREIGN JURISDICTION LAWS HAVE BEEN
SATISFIED.

WIRELESS RONIN TECHNOLOGIES, INC.

12% CONVERTIBLE PROMISSORY NOTE

			
	 	 	 
	$                    
	 	Minneapolis, Minnesota
	Note No. 2006N-___
	 	March 10, 2006

FOR VALUE RECEIVED, Wireless Ronin Technologies, Inc., a Minnesota corporation (the “Company”),
hereby promises to pay to the order of ___, or assigns (“Holder”), at the
address for notices to “Purchaser” set forth in the Loan and Subscription Agreement (as defined
below) (or such other address as Holder shall designate in writing from time to time), the
principal amount of ___ and no/100 dollars ($___) in lawful money of the United
States of America, together with interest from the date hereof on the outstanding principal balance
outstanding from time to time at the rate of twelve percent (12%) per year (computed on the basis
of the actual number of days elapsed and a 360-day year) or such lesser rate as shall be the
maximum rate allowable under applicable law. Unless converted or prepaid earlier pursuant to the
provisions of this Note set forth below, all outstanding principal and accrued interest on this
Note shall be due and payable on the Maturity Date. For purposes of this Note, “Maturity Date”
shall mean the earlier of (i) March 10, 2007, or (ii) thirty (30) calendar days following the
closing date of the initial public offering (the “IPO”) of shares of the Company’s common stock,
$0.01 per share par value (the “Common Stock”). This Note is one in the series of promissory notes
substantially identical in form and designated as
No. 2006N-___ which may be issued in the Offering
(as defined below).

     1. Loan and Subscription Agreement. This Note has been issued pursuant to, and is
subject to the terms and provisions of, that certain Loan and Subscription Agreement dated of even
date herewith by and between the Company and Holder (the “Loan and Subscription Agreement”) as part
of the Company’s offer and sale of up to an aggregate of a maximum of $2,000,000 in principal
amount of convertible promissory notes and warrants (the “Offering”) as more fully described in
that certain Confidential Offering Memorandum of the Company dated February 28, 2006 (the
"Memorandum”). The provisions of the Loan and Subscription Agreement are incorporated herein by
reference with the same force and effect as if fully set forth herein. All capitalized terms not
defined herein shall have the meanings ascribed to them in the Loan and Subscription Agreement and
the Memorandum.

     2. Prepayment. Upon notice in writing delivered to Holder at least thirty (30) days in
advance, this Note may be prepaid in whole or in part at any time and from time to time without
premium or penalty; provided, however, that (a) this Note may not be prepaid without the
consent of Holder, and (b) all prepayments on this Note and all other notes issued in the Offering
(other than notes of which the holders thereof do not consent to prepayment) shall be applied to
this Note and such other notes pro rata on the basis of the proportion that the then-outstanding
principal amount of this Note and such other notes

 

 

bears to the aggregate then-outstanding principal amount of all such notes and, in the case of this
Note, such prepayments shall be applied first to the payment of costs of collection that may be due
hereunder, then to the payment of accrued interest, and the to the payment of principal. The
advance written notice of prepayment required by this Section 2 shall state the date on which this
Note and such other notes will be paid in full, subject to Holder’s consent.

     3. Notification of IPO. The Company shall give written notice to Holder of the
closing date of the IPO within five (5) business days after such closing date, which notice shall
state that this Note will be paid in full on the thirtieth (30th) calendar day after such closing
date and shall describe the conversion rights set forth in Section 4(a) of this Note.

     4. Conversion.

     (a) Conversion. At any time prior to the Maturity Date, Holder shall have the right
to convert all or any portion of the outstanding principal balance of this Note, together
with any accrued and unpaid interest thereon, into shares of Common Stock at a conversion
price per share (the “Conversion Price”) equal to $.80 (subject to adjustment as provided in
Section 5) or from and after the closing of an initial public offering of the Company’s
common stock (if any) at 80 percent of the initial public offering price (subject to
adjustment as provided in Section 5).

     (b)
Manner of Conversion. To convert any indebtedness evidenced by this Note into shares of Common Stock, Holder shall (i) surrender this Note at the principal office of the
Company, duly endorsed in blank, and (ii) give written notice to the Company, substantially
in the form attached hereto as Exhibit A, of the dollar amount of principal and accrued
interest that Holder elects to convert into shares Common Stock. As promptly as possible
thereafter, and in no event later than ten (10) days after the Company’s receipt of such
notice, the Company shall issue and deliver to Holder stock certificates representing the
number of shares of Common Stock into which the indebtedness evidenced by this Note has been
converted. In the event of conversion of an amount less than the entire outstanding
principal balance and all accrued and unpaid interest thereon, the Company shall deliver to
Holder with such stock certificates a convertible promissory note, with the terms and
provision of this Note, in the principal amount equal to any remaining indebtedness of this
Note, including accrued and unpaid interest, not converted by Holder.

     5. Conversion Price Adjustments. The provisions of this Note are subject to
adjustment as provided in this Section 5.

(a) The Conversion Price shall be adjusted from time to time such that in case the Company
shall:

(i) pay any dividends on any class of stock of the Company payable in Common Stock
or securities convertible into Common Stock;

(ii) subdivide
its then outstanding shares of Common Stock into a greater number of shares; or

(iii) combine outstanding shares of Common Stock, by reclassification or otherwise;

then, in any such event, the Conversion Price in effect immediately prior to such
event shall (until adjusted again pursuant hereto) be adjusted immediately after
such event to a price (calculated to the nearest full cent) determined by dividing
(a) the number of shares

 

 

of Common Stock outstanding immediately prior to such event (including the maximum
number of shares of Common Stock issuable in respect of any securities convertible
into Common Stock), multiplied by the then existing Conversion Price, by (b) the
total number of shares of Common Stock outstanding immediately after such event
(including the maximum number of shares of Common Stock issuable in respect of any
securities convertible into Common Stock), and the resulting quotient shall be the
adjusted Conversion Price per share. An adjustment made pursuant to this Subsection
shall become effective immediately after the record date in the case of a dividend
or distribution and shall become effective immediately after the effective date in
the case of a subdivision, combination or reclassification. If, as a result of an
adjustment made pursuant to this Subsection, the holder of this Note thereafter
surrendered for conversion shall become entitled to receive shares of two or more
classes of capital stock or shares of Common Stock and other capital stock of the
Company, the Board of Directors (whose determination shall be conclusive) shall
determine the allocation of the adjusted Conversion Price between or among shares of
such classes of capital stock or shares of Common Stock and other capital stock.
All calculations under this Subsection shall be made to the nearest cent or to the
nearest share, as the case may be. In the event that at any time as a result of an
adjustment made pursuant to this Subsection, Holder thereafter surrendered for
conversion shall become entitled to receive any shares of the Company
other than shares of Common Stock, thereafter the Conversion Price of such other shares so
receivable upon conversion of this Note shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the provisions
with respect to Common Stock contained in this Section 5.

(b) Upon each adjustment of the Conversion Price pursuant to Section 5(a) above, Holder
shall thereafter (until another such adjustment) be entitled to purchase at the adjusted
Conversion Price the number of shares, calculated to the nearest full share, obtained by
multiplying the number of shares of Common Stock into which this Note may be converted (as
adjusted as a result of all adjustments in the Conversion Price in effect prior to such
adjustment) by the Conversion Price in effect prior to such adjustment and dividing the
product so obtained by the adjusted Conversion Price.

(c) In case of any consolidation or merger to which the Company is a party other than a
merger or consolidation in which the Company is the continuing corporation, or in case of
any sale or conveyance to another corporation of the property of the Company as an entirety
or substantially as an entirety, or in the case of any statutory exchange of securities with
another corporation (including any exchange effected in connection with a merger of a third
corporation into the Company), or in the case of a dividend or spin-off on any class of
stock of the Company payable in capital stock of another company, there shall be no
adjustment under subsection (a) of this Section 5, but the holder of this Note shall have
the right thereafter to receive upon conversion of this Note into the
kind and amount of shares of stock and other securities and property which the holder would have owned or have
been entitled to receive immediately after such consolidation, merger, statutory exchange,
sale, conveyance, dividend or spin-off had this Note been converted immediately prior to the
effective date of such consolidation, merger, statutory exchange, sale, conveyance, dividend
or spin-off and in any such case, if necessary, appropriate adjustment shall be made in the
application of the provisions set forth in this Section 5 with respect to the rights and
interests thereafter of the holder of this Note, to the end that the provisions set forth in
this Section 5 shall thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares of stock and other securities and property
thereafter deliverable on the conversion of this Note. The provisions of this Subsection
shall

 

 

similarly apply to successive consolidations, mergers, statutory exchanges, sales
conveyances, dividends or spin-offs.

(d) Upon any adjustment of the Conversion Price, then and in each such case, the Company
shall within 10 days after the date when the circumstances giving rise to the adjustment
occurred give written notice thereof, by first-class mail, postage prepaid, addressed to the
holder, which notice shall state the Conversion Price resulting from such adjustment and the
increase or decrease, if any, in the number of shares of Common Stock purchasable at such
price upon the conversion of this Note, setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based.

     6. Events of Default. The occurrence of any of the following events will be deemed an
"Event of Default” under this Note: (a) the nonpayment, when due, of any principal, interest, or
other amount payable under this Note, (b) the failure of the Company to observe or perform any term
hereof; or (c) the Company becomes insolvent or unable to pay debts as they mature, a petition for
bankruptcy is filed voluntarily or involuntarily against the Company or the Company makes an
assignment for the benefit of creditors, or any proceeding is instituted by or against the Company
alleging that the Company is insolvent or unable to pay debts as they mature.

     7. Remedies Upon Events of Default. Upon the occurrence of an Event of Default: (a)
interest from the date of such occurrence on the unpaid principal balance outstanding from time to
time shall accrue at a rate per annum equal to the Interest Rate plus two percent (2%) (calculated
on the basis of the actual number of days elapsed and a 360-day year) compounded quarterly; (b)
Holder shall have the right, at Holder’s option and without demand or notice, to declare all or any
part of the Note immediately due and payable; provided, however, that upon the occurrence of an
Event of Default described in Section 6(c) above, the Note shall automatically become due and
payable immediately without demand of any kind; and (c) the Company agrees to be liable for and to
pay all costs and expenses of Holder, including reasonable attorneys’ fees, in the collection of
any of the Note or the enforcement of any of the Holder’s rights.

     8. No Waiver. No act or omission or commission of Holder, including specifically any
failure to exercise any right, remedy or recourse, shall be deemed a waiver or release of
same, such waiver or release to be effective only as set forth in a written document executed by
Holder and then only to the extent specifically recited therein. A waiver or release with
reference to one event shall not be construed as continuing as a bar to or as a waiver or release
of any subsequent right, remedy or recourse as to a subsequent event.

     9. Investment Intent. Other than pursuant to registration under federal and any
applicable state or other securities laws or an exemption from such registration, the availability
of which the Company shall determine in its sole discretion, this Note and the shares of Common
Stock in to which the indebtedness evidenced by this Note may be converted may not be sold,
pledged, assigned or otherwise disposed of (whether voluntarily or involuntarily) by the
Holder. Any transferee of this Note or the shares of Common Stock subject to this Note shall be
automatically bound by its terms and provisions and those of the Agreement.

     10. Notices. To be effective, all notices, elections or other communications and
deliveries required or permitted hereunder shall be in writing. A written notice or other
communication or delivery shall be deemed to have been given or made hereunder (i) if delivered by
hand, when the notifying party delivers such notice or other communication to the Holder or
the Company, as the case may be, or (ii) if delivered by a nationally known overnight delivery
service (such as Fed Ex, UPS or DHL), on the first business day following the date such notice or
other communication or delivery is timely delivered to the

 

 

overnight courier. Communications or deliveries shall be directed to the addresses of the
Company or Holder, as applicable, at the addresses set forth in the Loan and Subscription Agreement
(or such other address as Holder shall designate in writing from time to time).

     11. Successors or Assigns. The Company and Holder agree that all of the terms of this
Note shall be binding on their respective successors and assigns, and that the term
“Company” and the term “Holder” as used herein shall be deemed to include, for all
purposes, the respective designees, successors, assigns, heirs, executors and administrators.

     12. Governing Law. The form and validity of this Note shall be governed by the laws
of the State of Minnesota applicable to contracts made and to be performed wholly within Minnesota,
without giving effect to conflicts of laws principles. Venue for enforcement of this Note
shall be in any federal court or Minnesota state court sitting in Minneapolis, Minnesota.
The Lender and the Company consent to the jurisdiction and venue of any such court and waives any
argument that the venue in such forums is not convenient.

     13. Presentment. The Company hereby waives presentment for payment, notice of
dishonor, protest and notice of protest and, in the event of default hereunder. The Company agrees
to be liable for and to pay all costs of collection, including reasonable attorneys’ fees.

     14. Saturday, Sunday, or Holidays. If any payment or delivery of notice under
this Note shall become due on a Saturday, Sunday, or public holiday under the laws of the
State of Minnesota, such payment shall be made on the next succeeding business day.

     15. Invalidity of Particular Provisions. The Company and Holder agree that the
unenforceability or invalidity of any provision or provisions of this Note shall not render any
other provision or provisions herein contained unenforceable or invalid.

     IN WITNESS WHEREOF, the Company has caused this Note to be executed on its behalf by its duly
authorized officer on the day and year first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	WIRELESS RONIN TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	John A. Witham	 	 
	 

	 	 	 	Chief Financial Officer	 	 

 

 

EXHIBIT A

To: Wireless Ronin Technologies, Inc.

	 	 	 
	NOTICE OF CONVERSION OF PROMISSORY NOTE –

	 	To be Completed and Signed by
	 

	 	the Registered Holder to Convert
	 

	 	Promissory Note

The undersigned is the Holder named in the original Promissory Note (the “Note”) attached hereto in
the original principal amount of $___ and dated March 10, 2006 made payable by Wireless Ronin
Technologies, Inc. (the “Company”) to the Holder. The Holder hereby irrevocably elects to exercise
its rights to convert $___ in principal amount of the
Note and $___ of interest
accrued to date into ___ shares of the Company’s common stock, $0.01 par value per share, at
a conversion price of $     per share, and requests that stock certificates for such shares
shall be issued in the name of

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Print Name)	 	 
	 
	 	 	 	 	 	 	 	 
	Please insert social security	 	 	 	 	 	 
	or other identifying number	 	 	 	 	 	 
	of registered Holder of Note:	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Address:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature*	 	 

 

			
	*	 	The signature on the Notice of Conversion of Promissory Note must exactly correspond to the name
as written upon the face of the Note in every particular without alteration or any change
whatsoever. When signing on behalf of a corporation, partnership, trust of other entity, please
indicate your position(s) and title(s) with such entity. If the Note is registered in the name of
more than one Holder, all Holders must sign.exv10w5

 

EXHIBIT 10.5

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE “1933 ACT”) OR UNDER ANY STATE SECURITIES OR “BLUE SKY” LAWS
(“BLUE SKY LAWS”). NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF
THIS WARRANT OR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT OR ANY INTEREST THEREIN MAY
BE MADE EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND ANY
APPLICABLE BLUE SKY LAWS OR (B) IF THE COMPANY HAS BEEN FURNISHED WITH AN OPINION OF COUNSEL FOR
THE HOLDER, WHICH OPINION AND COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE COMPANY, TO THE
EFFECT THAT NO REGISTRATION IS REQUIRED BECAUSE OF THE AVAILABILITY OF AN EXEMPTION FROM
REGISTRATION UNDER THE 1933 ACT AND APPLICABLE BLUE SKY LAWS.

WARRANT

TO PURCHASE SHARES OF COMMON STOCK

OF

WIRELESS RONIN TECHNOLOGIES, INC.

			
	 	 	 
	March 10, 2006
	 	Warrant No. 2006W-___

     THIS CERTIFIES THAT, for good and valuable consideration, ___, or registered
assigns (the “Holder”), is entitled to subscribe for and purchase from Wireless Ronin Technologies,
Inc., a Minnesota corporation (the “Company”), at any time on or before 5:00 p.m. Minneapolis,
Minnesota time on March 10, 2011 (the “Expiration
Date”), ___ (___) fully paid
and nonassessable shares of the Company’s common stock, $0.01 par value per share (the “Common
Stock”), at an exercise price per share equal to $0.80 (the “Warrant Exercise Price”), subject to
adjustment as provided in this Warrant; provided, however, that from and after the closing date of
the Company’s initial public offering, if any (the “IPO”) until the Expiration Date, the Warrant
Exercise Price shall be equal to 80 percent of the initial public offering price in the IPO,
subject to adjustment as provided in this Warrant.

     This Warrant is one in the series of warrants substantially identical in form which may be
issued in the Offering (as defined below) and designated as “No. 2006W-___,” and the term “Warrants”
as used herein means all of such warrants (including this Warrant). The shares which may be
acquired upon exercise of this Warrant are referred to herein as the “Warrant Shares.” As used
herein, the term “Holder” means the Holder, any party who acquires all or a part of this Warrant as
a registered transferee of the Holder, or any record holder or holders of the Warrant Shares issued
upon exercise, whether in whole or in part, of the Warrant. This Warrant was issued pursuant to
the terms of that certain Loan and Subscription Agreement by and between the Holder and the Company
dated March 10, 2006 (the “Loan and Subscription Agreement”) as part of the Company’s offer and
sale of an aggregate amount of up to $2,000,000 in principal amount of convertible promissory notes
(the “Offering”) as more fully described in that certain Confidential Offering Memorandum dated
February 28, 2006 (the “Memorandum”).

     This Warrant is subject to the following provisions, terms and conditions:

 

 

1. Exercise; Transferability.

     (a) The rights represented by this Warrant may be exercised by the Holder, in whole or in part
(but not as to a fractional share of Common Stock), by written notice of exercise (in the form
attached hereto) delivered to the Company at the principal office of the Company prior to the
Expiration Date and accompanied or preceded by the surrender of this Warrant along with cash, wore
transfer, or a certified or bank check in payment of the Warrant Exercise Price for the total
number of Warrant Shares then being purchased.

     (b) Other than pursuant to registration under federal and any applicable state or other
securities laws or an exemption from such registration, the availability of which the Company shall
determine in its sole discretion, neither the Warrant nor the Warrants Shares may not be sold,
transferred, assigned, hypothecated or divided into two or more Warrants of smaller denominations,
nor may any Warrant Shares issued pursuant to exercise of this Warrant be transferred.

2. Exchange and Replacement. Subject to Sections 1 and 7 hereof, this Warrant is exchangeable upon
the surrender hereof by the Holder to the Company at its office for new Warrants of like tenor and
date representing in the aggregate the right to purchase the number of Warrant Shares purchasable
hereunder, each of such new Warrants to represent the right to purchase such number of Warrant
Shares (not to exceed the aggregate total number purchasable hereunder) as shall be designated by
the Holder at the time of such surrender. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon
surrender and cancellation of this Warrant, if mutilated, the Company will make and deliver a new
Warrant of like tenor, in lieu of this Warrant. This Warrant shall be promptly canceled by the
Company upon the surrender hereof in connection with any exchange or replacement. The Company
shall pay all expenses, taxes (other than stock transfer taxes), and other charges payable in
connection with the preparation, execution, and delivery of Warrants pursuant to this Section 2.

3. Issuance of the Warrant Shares.

     (a) The Company agrees that the Warrant Shares shall be and are deemed to be issued to the
Holder as of the close of business on the date on which this Warrant shall have been surrendered
and the payment made for such Warrant Shares as aforesaid. Subject to the provisions of paragraph
(b) of this Section 3, certificates for the Warrant Shares so purchased shall be delivered to the
Holder within a reasonable time after the rights represented by this Warrant shall have been so
exercised and in no event later than five (5) days thereafter, and, unless this Warrant has
expired, a new Warrant representing the right to purchase the number of Warrant Shares, if any,
with respect to which this Warrant shall not then have been exercised shall also be delivered to
the Holder.

     (b) Notwithstanding the foregoing, the Company shall not be required to deliver any
certificate for Warrant Shares upon exercise of this Warrant except in accordance with exemptions
from the applicable securities registration requirements or registrations under applicable
securities laws. Except as described in Section 9, nothing herein shall obligate the Company to
effect registrations under federal or state securities laws. Upon any proposed transfer or other
disposition of this Warrant or the Warrant Shares, the Holder shall provide the Company with
written representations from the Holder and the proposed transferee in form and substance
satisfactory to the Company regarding the transfer or, at the election of the Company, an opinion
of counsel reasonably satisfactory to the Company to the effect that the proposed transfer or
disposition of this Warrant or the Warrant Shares may be effected without registration or
qualification (under any federal or applicable state or other applicable securities laws) of this
Warrant or the Warrant Shares. Upon receipt by the Company of such written notice and either such

 

 

representations or opinion, such Holder shall be entitled to transfer this Warrant, or to
exercise this Warrant in accordance with its terms, or to dispose of the Warrant Shares, all in
accordance with the terms of the notice delivered by such Holder to the Company, provided that an
appropriate legend, if any, respecting the aforesaid restrictions on transfer and the disposition
may be endorsed on this Warrant or the stock certificates evidencing the Warrant Shares. The
Holder agrees to execute such documents and make such representations, warranties and agreements as
may be required to comply with the exemption relied upon by the Company, or the registration made,
for the exercise of this Warrant or issuance of the Warrant or the Warrant Shares.

4. Covenants of the Company. The Company covenants and agrees that all Warrant Shares will, upon
issuance, be duly authorized and issued, fully paid, non-assessable and free from all taxes, liens
and charges with respect to the issue thereof. The Company further covenants and agrees that
during the period within which the rights represented by this Warrant may be exercised, the Company
will at all times have authorized and reserved for the purpose of issue or transfer upon exercise
of the subscription rights evidenced by this Warrant a sufficient number of shares of Common Stock
to provide for the exercise of the rights represented by this Warrant.

5. Adjustments to Warrant Exercise Price. The provisions of this Warrant are subject to adjustment
as provided in this Section 5.

     (a) Stock Splits, Dividends and Combinations. The Warrant Exercise Price shall be
adjusted from time to time such that in case the Company shall hereafter:

     (i) pay any dividends on any class of stock of the Company payable in Common Stock or
securities convertible into Common Stock;

     (ii) subdivide its then outstanding shares of Common Stock into a greater number of shares;
or

     (iii) combine outstanding shares of Common Stock, by reclassification or otherwise;

then, in any such event, the Warrant Exercise Price in effect immediately prior to such event shall
(until adjusted again pursuant hereto) be adjusted immediately after such event to a price
(calculated to the nearest full cent) determined by dividing (A) the number of shares of Common
Stock outstanding immediately prior to such event, multiplied by the then existing Warrant Exercise
Price, by (B) the total number of shares of Common Stock outstanding immediately after such event
(including in each case the maximum number of shares of Common Stock issuable in respect of any
securities convertible into Common Stock), and the resulting quotient shall be the adjusted Warrant
Exercise Price per share. An adjustment made pursuant to this Subsection shall become effective
immediately after the record date in the case of a dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or
reclassification. If, as a result of an adjustment made pursuant to this Subsection, the Holder of
any Warrant thereafter surrendered for exercise shall become entitled to receive shares of two or
more classes of capital stock or shares of Common Stock and other capital stock of the Company, the
Board of Directors (whose determination shall be conclusive) shall determine the allocation of the
adjusted Warrant Exercise Price between or among shares of such classes of capital stock or shares
of Common Stock and other capital stock. All calculations under this Subsection shall be made to
the nearest cent or to the nearest 1/100 of a share, as the case may be. In the event that at any
time as a result of an adjustment made pursuant to this Subsection, the holder of any Warrant
thereafter surrendered for exercise shall become entitled to receive any shares of the Company
other than shares of Common Stock, thereafter the Warrant Exercise Price of such other shares so
receivable upon exercise of any

 

 

Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to Common Stock contained in this Section.

     (b) Mechanics of Adjustment for Stock Splits, Dividends and Combinations. Except as
provided in the following sentence, upon each adjustment of the Warrant Exercise Price pursuant to
Section 5(a) above, the Holder of each Warrant shall thereafter (until another such adjustment) be
entitled to purchase at the adjusted Warrant Exercise Price the number of shares, calculated to the
nearest full share, obtained by multiplying the number of shares specified in such Warrant (as
adjusted as a result of all adjustments in the Warrant Exercise Price in effect prior to such
adjustment) by the Warrant Exercise Price in effect prior to such adjustment and dividing the
product so obtained by the adjusted Warrant Exercise Price. No adjustment shall be made to the
number of shares purchasable upon exercise of the Warrant as a result of any combination of
outstanding shares of Common Stock effected by the Company, by reclassification or otherwise, prior
to the completion of its initial public offering of Common Stock.

     (c) Consolidations, Mergers and Reorganization Events. In case of any consolidation
or merger to which the Company is a party other than a merger or consolidation in which the Company
is the continuing corporation, or in case of any sale or conveyance to another corporation of the
property of the Company as an entirety or substantially as an entirety, or in the case of any
statutory exchange of securities with another corporation (including any exchange effected in
connection with a merger of a third corporation into the Company), there shall be no adjustment
under Subsection (a) of this Section 5; but the Holder of each Warrant then outstanding shall have
the right thereafter to convert such Warrant into the kind and amount of shares of stock and other
securities and property which he would have owned or have been entitled to receive immediately
after such consolidation, merger, statutory exchange, sale or conveyance had such Warrant been
converted immediately prior to the effective date of such consolidation, merger, statutory
exchange, sale or conveyance and, in any such case, if necessary, appropriate adjustment shall be
made in the application of the provisions set forth in this Section with respect to the rights and
interests thereafter of any Holders of the Warrant, to the end that the provisions set forth in
this Section shall thereafter correspondingly be made applicable, as nearly as may reasonably be,
in relation to any shares of stock and other securities and property thereafter deliverable on the
exercise of the Warrant. The provisions of this Subsection shall similarly apply to successive
consolidations, mergers, statutory exchanges, sales or conveyances.

     (d) Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment of the Warrant Exercise Price or the number of Warrants covered hereby pursuant to
this Section, the Company, at its expense, shall promptly compute such adjustment or readjustment
in accordance with the terms hereof and furnish to the Holder a certificate setting forth such
adjustment or readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall, upon the written request at any time of the Holder,
furnish or cause to be furnished to the Holder a like certificate setting forth (i) such
adjustments and readjustments, (ii) the Warrant Exercise Price at the time in effect, and (iii) the
number of shares of Common Stock and the amount, if any, of other property which at the time would
be received upon the exercise of this Warrant.

6. No Voting Rights. This Warrant shall not entitle the Holder to any voting rights or other
rights as a shareholder of the Company, and the Holder of this Warrant shall not be deemed to be a
shareholder of the Company for any purposes whatsoever with respect to the shares subject to this
Warrant except with respect to Warrant Shares for which this Warrant has been duly exercised.

7. Notice of Transfer of Warrant or Resale of the Warrant Shares.

     (a) Subject to the sale, assignment, hypothecation or other transfer restrictions set forth in
Section 1 hereof, the Holder, by acceptance hereof, agrees to give written notice to the Company
before

 

 

transferring this Warrant or transferring any Warrant Shares of such Holder’s intention to do
so, describing briefly the manner of any proposed transfer. Promptly upon receiving such written
notice, the Company shall present copies thereof to the Company’s counsel. If in the opinion of
such counsel the proposed transfer may be effected without registration or qualification (under any
federal or state securities laws), the Company, as promptly as practicable, shall notify the Holder
of such opinion, whereupon the Holder shall be entitled to transfer this Warrant or to dispose of
Warrant Shares received upon the previous exercise of this Warrant, all in accordance with the
terms of the notice delivered by the Holder to the Company; provided that an appropriate legend may
be endorsed on this Warrant or the certificates for such Warrant Shares respecting restrictions
upon transfer thereof necessary or advisable in the opinion of counsel and satisfactory to the
Company to prevent further transfers which would be in violation of Section 5 of the 1933 Act and
applicable state securities laws; and provided further that the prospective transferee or
purchaser shall execute such documents and make such representations, warranties and agreements as
may be required solely to comply with the exemptions relied upon by the Company for the transfer or
disposition of the Warrant or Warrant Shares.

     (b) If, in the opinion of the Company’s counsel, the proposed transfer or disposition of this
Warrant or such Warrant Shares described in the written notice given pursuant to this Section 7 may
not be affected without registration or qualification of this Warrant or such Warrant Shares, the
Company shall promptly give written notice thereof to the Holder, and the Holder will limit its
activities in respect to such transfer or disposition as, in the opinion of such counsel, are
permitted by law.

8. Fractional Shares. Fractional shares shall not be issued upon the exercise of this Warrant, but
in any case where the holder would, except for the provisions of this Section, be entitled under
the terms hereof to receive a fractional share, the Company shall, upon the exercise of this
Warrant for the largest number of whole shares then called for, pay a sum in cash equal to the sum
of (a) the excess, if any, of the Market Price of such fractional share over the proportional part
of the Warrant Exercise Price represented by such fractional share, plus (b) the proportional part
of the Warrant Exercise Price represented by such fractional share. For purposes of this Section,
the term “Market Price” with respect to shares of Common Stock of any class or series means the
last reported sale price or, if none, the average of the last reported closing bid and asked prices
on any national or regional securities exchange or quoted in the National Association of Securities
Dealers, Inc.’s Automated Quotations System (“Nasdaq”), or if not listed on a national or regional
securities exchange or quoted in Nasdaq, the average of the last reported closing bid and asked
prices as reported by the OTC Bulletin Board from quotations by market makers in such Common Stock,
or if no quotations in such Common Stock are available, the fair market value of the shares as
determined in good faith by the Board of Directors of the Company.

9. Registration Rights. The Holder of this Warrant shall have the registration rights provided in
the Loan and Subscription Agreement.

10. Survival; Governing Law; Amendment. The representations, warranties and agreements herein
contained shall survive the exercise of this Warrant. This Warrant shall be interpreted under the
laws of the State of Minnesota, without regard to its conflict of laws provisions. This Warrant and
any term hereof may be changed, waived, discharged or terminated only by an instrument in writing
signed by the Company and the Holder

Signature page follows.

 

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized
officer and this Warrant to be dated March 10, 2006.

	 	 	 	 	 	 	 
	 	 	WIRELESS RONIN TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 

John A. Witham
	 	 
	 

	 	 	 	Chief Financial Officer	 	 

 

 

TO:     WIRELESS RONIN TECHNOLOGIES, INC.

	 	 	 
	NOTICE OF EXERCISE OF WARRANT  —

	 	To Be Executed by the Registered Holder
in Order to Exercise the Warrant

The undersigned hereby irrevocably elects to exercise the attached Warrant to purchase for cash,
                                        
of the shares issuable upon the exercise of such Warrant, and requests that
certificates for such shares (together with a new Warrant to purchase the number of shares, if any,
with respect to which this Warrant is not exercised) shall be issued in the name of

	 	 	 	 	 	 	 
	 
	 

	 	 	 	 

(Print Name)
	 	 
	 
	 	 	 	 	 	 
	Please insert social security
or other identifying number
of registered Holder of
certificate:                     	 	Address:	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Signature*	 	 

 

			
	*	 	The signature on the Notice of Exercise of Warrant must correspond to the name as written upon the
face of the Warrant in every particular without alteration or enlargement or any change whatsoever.
When signing on behalf of a corporation, partnership, trust or other entity, PLEASE indicate your
position(s) and title(s) with such entity. If the Warrant is registered in the name of more than
one Holder, all Holders must sign.

 

 

ASSIGNMENT FORM

To be signed only upon authorized transfer of Warrants.

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
                                        
the right to purchase the securities of Wireless Ronin Technologies, Inc. to
which the within Warrant relates and appoints                                         , attorney, to transfer said
right on the books of Wireless Ronin Technologies, Inc. with full power of substitution in the
premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:

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