Document:

Exhibit 10.55  

SECOND AMENDMENT TO LEASE

(Mission Ridge)  

        THIS SECOND AMENDMENT TO LEASE ("Second Amendment") is made and entered into as of the
             day of October, 2007, by and between MISSION RIDGE ASSOCIATES LLC, a Delaware limited liability company
("Landlord"), and ENSIGN FACILITY SERVICES, INC., a Nevada corporation ("Tenant"). 

R E C I T A L S:

        A.    Landlord
and Tenant, entered into that certain Office Lease dated as of August 28, 2003 (the "Lease"), as
amended by that certain First Amendment to Lease Agreement dated January 15, 2004, whereby Landlord leased to Tenant and Tenant leased from Landlord certain office space located in that certain
building located and addressed at 27101 Puerta Real, Mission Viejo, California 92691 (the "Building"). 

        B.    By
this Second Amendment, Landlord and Tenant desire to expand the Premises and to otherwise modify the Lease as provided herein. 

        C.    Unless
otherwise defined herein, capitalized terms as used herein shall have the same meanings as given thereto in the Lease. 

        NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows: 

A G R E E M E N T:

        1.     The
Premises.    Landlord and Tenant hereby agree that pursuant to the Lease, Landlord currently leases to Tenant and Tenant
currently leases from Landlord that certain office space in the Building containing 15,920 rentable (14,242 usable) square feet located on the fourth (4th) floor of
the Building and commonly known as Suite 450 (the "Original Premises"), as further described in the Lease. 

        2.     Expansion
of the Premises.    Effective as of the Expansion Effective Date (defined below), the "Premises", as defined in the
Lease, is increased to approximately 20,719 rentable square feet on the fourth (4th) floor of the Building by the addition of space containing approximately
4,799 rentable (4,929 usable) square feet described as Suite Nos. 460 and 470 on the fourth (4th) floor of the Building as shown on
Exhibit A attached hereto (the "Expansion Space"). From and after the Expansion Effective Date, the Original
Premises and the Expansion Space, collectively, shall be deemed the Premises, as defined in the Lease and as used herein. The Lease Term for the Expansion Space shall commence on the Expansion
Effective Date and end on the Lease Expiration Date. The Expansion Space is subject to all the terms and conditions of the Lease except as expressly modified herein and except that Tenant shall not be
entitled to receive any allowances, abatements or other financial concessions granted with respect to the Original Premises unless such concessions are expressly provided for herein with respect to
the Expansion Space. 

	2.1
	The
Expansion Effective Date shall be the later to occur of (i) October             , 2007 ("Target Expansion Effective
Date"), and (ii) the date upon which the Tenant Improvements (as defined in the "Tenant Work Letter" attached as
Exhibit B hereto) in the Expansion Space have been substantially completed; provided, however, that if Landlord shall be delayed in substantially completing the
Tenant Improvements in the Expansion Space as a result of the occurrence of a Tenant Delay (defined below), then, for purposes of determining the 

1

 

Expansion
Effective Date, the date of substantial completion shall be deemed to be the day that said Tenant Improvements would have been substantially completed absent any such Tenant Delay(s). A
"Tenant Delay" means any act or omission of Tenant or its agents, employees, vendors or contractors that actually delays substantial completion of the
Tenant Improvements, including, without limitation, the following: 

	2.1.1
	Tenant's
failure to furnish information or approvals within any time period specified in the Lease or this Second Amendment, including the failure to prepare or approve preliminary
or final plans by any applicable due date;

	2.1.2
	Tenant's
selection of equipment or materials that have long lead times after first being informed by Landlord that the selection may result in a delay;

	2.1.3
	Changes
requested or made by Tenant to previously approved plans and specifications;

	2.1.4
	The
performance of work in the Expansion Space by Tenant or Tenant's contractor(s) during the performance of the Tenant Improvements; or

	2.1.5
	If
the performance of any portion of the Tenant Improvements depends on the prior or simultaneous performance of work by Tenant, a delay by Tenant or Tenant's contractor(s) in the
completion of such work. 

The
Expansion Space shall be deemed to be substantially completed on the date that Landlord reasonably determines that all Tenant Improvements have been performed (or would have been performed
absent any Tenant Delays), other than any details of construction, mechanical adjustment or any other matter, the noncompletion of which does not materially interfere with Tenant's use of the
Expansion Space. The adjustment of the Expansion Effective Date and, accordingly, the postponement of Tenant's obligation to pay rent on the Expansion Space shall be Tenant's sole remedy and shall
constitute full settlement of all claims that Tenant might otherwise have against Landlord by reason of the Expansion Space not being ready for occupancy by Tenant on the Target Expansion
Effective Date. 

	2.2
	In
addition to the postponement, if any, of the Expansion Effective Date as a result of the applicability of Section 2.1 of this Second Amendment, the Expansion Effective Date
shall be delayed to the extent that Landlord fails to deliver possession of the Expansion Space for any other reason (other than Tenant Delays), including but not limited to, holding over by prior
occupants. Any such delay in the Expansion Effective Date shall not subject Landlord to any liability for any loss or damage resulting therefrom. If the Expansion Effective Date is delayed, the Lease
Expiration Date shall not be similarly extended. 

        3.     Monthly
Base Rent.    Notwithstanding anything to the contrary in the Lease, as of the Expansion Effective Date, Tenant shall pay,
in accordance with the provisions of this Section 3 (but subject to Section 4 below), monthly Base Rent for the Expansion Space as follows: 

	Months
 
	 	Monthly Base Rent
	 	Monthly Base Rent Per Rentable Square Foot of Premises

	Expansion Effective Date-12	 	$	13,873.60	 	$	2.90
	13-24	 	$	14,112.80	 	$	2.95

Landlord
and Tenant acknowledge that the foregoing schedule is based on the assumption that the Expansion Effective Date is the Target Expansion Effective Date. If the Expansion Effective Date is
other than the Target Expansion Effective Date, the schedule set forth above with respect to the payment of any installment(s) of monthly Base Rent for the Expansion Space shall be appropriately
adjusted on a per diem basis to reflect the actual Expansion Effective Date, and the actual Expansion Effective Date shall be set forth in a confirmation letter to be prepared by Landlord. However,
the 

2

 

effective
date of any increases or decreases in the monthly Base Rent rate shall not be postponed as a result of an adjustment of the Expansion Effective Date as provided above. 

        4.     Base
Rent Abatement.    Notwithstanding anything above to the contrary and provided that the Tenant faithfully performs all of the
terms and conditions of the Lease (as modified by this Second Amendment), Landlord hereby agrees to abate Tenant's obligation to pay Tenant's monthly Base Rent for the
first (1st) full month following the Expansion Effective Date. During such abatement period, Tenant shall still be responsible for the payment of all other monetary obligations
under the Lease (as modified by this Second Amendment). In the event of a default by Tenant under the terms of the Lease (as modified by this Second Amendment) that results in early
termination pursuant to the provisions of Article 19 of the Lease, then as a part of the recovery set forth in Article 19 of the Lease, Landlord shall be entitled to the recovery of the
monthly Base Rent that was abated under the provisions of this Section 4. 

        5.     Tenant's
Share of Operating Expenses, Tax Expenses and Utilities Costs; Base Year. Notwithstanding anything to the contrary in the Lease, For
the period commencing with the Expansion Effective Date and ending on the Lease Expiration Date, Tenant's Share for the Expansion Space is 4.14%. Tenant's Share for the Expansion Space and the
Original Premises is, collectively, 17.86%. The Expense Base Year and the Utilities Base Year for the Expansion Space shall be the calendar year of 2007. 

        6.     Parking.    In
addition to the parking passes to which Tenant is entitled under the Lease, Tenant shall be entitled to four
(4) parking passes for every 1,000 usable square foot of the Expansion Space. Tenant's use of such parking passes shall be in accordance with, and subject to, all provision of
Article 23 of the Original Lease. In addition, Tenant shall be responsible at all times for the full amount of any taxes imposed by any governmental authority in connection with the rental of
such parking passes by Tenant or the use of the parking facilities by Tenant. 

        7.     Improvements
to the Expansion Space.    Tenant hereby agrees to accept the Expansion Space in its "AS-IS" condition.
Tenant hereby acknowledges that Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Expansion Space, except as may be expressly
provided otherwise in this Second Amendment. Landlord shall perform improvements to the Expansion Space in accordance with the terms of Exhibit B attached hereto.
Tenant also acknowledges that Landlord has made no representation or warranty regarding the condition of the Expansion Space. 

        8.     Brokers.    Each
party represents and warrants that it has had no dealings with any real estate broker, agent or finder in
connection with the Expansion Space except for the Staubach Company ("Broker") with this Second Amendment. Tenant further represents and warrants to
Landlord that Tenant will not receive (i) any portion of any potential brokerage commission or finder's fee payable to Broker in connection with this lease or (ii) any other form of
compensation or incentive from Broker with respect to this Second Amendment. Broker will receive a commission from Landlord, should an amendment be fully executed by Landlord and Tenant, equal to four
(4%) percent of the total lease consideration. Each party further agrees to defend, indemnify and hold harmless the other party from and against any claim for commission or finder's fee by any entity
(other than Broker and the Grubb & Ellis Company) who claims or alleges that they were retained or engaged by the first party or at the request of such party in connection with this Second
Amendment. 

        9.     Defaults.    Tenant
hereby represents and warrants to Landlord that, as of the date of this Second Amendment, Tenant is in full
compliance with all terms, covenants and conditions of the Lease and that there are no breaches or defaults under the Lease by Landlord or Tenant, and that Tenant knows of no events or circumstances
which, given the passage of time, would constitute a default under the Lease by either Landlord or Tenant. 

3

 

        10.   Signing
Authority.    Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do
business in the State of California and that Tenant has full right and authority to execute and deliver this Second Amendment and that each person signing on behalf of Tenant is authorized to do so.
Tenant hereby represents and warrants that neither Tenant, nor any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions program
that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury
("OFAC"); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App. § 5, the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224
(September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: "List of Specially
Designated Nationals and Blocked Persons." If the foregoing representation is untrue at any time during the Extended Lease Term, a default under the Lease will be deemed to have occurred, without the
necessity of notice to Tenant. 

        11.   Guaranty.    At
Landlord's option, this Second Amendment shall be of no force and effect unless and until accepted in writing by
any guarantors of the Lease, who by signing that certain Reaffirmation of Guaranty of Lease, dated on or about the date hereof, shall agree that their guaranty shall apply to the Lease as amended
herein, unless such requirement is waived by Landlord in writing. 

        12.   No
Further Modification.    Except as set forth in this Second Amendment, all of the terms and provisions of the Lease shall
remain unmodified and in full force and effect. 

        13.   ERISA.    To
satisfy compliance with the Employee Retirement Income Security Act of 1974, as amended, Tenant represents and
warrants to Landlord and The Prudential Insurance Company of America, a New Jersey corporation ("Prudential"), that: 

        (a)   Tenant
is not an "employee benefit plan" (as that term is defined in Section 3(3) of ERISA); and 

        (b)   Tenant
is not acquiring an interest in the Expansion Space as a plan asset subject to ERISA but for Tenant's own investment account; and 

        (c)   Tenant
is not an "affiliate" of Prudential as defined in Section IV(b) or PTE 90-1; 

        (d)   Tenant
is not a "party in interest" (as that term is defined in Section 3(14) of ERISA) to the Virginia Retirement System; and 

        (e)   Tenant
agrees to keep the identity of the Virginia Retirement System confidential, except to the extent that Tenant may be required to disclose such information as a
result of (i) legal process, or (ii) compliance with ERISA or other Laws governing Tenant's operations. 

        14.   Limitation
of Liability.    Redress for any claim against Landlord under the Lease and this Second Amendment shall be limited to
and enforceable only against and to the extent of Landlord's interest in the Building. The obligations of Landlord under the Lease are not intended to and shall not be personally binding on, nor shall
any resort be had to the private properties of, any of its trustees or board of directors and officers, as the case may be, its investment manager, the general partners thereof, or any beneficiaries,
stockholders, employees, or agents of Landlord or the investment manager. 

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        IN
WITNESS WHEREOF, this Second Amendment has been executed as of the day and year first above written. 

	"Landlord":	MISSION RIDGE ASSOCIATES LLC,

a Delaware limited liability company
	
 	

By:	

Legacy Partners Commercial, L.P.,

a California limited partnership,

as Manager and Agent for Owner
	
 	

 	

By:	

Legacy Partners Commercial, Inc.,

General Partner
	
 	

 	

 	

By:	

 Debra Smith
	 	 	 	 	Its: Executive Vice President

	
 "Tenant":	

ENSIGN FACILITY SERVICES, INC.,

a Nevada corporation
	
 	

By:	

	 	 	Name:	

	 	 	Its:	

	
 	

By:	

	 	 	Name:	

	 	 	Its:	

5

   EXHIBIT A—OUTLINE AND LOCATION OF EXPANSION SPACE

attached to and made a part of the Amendment dated as of October             , 2007, between

MISSION RIDGE ASSOCIATES LLC, a Delaware limited liability company ("Landlord"), and

ENSIGN FACILITY SERVICES, INC., a Nevada corporation ("Tenant")  

        This Exhibit A is intended only to show the general layout of the Expansion Space as of the beginning of
Expansion Effective Date. It does not in any way supersede any of Landlord's rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Building and changes in
such arrangements and/or locations. It is not to be scaled; any measurements or distances shown should be taken as approximate. 

A-1

   EXHIBIT B—TENANT WORK LETTER

attached to and made a part of the Amendment dated as of October             , 2007, between

MISSION RIDGE ASSOCIATES LLC, a Delaware limited liability company ("Landlord"), and

ENSIGN FACILITY SERVICES, INC., a Nevada corporation ("Tenant")  

        As used in this Exhibit B, the "Premises" shall be deemed to mean the Expansion Space, as defined in the
Second Amendment to which this Exhibit B is attached. 

        1.     Landlord
shall perform improvements to the Premises substantially in accordance with the plans prepared by Hattox Design Group, dated June 22, 2007, and most
recently revised August 27, 2007 (the "Plans"). The improvements to be performed by Landlord in accordance with the Plans are hereinafter
referred to as the "Tenant Improvements." It is agreed that construction of the Tenant Improvements will be completed at Landlord's sole cost and expense (subject to the Maximum Amount and further
subject to the terms of Section 4 below) using Building standard methods, materials and finishes. Landlord and Tenant agree that Landlord's obligation to pay for the cost of the Tenant
Improvements (inclusive of the cost of preparing Plans, architect's and engineer's fees, cost of permits and obtaining permits, materials, labor, general contractor's fees and overhead, a construction
management fee equal to three percent (3%) of the total construction costs, and other related costs) shall be limited to $47,990.00 (the "Maximum Amount") and that Tenant shall be responsible
for the cost of the Tenant Improvements, plus any applicable state sales or use tax, if any, to the extent that it exceeds the Maximum Amount. Landlord shall enter into a direct contract for the
Tenant Improvements with a general contractor selected by Landlord. In addition, Landlord shall have the right to select and/or approve of any subcontractors used in connection with the Tenant
Improvements. Landlord's supervision or performance of any work for or on behalf of Tenant shall not be deemed a representation by Landlord that such Plans or the revisions thereto comply with
applicable insurance requirements, building codes, ordinances, laws or regulations, or that the improvements constructed in accordance with the Plans and any revisions thereto will be adequate for
Tenant's use, it being agreed that Tenant shall be responsible for all elements of the design of the Plans (including, without limitation, compliance with law, functionality of design, the structural
integrity of the design, the configuration of the Premises and the placement of Tenant's furniture, appliances and equipment). 

        2.     If
Landlord's estimate and/or the actual cost of the Tenant Improvements shall exceed the Maximum Amount, Landlord, prior to commencing any construction of the Tenant
Improvements, shall submit to Tenant a written estimate setting forth the anticipated cost of the Tenant Improvements, including but not limited to labor and materials, contractor's fees and permit
fees. Within three (3) business days thereafter, Tenant shall either notify Landlord in writing of its approval of the cost estimate, or specify its objections thereto and any desired changes
to the proposed Tenant Improvements. If Tenant notifies Landlord of such objections and desired changes, Tenant shall work with Landlord to reach a mutually acceptable alternative
cost estimate. 

        3.     If
Landlord's estimate and/or the actual cost of construction shall exceed the Maximum Amount (such amounts exceeding the Maximum Amount being herein referred to as the
"Excess Costs"), Tenant shall pay to Landlord such Excess Costs, plus any applicable state sales or use tax thereon, upon demand. The statements of costs submitted to Landlord by Landlord's
contractors shall be conclusive for purposes of determining the actual cost of the items described therein. The amounts payable by Tenant hereunder constitute rent payable pursuant to the Lease, and
the failure to timely pay same constitutes an event of default under the Lease. 

        4.     If
Tenant shall request any revisions to the Plans, Landlord shall have such revisions prepared at Tenant's sole cost and expense and Tenant shall reimburse Landlord for
the cost of preparing any such revisions to the Plans, plus any applicable state sales or use tax thereon, upon demand. Promptly upon completion of the revisions, Landlord shall notify Tenant in
writing of the increased cost in the Tenant Improvements, if any, resulting from such revisions to the Plans. Tenant, within one (1) business 

B-1

 

day,
shall notify Landlord in writing whether it desires to proceed with such revisions. In the absence of such written authorization, Landlord shall have the option to continue work on the Premises
disregarding the requested revision. Tenant shall be responsible for any Tenant Delay in completion of the Premises resulting from any revision to the Plans. If such revisions result in an increase in
the cost of the Tenant Improvements, such increased costs, plus any applicable state sales or use tax thereon, shall be payable by Tenant upon demand. Notwithstanding anything herein to the contrary,
all revisions to the Plans shall be subject to the approval of Landlord. 

        5.     Any
portion of the Maximum Amount which exceeds the cost of the Tenant Improvements or is otherwise remaining after the later of (i) December 31, 2007 or
(ii) the date that the Tenant Improvements are substantially complete, shall accrue to the sole benefit of Landlord, it being agreed that Tenant shall not be entitled to any credit, offset,
abatement or payment with respect thereto. 

        6.     This
Exhibit B shall not be deemed applicable to any additional space, other than the Expansion Space contemplated by this Amendment, added to the Premises at any
time or from time to time, whether by any options under the Lease, as amended hereby, or otherwise, or to any portion of the original Premises or any additions to the Premises in the event of a
renewal or extension of the original Term of the Lease, whether by any options under the Lease or otherwise, unless expressly so provided in the Lease or any amendment or supplement to
the Lease. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

B-2

REAFFIRMATION OF

GUARANTY OF LEASE  

        THIS REAFFIRMATION OF GUARANTY OF LEASE dated as of October         , 2007 is made by The Ensign Group, Inc., a
Delaware corporation ("Guarantor") with respect to that certain Guaranty of Lease dated as of August 29, 2003 (the "Guaranty") by Guarantor in favor of MISSION RIDGE
ASSOCIATES LLC, a Delaware limited liability company ("Lessor") with respect to that certain Lease Agreement dated August 28, 2003 by and between Mission as "Lessor" and ENSIGN FACILITY
SERVICES, INC., a Nevada corporation ("Lessee"), as Lessee (as the same may have been amended, supplemented or otherwise modified from time to time, the "Lease"), covering certain office
space located in Mission Viejo, California, as more particularly described in the Lease. 

RECITALS  

        WHEREAS, Lessor and Lessee desire to amend the Lease upon certain terms and conditions more fully set forth in that certain Second Amendment to Lease of even date
herewith (the "Amendment"); and 

        WHEREAS,
the Amendment is not effective until Guarantor reaffirms the Guaranty; 

        NOW
THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which the Guarantor hereby acknowledges, Guarantor
hereby agrees: 

REAFFIRMATION  

        AS A MATERIAL and necessary inducement to Lessor to fulfill its obligations with respect to the Amendment, Guarantor hereby unconditionally and irrevocably
reaffirms the Guaranty on the same terms and conditions as set forth therein and confirms that Guarantor's obligations under the Guaranty shall and do extend to Lessee's obligations under the
Amendment, including but not limited to the payment of rent and all other sums now or hereafter becoming due or payable under the Lease, as amended by the Amendment. 

EXECUTED
as of this                          day of October, 2007. 

	 	 	THE ENSIGN GROUP, INC.,

a Delaware corporation
	
 	
 	

By:	
 	

 Christopher R. Christensen

President
	
 	
 	

By:	
 	

 Gregory K. Stapley

Vice PresidentQuickLinks
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Exhibit 4.3  

 
 

WARRANT    
    
    KEYON COMMUNICATIONS HOLDINGS, INC.    
    

	No. 1	 	            Shares

WARRANT TO PURCHASE COMMON STOCK  

VOID AFTER 5:30 P.M., EASTERN

TIME, ON THE EXPIRATION DATE  

THIS WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND MAY NOT BE
SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE
EXEMPTIONS THEREFROM.

        FOR
VALUE RECEIVED, KEYON COMMUNICATIONS HOLDINGS, INC., a Delaware corporation (the "Company"), hereby agrees to sell upon the terms and on the conditions hereinafter set forth,
but no later than 5:30 p.m., Pacific Time, on the Expiration Date (as hereinafter defined), to                        , or
registered assigns (the
"Holder"), under the terms as hereinafter set forth,                        fully
paid and non-assessable shares of the Company's common stock, par
value $0.001 per share (the "Warrant Stock"), at a purchase price of $3.35 per share (the "Warrant
Price"), pursuant to this warrant (this "Warrant"). The number of shares of Warrant Stock to be so issued and the Warrant Price
are subject to adjustment in certain events as hereinafter set forth. The term "Common Stock" shall mean, when used herein, unless the context otherwise
requires, the stock and other securities and property at the time receivable upon the exercise of this Warrant. 

        1.    Exercise of Warrant.    

        (a)   The
Holder may exercise this Warrant according to its terms by surrendering this Warrant to the Company at the address set forth in Section 11, together with the
form of exercise attached hereto duly executed by the Holder, accompanied by cash, certified check or bank draft in payment of the Warrant Price, in lawful money of the United States of America, for
the number of shares of the Warrant Stock specified in such form of exercise, or as otherwise provided in this Warrant, prior to 5:30 p.m., Pacific Time,
on                        , 2010 (the
"Expiration Date"). 

        (b)   This
Warrant may be exercised in whole or in part so long as any exercise in part hereof would not involve the issuance of fractional shares of Warrant Stock. If
exercised in part, the Company shall deliver to the Holder a new Warrant, identical in form, in the name of the Holder, evidencing the right to purchase the number of shares of Warrant Stock as to
which this Warrant has not been exercised, which new Warrant shall be signed by the Chairman, Chief Executive Officer, President or any Vice President of the Company. The term Warrant as used herein
shall include any subsequent Warrant issued as provided herein. 

        (c)   No
fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. The Company shall pay cash in lieu of fractions with
respect to the Warrants based upon the fair market value of such fractional shares of Common Stock (which shall be the closing price of such shares on the exchange or market on which the Common Stock
is then traded) at the time of exercise of this Warrant. 

        (d)   In
the event of any exercise of the rights represented by this Warrant, a certificate or certificates for the Warrant Stock so purchased, registered in the name of the
Holder, shall be delivered to the Holder within a reasonable time after such rights shall have been so exercised. The person or entity in whose name any certificate for the Warrant Stock is issued
upon exercise 

 

of
the rights represented by this Warrant shall for all purposes be deemed to have become the holder of record of such shares immediately prior to the close of business on the date on which the
Warrant was surrendered and payment of the Warrant Price and any applicable taxes was made, irrespective of the date of delivery of such certificate, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the opening of business on the next succeeding date
on which the stock transfer books are open. The Company shall pay any and all documentary stamp or similar issue or transfer taxes payable in respect of the issue or delivery of shares of Common Stock
on exercise of this Warrant; provided, however, that the Company shall not be required to pay any tax
that may be payable in respect of any issuance and delivery of shares of Warrant Stock to any Person other than the Holder or with respect to any income tax due by the Holder with respect to any
shares of Warrant Stock. "Person" shall mean any natural person, corporation, division of a corporation, partnership, limited liability company, trust,
joint venture, association, company, estate, unincorporated organization or government or any agency or political subdivision thereof. 

        2.    Disposition of Warrant Stock and Warrant.    

        (a)   The
Holder hereby acknowledges that this Warrant and any Warrant Stock purchased pursuant hereto are, as of the date hereof, not registered: (i) under the Act on
the ground that the issuance of this Warrant is exempt from registration under Section 4(2) of the Act as not involving any public offering or (ii) under any applicable state
securities law because the issuance of this Warrant does not involve any public offering; and that the Company's reliance on the Section 4(2) exemption of the Act and under applicable
state securities laws is predicated in part on the representations hereby made to the Company by the Holder that it is acquiring this Warrant and will acquire the Warrant Stock for investment for its
own account, with no present intention of dividing its participation with others or reselling or otherwise distributing the same, subject, nevertheless, to any requirement of law that the disposition
of its property shall at all times be within its control. 

        The
Holder hereby agrees that it will not sell or transfer all or any part of this Warrant and/or Warrant Stock, except pursuant to an effective registration statement under the Act,
unless and until it shall first have given notice to the Company describing such sale or transfer and furnished to the Company either (i) an opinion of counsel for the Company, which the
Company shall obtain at its own expense, to the effect that the proposed sale or transfer may be made without registration under the Act and without registration or qualification under any state law,
or (ii) an interpretative letter from the Securities and
Exchange Commission to the effect that no enforcement action will be recommended if the proposed sale or transfer is made without registration under the Act. 

        (b)   If,
at the time of issuance of the shares issuable upon exercise of this Warrant, no registration statement is in effect with respect to such shares under applicable
provisions of the Act, the Company may at its election require that the Holder provide the Company with written reconfirmation of the Holder's investment intent and that any stock certificate
delivered to the Holder of a surrendered Warrant shall bear a legend reading substantially as follows: 

"THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT." 

        In
addition, so long as the foregoing legend may remain on any stock certificate delivered to the Holder, the Company may maintain appropriate "stop transfer" orders with respect to such
certificates 

2

 

and
the shares represented thereby on its books and records and with those to whom it may delegate registrar and transfer functions. 

        3.    Reservation of Shares.    The Company hereby agrees that at all times there shall be reserved for issuance upon
the exercise of this Warrant such number of shares of its Common Stock as shall be required for issuance upon exercise of this Warrant. The Company further agrees that all shares which may be issued
upon the exercise of the rights represented by this Warrant will be duly authorized and will, upon issuance and against payment of the Warrant Price therefor, be validly issued, fully paid and non
assessable, free from all taxes, liens, charges and preemptive rights with respect to the issuance thereof, other than taxes, if any, in respect of any transfer occurring contemporaneously with such
issuance and other than transfer restrictions imposed by federal and state securities laws. 

        4.    Exchange, Transfer or Assignment of Warrant.    This Warrant is exchangeable, without expense, at the option of
the Holder, upon presentation and surrender hereof to the Company or at the office of its stock transfer agent, if any, for other Warrants of different denominations, entitling the Holder or Holders
thereof to purchase in the aggregate the same number of shares of Common Stock purchasable hereunder. Upon surrender of this Warrant to the Company or at the office of its stock transfer agent, if
any, with an appropriate instrument of assignment duly executed and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the
assignee named in such instrument of assignment and this Warrant shall promptly be
canceled. This Warrant may be divided or combined with other Warrants that carry the same rights upon presentation hereof at the office of the Company or at the office of its stock transfer agent, if
any, together with a written notice specifying the names and denominations in which new Warrants are to be issued and signed by the Holder hereof. 

        5.    Capital Adjustments.    This Warrant is subject to the following further provisions: 

        (a)   Until
the earlier of (i) twelve (12) months after the date of this Warrant, (ii) the filing of a registration statement with respect to which the
shares underlying this Warrant are registered for resale, or (iii) the closing of a "firm commitment" or "best efforts" registered public offering by the Company, in the event the Company
issues or sells any shares of any class of the Company's common stock or any warrants or other convertible security pursuant to which shares of any class of the Company's common stock may be acquired
(the "Dilutive Issuance") at a price less than $2.00 per share (the "New Issuance Price"), other than
Excluded Securities, then immediately after such Dilutive Issuance, the Warrant Price then in effect shall be reduced to an amount equal to the product of (i) the New Issuance Price and
(ii) 1.675; provided, however, that if the Warrant Price is adjusted to $2.00 pursuant to
Section 8 below, the Warrant Price shall equal the New Issuance Price. For purposes of this Warrant, "Excluded Securities" shall mean
(i) options to purchase common stock or shares of common stock issued upon exercise of such options to employees, consultants, officers or directors (if in transactions with primarily
non-financing purposes) of this Company directly or pursuant to any stock incentive plan approved by the Company's board of directors, (ii) securities issued upon exercise or
conversion of any convertible securities, options or warrants outstanding on the date hereof, (iii) securities issued or issuable in connection with bona fide strategic transactions entered
into by the Company, whether by merger, consolidation, joint venture, acquisition, sale or purchase of assets, sale, purchase or exchange of stock or otherwise, in each case approved by the Company's
board of directors, (iv) securities issued to service providers (such as investor relations firms) or lessors in consideration for bona fide services provided to the Company in each case that
are approved by the Company's board of directors, or (v) securities issued or issuable pursuant to stock dividends, stock splits or similar transactions. 

        (b)   If
any recapitalization of the Company or reclassification of its Common Stock or any merger or consolidation of the Company into or with a Person, or the sale or
transfer of all or 

3

 

substantially
all of the Company's assets or of any successor corporation's assets to any Person (any such Person being included within the meaning of the term "successor corporation") shall be
effected, at any time while this Warrant remains outstanding and unexpired, then, as a condition of such recapitalization, reclassification, merger, consolidation, sale or transfer, lawful and
adequate provision shall be made whereby the Holder of this Warrant thereafter shall have the right to receive upon the exercise hereof as provided in Section 1 and in lieu of the shares of
Common Stock immediately theretofore issuable upon the exercise of this Warrant, such shares of capital stock, securities or other property as may be issued or payable with respect to or in exchange
for a number of outstanding shares of Common Stock equal to the number of shares of Common Stock immediately theretofore issuable upon the exercise of this Warrant had such recapitalization,
reclassification, merger, consolidation, sale or transfer not taken place, and in each such case, the terms of this Warrant shall be applicable to the shares of stock or other securities or property
receivable upon the exercise of this Warrant after such consummation. 

        (c)   If
the Company at any time while this Warrant remains outstanding and unexpired shall subdivide or combine its Common Stock, the number of shares of Warrant Stock
purchasable upon exercise of this Warrant and the Warrant Price shall be proportionately adjusted. 

        (d)   If
the Company at any time while this Warrant is outstanding and unexpired shall issue or pay the holders of its Common Stock, or take a record of the holders of its
Common Stock for the purpose of entitling them to receive, a dividend payable in, or other distribution of, Common Stock, then (i) the Warrant Price shall be adjusted in accordance with
Section 5(e) and (ii) the number of shares of Warrant Stock purchasable upon exercise of this Warrant shall be adjusted to the number of shares of Common Stock that the Holder
would have owned immediately following such action had this Warrant been exercised immediately prior thereto. 

        (e)   If
the Company shall at any time after the date of issuance of this Warrant distribute to all holders of its Common Stock any shares of capital stock of the Company
(other than Common Stock) or evidences of its indebtedness or assets (excluding cash dividends or distributions paid from retained earnings or current year's or prior year's earnings of the Company)
or rights or warrants to subscribe for or purchase any of its securities (excluding those referred to in the immediately preceding paragraph) (any of the foregoing being hereinafter in this paragraph
called the "Securities"), then in each such case, the Company shall reserve shares or other units of such Securities for distribution to the Holder upon
exercise of this Warrant so that, in addition to the shares of the Common Stock to which such Holder is entitled, such Holder will receive upon such exercise the amount and kind of such Securities
which such Holder would have received if the Holder had, immediately prior to the record date for the distribution of the Securities, exercised this Warrant. 

        (f)    Whenever
the number of shares of Warrant Stock purchasable upon exercise of this Warrant is adjusted, as herein provided, the Warrant Price payable upon the exercise of
this Warrant shall be adjusted to that price determined by multiplying the Warrant Price immediately prior to such adjustment by a fraction (i) the numerator of which shall be the number of
shares of Warrant Stock purchasable upon exercise of this Warrant immediately prior to such adjustment, and (ii) the denominator of which shall be the number of shares of Warrant Stock
purchasable upon exercise of this Warrant immediately thereafter. 

        (g)   The
number of shares of Common Stock outstanding at any given time for purposes of the adjustments set forth in this Section 5 shall exclude any shares then
directly or indirectly held in the treasury of the Company. 

        (h)   The
Company shall not be required to make any adjustment pursuant to this Section 5 if the amount of such adjustment would be less than one percent (1%) of the
Warrant Price in effect immediately before the event that would otherwise have given rise to such adjustment. In such 

4

 

case,
however, any adjustment that would otherwise have been required to be made shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment or
adjustments so carried forward, shall amount to not less than one percent (1%) of the Warrant Price in effect immediately before the event giving rise to such next subsequent adjustment. 

        (i)    Following
each computation or readjustment as provided in this Section 5, the new adjusted Warrant Price and number of shares of Warrant Stock purchasable upon
exercise of this Warrant shall remain in effect until a further computation or readjustment thereof is required. 

        6.    Notice to Holders.    

        (a)   In
case: 

        (i)    the
Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the exercise of this Warrant) for the
purpose of entitling them to receive any dividend (other than a cash dividend payable out of earned surplus of the Company) or other distribution, or any right to subscribe for or purchase any shares
of stock of any class or any other securities, or to receive any other right; 

        (ii)   of
any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation with or merger of the Company into another
Person, or any conveyance of all or substantially all of the assets of the Company to another Person; or 

        (iii)  of
any voluntary dissolution, liquidation or winding-up of the Company; 

then,
and in each such case, the Company will mail or cause to be mailed to the Holder hereof at the time outstanding a notice specifying, as the case may be, (i) the date on which a record is
to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the date on which such reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of
Common Stock (or such stock or securities at the time receivable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for
securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice shall be mailed
at least twenty (20) days prior to the record date therein specified, or if no record date shall have been specified therein, at least twenty (20) days prior to the date of such action,
provided, however, failure to provide any such notice shall not affect the validity of such transaction. 

        (b)   Whenever
any adjustment shall be made pursuant to Section 5 hereof, the Company shall promptly make a certificate signed by its Chairman, Chief Executive Officer,
President, Vice President, Chief Financial Officer or Treasurer, setting forth in reasonable detail the event requiring the adjustment, the amount of the adjustment, the method by which such
adjustment was calculated and the Warrant Price and number of shares of Warrant Stock purchasable upon exercise of this Warrant after giving effect to such adjustment, and shall promptly cause copies
of such certificate to be mailed (by first class mail, postage prepaid) to the Holder of this Warrant. 

        7.    Call by the Company.    This Warrant contains a callable feature requiring the automatic exercise at any time
prior to the Expiration Date if the market price of the Company's common stock is equal to or in excess of the callable price of $6.00 for a period of twenty (20) consecutive days and
there is an effective registration statement covering the Warrant Stock (the "Automatic Exercise"). Upon occurrence of the Automatic Exercise, the
Company shall provide the Holder with notice of such Automatic Conversion ("Automatic Exercise Notice"). Upon receipt of the Automatic Exercise Notice,
the Holder must (a) exercise, in whole or in part, this Warrant within ten (10) days; or (ii) notify the 

5

 

Company
of its intent to transfer this Warrant pursuant to Section 4 of this Warrant. In the event that the Holder elects to transfer this Warrant pursuant to Section 4 of this Warrant,
then the subsequent holder of this Warrant must exercise this Warrant on or before the thirtieth (30) day after notification of intent to transfer this Warrant. If the Holder does not exercise
this Warrant within ten (10) days from receipt of the Automatic Exercise Notice or, in the event that this Warrant has been transferred pursuant to Section 4 of this Warrant, the
subsequent holder of this Warrant does not exercise this Warrant within thirty (30) days after notification of intent to transfer this Warrant, then this Warrant will expire. 

        8.    Reset of Warrant Price.    If the Company fails to record at least $8,500,000 in consolidated pro forma revenue
for the fiscal year ended December 31, 2007, as reported in the Company's Annual Report on Form 10-KSB for such period, the Warrant Price, without any further action on the
part of the Company or the Holder, shall be reduced to $2.00 per share. 

        9.    Loss, Theft, Destruction or Mutilation.    Upon receipt by the Company of evidence satisfactory to it, in the
exercise of its reasonable discretion, of the ownership and the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, of indemnity reasonably
satisfactory to the Company and, in the case of mutilation, upon surrender and cancellation hereof, the Company will execute and deliver in lieu hereof, without expense to the Holder, a new Warrant of
like tenor dated the date hereof. 

        10.    Warrant Holder Not a Stockholder.    The Holder of this Warrant, as such, shall not be entitled by reason of
this Warrant to any rights whatsoever as a stockholder of the Company. 

        11.    Notices.    Any notice required or contemplated by this Warrant shall be deemed to have been duly given if
transmitted by registered or certified mail, return receipt requested, postage prepaid, or nationally recognized overnight delivery service, to the Company at its principal executive offices: 4067
Dean Martin Drive, Las Vegas, NV 89103, Attention: Chief Executive Officer, or to the Holder at the name and address set forth in the Warrant Register maintained by the Company. 

        12.    Choice of Law.    THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF NEVADA, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 

        13.    Jurisdiction and Venue.    The Company and the Holder, by its acceptance hereof, hereby agree that any dispute
which may arise between them arising out of or in connection with this Warrant shall be adjudicated before a court located in Las Vegas, Nevada, and they hereby submit to the exclusive jurisdiction of
the federal and state courts of the State of Nevada located in Las Vegas with respect to any action or legal proceeding commenced by any party, and irrevocably waive any objection they now or
hereafter may have respecting the venue of any such action or proceeding brought in such a court or respecting the fact that such court is an inconvenient forum, relating to or arising out of this
Warrant or any acts or omissions relating to the sale of the securities hereunder, and consent to the service of process in any such action or legal proceeding by means of registered or certified
mail, return receipt requested, postage prepaid, in care of the address set forth herein or such other address as either party shall furnish in writing to the other. 

[Signature
Page Follows] 

6

 

        IN
WITNESS WHEREOF, the Company has duly caused this Warrant to be signed on its behalf, in its corporate name and by its duly authorized officer, as of this    day of July,
2007. 

	

 	
 	

KEYON COMMUNICATIONS HOLDINGS, INC.
	

 	
 	

By:	
 	

 Name: Jonathan Snyder

Title: Chief Executive Officer

7

FORM
OF EXERCISE

(to be executed by the registered holder hereof) 

        The
undersigned hereby exercises the right to purchase                        shares of common stock, par value $0.001 per share
("Common Stock"), of KeyOn Communications Holdings, Inc.
evidenced by the within Warrant Certificate for a Warrant Price of $            per share and herewith makes payment of the Warrant Price in full of
$                        . Kindly issue certificates for
shares of Common Stock (and for the unexercised balance of the Warrants evidenced by the within Warrant Certificate, if any) in accordance with the instructions given below. 

	Dated"	 	 	 	, 200	 	 	 
	 	 	
	 	 	
	 	
 Name:

Instructions
for registration of stock: 

	 	 	
 Name (Please Print)	 	 

	

 	
 	

 	
 	

 	
 	

 
	 	 	Social Security or other identifying Number:	 	 	 	 
	 	 	 	 	
	 	 

	

 	
 	

 	
 	

 	
 	

 
	 	 	Address:	 	 	 	 
	 	 	 	 	
	 	 
	 	 	City, State and Zip Code	 	 

Instructions
for registration of certificate representing the unexercised balance of Warrants (if any): 

	 	 	
 Name (Please Print)	 	 

	

 	
 	

 	
 	

 	
 	

 
	 	 	Social Security or other identifying Number:	 	 	 	 
	 	 	 	 	
	 	 

	

 	
 	

 	
 	

 	
 	

 
	 	 	Address:	 	 	 	 
	 	 	 	 	
	 	 
	 	 	City, State and Zip Code	 	 

QuickLinks

WARRANT KEYON COMMUNICATIONS HOLDINGS, INC.

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