Document:

f8k1209ex10v_yesdtc.htm

    Exhibit 10.5

     

    SUBSCRIPTION
AGREEMENT

     

    This
Subscription Agreement (this “Agreement”) is being
delivered to the purchaser identified on the signature page to this Agreement
(the “Subscriber”) in
connection with its investment in PR Complete Holdings, Inc., a
Nevada corporation (the “Company”). The
Company is conducting a private placement (the “Offering”) of units
(“Units”) at a
purchase price of $1,000.00 per Unit, with each Unit consisting of (i) 10,000
shares of common stock, par value $0.0001 per share (the “Shares”) and (ii) a
five (5) year warrant to purchase 10,000 shares of common stock (the “Warrant Shares”) at a
per share exercise price of $0.10 (the “Exercise Price”),
substantially in the form attached hereto as Exhibit A (the “Warrants”). For
purposes of this Agreement, the term “Securities” shall
refer to the Units, the Shares, the Warrants, and the Warrant
Shares.

     

    1.           SUBSCRIPTION AND PURCHASE
PRICE

     

    (a)           Subscription.  Subject
to the conditions set forth in Section 2 hereof, the Subscriber hereby
subscribes for and agrees to purchase the number of Units indicated on page 10
hereof on the terms and conditions described herein.

     

    (b)           Purchase of
Units.  The Subscriber understands and acknowledges that the
purchase price to be remitted to the Company in exchange for the Units shall be
set at $1,000.00 per Unit, for an aggregate purchase price as set forth on page
10 hereof (the “Aggregate Purchase
Price”). The Subscriber’s delivery of this Agreement to the Company shall
be accompanied by payment for the Units subscribed for hereunder, payable in
United States Dollars, by wire transfer of immediately available funds delivered
contemporaneously with the Subscriber’s delivery of this Agreement to the
Company in accordance with the wire instructions provided on Exhibit B. The
Subscriber understands and agrees that, subject to Section 2 and applicable
laws, by executing this Agreement, it is entering into a binding
agreement.

     

    2.           ACCEPTANCE,
OFFERING TERM AND CLOSING PROCEDURES

     

    (a)           Acceptance or
Rejection. The obligation of the Subscriber to purchase the Units shall
be irrevocable, and the Subscriber shall be legally bound to purchase the Units
subject to the terms set forth in this Agreement. The Subscriber understands and
agrees that the Company reserves the right to reject this subscription for Units
in whole or part in any order at any time prior to the Closing for any reason,
notwithstanding the Subscriber’s prior receipt of notice of acceptance of the
Subscriber’s subscription. In the event of rejection of this subscription by the
Company in accordance with this Section 2, or if the sale of the Units is not
consummated by the Company for any reason or no reason, this Agreement and any
other agreement entered into between the Subscriber and the Company relating to
this subscription shall thereafter have no force or effect, and the Company
shall promptly return or cause to be returned to the Subscriber the purchase
price remitted to the Company, without interest thereon or deduction
therefrom.

     

    (b)           Closing.  The
closing of the purchase and sale of the Units hereunder (the “Closing”) shall take
place at the offices of Anslow & Jaclin, LLP, 195 Route 9, South, Suite 204,
Manalapan, NJ 07726 or such other place as determined by the
Company.  The Closing shall take place on a Business Day promptly
following the satisfaction of the conditions set forth in Section 8 below, as
determined by the Company (the “Closing Date”).
“Business Day”
shall mean from the hours of 9:00 a.m. (Eastern Time) through 5:00 p.m. (Eastern
Time) of a day other than a Saturday, Sunday or other day on which commercial
banks in New York, New York are authorized or required to be closed. The Shares
and Warrants purchased by the Subscriber will be delivered by the Company
promptly following the Closing.

    

    (c)           Following Acceptance or
Rejection.  The Subscriber acknowledges and agrees that this
Agreement and any other documents delivered in connection herewith will be held
by the Company. In the event that this Agreement is not accepted by the Company
for whatever reason, which the Company expressly reserves the right to do, this
Agreement, the Aggregate Purchase Price received (without interest thereon) and
any other documents delivered in connection herewith will be returned to the
Subscriber at the address of the Subscriber as set forth in this Agreement. If
this Agreement is accepted by the Company, the Company is entitled to treat the
Aggregate Purchase Price received as an interest free loan to the Company until
such time as the Subscription is accepted.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (d)           Favored Nations
Provision.  Other than in connection with (i) full or partial
consideration in connection with a strategic merger, acquisition, consolidation
or purchase of substantially all of the securities or assets of a corporation or
other entity which holders of such securities or debt are not at any time
granted registration rights equal to or greater than those granted to the
Subscribers, (ii) the Company’s issuance of securities in connection with
strategic license agreements and other partnering arrangements so long as such
issuances are not for the purpose of raising capital and which holders of such
securities or debt are not at any time granted registration rights equal to or
greater than those granted to the Subscribers, (iii) the Company’s issuance of
Common Stock or the issuances or grants of options to purchase Common Stock to
employees, directors, and consultants, pursuant to plans that have been approved
by a majority of the board of directors or in existence as such plans are
constituted on the date of this Agreement, (iv) securities upon the exercise or
exchange of or conversion of any securities exercisable or exchangeable for or
convertible into shares of Common Stock issued and outstanding on the date of
this Agreement on the terms in effect on the Closing Date including the
permissible amendment thereof after the closing date,  (v) as a result
of the exercise of Warrants or conversion of notes which are granted or issued
pursuant to this Agreement, (vi) the Company’s issuance of Common Stock or the
issuances or grants of options to purchase Common Stock to consultants and
service providers, and (v) any and all securities required to be assumed by the
Company by the terms thereof as a result of any of the foregoing even if issued
by a predecessor acquired in connection with a business combination, merger or
share exchange (collectively, the foregoing (i) through (v) are “Excepted Issuances”), if at
any time prior to the five (5) year anniversary of the date of this Agreement
(the “Expiration Date”),
the Company shall agree to or issue (the “Lower Price Issuance”) any
Common Stock or securities convertible into or exercisable for shares of Common
Stock (or modify any of the foregoing which may be outstanding) to any person or
entity at a price per share or conversion or exercise price per share which
shall be less than the Unit price per share of Common Stock hereunder
(disregarding any value attributable to the Warrants) in effect at such time, or
if less than the Warrant exercise price in effect at such time, without the
consent of the Subscribers, then the Company shall issue such additional number
of shares and the Warrant exercise price shall automatically be reduced to such
other lower price.  The average Purchase Price of the Shares of Common
Stock and average exercise price in relation to the Warrant Shares shall be
calculated separately for the Shares and Warrant Shares.  Common Stock
issued or issuable by the Company for no consideration or for consideration that
cannot be determined at the time of issue will be deemed issuable or to have
been issued for $0.0001 per share of Common Stock.  The rights of
Subscribers set forth in this Section 2 are in addition to any other rights the
Subscribers have pursuant to this Agreement, the Notes, or the Warrants, and any
other agreement referred to or entered into in connection herewith or to which
Subscribers and Company are parties.  Notwithstanding anything herein
or in any other agreement to the contrary, the Company shall only be required to
make a single adjustment with respect to any Lower Price Issuance, regardless of
the existence of multiple basis therefore.

    

    (e)           Maximum Exercise of
Rights.   In the event the exercise of the rights
described in Section 2  would or could result in the issuance of an
amount of Common Stock of the Company that would exceed the maximum amount that
may be issued to Subscribers calculated in the manner as described in Section
2(f) of this Agreement, then the issuance of such additional shares of Common
Stock of the Company to Subscribers will be deferred in whole or in part until
such time as Subscribers are able to beneficially own such Common Stock without
exceeding the applicable maximum amount set forth calculated in the manner
described in Section 2(f) of this Agreement and notifies the Company
accordingly.

    

    (f)           Maximum
Conversion.  A Subscriber shall not be entitled to convert
Warrants nor may the Company make any payment for a Lower Priced Issuance, or
otherwise, by delivery of shares of Common Stock which would be in excess of the
sum of (i) the number of shares of Common Stock beneficially owned by such
Subscriber and its Affiliates on a payment date, and (ii) the number of Warrant
Shares issuable upon the conversion of the Warrant with respect to which the
determination of this provision is being made on a calculation date, which would
result in beneficial ownership by Subscriber and its Affiliates of more than
4.99% of the outstanding shares of Common Stock of the Company on such
date.  For the purposes of the immediately preceding sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Rule 13d-3
thereunder.  Subject to the foregoing, the Subscriber shall not be
limited to aggregate beneficial ownership of only 4.99% and aggregate beneficial
ownership by the Subscriber may exceed 4.99%.  The Subscriber may
increase the permitted beneficial ownership amount up to 9.99% upon and
effective after 61 days prior written notice to the
Company.  Subscriber may allocate which of the equity of the Company
deemed beneficially owned by Subscriber shall be included in the 4.99% amount
described above and which shall be allocated to the excess above
4.99%.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g)           Share
Issuance.  Until the Expiration Date, if the Company shall
issue any Common Stock except for the Excepted Issuances, prior to the complete
exercise of this Warrant for a consideration less than the Purchase Price that
would be in effect at the time of such issuance, then, and thereafter
successively upon each such issuance, the Purchase Price shall be reduced to
such other lower price for then outstanding Warrants.  For purposes of
this adjustment, the issuance of any security or debt instrument of the Company
carrying the right to convert such security or debt instrument into Common Stock
or of any warrant, right or option to purchase Common Stock shall result in an
adjustment to the Purchase Price upon the issuance of the above-described
security, debt instrument, warrant, right, or option if such issuance is at a
price lower than the Purchase Price in effect upon such issuance and again at
any time upon any actual, permitted, optional, or allowed issuances of shares of
Common Stock upon any actual, permitted, optional, or allowed exercise of such
conversion or purchase rights if such issuance is at a price lower than the
Purchase Price in effect upon any actual, permitted, optional, or allowed such
issuance.  Common Stock issued or issuable by the Company for no
consideration will be deemed issuable or to have been issued for $0.0001 per
share of Common Stock.

     

    (h)           Extraordinary Events
Regarding Common Stock.  In the event that the Company shall
(a) issue additional shares of Common Stock as a dividend or other
distribution on outstanding Common Stock, (b) subdivide its outstanding
shares of Common Stock, or (c) combine its outstanding shares of the Common
Stock into a smaller number of shares of Common Stock, then, in each such event,
the Unit Purchase Price shall, simultaneously with the happening of such event,
be adjusted by multiplying the then Purchase Price by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately
prior to such event and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after such event, and the product so
obtained shall thereafter be the Purchase Price then in effect. The Purchase
Price, as so adjusted, shall be readjusted in the same manner upon the happening
of any successive event or events described herein. The number of shares of
Common Stock and Warrants that the Subscriber shall thereafter, be issued and
obtain on the exercise hereof, be entitled to receive shall be adjusted to a
number determined by multiplying the number of shares of Common Stock that would
otherwise (but for the provisions of this Section) be issuable on such exercise
by a fraction of which (a) the numerator is the Purchase Price that would
otherwise (but for the provisions of this Section) be in effect, and (b) the
denominator is the Purchase Price in effect on the date of such
exercise.

     

    (i)           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock issuable hereunder or on the exercise of the
Warrants, the Company at its expense will promptly cause its Chief Financial
Officer or other appropriate designee to compute such adjustment or readjustment
in accordance with the terms hereof and of the Warrant and prepare a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based, including a statement of
(a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or
Other Securities) outstanding or deemed to be outstanding, and (c) the
Purchase Price and the number of shares of Common Stock to be received and to be
received upon exercise of the Warrant, in effect immediately prior to such
adjustment or readjustment and as adjusted or readjusted as provided herein. The
Company will forthwith mail a copy of each such certificate to the Subscriber
and of the Warrant and any Warrant Agent of the Company.

     

    3.           THE
SUBSCRIBER’S REPRESENTATIONS, WARRANTIES AND COVENANTS

     

    The
Subscriber hereby acknowledges, agrees with and represents, warrants and
covenants to the Company, as follows:

     

    (a)           The
Subscriber has full power and authority to enter into this Agreement, the
execution and delivery of which has been duly authorized, if applicable, and
this Agreement constitutes a valid and legally binding obligation of the
Subscriber.

     

    (b)           The
Subscriber acknowledges its understanding that the Offering and sale of the
Securities is intended to be exempt from registration under the Securities Act
of 1933, as amended (the “Securities Act”), by
virtue of Section 4(2) of the Securities Act and the provisions of Regulation D
promulgated thereunder (“Regulation
D”).  In furtherance thereof, the Subscriber represents and
warrants to the Company and its affiliates as follows:

     

    (i)           The
Subscriber realizes that the basis for the exemption from registration may not
be available if, notwithstanding the Subscriber’s representations contained
herein, the Subscriber is merely acquiring the Securities for a fixed or
determinable period in the future, or for a market rise, or for sale if the
market does not rise. The Subscriber does not have any such
intention.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (ii)           The
Subscriber realizes that the basis for exemption would not be available if the
Offering is part of a plan or scheme to evade registration provisions of the
Securities Act or any applicable state or federal securities laws.

     

    (iii)           The
Subscriber is acquiring the Securities solely for the Subscriber’s own
beneficial account, for investment purposes, and not with a view towards, or
resale in connection with, any distribution of the Securities.

     

    (iv)           The
Subscriber has the financial ability to bear the economic risk of the
Subscriber’s investment, has adequate means for providing for its current needs
and contingencies, and has no need for liquidity with respect to an investment
in the Company.

     

    (v)           The
Subscriber and the Subscriber’s attorney, accountant, purchaser representative
and/or tax advisor, if any (collectively, the “Advisors”) has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of a prospective investment in the Securities.
If other than an individual, the Subscriber also represents it has not been
organized solely for the purpose of acquiring the Securities.

     

    (vi)           The
Subscriber (together with its Advisors, if any) has received all documents
requested by the Subscriber, if any, has carefully reviewed them and understands
the information contained therein, prior to the execution of this
Agreement.

     

    (c)           The
Subscriber is not relying on the Company or any of its employees, agents,
sub-agents or advisors with respect to the legal, tax, economic and related
considerations involved in this investment. The Subscriber has relied on the
advice of, or has consulted with, only its Advisors. Each Advisor, if any, has
disclosed to the Subscriber in writing (a copy of which is annexed to this
Agreement) the specific details of any and all past, present or future
relationships, actual or contemplated, between the Advisor and the Company or
any affiliate or sub-agent thereof.

     

    (d)           The
Subscriber has carefully considered the potential risks relating to the Company
and a purchase of the Securities, and fully understands that the Securities are
a speculative investment that involves a high degree of risk of loss of the
Subscriber’s entire investment. Among other things, the Subscriber has carefully
considered each of the risks described under the heading “Risk Factors” in the
Company’s SEC Filings (as defined in Section 4(d) below), which risk factors are
incorporated herein by reference.

     

    (e)           The
Subscriber will not sell or otherwise transfer any Securities without
registration under the Securities Act or an exemption therefrom, and fully
understands and agrees that the Subscriber must bear the economic risk of its
purchase because, among other reasons, the Securities have not been registered
under the Securities Act or under the securities laws of any state and,
therefore, cannot be resold, pledged, assigned or otherwise disposed of unless
they are subsequently registered under the Securities Act and under the
applicable securities laws of such states, or an exemption from such
registration is available.  In particular, the Subscriber is aware
that the Securities are “restricted securities,” as such term is defined in Rule
144 promulgated under the Securities Act (“Rule 144”), and they
may not be sold pursuant to Rule 144 unless all of the conditions of Rule 144
are met. The Subscriber also understands that, except as otherwise provided in
Section 5 hereof, the Company is under no obligation to register the Securities
on behalf of the Subscriber or to assist the Subscriber in complying with any
exemption from registration under the Securities Act or applicable state
securities laws. The Subscriber understands that any sales or transfers of the
Securities are further restricted by state securities laws and the provisions of
this Agreement.

     

    (f)           No
oral or written representations or warranties have been made, or information
furnished, to the Subscriber or its Advisors, if any, by the Company or any of
its officers, employees, agents, sub-agents, affiliates, advisors or
subsidiaries in connection with the Offering, other than any representations of
the Company contained herein, and in subscribing for the Units, the Subscriber
is not relying upon any representations other than those contained
herein.

     

    (g)           The
Subscriber’s overall commitment to investments that are not readily marketable
is not disproportionate to the Subscriber’s net worth, and an investment in the
Securities will not cause such overall commitment to become
excessive.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (h)           The
Subscriber understands and agrees that the certificates for the Securities shall
bear substantially the following legend until (i) such Securities shall have
been registered under the Securities Act and effectively disposed of in
accordance with a registration statement that has been declared effective or
(ii) in the opinion of counsel for the Company, such Securities may be sold
without registration under the Securities Act, as well as any applicable “blue
sky” or state securities laws:

     

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS.  SUCH SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FILED BY THE ISSUER WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION
COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    (i)           Neither
the Securities and Exchange Commission (the “SEC”) nor any state
securities commission has approved the Securities or passed upon or endorsed the
merits of the Offering. There is no government or other insurance covering any
of the Securities.

     

    (j)           The
Subscriber and its Advisors, if any, have had a reasonable opportunity to ask
questions of and receive answers from a person or persons acting on behalf of
the Company concerning the Offering and the business, financial condition,
results of operations and prospects of the Company, and all such questions have
been answered to the full satisfaction of the Subscriber and its Advisors, if
any.

     

    (k)           The
Subscriber is unaware of, is in no way relying on, and did not become aware of,
the Offering through or as a result of, any form of general solicitation or
general advertising, including, without limitation, any article, notice,
advertisement or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio, or electronic mail over the
Internet, in connection with the Offering and is not subscribing for Units and
did not become aware of the Offering through or as a result of any seminar or
meeting to which the Subscriber was invited by, or any solicitation of a
subscription by, a person not previously known to the Subscriber in connection
with investments in securities generally.

     

    (l)           The
Subscriber has taken no action that would give rise to any claim by any person
for brokerage commissions, finders’ fees or the like relating to this Agreement
or the transactions contemplated hereby.

     

    (m)           The
Subscriber is not relying on the Company or any of its employees, agents, or
advisors with respect to the legal, tax, economic and related considerations of
an investment in the Shares, and the Subscriber has relied on the advice of, or
has consulted with, only its own Advisors.

     

    (n)           The
Subscriber acknowledges that any estimates or forward-looking statements or
projections furnished by the Company to the Subscriber were prepared by the
management of the Company in good faith, but that the attainment of any such
projections, estimates or forward-looking statements cannot be guaranteed by the
Company or its management and should not be relied upon.

     

    (o)           No
oral or written representations have been made, or oral or written information
furnished, to the Subscriber or its Advisors, if any, in connection with the
Offering that are in any way inconsistent with the information contained
herein.

     

    (p)           (For
ERISA plans only) The fiduciary of the ERISA plan (the “Plan”) represents
that such fiduciary has been informed of and understands the Company’s
investment objectives, policies and strategies, and that the decision to invest
“plan assets” (as such term is defined in ERISA) in the Company is consistent
with the provisions of ERISA that require diversification of plan assets and
impose other fiduciary responsibilities. The Subscriber or Plan fiduciary (i) is
responsible for the decision to invest in the Company; (ii) is independent of
the Company and any of its affiliates; (iii) is qualified to make such
investment decision; and (iv) in making such decision, the Subscriber or Plan
fiduciary has not relied primarily on any advice or recommendation of the
Company or any of its affiliates.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (q)           This
Agreement is not enforceable by the Subscriber unless it has been accepted by
the Company, and the Subscriber acknowledges and agrees that the Company
reserves the right to reject any subscription for any reason.

     

    (r)           The
Subscriber will indemnify and hold harmless the Company and, where applicable,
its directors, officers, employees, agents, advisors, affiliates and
shareholders, and each other person, if any, who controls any of the foregoing
from and against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all fees, costs and expenses
whatsoever reasonably incurred in investigating, preparing or defending against
any claim, lawsuit, administrative proceeding or investigation whether commenced
or threatened) (a “Loss”) arising out of
or based upon any representation or warranty of the Subscriber contained herein
or in any document furnished by the Subscriber to the Company in connection
herewith being untrue in any material respect or any breach or failure by the
Subscriber to comply with any covenant or agreement made by the Subscriber
herein or therein; provided, however, that the
Subscriber shall not be liable for any Loss that in the aggregate
exceeds the Subscriber’s Aggregate Purchase Price tendered
hereunder.

     

    (s)           The
Subscriber is, and on each date on which the Subscriber continues to own
restricted securities from the Offering will be, an “Accredited Investor” as
defined in Rule 501(a) under the Securities Act. In general, an “Accredited
Investor” is deemed to be an institution with assets in excess of $5,000,000 or
individuals with a net worth in excess of $1,000,000 or annual income exceeding
$200,000 or $300,000 jointly with his or her spouse.

     

    (t)           The
Subscriber, either alone or together with its representatives, has such
knowledge, sophistication and experience in business and financial matters so as
to be capable of evaluating the merits and risks of the Offering, and has so
evaluated the merits and risks of such investment. The Subscriber has not
authorized any person or entity to act as its Purchaser Representative (as that
term is defined in Regulation D of the General Rules and Regulations under the
Securities Act) in connection with the Offering. The Subscriber is able to bear
the economic risk of an investment in the Securities and, at the present time,
is able to afford a complete loss of such investment.

     

    (u)           The
Subscriber has reviewed, or had an opportunity to review, all of the SEC
Filings.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    4.           THE
COMPANY’S REPRESENTATIONS, WARRANTIES AND COVENANTS

     

    The
Company hereby acknowledges, agrees with and represents, warrants and covenants
to the Subscriber, as follows:

     

    (a)           The
Company has the corporate power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement has been duly
authorized, executed and delivered by the Company and is valid, binding and
enforceable against the Company in accordance with its terms.

     

    (b)           The
Securities to be issued to the Subscriber pursuant to this Agreement, when
issued and delivered in accordance with the terms of this Agreement, will be
duly and validly issued and will be fully paid and non-assessable.

     

    (c)           Neither
the execution and delivery nor the performance of this Agreement by the Company
will conflict with the Company’s organizational materials, as amended to date,
or result in a breach of any terms or provisions of, or constitute a default
under, any material contract, agreement or instrument to which the Company is a
party or by which the Company is bound.

     

    (d)           The
Company is subject to, and in full compliance with, the reporting requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”). The Company has made available to each Subscriber through the
EDGAR system true and complete copies of each of the Company’s Quarterly Reports
on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K, in
each case filed since September 12, 2008 (collectively, the “SEC Filings”), and
all such SEC Filings are incorporated herein by reference.  The SEC
Filings, when they were filed with the SEC (or, if any amendment with respect to
any such document was filed, when such amendment was filed), complied in all
material respects with the applicable requirements of the Exchange Act and the
rules and regulations thereunder and did not, as of such date, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. All
reports and statements required to be filed by the Company under the Securities
Act and the Exchange Act have been filed, together with all exhibits required to
be filed therewith. The Company and each of its direct and indirect
subsidiaries, if any (collectively, the “Subsidiaries”), are
engaged in all material respects only in the business described in the SEC
Filings, and the SEC Filings contain a complete and accurate description in all
material respects of the business of the Company and the
Subsidiaries.

     

    (e)           The
Company acknowledges and agrees that the Subscriber is acting solely in the
capacity of an arm’s length purchaser with respect to the Securities and the
transactions contemplated hereby. The Company further acknowledges that the
Subscriber is not acting as a financial advisor or fiduciary of the Company (or
in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by the Subscriber or any of its
representatives or agents in connection with this Agreement and the transactions
contemplated hereby is merely incidental to the Subscriber’s purchase of the
Units. The Company further represents to the Subscriber that the Company’s
decision to enter into this Agreement has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company and its
representatives.

     

    (f)           The
Company will indemnify and hold harmless the Subscriber and, where applicable,
its directors, officers, employees, agents, advisors and shareholders, from and
against any and all Loss arising out of or based upon any representation or
warranty of the Company contained herein or in any document furnished by the
Company to the Subscriber in connection herewith being untrue in any material
respect or any breach or failure by the Company to comply with any covenant or
agreement made by the Company to the Subscriber in connection therewith; provided, however, that the
Company’s liability shall not exceed the Subscriber’s Aggregate Purchase Price
tendered hereunder.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    5.           PIGGY-BACK
REGISTRATION RIGHTS

     

    (a)           For a period of twelve (12) months
following the Closing Date, the Company shall notify the Subscriber in writing
at least twenty (20) days prior the filing of any registration statement under
Securities Act, in connection with a public offering of shares of the Company’s
common stock (including, but not limited to, registration statements relating to
secondary offerings of securities of the Company but excluding any registration
statements (i) on Form S-4 or S-8 (or any successor or substantially similar
form), or of any employee stock option, stock purchase or compensation plan or
of securities issued or issuable pursuant to any such plan, or a dividend
reinvestment plan, (ii) otherwise relating to any employee, benefit plan or
corporate reorganization or other transactions covered by Rule 145 promulgated
under the Securities Act, or (iii) on any registration form that does not permit
secondary sales or does not include substantially the same information as would
be required to be included in a registration statement covering the resale of
the Shares and the Warrant Shares) and will afford the Subscriber an opportunity
to include in such registration statement all or part of the Shares and Warrant
Shares held by the Subscriber. In the event the Subscriber desires to include in
any such registration statement all or any part of the Shares and the Warrant
Shares held by the Subscriber, the Subscriber shall within ten (10) days after
the above-described notice from the Company, so notify the Company in writing,
including the number of such Shares and Warrant Shares that the Subscriber
wishes to include in such registration statement. If the Subscriber decides not
to include all of its Shares and Warrant Shares in any registration statement
thereafter filed by the Company, the Subscriber shall nevertheless continue to
have the right to include any Shares and Warrant Shares in any subsequent
registration statement or registration statements as may be filed by the Company
with respect to the offering of the securities, all upon the terms and
conditions set forth herein.

     

    (b)           Notwithstanding the foregoing, if the
managing underwriter or underwriters of any such proposed public offering advise
the Company that the total amount or kind of securities that the Subscriber, the
Company and any other persons intended to be included in such proposed public
offering is sufficiently large to adversely affect the success of such proposed
public offering, then the amount or kind of securities to be offered for the
various parties wishing to have shares of the Company’s common stock registered
shall be included in the following order:

     

    (i)           if
the Company proposes to register treasury shares or authorized but unissued
shares of its common stock (collectively, “Primary
Securities”):

     

    (A)           first, the Primary
Securities;

     

    (B)           second, the Shares and Warrant Shares
requested to be included in such registration statement, together with shares of
its common stock that do not constitute Shares, Warrant Shares or Primary
Securities (“Other
Securities”) held by
parties exercising similar piggy-back registration rights (or if necessary, such
Shares, Warrant Shares and Other Securities pro rata among the holders thereof
based upon the number of such Shares, Warrant Shares and Other Securities
requested to be registered by each such holder).

     

    (ii)           if the Company proposes to register
Other Securities:

     

    (A)           first, the Other Securities requested
to be included in such registration by holders exercising demand registration
rights;

     

    (B)           second, the Shares and Warrant Shares
requested to be included in such registration, together with Other Securities
held by parties exercising similar piggy-back registration rights (or if
necessary, such Shares, Warrant Shares and Other Securities pro rata among the
holders thereof based upon the number of such Shares, Warrant Shares and Other
Securities requested to be registered by each such holder).

     

    Anything to the contrary in this
Agreement notwithstanding, the Company may withdraw or postpone a registration
statement referred to herein (a “Registration
Statement”) at any time before it becomes effective or withdraw, postpone
or terminate the offering after it becomes effective without obligation to the
Subscriber.

     

    (c)           In connection with its obligation under
this Section 5, the Company will (i) furnish to the Subscriber without charge,
at least one copy of any effective registration statement and any post-effective
amendments thereto, including financial statements and schedules, and, if the
Subscriber so requests in writing, all documents incorporated therein by
reference and all exhibits (including those incorporated by reference) in the
form filed with the SEC; and (ii) deliver to the Subscriber and the
underwriters, if any, without charge, as many copies of the then effective
prospectus included in the registration statement, as the same may be amended or
supplemented (including such prospectus subject to completion) (the
“Prospectus”), and any amendments or supplements
thereto as such persons may reasonably request.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (d)           As a condition to the inclusion of its
Shares and Warrant Shares, the Subscriber shall furnish to the Company such
information regarding the Subscriber and the distribution proposed by the
Subscriber as the Company may request in writing or as shall be required in
connection with any registration, qualification or compliance referred to in
this Agreement.

     

    (e)           The Subscriber agrees by acquisition of
the Shares and Warrant Shares that, upon receipt of any notice from the Company
of the happening of any event that, in the good faith judgment of the Company’s
Board of Directors, requires the suspension of the Subscriber’s rights under
this Section 5, the Subscriber will forthwith discontinue disposition of the
Shares and Warrant Shares pursuant to the then current Prospectus until the
Subscriber is advised in writing by the Company that the use of the Prospectus
may be resumed. If so directed by the Company, on the happening of such event,
the Subscriber will deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies then in the Subscriber’s possession, of
the Prospectus covering the Shares and Warrant Shares at the time of receipt of
such notice.

     

    (f)           The Subscriber hereby covenants with
the Company (i) not to make any sale of Shares and Warrant Shares without
effectively causing the prospectus delivery requirements under the Securities
Act to be satisfied, and (ii) if such Shares and Warrant Shares are to be sold
by any method or in any transaction other than on a national securities
exchange, the Nasdaq Global Select Market, the Nasdaq Global Market, Nasdaq
Capital Market or in the over-the-counter market, in privately negotiated
transactions, or in a combination of such methods, to notify the Company at
least 5 business days prior to the date on which the Subscriber first offers to
sell any such Shares or Warrant Shares.

     

    (g)           The Subscriber acknowledges and agrees
that the Shares and Warrant Shares sold pursuant to a registration statement
described in this Section 5 are not transferable on the books of the Company
unless the stock certificate submitted to the transfer agent evidencing the
Shares or Warrant Shares is accompanied by a certificate reasonably satisfactory
to the Company to the effect that (x) the Shares and Warrant Shares have been
sold in accordance with such registration statement and (y) the requirement of
delivering a current Prospectus has been satisfied.

     

    (h)           The Subscriber shall not take any
action with respect to any distribution deemed to be made pursuant to such
registration statement that would constitute a violation of Regulation M under
the Exchange Act, or any other applicable rule, regulation or
law.

     

    (i)           Upon the expiration of the
effectiveness of any registration statement described in this Section 5, the
Subscriber shall discontinue sales of the Shares and Warrant Shares pursuant to
such registration statement upon receipt of notice from the Company of the
Company’s intention to remove from registration the Shares and Warrant Shares
covered by such registration statement that remain unsold, and the Subscriber
shall notify the Company of the number of registered Shares and Warrant Shares
that remain unsold immediately upon receipt of such notice from the
Company.

     

    (j)           In the case of the registration of any
underwritten primary offering initiated by the Company (other than any
registration by the Company on Form S-4 or Form S-8 (or any successor or
substantially similar form), or of (i) an employee stock option, stock purchase
or compensation plan or of securities issued or issuable pursuant to any such
plan, or (ii) a dividend reinvestment plan) or any underwritten secondary
offering initiated at the request of a holder of securities of the Company
pursuant to registration rights granted by the Company, the Subscriber agrees
not to effect any public sale or distribution of securities of the Company,
except as part of such underwritten registration, during the period beginning
fifteen (15) days prior to the closing date of such underwritten offering and
during the period ending ninety (90) days after such closing date (or such
longer period as may be reasonably requested by the Company or by the managing
underwriter or underwriters).

     

    (k)           Anything to the contrary contained in
this Agreement notwithstanding, when, in the opinion of counsel for the Company,
registration of the Shares and Warrant Shares is not required by the Securities
Act, in connection with a proposed sale of such Shares and Warrant Shares, the
Subscriber shall have no rights pursuant to this Section 5. In furtherance and
not in limitation of the foregoing, the Subscriber shall have no rights pursuant
to this Section 5 at such time as all of the Subscriber’s Shares and Warrant
Shares may be sold without limitation pursuant to Rule 144.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    6.           USE
OF PROCEEDS

     

    The Company anticipates using the gross
proceeds from the Offering for general corporate purposes including growth
initiatives and capital expenditures.

    

    7.           CONDITIONS
TO ACCEPTANCE OF SUBSCRIPTION

     

    The
Company’s right to accept the subscription of the Subscriber is conditioned upon
satisfaction of the following conditions precedent on or before the date the
Company accepts such subscription:

     

    (a)           As
of the Closing, no legal action, suit or proceeding shall be pending that seeks
to restrain or prohibit the transactions contemplated by this
Agreement.

     

    (b)           The
representations and warranties of the Company contained in this Agreement shall
have been true and correct in all material respects on the date of this
Agreement and shall be true and correct as of the Closing as if made on the
Closing Date.

     

    
      	
              8.

            	
              MISCELLANEOUS
      PROVISIONS

            

    

     

    (a)           All
parties hereto have been represented by counsel, and no inference shall be drawn
in favor of or against any party by virtue of the fact that such party’s counsel
was or was not the principal draftsman of this Agreement.

     

    (b)           Each
of the parties hereto shall be responsible to pay the costs and expenses of its
own legal counsel in connection with the preparation and review of this
Agreement and related documentation.

     

    (c)           Neither
this Agreement, nor any provisions hereof, shall be waived, modified, discharged
or terminated except by an instrument in writing signed by the party against
whom any waiver, modification, discharge or termination is sought.

     

    (d)           The
representations, warranties and agreement of the Subscriber and the Company made
in this Agreement shall survive the execution and delivery of this Agreement and
the delivery of the Securities.

     

    (e)           Any
party may send any notice, request, demand, claim or other communication
hereunder to the Subscriber at the address set forth on the signature page of
this Agreement or to the Company at its primary office (including personal
delivery, expedited courier, messenger service, fax, ordinary mail or electronic
mail), but no such notice, request, demand, claim or other communication will be
deemed to have been duly given unless and until it actually is received by the
intended recipient. Any party may change the address to which notices, requests,
demands, claims and other communications hereunder are to be delivered by giving
the other parties written notice in the manner herein set forth.

     

    (f)           Except
as otherwise provided herein, this Agreement shall be binding upon, and inure to
the benefit of, the parties to this Agreement and their heirs, executors,
administrators, successors, legal representatives and assigns.  If the
Subscriber is more than one person or entity, the obligation of the Subscriber
shall be joint and several and the agreements, representations, warranties and
acknowledgments contained herein shall be deemed to be made by, and be binding
upon, each such person or entity and its heirs, executors, administrators,
successors, legal representatives and assigns. This Agreement sets forth the
entire agreement and understanding between the parties as to the subject matter
hereof and merges and supersedes all prior discussions, agreements and
understandings of any and every nature among them.

     

    (g)           This
Agreement is not transferable or assignable by the Subscriber.

     

    (h)           This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without giving effect to conflicts of law
principles.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (i)           The
Company and the Subscriber hereby agree that any dispute that may arise between
them arising out of or in connection with this Agreement shall be adjudicated
before a court located in the City of New York, Borough of Manhattan, and they
hereby submit to the exclusive jurisdiction of the federal and state courts of
the State of New York located in the City of New York, Borough of Manhattan 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 Agreement 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.

     

    (j)           This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

     

    [Signature
Pages Follow]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ALL SUBSCRIBERS MUST
COMPLETE THIS PAGE

    

    IN
WITNESS WHEREOF, the Subscriber has executed this Agreement on the ____ day of
December 2009.

     

    

    
      	
               

            	
              x           $1,000.00
      for each
      Unit           =

            	
               

            
	
              Units
      subscribed for

            	 
      	
                    Aggregate
      Purchase Price

            

    

    

    Manner in
which Title is to be held (Please Check One):

     

    
      	
              1.

            	
              ___

            	
              Individual

            	
              7.

            	
              ___

            	
              Trust/Estate/Pension
      or Profit sharing Plan

              Date
      Opened:______________

            
	
              2.

            	
              ___

            	
              Joint
      Tenants with Right of Survivorship

            	
              8.

            	
              ___

            	
              As
      a Custodian for

              ________________________________

              Under
      the Uniform Gift to Minors Act of the State of

              ________________________________

            
	
              3.

            	
              ___

            	
              Community
      Property

            	
              9.

            	
              ___

            	
              Married
      with Separate Property

            
	
              4.

            	
              ___

            	
              Tenants
      in Common

            	
              10.

            	
              ___

            	
              Keogh

            
	
              5.

            	
              ___

            	
              Corporation/Partnership/
      Limited Liability Company

            	
              11.

            	
              ___

            	
              Tenants
      by the Entirety

            
	
              6.

            	
              ___

            	
              IRA

            	 
      	 
      	 
      

    

    

    ALTERNATIVE
DISTRIBUTION INFORMATION

     

    To direct
distribution to a party other than the registered owner, complete the
information below. YOU MUST COMPLETE THIS SECTION IF THIS IS AN IRA
INVESTMENT.

     

    Name of
Firm (Bank, Brokerage, Custodian):

     

    Account
Name:

     

    Account
Number:

     

    Representative
Name:

     

    Representative
Phone Number:

     

    Address:

     

    City,
State, Zip:

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    IF MORE
THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.

    INDIVIDUAL
SUBSCRIBERS MUST COMPLETE THIS PAGE 11.

    SUBSCRIBERS
WHICH ARE ENTITIES MUST COMPLETE PAGE 12.

     

    EXECUTION BY NATURAL
PERSONS

     

    
      	
              _____________________________________________________________________________

              Exact
      Name in Which Title is to be Held

            
	
              _________________________________

              Name
      (Please Print)

            	 
      	
              _________________________________

              Name
      of Additional Purchaser

            
	
              _________________________________

              Residence:
      Number and Street

            	 
      	
              _________________________________

              Address
      of Additional Purchaser

            
	
              _________________________________

              City,
      State and Zip Code

            	 
      	
              _________________________________

              City,
      State and Zip Code

            
	
              _________________________________

              Social
      Security Number

            	 
      	
              _________________________________

              Social
      Security Number

            
	
              _________________________________

              Telephone
      Number

            	 
      	
              _________________________________

              Telephone
      Number

            
	
              _________________________________

              Fax
      Number (if available)

            	 
      	
              ________________________________

              Fax
      Number (if available)

            
	
              _________________________________

              E-Mail
      (if available)

            	 
      	
              ________________________________

              E-Mail
      (if available)

            
	
              __________________________________

              (Signature)

               

               

            	 
      	
              ________________________________

              (Signature
      of Additional Purchaser)

            
	
              ACCEPTED
      this ___ day of _________ 2009, on behalf of the
  Company.

            
	 
      	
               

              By:_________________________________

                    
      Name:

                    
      Title:

            
	 
      	 
      

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    EXECUTION BY SUBSCRIBER
WHICH IS AN ENTITY

    (Corporation,
Partnership, LLC, Trust, Etc.)

     

    

    
      	
              _____________________________________________________________________________

              Name
      of Entity (Please Print)

            
	
              Date
      of Incorporation or Organization:

            
	
              State
      of Principal Office:

            
	
              Federal
      Taxpayer Identification Number:

              ____________________________________________

              Office
      Address

               

              ____________________________________________

              City,
      State and Zip Code

               

              ____________________________________________

              Telephone
      Number

               

              ____________________________________________

              Fax
      Number (if available)

               

              ____________________________________________

              E-Mail
      (if available)

               

            
	 
      	
              By:
      _________________________________

                    
      Name:

                    
      Title:

            
	
              [seal]

              Attest:
      _________________________________

                      (If
      Entity is a Corporation)

            	
               

              _________________________________

               

              _________________________________

              Address

            
	 
      	 
      
	
              ACCEPTED
      this ____ day of __________ 2009, on behalf of the
  Company.

            
	 
      	
               

               

              By:
      _________________________________

                    
      Name:

                    
      Title: President and Chief Executive
Officer

            

    

     

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    INVESTOR
QUESTIONNAIRE

     

    Instructions:  Check
all boxes below which correctly describe you.

     

    
      	
              o

            	
              You
      are (i) a
      bank, as defined in Section 3(a)(2) of the Securities Act of 1933, as
      amended (the “Securities
      Act”), (ii) a savings
      and loan association or other institution, as defined in Section
      3(a)(5)(A) of the Securities Act, whether acting in an individual or
      fiduciary capacity, (iii) a broker
      or dealer registered pursuant to Section 15 of the Securities Exchange Act
      of 1934, as amended (the “Exchange Act”),
      (iv) an
      insurance company as defined in Section 2(13) of the Securities Act,
      (v) an
      investment company registered under the Investment Company Act of 1940, as
      amended (the “Investment Company
      Act”), (vi) a business
      development company as defined in Section 2(a)(48) of the Investment
      Company Act, (vii) a Small
      Business Investment Company licensed by the U.S. Small Business
      Administration under Section 301 (c) or (d) of the Small Business
      Investment Act of 1958, as amended, (viii) a plan
      established and maintained by a state, its political subdivisions, or an
      agency or instrumentality of a state or its political subdivisions, for
      the benefit of its employees and you have total assets in excess of
      $5,000,000, or (ix) an employee
      benefit plan within the meaning of the Employee Retirement Income Security
      Act of 1974, as amended (“ERISA”) and (1)
      the decision that you shall subscribe for and purchase shares of common
      stock and warrants to purchase common stock (the “Units”), is
      made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is
      either a bank, savings and loan association, insurance company, or
      registered investment adviser, or (2) you have total assets in excess of
      $5,000,000 and the decision that you shall subscribe for and purchase the
      Shares is made solely by persons or entities that are accredited
      investors, as defined in Rule 501 of Regulation D promulgated under the
      Securities Act (“Regulation D”)
      or (3) you are a self-directed plan and the decision that you shall
      subscribe for and purchase the Units is made solely by persons or entities
      that are accredited investors.

            

    

     

    
      	
              o

            	
              You
      are a private business development company as defined in Section
      202(a)(22) of the Investment Advisers Act of 1940, as
    amended.

            

    

     

    
      	
              o

            	
              You
      are an organization described in Section 501(c)(3) of the Internal Revenue
      Code of 1986, as amended (the “Code”), a
      corporation, Massachusetts or similar business trust or a partnership, in
      each case not formed for the specific purpose of making an investment in
      the Units and its underlying securities in excess of
      $5,000,000.

            

    

     

    
      	
              o

            	
              You
      are a director or executive officer of the
  Company.

            

    

     

    
      	
              o

            	
              You
      are a natural person whose individual net worth, or joint net worth with
      your spouse, exceeds $1,000,000 at the time of your subscription for and
      purchase of the Units.

            

    

     

    
      	
              o

            	
              You
      are a natural person who had an individual income in excess of $200,000 in
      each of the two most recent years or joint income with your spouse in
      excess of $300,000 in each of the two most recent years, and who has a
      reasonable expectation of reaching the same income level in the current
      year.

            

    

     

    
      	
              o

            	
              You
      are a trust, with total assets in excess of $5,000,000, not formed for the
      specific purpose of acquiring the Units and whose subscription for and
      purchase of the Units is directed by a sophisticated person as described
      in Rule 506(b)(2)(ii) of Regulation
D.

            

    

     

    
      	
              o

            	
              You
      are an entity in which all of the equity owners are persons or entities
      described in one of the preceding
paragraphs.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Check
all boxes below which correctly describe you.

     

    With
respect to this investment in the Units, your:

     

    Investment
Objectives:                             
p Aggressive
Growth                        
 p Speculation

     

    Risk
Tolerance:                                            o Low
Risk                                            o Moderate
Risk                                 p High Risk

     

    Are you
associated with a FINRA Member Firm?   o Yes  o No

     

    
      	
               
      

            	
              Your
      initials (purchaser and co-purchaser, if applicable) are required for each
      item below:

            

    

     

    
      	
              ____  
      ____ 

            	
              I/We
      understand that this investment is not
  guaranteed.

            

    

     

    
      	
              ____  
      ____ 

            	
              I/We
      are aware that this investment is not
liquid.

            

    

     

    
      	
              ____  
      ____ 

            	
              I/We are sophisticated in
      financial and business affairs and are able to evaluate the risks and
      merits of an investment in this offering.

            

    

     

    
      	
              ____  
      ____ 

            	
              I/We confirm that this investment
      is considered “high risk.” (This type of investment is considered high
      risk due to the inherent risks including lack of liquidity and lack of
      diversification.  Success or failure of private placements
      such as this is dependent on the corporate issuer of these securities and is outside
      the control of the investors. While potential loss is limited to the
      amount invested, such loss is
      possible.)

            

    

     

    The
Subscriber hereby represents and warrants that all of its answers to this
Investor Questionnaire are true as of the date of its execution of the
Subscription Agreement pursuant to which it purchased the Units.

     

    
      	
               

               

              ___________________________________

              Name
      of Purchaser  [please print]

               

              ___________________________________

              Signature
      of Purchaser (Entities please

              provide
      signature of Purchaser’s duly

              authorized
      signatory.)

               

              ___________________________________

              Name
      of Signatory (Entities only)

               

              ___________________________________

              Title
      of Signatory (Entities only)

            	
               

               

              ___________________________________

              Name
      of Co-Purchaser  [please print]

               

              ___________________________________

              Signature
      of Co-Purchaser

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    VERIFICATION
OF INVESTMENT ADVISOR/BROKER

     

    I state
that I am familiar with the financial affairs and investment objectives of the
investor named above and reasonably believe that a purchase of the securities is
a suitable investment for this investor and that the investor, either
individually or together with his or her purchaser representative, understands
the terms of and is able to evaluate the merits of this offering.  I
acknowledge:

     

    
      	
               
      

            	
              (a)

            	
              that
      I have reviewed the Subscription Agreement and forms of securities
      presented to me, and attachments (if any)
  thereto;

            

    

     

    
      	
               
      

            	
              (b)

            	
              that
      the Subscription Agreement and attachments thereto have been fully
      completed and executed by the appropriate party;
  and

            

    

     

    
      	
               
      

            	
              (c)

            	
              that
      the subscription will be deemed received by the Company upon acceptance of
      the Subscription Agreement.

            

    

     

    
      	
              Deposit
      securities from this offering directly to purchaser’s
    account?

            	
              o Yes 

            	
              o No

            

    

     

    
      	
               
      

            	
              If
      “Yes,” please indicate the account number:
      _____________________________________

            

    

     

    _____________________________________                                                                                     ____________________________________

    Broker/Dealer                                                                                                                                                  
Account Executive

     

    _____________________________________                                                                                     ____________________________________

    (Name of
Broker/Dealer)                                                                                                                                
(Signature)

     

    _____________________________________                                                                                     ____________________________________

    (Street
Address of Broker/Dealer
Office)                                                                                                    
(Print Name)

     

    _____________________________________                                                                                     ____________________________________

    (City of
Broker/Dealer
Office)  (State)  (Zip)                                                                                                (Representative
I.D. Number)

     

    _____________________________________                                                                                     ____________________________________

    (Telephone
Number of Broker/Dealer
Office)                                                                                            
 (Date)

     

    _____________________________________                                                                                     ____________________________________

    (Fax
Number of Broker/Dealer
Office)                                                                                                    
      (E-mail Address of Account
Executive)

     

     

     

    17f8k1209ex10vi_yesdtc.htm

    Exhibit
10.6

     

    NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

    

    
      	 
      	
              Right
      to Purchase ___________ shares of Common Stock of YesDTC Holdings, Inc.
      (subject to adjustment as provided
herein)

            

    

    

    COMMON
STOCK PURCHASE WARRANT

     

    
      	No. __________   	 Issue Date:
      December ___, 2009

    

     

    YESDTC
HOLDINGS, INC., a corporation organized under the laws of the State
of Nevada (the “Company”), hereby certifies
that, for value received, __________________________ at ______________________,
or its assigns (the “Holder”), is entitled, subject
to the terms set forth below, to purchase from the Company at any time after the
Issue Date until 5:00 p.m., E.S.T on the fifth (5th)
anniversary of the Issue Date (the “Expiration Date”), up to
__________ fully paid and non-assessable shares of Common Stock at a per share
purchase price of $0.10.  The aforedescribed purchase price per share,
as adjusted from time to time as herein provided, is referred to herein as the
“Purchase
Price."  The number and character of such shares of Common
Stock and the Purchase Price are subject to adjustment as provided
herein.  The Company may reduce the Purchase Price for some or all of
the Warrants, temporarily or permanently, provided such reduction is made as to
all outstanding Warrants for all Holders of such
Warrants.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth in that certain Subscription Agreement (the
“Subscription
Agreement”), dated as of December ___, 2009, entered into by the Company,
the Holder and the other signatories thereto.

    

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

     

    (a)           The
term “Company” shall
mean YesDTC, Inc., a Delaware corporation, and any corporation which shall
succeed or assume the obligations of YesDTC, Inc. hereunder.

     

    (b)           The
term “Common Stock”
includes (i) the Company's Common Stock, $0.0001 par value per share, as
authorized on the date of the Subscription Agreement, and (ii) any other
securities into which or for which any of the securities described in
(i) may be converted or exchanged pursuant to a plan of recapitalization,
reorganization, merger, sale of assets or otherwise.

     

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

     

    (d)           The
term “Warrant Shares”
shall mean the Common Stock issuable upon exercise of this Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.           Exercise of
Warrant.

     

    1.1.           Number of Shares Issuable
upon Exercise.  From and after the Issue Date through and
including the Expiration Date, the Holder hereof shall be entitled to receive,
upon exercise of this Warrant in whole in accordance with the terms of Section 1.2 or
upon exercise of this Warrant in part in accordance with Section 1.3,
shares of Common Stock of the Company, subject to adjustment pursuant to Section 4 below
and Sections
11.4 and 12(b) of the
Subscription Agreement.

     

    1.2.           Full
Exercise.  This Warrant may be exercised in full by the Holder
hereof by delivery to the Company of an original or facsimile copy of the form
of subscription attached as Exhibit A hereto
(the “Subscription
Form”) duly executed by such Holder and delivery within two days
thereafter of payment, in cash, wire transfer or by certified or official bank
check payable to the order of the Company, in the amount obtained by multiplying
the number of shares of Common Stock for which this Warrant is then exercisable
by the Purchase Price then in effect.  The original Warrant is not
required to be surrendered to the Company until it has been fully
exercised.

     

    1.3.           Partial
Exercise.  This Warrant may be exercised in part (but not for a
fractional share) by delivery of a Subscription Form in the manner and at the
place provided in Section 1.2,
except that the amount payable by the Holder on such partial exercise shall be
the amount obtained by multiplying (a) the number of whole shares of Common
Stock designated by the Holder in the Subscription Form by (b) the Purchase
Price then in effect.  On any such partial exercise, provided the
Holder has surrendered the original Warrant, the Company, at its expense, will
forthwith issue and deliver to or upon the order of the Holder hereof a new
Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may request, the whole
number of shares of Common Stock for which such Warrant may still be
exercised.

     

    1.4.           Fair Market
Value.  For purposes of this Warrant, the Fair Market Value of a share
of Common Stock as of a particular date (the "Determination Date") shall
mean:

     

    (a)           If
the Company's Common Stock is traded on an exchange or is quoted on the NASDAQ
Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New
York Stock Exchange or the American Stock Exchange, LLC, then the average of the
closing sale prices of the Common Stock for the five (5) Trading Days
immediately prior to (but not including) the Determination Date;

     

    (b)           If
the Company's Common Stock is not traded on an exchange or on the NASDAQ Global
Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York
Stock Exchange or the American Stock Exchange, Inc., but is traded on the OTC
Bulletin Board or in the over-the-counter market or Pink Sheets, then the
average of the closing bid and ask prices reported for the five (5) Trading Days
immediately prior to (but not including) the Determination Date;

     

    (c)           Except
as provided in clause (d) below and Section 3.1, if the
Company's Common Stock is not publicly traded, then as the Holder and the
Company agree, or in the absence of such an agreement, by arbitration in
accordance with the rules then standing of the American Arbitration Association,
before a single arbitrator to be chosen from a panel of persons qualified by
education and training to pass on the matter to be decided; or

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    1.6.           Delivery of Stock
Certificates, etc. on Exercise. The Company agrees that, provided the
full purchase price listed in the Subscription Form is received as specified in
Section 1.2,
the shares of Common Stock purchased upon exercise of this Warrant shall be
deemed to be issued to the Holder hereof as the record owner of such shares as
of the close of business on the date on which delivery of a Subscription Form
shall have occurred and payment made for such shares as aforesaid. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within three (3) business days thereafter (“Warrant Share Delivery Date”),
the Company at its expense (including the payment by it of any applicable issue
taxes) will cause to be issued in the name of and delivered to the Holder
hereof, or as such Holder (upon payment by such Holder of any applicable
transfer taxes) may direct in compliance with applicable securities laws, a
certificate or certificates for the number of duly and validly issued, fully
paid and non-assessable shares of Common Stock (or Other Securities) to which
such Holder shall be entitled on such exercise, plus, in lieu of any fractional
share to which such Holder would otherwise be entitled, cash equal to such
fraction multiplied by the then Fair Market Value of one full share of Common
Stock, together with any other stock or other securities and property (including
cash, where applicable) to which such Holder is entitled upon such exercise
pursuant to Section 1 or
otherwise.  The Company understands that a delay in the delivery of
the Warrant Shares after the Warrant Share Delivery Date could result in
economic loss to the Holder.  As compensation to the Holder for such
loss, the Company agrees to pay (as liquidated damages and not as a penalty) to
the Holder for late issuance of Warrant Shares upon exercise of this Warrant the
proportionate amount of $100 per business day after the Warrant Share Delivery
Date for each $10,000 of Purchase Price of Warrant Shares for which this Warrant
is exercised which are not timely delivered.  The Company shall pay
any payments incurred under this Section in immediately available funds upon
demand.  Furthermore, in addition to any other remedies which may be
available to the Holder, in the event that the Company fails for any reason to
effect delivery of the Warrant Shares by the Warrant Share Delivery Date, the
Holder may revoke all or part of the relevant Warrant exercise by delivery of a
notice to such effect to the Company, whereupon the Company and the Holder shall
each be restored to their respective positions immediately prior to the exercise
of the relevant portion of this Warrant, except that the liquidated damages
described above shall be payable through the date notice of revocation or
rescission is given to the Company.

     

    1.7.           Buy-In.   In
addition to any other rights available to the Holder, if the Company fails to
deliver to a Holder the Warrant Shares as required pursuant to this Warrant,
within seven (7) business days after the Warrant Share Delivery Date and the
Holder or a broker on the Holder’s behalf, purchases (in an open market
transaction or otherwise) shares of common stock to deliver in satisfaction of a
sale by such Holder of the Warrant Shares which the Holder was entitled to
receive from the Company (a "Buy-In"), then the Company
shall pay in cash to the Holder (in addition to any remedies available to or
elected by the Holder) the amount by which (A) the Holder's total purchase price
(including brokerage commissions, if any) for the shares of common stock so
purchased exceeds (B) the aggregate Purchase Price of the Warrant Shares
required to have been delivered together with interest thereon at a rate of 15%
per annum, accruing until such amount and any accrued interest thereon is paid
in full (which amount shall be paid as liquidated damages and not as a
penalty).  For example, if a Holder purchases shares of Common Stock
having a total purchase price of $11,000 to cover a Buy-In with respect to
$10,000 of Purchase Price of Warrant Shares to have been received upon exercise
of this Warrant, the Company shall be required to pay the Holder $1,000, plus
interest. The Holder shall provide the Company written notice indicating the
amounts payable to the Holder in respect of the Buy-In.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.           Cashless
Exercise.

     

    (a)           Payment
upon exercise may be made at the option of the Holder either in (i) cash, wire
transfer or by certified or official bank check payable to the order of the
Company equal to the applicable aggregate Purchase Price, (ii) by delivery of
Common Stock issuable upon exercise of the Warrants in accordance with
Section (b) below or (iii) by a combination of any of the
foregoing methods, for the number of Common Stock specified in such form (as
such exercise number shall be adjusted to reflect any adjustment in the total
number of shares of Common Stock issuable to the holder per the terms of this
Warrant)(provided the “cashless” method of exercise provided in (ii) and (iii)
above shall only be available at any time after the twelve (12) months
anniversary of the date of this Agreement and if a registration statement is not
in effect or available for the Common Stock into which an exercise is sought
with the SEC with respect the shares of Common Stock at the time of exercise)
and the holder shall thereupon be entitled to receive the number of duly
authorized, validly issued, fully-paid and non-assessable shares of Common Stock
(or Other Securities) determined as provided herein.

     

    (b)           Subject
to the provisions herein to the contrary, if the Fair Market Value of one share
of Common Stock is greater than the Purchase Price (at the date of calculation
as set forth below), in lieu of exercising this Warrant for cash, the holder may
elect to receive shares equal to the value (as determined below) of this Warrant
(or the portion thereof being cancelled) by delivery of a properly endorsed
Subscription Form delivered to the Company by any means described in Section 13, in which
event the Company shall issue to the holder a number of shares of Common Stock
computed using the following formula:

     

    
      X=Y (A-B)

                A

                               

      
        	
                 
      Where   

              	
                 X=  

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

      

       

      
        	
                 
      

              	
                Y=

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

              

      

       

      
        	
                 
      

              	
                A=

              	
                Fair
      Market Value

              

      

       

      
        	
                 
      

              	
                B=

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

              

      

       

    

    For
purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
and acknowledged that the Warrant Shares issued in a cashless exercise
transaction in the manner described above shall be deemed to have been acquired
by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the
Subscription Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.           Adjustment for
Reorganization, Consolidation, Merger, etc.

     

    3.1.           Fundamental Transaction. 
If, at any time while this Warrant is outstanding, (A) the Company 
effects any merger or  consolidation  of the Company with or into
another entity, (B) the Company effects any sale of all or
substantially all of its assets in one or
a series of related transactions,  (C)
any tender offer or exchange offer (whether by the
Company or another entity) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their
shares for other securities, cash or property, (D) the Company
consummates a stock purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, or spin-off) with one or
more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any "person"
or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the "beneficial owner" (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Company, or (F) the Company effects any
reclassification of the Common Stock or any compulsory share exchange
pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such
case, a "Fundamental 
Transaction"), then, upon any subsequent exercise of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that
would have been issuable upon such exercise immediately prior to the occurrence
of such Fundamental Transaction, at the option of the Holder, (a) upon
exercise of this Warrant, the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the
surviving corporation, and any additional consideration (the "Alternate
Consideration") receivable upon or as a result of
such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is
acquired in (1) a transaction where the consideration paid to the holders
of the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as
defined in Rule 13e-3 under the 1934 Act, or (3) a transaction involving a
person or entity not traded on a national securities exchange, the Nasdaq Global
Select Market, the Nasdaq Global Market or the Nasdaq Capital
Market, cash equal to the Black-Scholes Value. 
For purposes of any such exercise, the determination of the
Purchase Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall
apportion the Purchase Price among the Alternate Consideration in
a reasonable manner reflecting the relative value of any different components of
the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a
Fundamental Transaction, then the Holder shall be given the same choice as to
the Alternate Consideration it receives upon any exercise of this Warrant
following such Fundamental Transaction.  To the extent necessary to
effectuate the foregoing provisions, any successor to the Company or
surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with
the foregoing provisions and evidencing the
Holder's right to exercise such warrant into Alternate
Consideration.  The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such
successor or surviving entity to comply with the provisions of
this Section
3.1 and insuring that this Warrant (or any such replacement
security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.  “Black-Scholes Value” shall be
determined in accordance with the Black-Scholes Option Pricing Model obtained
from the “OV” function on Bloomberg L.P. using (i) a price per share of Common
Stock equal to the VWAP of the Common Stock for the Trading Day immediately
preceding the date of consummation of the applicable Fundamental Transaction,
(ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a
period equal to the remaining term of this Warrant as of the date of such
request and (iii) an expected volatility equal to the 100 day volatility
obtained from the HVT function on Bloomberg L.P. determined as of the Trading
Day immediately following the public announcement of the applicable Fundamental
Transaction.

    

    3.2.           Continuation of
Terms.  Upon any reorganization, consolidation, merger or
transfer (and any dissolution following any transfer) referred to in this Section 3, this
Warrant shall continue in full force and effect and the terms hereof shall be
applicable to the Other Securities and property receivable on the exercise of
this Warrant after the consummation of such reorganization, consolidation or
merger or the effective date of dissolution following any such transfer, as the
case may be, and shall be binding upon the issuer of any Other Securities,
including, in the case of any such transfer, the person acquiring all or
substantially all of the properties or assets of the Company, whether or not
such person shall have expressly assumed the terms of this Warrant as provided
in Section 4.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.3           Share
Issuance.  Until the Expiration Date, if the Company shall
issue any Common Stock except for the Excepted Issuances (as defined in the
Subscription Agreement), prior to the complete exercise of this Warrant for a
consideration less than the Purchase Price that would be in effect at the time
of such issuance, then, and thereafter successively upon each such issuance, the
Purchase Price shall be reduced to such other lower price for then outstanding
Warrants.  For purposes of this adjustment, the issuance of any
security or debt instrument of the Company carrying the right to convert such
security or debt instrument into Common Stock or of any warrant, right or option
to purchase Common Stock shall result in an adjustment to the Purchase Price
upon the issuance of the above-described security, debt instrument, warrant,
right, or option if such issuance is at a price lower than the Purchase Price in
effect upon such issuance and again at any time upon any actual, permitted,
optional, or allowed issuances of shares of Common Stock upon any actual,
permitted, optional, or allowed exercise of such conversion or purchase rights
if such issuance is at a price lower than the Purchase Price in effect upon any
actual, permitted, optional, or allowed such issuance.  Common Stock
issued or issuable by the Company for no consideration will be deemed issuable
or to have been issued for $0.0001 per share of Common Stock.

     

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

     

    5.           Certificate as to
Adjustments.  In each case of any adjustment or readjustment in
the shares of Common Stock (or Other Securities) issuable on the exercise of the
Warrants, the Company at its expense will promptly cause its Chief Financial
Officer or other appropriate designee to compute such adjustment or readjustment
in accordance with the terms of the Warrant and prepare a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, including a statement of (a) the
consideration received or receivable by the Company for any additional shares of
Common Stock (or Other Securities) issued or sold or deemed to have been issued
or sold, (b) the number of shares of Common Stock (or Other Securities)
outstanding or deemed to be outstanding, and (c) the Purchase Price and the
number of shares of Common Stock to be received upon exercise of this Warrant,
in effect immediately prior to such adjustment or readjustment and as adjusted
or readjusted as provided in this Warrant. The Company will forthwith mail a
copy of each such certificate to the Holder of the Warrant and any Warrant Agent
of the Company (appointed pursuant to Section 11
hereof).

     

    6.           Reservation of Stock, etc.
Issuable on Exercise of Warrant; Financial
Statements.   The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of the
Warrants, all shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of the Warrant.  This Warrant entitles the
Holder hereof, upon written request, to receive copies of all financial and
other information distributed or required to be distributed to the holders of
the Company's Common Stock.

     

    7.           Assignment; Exchange of
Warrant.  Subject to compliance with applicable securities
laws, this Warrant, and the rights evidenced hereby, may be transferred by any
registered holder hereof (a "Transferor"). On the surrender
for exchange of this Warrant, with the Transferor's endorsement in the form of
Exhibit B attached hereto (the “Transferor Endorsement Form")
and together with an opinion of counsel reasonably satisfactory to the Company
that the transfer of this Warrant will be in compliance with applicable
securities laws, the Company will issue and deliver to or on the order of the
Transferor thereof a new Warrant or Warrants of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor Endorsement
Form (each a "Transferee"), calling in the
aggregate on the face or faces thereof for the number of shares of Common Stock
called for on the face or faces of the Warrant so surrendered by the
Transferor.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    9.           Registration
Rights.  The Holder of this Warrant has been granted certain
registration rights by the Company.  These registration rights are set
forth in the Subscription Agreement.  The terms of the Subscription
Agreement are incorporated herein by this reference.

     

    10.           Maximum
Exercise.  The Holder shall not be entitled to exercise this
Warrant on an exercise date, in connection with that number of shares of Common
Stock which would be in excess of the sum of (i) the number of shares of
Common Stock beneficially owned by the Holder and its affiliates on an exercise
date, and (ii) the number of shares of Common Stock issuable upon the
exercise of this Warrant with respect to which the determination of this
limitation is being made on an exercise date, which would result in beneficial
ownership by the Holder and its affiliates of more than 4.99% of the outstanding
shares of Common Stock on such date.  For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the 1934 Act and Rule 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate exercises which would result in the issuance of more than
4.99%.  The restriction described in this paragraph may be
waived, in whole or in part, upon sixty-one (61) days prior notice from the
Holder to the Company to increase such percentage to up to 9.99%, but not in
excess of 9.99%.  The Holder may decide whether to convert a
Convertible Note or exercise this Warrant to achieve an actual 4.99% or up to
9.99% ownership position as described above, but not in excess of
9.99%.

     

    11.           Warrant
Agent.  The Company may, by written notice to the Holder of the
Warrant, appoint an agent (a “Warrant Agent”) for the
purpose of issuing Common Stock (or Other Securities) on the exercise of this
Warrant pursuant to Section 1,
exchanging this Warrant pursuant to Section 7, and
replacing this Warrant pursuant to Section 8, or
any of the foregoing, and thereafter any such issuance, exchange or replacement,
as the case may be, shall be made at such office by such Warrant
Agent.

     

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

     

    13.           Notices.   All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:  if to the Company, to:
YesDTC, Inc., 1155C Arnold Drive, Suite 169, Martinez, CA 94553: (___)
-    , with a copy by fax only to:  Harvey Kesner,
Esq., Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor, New York, NY
10006, facsimile: (212) 930-9725, and (ii) if to the Holder, to the name,
address and facsimile number set forth on the front page of this Note, with a
copy by fax only to __________________________________, facsimile:
(   )    -

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    14.           Law Governing This
Warrant.  This Warrant shall be governed by and construed in
accordance with the laws of the State of New York without regard to principles
of conflicts of laws.  Any action brought by either party against the
other concerning the transactions contemplated by this Warrant shall be brought
only in the state courts of New York or in the federal courts located in the
state and county of New York.  The parties to this Warrant hereby
irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of
jurisdiction or venue or based upon forum non
conveniens.  The Company and Holder waive trial by
jury.  The prevailing party shall be entitled to recover from the
other party its reasonable attorney's fees and costs.  In the event
that any provision of this Warrant or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law.  Any such provision which may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision of any agreement.   Each party hereby
irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this Agreement or
any other Transaction Document by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way
any right to serve process in any other manner permitted by law.

     

    

     

    [SIGNATURE
PAGE FOLLOWS]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 
      	
              YESDTC
      HOLDINGS, INC.

               

               

               

              By:                                                                           

                     Name:  Joe
      Noel

                     Title:  Chief
      Executive Officer

               

               

               

               

            
	 
      	 
      	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Exhibit A

    

    FORM OF
SUBSCRIPTION

    (to be
signed only on exercise of Warrant)

    TO:  ____________________.

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

    

    ___           ________
shares of the Common Stock covered by such Warrant; or

    
      	
              ___

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

            

    

    

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

    

    ___           $__________
in lawful money of the United States; and/or

    
      	
              ___

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

            

    

    

    
      	
              ___

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

            

    

    

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

    

    The
undersigned represents and warrants that all offers and sales by the undersigned
of the securities issuable upon exercise of the within Warrant shall be made
pursuant to registration of the Common Stock under the Securities Act of 1933,
as amended (the "Securities Act"), or pursuant to an exemption from registration
under the Securities Act.

    

    
      	
              Dated:___________________

            	
               

              (Signature
      must conform to name of holder as specified on the face of the
      Warrant)

               

               

               

              (Address)

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit B

    

    

    FORM OF
TRANSFEROR ENDORSEMENT

    (To be
signed only on transfer of Warrant)

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

     

    
      

      
        	
                Transferees

              	
                Percentage Transferred

              	
                Number Transferred

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

      

    

     

    
      	
              Dated:  __________________,
      _______

               

               

               

              Signed
      in the presence of:

               

              
                
      

              (Name)

               

               

              ACCEPTED
      AND AGREED:

              [TRANSFEREE]

               

               

              
                
      

              (Name)

               

            	
               

              (Signature
      must conform to name of holder as specified on the face of the
      warrant)

               

               

               

              
                
      

              
                
      

              (address)

               

              
                
      

              
                
      

              (address)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]