Document:

exv4w3

 

EXHIBIT
4.3

Series B Warrant No. __

 

Viseon, inc.

(Formerly Rsi Systems, Inc.)

Common Stock Purchase Warrant

Dated as of August 22, 2005

 

THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW
OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION
REQUIREMENTS OF SUCH ACT AND SUCH LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE
SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE CONDITIONS
SPECIFIED IN THIS WARRANT AND IN THE REGISTRATION RIGHTS AGREEMENT, DATED THE DATE
HEREOF, BY AND BETWEEN VISEON, INC f/k/a RSI SYSTEMS, INC., AND THE HOLDERS
SPECIFIED THEREIN.

 

 

Viseon, Inc.

(Formerly
Rsi Systems, Inc.)

Common Stock Purchase Warrant

Void on August 21, 2010

	 	 	 
	Series B Warrant

	 	Las Vegas, Nevada
	 
	 	 
	No. B-4

	 	August 22,
	2005
	 	 

     VISEON, INC. (the “Company”), a Nevada corporation, for value received, hereby certifies that
                                                             or registered assigns (the “Holder”), is entitled to purchase from the
Company
                                         (                    ) shares (the “Warrant Shares”) of duly authorized, validly issued,
fully paid and nonassessable 1common stock, par value $0.01 per share, of the Company (the “Common
Stock”) at the purchase price per share of one dollar and fifteen cents ($1.15) per share
of Common Stock, (the “Warrant Price”), at any time or from time to time prior to 5:00 p.m. Central
Standard time, on August 21, 2010 (the “Expiration Date”), all subject to the terms, conditions and
adjustments set forth below in this Warrant.

     This Warrant is the Warrant (the term “Warrant”, shall include any such warrants issued in
substitution therefor) originally issued in connection with the Purchase Agreement, dated as of the
date hereof, by and among the Company and the Holder (as amended or otherwise modified from time to
time, the “Purchase Agreement”). The Warrant originally so issued evidences the right to purchase
a number of shares of Common Stock equal to the Warrant Shares, subject to adjustment as provided
herein. Certain capitalized terms used in this Warrant are defined in Section 10; references to an
“Exhibit” are, unless otherwise specified, to one of the Exhibits attached to this Warrant and
references to a “Section” are, unless otherwise specified, to one of the Sections of this Warrant.

1. Exercise of Warrant.

     1.1 Manner of Exercise. This Warrant may be exercised by the Holder, in whole or in
part, during normal business hours on any Business Day, by surrender of this Warrant to the Company
at its principal office, accompanied by the Form of Subscription in substantially the form attached
as Exhibit A to this Warrant (or a reasonable facsimile thereof) duly executed by the Holder and
accompanied by payment, in cash, by wire transfer, certified or official bank check payable to the
order of the Company in the amount obtained by multiplying (a) the number of shares of Common
Stock (adjusted as provided in Section 2 ) designated in such Form of

	 	 	 
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Subscription by (b) the
Warrant Price then in effect, and such Holder shall thereupon be entitled to receive such number of
duly authorized, validly issued, fully paid and nonassessable shares of Common Stock (or Other
Securities).

     1.2 When Exercise Effective. Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the Business Day on which this Warrant
shall have been surrendered to the Company together with all applicable payments as provided in
Section 1.1. At such time the Person or Persons in whose name or names any certificate or
certificates for shares of Common Stock (or Other Securities) shall be issuable upon such exercise,
as provided in Section 1.3, shall be deemed to have become the Holder or holders of record thereof.

     1.3 Delivery of Stock Certificates, etc. As soon as practicable after each exercise
of this Warrant, in whole or in part, and in any event within three Business Days thereafter, the
Company at its expense (including the payment by it of any applicable transfer taxes) will cause to
be issued in the name of and delivered to the Holder hereof or, subject to Section 9, as such
Holder (upon payment by such Holder of any applicable transfer taxes) may direct,

     (a) a certificate or certificates for the number of duly authorized, validly issued,
fully paid and nonassessable shares, including, if the Company so elects, fractional shares,
of Common Stock (or Other Securities) to which such Holder shall be entitled upon such
exercise plus, at the discretion of the Company, in lieu of any fractional share to which
such Holder would otherwise be entitled, cash in an amount equal to the same fraction of the
Closing Price per share on the Business Day next preceding the date of such exercise, and

     (b) in case such exercise is in part only, a new Warrant or Warrants of like tenor,
calling in the aggregate on the face or faces thereof for the number of shares of Common
Stock equal (without giving effect to any adjustment thereof) to the number of such shares
called for on the face of this Warrant minus the number of such shares designated by the
Holder upon such exercise as provided in Section 1.1.

In lieu of physical delivery of the shares being issued upon exercise, provided that the Company’s
transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities
Transfer (FAST) program, upon request of the Holder and in compliance with the provisions hereof,
the Company shall use its reasonable efforts to cause its transfer agent to electronically transmit
the shares being issued to the Holder by crediting the account of the Holder’s Prime Broker with
DTC through its Deposit Withdrawal Agent Commission system. The time period for delivery described
herein shall apply to the electronic transmittals described herein.

     1.4 Company to Reaffirm Obligations. The Company
will, at the time of each exercise of this Warrant, upon the request of the Holder,
acknowledge in writing its continuing obligation to afford to such Holder all rights (including,
without limitation, any rights to registration of the shares of Common Stock or Other Securities
issued upon such exercise) to which such Holder shall continue to be entitled after such exercise
in accordance with the terms of this Warrant, provided that if the Holder shall fail to make any
such request, such failure shall not affect the continuing obligation of the Company to afford such
rights to such Holder.

 
	 	 	 
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     1.5 Payment by Application of Shares Otherwise Issuable. Upon the occurrence of
certain events as set forth in the Registration Rights Agreement of even date herewith, the Holder
may be entitled, from time to time and at various times to a cashless exercise of this Warrant in
the manner and on the terms and conditions as set forth in Section 2(h) the Registration Rights
Agreement.

2. Adjustment of Common Stock Issuable Upon Exercise.

     The Warrant Price and the Warrant Shares purchasable pursuant to each Warrant shall be subject
to adjustment from time to time as hereinafter set forth in this Section 2:

     2.1 Dividends and Subdivisions. In case, prior to the expiration of this Warrant by
exercise or by its terms, the Company shall issue any shares of its Common Stock as a stock
dividend or subdivide the number of outstanding shares of its Common Stock into a greater number of
shares, then in either of such cases, the then applicable Warrant Price per Warrant Share
purchasable pursuant to this Warrant in effect at the time of such action shall be proportionately
reduced and the number of Warrant Shares at that time purchasable pursuant to this Warrant shall be
proportionately increased; and conversely, in the event the Company shall reduce the number of
outstanding shares of Common Stock by combining such shares into a smaller number of shares, then,
in such case, the then applicable Warrant Price per Warrant Share purchasable pursuant to this
Warrant in effect at the time of such action shall be proportionately increased and the number of
Warrant Shares at that time purchasable pursuant to this Warrant shall be proportionately
decreased. If the Company shall, at any time during the life of this Warrant, declare a dividend
payable in cash on its Common Stock and shall at substantially the same time offer to its
stockholders a right to purchase new Common Stock from the proceeds of such dividend or for an
amount substantially equal to the dividend, all Common Stock so issued shall, for the purpose of
this Warrant, be deemed to have been issued as a stock dividend. Any dividend paid or distributed
upon the Common Stock in stock of any other class of securities convertible into shares of Common
Stock shall be treated as a dividend paid in Common Stock to the extent that shares of Common Stock
are issuable upon conversion thereof.

     2.2 Recapitalizations, Mergers, Etc. In case, prior to the expiration of this Warrant
by exercise or by its terms, the Company shall be recapitalized by reclassifying its outstanding
Common Stock, (other than a change in par value to no par value), or the corporation or a successor
corporation shall consolidate or merge with or convey all or substantially all of its or of any
successor corporation’s property and assets to any other corporation or corporations (any such
other corporations being included within the meaning of the term “successor corporation”
hereinbefore used in the event of any consolidation or merger of any such other corporation with,
or the sale of all or substantially all of the property of any such other corporation to, another
corporation or corporations), then, as a condition of such recapitalization, consolidation, merger
or conveyance, lawful and adequate provision shall be made whereby the holder of this Warrant shall
thereafter have the right to purchase, upon the basis and on the terms and conditions specified in
this Warrant, in lieu of the Warrant Shares theretofore purchasable upon the exercise of this
Warrant, such shares of stock, securities or assets as may be issued or payable with respect to, or
in exchange for, the number of Warrant Shares theretofore purchasable upon the exercise of this
Warrant, had such recapitalization, consolidation, merger, or conveyance not taken place; and in
any such event, the rights of the Warrant Holder to any adjustment in the number of

 
	 	 	 
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Warrant Shares
purchasable upon the exercise of this Warrant, as herein provided, shall continue and be preserved
in respect of any stock which the Warrant Holder becomes entitled to purchase.

     2.3 Sale of Property, Liquidation, Etc. In case the Company at any time while this
Warrant shall remain unexpired and unexercised shall sell all or substantially all of its property
or dissolve, liquidate, or wind up its affairs, lawful provision shall be made as part of the terms
of any such sale, dissolution, liquidation or winding up, so that the holder of this Warrant may
thereafter receive upon exercise hereof in lieu of each Warrant Share that it would have been
entitled to receive, the same kind and amount of any securities or assets as may be issuable,
distributable or payable upon any such sale, dissolution, liquidation or winding up with respect to
each share of Common Stock of the Company, provided, however, that in any case of any such
voluntary sale or of dissolution, liquidation or winding up, the right to exercise this Warrant
shall terminate on a date fixed by the Company; such date so fixed to be not earlier than 5:00
p.m., Central Standard Time, on the forty-fifth day following the date on which a notice of such
termination of the right to exercise this Warrant has been given, by any method set forth in
Section 13, to the registered holder of this Warrant at its address as it appears on the books of
the Company.

     2.4 Issuance of Additional Shares. If the Company, at any time while this Warrant
is outstanding:

                    (i) issues or sells, or is deemed to have issued or sold, any Common Stock, other than
Excluded Shares;

                    (ii) in any manner grants, issues or sells any rights, options, warrants, options to subscribe
for or to purchase Common Stock or any stock or other securities convertible into or exchangeable
for Common Stock that, upon conversion or exchange, would not constitute Excluded Shares (such
rights, options or warrants being herein called “Options” and such convertible or exchangeable
stock or securities being herein called “Convertible Securities”); or

                    (iii) in any manner issues or sells any Convertible Securities that, upon conversion, would
not constitute Excluded Shares;

for (a) with respect to Section 2.4(i), above, a price per share, or (b) with respect to Sections
2.4(ii) or 2.4(iii), above, a price per share (including the consideration per share paid on
issuance
of the Option or Convertible Securities) for which Common Stock issuable upon the exercise of such
Options or upon conversion or exchange of such Convertible Securities is less than the Warrant
Price then in effect immediately prior to such issuance, sale or grant, then, immediately after
such issuance, sale or grant, the Warrant Price then in effect shall be reduced concurrently with
such issue to the amount of the consideration per share received by the Company for such issue or
deemed issue of the additional shares of Common Stock; provided that if such issuance or
deemed issuance was without consideration, then the Corporation shall be deemed to have received an
aggregate of $.01 of consideration for all such additional shares of Common Stock issued or deemed
to be issued. No modification of the issuance terms shall be made upon the actual issuance of such
Common Stock upon exercise, conversion or exchange of such Options

	 	 	 
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or Convertible Securities. If
there is a change at any time in (i) the exercise price provided for in any Options, (ii) the
additional consideration, if any, payable upon the issuance, conversion or exchange of any
Convertible Securities or (iii) the rate at which any Convertible Securities are convertible into
or exchangeable for Common Stock, then immediately after such change the Warrant Price then in
effect shall be adjusted to the Warrant Price which would have been in effect at such time had such
Options or Convertible Securities still outstanding provided for such changed exercise price,
additional consideration or changed conversion rate, as the case may be, at the time initially
granted, issued or sold; provided that no adjustment shall be made if such adjustment would result
in an increase of the Warrant Price then in effect..

2.5 Computation of Consideration. For the purposes of this Section 2, the consideration
for the issue or sale of any securities of the Company shall, irrespective of the accounting
treatment of such consideration,

     (i) insofar as it consists of cash, be computed at the net amount of cash
received by the Company, without deducting any expenses paid or incurred by the
Company or any commissions or compensations paid or concessions or discounts allowed
to underwriters, dealers or others performing similar services in connection with
such issue or sale, and

     (ii) insofar as it consists of property (including securities) other than cash,
be computed at the fair value thereof at the time of such issue or sale, as
determined in good faith by the Board of Directors of the Company,

     2.6 Minimum Adjustment of Warrant Quantity. If the amount of any adjustment of the
number Warrant Shares required pursuant to this Section 2 would be less than one tenth (1/10) of
one percent (1%) of the number Warrant Shares in effect under this Warrant at the time such
adjustment is otherwise so required to be made, such amount shall be carried forward and adjustment
with respect thereto shall be made at the time of and together with any subsequent adjustment
which, together with such amount and any other amount or amounts so carried forward, shall
aggregate at least one tenth (1/10) of one percent (1%) of such number of Warrant Shares. All
calculations under this Warrant shall be made to the nearest one-hundredth of a share.

     2.7 Abandoned Dividend or Distribution. If the Company
shall take a record of the holders of its Common Stock for the purpose of entitling them to
receive a dividend or other distribution (which results in an adjustment to the Warrant Shares
under the terms of this Warrant) and shall, thereafter, and before such dividend or distribution is
paid or delivered to shareholders entitled thereto, legally abandon its plan to pay or deliver such
dividend or distribution, then any adjustment made to the Warrant Shares by reason of the taking of
such record shall be reversed, and any subsequent adjustments, based thereon, shall be recomputed

     2.8 Number of Warrant Shares. Simultaneously with any adjustment to the Warrant Price
pursuant to this Section 2, the number of Warrant Shares that may be purchased upon exercise of
this Warrant shall be increased or decreased proportionately, so that after such adjustment the
aggregate Warrant Price payable hereunder for the adjusted number of Warrant Shares shall be the
same as the aggregate Warrant Price in effect immediately prior to such adjustment.

 
	 	 	 
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3. Other Dilutive Events. In case an event shall occur as to which the provisions of
Section 2 are not strictly applicable but the failure to make any adjustment would not fairly
protect the purchase rights represented by this Warrant in accordance with the essential intent and
principles of such Section, then, in each such case, the Company shall appoint, at the Company’s
expense, a firm of independent certified public accountants of recognized national standing (which
may be the regular auditors of the Company), which shall give their opinion upon the adjustment, if
any, on a basis consistent with the essential intent and principles established in Sections 2,
necessary to preserve, without dilution, the purchase rights represented by this Warrant. Upon
receipt of such opinion, the Company will promptly mail a copy thereof to the Holder and shall make
the adjustments described therein.

4. No Impairment. The Company will not, by amendment of its articles of incorporation or
through any consolidation, merger, reorganization, transfer of assets, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or appropriate in order
to protect the rights of the Holder against impairment. Without limiting the generality of the
foregoing, the Company (a) shall not permit the par value of any shares of stock receivable upon
the exercise of this Warrant to exceed the amount payable therefor upon such exercise, (b) will
take all such action as may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable shares of stock, free from all taxes, liens, security
interests, encumbrances, preemptive rights and charges on the exercise of the Warrants from time to
time outstanding, (c) will not take any action which results in any adjustment of the number of
Warrant Shares if the total number of shares of Common Stock (or Other Securities) issuable after
the action upon the exercise of all of the Warrants would exceed the total number of shares of
Common Stock (or Other Securities) then authorized by the Company’s certificate of incorporation
and available for the purpose of issue upon such exercise, and (d) will not issue any capital stock
of any class which is preferred as to dividends or as to the distribution of assets upon voluntary
or involuntary dissolution, liquidation or winding-up, unless the rights of the holders thereof
shall be limited to a fixed sum or percentage of par value or a sum determined by reference to a
formula based on a published index of interest rates, an interest rate publicly
announced by a financial institution or a similar indicator of interest rates in respect of
participation in dividends and to a fixed sum or percentage of par value in any such distribution
of assets.

5. Accountants’ Report as to Adjustments. In each case of any adjustment or readjustment
in the shares of Common Stock (or Other Securities) issuable upon the exercise of this Warrant, the
Company at its expense will promptly compute such adjustment or readjustment in accordance with the
terms of this Warrant and cause independent certified public accountants of recognized national
standing (which may be the regular auditors of the Company) selected by the Company to verify such
computation (other than any computation of the fair value of property as determined in good faith
by the Board of Directors of the Company) and prepare a report setting forth such adjustment or
readjustment and showing in reasonable detail the method of calculation thereof and the facts upon
which such adjustment or readjustment is based, including a statement of (a) the
consideration received or to be received by the Company for any additional shares of Common Stock
issued or sold or deemed to have been issued, (b) the number of shares of Common Stock
outstanding or deemed to be outstanding, and (c) the number

	 	 	 
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of Warrant Shares in effect
under this Warrant immediately prior to such issue or sale and as adjusted and readjusted (if
required by Section 2) on account thereof. The Company will forthwith mail a copy of each such
report to each Holder of a Warrant and will, upon the written request at any time of any Holder of
a Warrant, furnish to such Holder a like report setting forth the number of Warrant Shares under
this Warrant at the time in effect and showing in reasonable detail how it was calculated. The
Company will also keep copies of all such reports at its principal office and will cause the same
to be available for inspection at such office during normal business hours by any Holder of a
Warrant or any prospective purchaser of a Warrant designated by the Holder thereof.

6. Financial and Business Information

     6.1 Filings. During any period when the Company is a Public Company, the Company will
file on or before the required date all required regular or periodic reports (pursuant to the
Exchange Act) with the Commission and will deliver to the Holder promptly upon their becoming
available one copy of each report, notice or proxy statement sent by the Company to its
stockholders generally, and of each regular or periodic report (pursuant to the Exchange Act) and
any registration statement, prospectus or written communication (other than transmittal letters)
(pursuant to the Securities Act), filed by the Company with (i) the Commission or (ii) any
securities exchange on which shares of Common Stock are listed.

     6.2 Listing of Shares. The Company shall promptly secure the listing of the shares of
Common Stock issuable upon exercise of this Warrant upon each national securities exchange or
automated quotation system, if any, upon which shares of Common Stock are then listed (subject to
official notice of issuance upon exercise of this Warrant) and shall maintain, so long as any other
shares of Common Stock shall be so listed, such listing of all shares of Common Stock from time to
time issuable upon the exercise of this Warrant; and the Company shall so list on each national
securities exchange or automated quotation system, as the case may be, and shall maintain such
listing of, any other shares of capital stock of the Company issuable upon the
exercise of this Warrant if and so long as any shares of the same class shall be listed on
such national securities exchange or automated quotation system.

     6.3 Notices of Corporate Action. In the event of:

     (a) any taking by the Company of a record of the holders of any class of securities for
the purpose of determining the holders thereof who are entitled to receive any dividend
(other than a regular periodic dividend payable in cash out of earned surplus in an amount
not exceeding the amount of the immediately preceding cash dividend for such period) or
other distribution, or any right to subscribe for, purchase or otherwise acquire any shares
of stock of any class or any other securities or property, or to receive any other right, or

     (b) any capital reorganization of the Company, any reclassification or recapitalization
of the capital stock of the Company or any consolidation or merger involving the Company and
any other Person, any transaction or series of transactions in which more than 50% of the
voting securities of the Company are transferred to another

 
	 	 	 
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Person or any transfer, sale or
other disposition of all or substantially all the assets of the Company to any other Person,
or

     (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company,

the Company will mail to the Holder a notice specifying (i) the date or expected date on which any
such record is to be taken for the purpose of such dividend, distribution or right, and the amount
and character of such dividend, distribution or right, and (ii) the date or expected date on which
any such reorganization, reclassification, recapitalization, consolidation, merger, transfer,
dissolution, liquidation or winding-up is to take place and the time, if any such time is to be
fixed, as of which the holders of record of Common Stock (or Other Securities) shall be entitled to
exchange their shares of Common Stock (or Other Securities) for the securities or other property
deliverable upon such reorganization, reclassification, recapitalization, consolidation, merger,
transfer, dissolution, sale, disposition, liquidation or winding-up. Such notice shall be mailed
at least 45 days prior to the date therein specified.

7. Restrictions on Transfer.

     7.1 Restrictive Legends. Except as otherwise permitted by this Section 7, each
Warrant (including each Warrant issued upon the transfer of any Warrant) shall be stamped or
otherwise imprinted with a legend in substantially the following form:

“THIS WARRANT AND ANY SECURITIES ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAW OF ANY STATE AND MAY NOT
BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT AND
SUCH LAWS. THIS WARRANT AND SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THIS
WARRANT AND IN THE REGISTRATION RIGHTS AGREEMENT BY AND BETWEEN VISEON, INC. AND THE
HOLDERS SPECIFIED THEREIN.”

Except as otherwise permitted by this Section 7, until such time as the Commission declares
effective the registration statement required by the terms of Section 2 of the Registration Rights
Agreement between the Company and the Holder, each certificate for Common Stock (or Other
Securities) issued upon the exercise of any Warrant, and each certificate issued upon the transfer
of any such Common Stock (or Other Securities), shall be stamped or otherwise imprinted with a
legend in substantially the following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE,
AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT
AND SUCH LAWS.”

 
	 	 	 
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     7.2 Transfer to Comply With the Securities Act. Restricted Securities may not be
sold, assigned, pledged, hypothecated, encumbered or in any manner transferred or disposed of, in
whole or in part, except in compliance with the provisions of the Securities Act and state
securities or Blue Sky laws and the terms and conditions hereof.

     7.3 Termination of Restrictions. The restrictions imposed by this Section 7 on the
transferability of Restricted Securities shall cease and terminate as to any particular Restricted
Securities (a) when a registration statement with respect to the sale of such securities shall have
been declared effective under the Securities Act and such securities shall have been disposed of in
accordance with such registration statement, (b) when such securities are sold pursuant to Rule 144
(or any similar provision then in force) under the Securities Act, or (c) when, in the opinion of
both counsel for the Holder and counsel for the Company, such restrictions are no longer required
or necessary in order to protect the Company against a violation of the Securities Act upon any
sale or other disposition of such securities without registration thereunder. Whenever such
restrictions shall cease and terminate as to any Restricted Securities, the Holder shall be
entitled to receive from the Company, without expense, new securities of like tenor not bearing the
applicable legends required by Section 7.1.

8. Reservation of Stock, etc. The Company shall at all times reserve and keep available,
solely for issuance and delivery upon exercise of the Warrants, one hundred and fifty percent
(150%) of the number of shares of Common Stock (or Other Securities) from time to time issuable
upon exercise of all Warrants at the time outstanding. All shares of Common Stock (or Other
Securities) issuable upon exercise of any Warrants shall be duly authorized and, when issued upon
such exercise, shall be validly issued and, in the case of shares, fully paid and nonassessable
with no liability on the part of the holders thereof, and, in the case of all securities, shall be
free from all taxes, liens, security interests, encumbrances, preemptive rights and charges. The
transfer agent for the Common Stock, which may be the Company (“Transfer Agent”), and every
subsequent Transfer Agent for any shares of the Company’s capital stock issuable upon the exercise
of any of the purchase rights represented by this Warrant, are hereby irrevocably authorized and
directed at all times until the Expiration Date to reserve such number of authorized and unissued
shares as shall be requisite for such purpose. The Company shall keep copies of this Warrant on
file with the Transfer Agent for the Common Stock and with every subsequent Transfer Agent for any
shares of the Company’s capital stock issuable upon the exercise of the rights of purchase
represented by this Warrant. The Company shall supply such Transfer Agent with duly executed stock
certificates for such purpose. All Warrant certificates surrendered upon the exercise of the
rights thereby evidenced shall be canceled, and such canceled Warrants shall constitute sufficient
evidence of the number of shares of stock that have been issued upon the exercise of such Warrants.
Subsequent to the Expiration Date, no shares of stock need be reserved in respect of any
unexercised Warrant.

9. Registration and Transfer of Warrants, etc.

     9.1 Warrant Register; Ownership of Warrants. Each Warrant issued by the Company shall
be numbered and shall be registered in a warrant register (the “Warrant Register”) as it is issued
and transferred, which Warrant Register shall be maintained by the Company at its principal office
or, at the Company’s election and expense, by a warrant agent or the Company’s transfer agent. The
Company shall be entitled to treat the registered Holder of any Warrant on the Warrant Register as
the owner in fact thereof for all purposes and shall not be bound to

 
	 	 	 
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recognize any equitable or
other claim to or interest in such Warrant on the part of any other Person, and shall not be
affected by any notice to the contrary, except that, if and when any Warrant is properly assigned
in blank, the Company may (but shall not be obligated to) treat the bearer thereof as the owner of
such Warrant for all purposes. Subject to Section 7, a Warrant, if properly assigned, may be
exercised by a new holder without a new Warrant first having been issued.

     9.2 Transfer of Warrants. Subject to compliance with Section 7, if applicable, this
Warrant and all rights hereunder are transferable in whole or in part, without charge to the Holder
hereof, upon surrender of this Warrant with a properly executed Form of Assignment attached hereto
as Exhibit B at the principal office of the Company. Upon any partial transfer, the Company shall
at its expense issue and deliver to the Holder a new Warrant of like tenor, in the name of the
Holder, which shall be exercisable for such number of shares of Common Stock with respect to which
rights under this Warrant were not so transferred.

     9.3 Replacement of Warrants. On receipt by the Company 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 reasonably satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender of such Warrant to the Company at its principal office and cancellation
thereof, the Company at its expense shall execute and deliver, in lieu thereof, a new Warrant of
like tenor.

     9.4 Adjustments to Warrant Quantity. Notwithstanding any adjustment in the number or
kind of shares of Common Stock or other securities purchasable upon exercise of this Warrant, any
Warrant theretofore or thereafter issued may continue to express the same number and kind of shares
of Common Stock as are stated in this Warrant, as initially issued.

     9.5 Fractional Shares. Notwithstanding any adjustment pursuant to Section 2 in the
number of shares of Common Stock covered by this Warrant or any other provision of this Warrant,
the Company may, but shall not be required to, issue fractions of shares upon exercise of this
Warrant or to distribute certificates which evidence fractional shares. In lieu of fractional
shares, the Company shall make payment to the Holder, at the time of exercise of this Warrant as
herein provided, in an amount in cash equal to such fraction multiplied by the Closing Price of a
share of Common Stock on the date of Warrant exercise.

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

          Affiliate: Any person that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with, the applicable person.
For purposes of this definition, “control” has the meaning specified in Rule 12b-2 under the
Exchange Act.

          Business Day: Any day other than a Saturday or a Sunday or a day on which commercial
banking institutions in the City of Nevada are authorized by law to be closed. Any reference to
“days” (unless Business Days are specified) shall mean calendar days.

 
	 	 	 
	Series B Warrant No.  B-4

	 	Page — 10

 

 

          Closing Price: For any day, shall be (i) the last reported sales price regular way
of the Common Stock on such day on the principal securities exchange on which the Common Stock is
then listed or admitted to trading or on Nasdaq, as applicable, (ii) if no sale takes place on such
day on any such securities exchange or system, the average of the closing bid and asked prices,
regular way, on such day for the Common Stock as officially quoted on any such securities exchange
or system, , (iii) if on such day such shares of Common Stock are not then listed or
admitted to trading on any securities exchange or system, the last reported sale price, regular
way, on such day for the Common Stock, (iv)or if no sale takes place on such day the average of the
comparative bid and asked prices quoted for the Common Stock in the National
Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”) System as of 4:00 P.M., New
York City time on such day, or if such shares shall not be quoted in the NASDAQ System, the average
of the high and low bid and asked price of the Common Stock on such day in the domestic
over-the-counter market as reported by the National Quotation Bureau, Incorporated, or any other
successor organization. If at any time such shares of Common Stock are not listed on any domestic
exchange or quoted in the NASDAQ System or the domestic over-the-counter market, the Closing Price
shall be the fair market value thereof determined by the Board of Directors of the Company in good
faith.

          Code: As defined in Section 1.5.

          Commission: The Securities and Exchange Commission or any other federal agency at the
time administering the Securities Act.

          Common Stock: As defined in the introduction to this Warrant, such term to include
any stock into which such Common Stock shall have been changed or any stock resulting from any
reclassification of such Common Stock, and all other stock of any class or classes (however
designated) of the Company the holders of which have the right, without limitation as to amount,
either to all or to a share of the balance of current dividends and liquidating dividends after the
payment of dividends and distributions on any shares entitled to preference.

          Company: As defined in the introduction to this Warrant, such term to include any
corporation, which shall succeed to or assume the obligations of the Company hereunder.

          Exchange Act: The Securities Exchange Act of 1934, or any similar federal statute,
and the rules and regulations of the Commission thereunder, all as the same shall be in effect at
the time.

          Excluded Shares: (i) shares of Common Stock issued or issuable pursuant to the
Company’s Series B Convertible Preferred Stock, Series B Warrants, or Series B-Agent Warrants,
specifically including all shares of Common Stock which may be issued upon conversion or exercise
thereof or which may be issued as dividends thereon, (ii) shares of Common Stock issued or issuable
pursuant to the Company’s Series A Convertible Preferred Stock, specifically including all
conversion shares and all shares that may be issued as dividends thereon, (iii) shares of Common
Stock issuable upon the exercise of any options or warrants outstanding on the date of this
Warrant, (iv) shares of Common Stock issuable pursuant to or upon the conversion of any note,
debenture, debt instrument and all other written agreements to which the Company is a party on the
date of this Warrant (v) shares of Common Stock (including

	 	 	 
	Series B Warrant No.  B-4

	 	Page — 11

 

 

grants, options and warrants) issuable
pursuant to or in accordance with any plan for which the Company has filed a registration statement
that has been declared effective including, without limitation, the 1994 Stock Plan, the 2005 Stock
Plan and the Consultant Compensation Plan, or any other stock plan, option plan or written
agreements to which the Company is a party on the Issue Date, including all modifications and
replacements thereof, (vi) shares of Common Stock issued or issuable pursuant to the Company’s
Series A-1 Warrants, (vii) shares of Common Stock issued or issuable pursuant to the Company’s
Series A-2 Warrants and (viii) shares of Common Stock issued or issuable pursuant to the Company’s
Series A-Agent Warrants. Any Excluded Shares issued and outstanding on the Series B Preferred
Stock Issue Date that are thereafter amended or modified pursuant to an agreement between the
Company and the holder thereof
such that the effective price per share of the Common Stock to be issued on the exercise,
conversion or exchange thereof is less than the Conversion Price, shall as the result of such
amendment or modification thereupon not constitute Excluded Shares. The immediately preceding
sentence applies only to such issued and outstanding shares that are affected by such amendment or
modification and shall be effective concomitantly with any such amendment or modification taking
effect. For the purposes of this definition the effective price per share shall be calculated by
dividing the number of shares of Common Stock to be issued upon any such exchange or conversion by
the sum of (a) the amount of all consideration given or paid for the securities to be exchanged or
converted in to Common Stock and (b) the consideration to be paid upon such issue, exchange or
conversion for Common Stock

          Expiration Date: As defined in the introduction to this Warrant.

          Holder: As defined in the introduction to this Warrant.

          NASD: The National Association of Securities Dealers, Inc.

          Other Securities: Any stock (other than Common Stock) and other securities of the
Company or any other Person (corporate or otherwise) which the holders of the Warrants at any time
shall be entitled to receive, or shall have received, upon the exercise of the Warrants, 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 2 or
otherwise.

          Public Company: A company required to file periodic reports under the Exchange Act.

          Purchase Agreement: The Purchase Agreement dated as of the date of this Warrant by and
between the Company and the initial holder of this Warrant.

          Person: An individual, firm, partnership, corporation, professional corporation,
trust, joint venture, association, joint stock company, limited liability company, unincorporated
organization or any other entity or organization, including a government or agency or political
subdivision thereof, and shall include any successor (by merger or otherwise) of such entity.

          Registration Rights Agreement: The Registration Rights Agreement dated the date
hereof, by and between the Company and initial Holder of this Warrant.

 
	 	 	 
	Series B Warrant No.  B-4

	 	Page — 12

 

 

          Restricted Securities: (a) any Warrants bearing the applicable legend set forth in
Section 7.1, (b) any shares of Common Stock (or Other Securities) issued or issuable upon the
exercise of Warrants which are evidenced by a certificate or certificates bearing the applicable
legend set forth in such Section, and (c) any shares of Common Stock (or Other Securities) issued
subsequent to the exercise of any of the Warrants as a dividend or other distribution with respect
to, or resulting from a subdivision of the outstanding shares of Common Stock (or other Securities)
into a greater number of shares by reclassification, stock splits or otherwise, or in exchange for
or in replacement of the Common Stock (or Other Securities) issued upon such exercise, which are
evidenced by a certificate or certificates bearing the applicable legend set forth in such Section.

          Securities Act: The Securities Act of 1933, or any similar federal statute, and the
rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

          Trading Day: A day on which the securities exchange, association, or quotation system
on which shares of Common Stock are listed for trading shall be open for business or, if the shares
of Common Stock shall not be listed on such exchange, association, or quotation system for such
day, a day with respect to which trades in the United States domestic over the counter market shall
be reported.

          Warrant: As defined in the introduction to this Warrant.

          Warrant Price: As defined in the first paragraph of this Warrant.

          Warrant Shares: As defined in the first paragraph of this Warrant.

11. Remedies; Specific Performance. The Company stipulates that there would be no adequate
remedy at law to the Holder of this Warrant in the event of any default or threatened default by
the Company in the performance of or compliance with any of the terms of this Warrant and
accordingly, the Company agrees that, in addition to any other remedy to which the Holder may be
entitled at law or in equity, the Holder shall be entitled to seek to compel specific performance
of the obligations of the Company under this Warrant, without the posting of any bond, in
accordance with the terms and conditions of this Warrant in any court of the United States or any
State thereof having jurisdiction, and if any action should be brought in equity to enforce any of
the provisions of this Warrant, the Company shall not raise the defense that there is an adequate
remedy at law. Except as otherwise provided by law, a delay or omission by the Holder hereto in
exercising any right or remedy accruing upon any such breach shall not impair the right or remedy
or constitute a waiver of or acquiescence in any such breach. No remedy shall be exclusive of any
other remedy. All available remedies shall be cumulative.

12. No Rights or Liabilities as Shareholder. Nothing contained in this Warrant shall be
construed as conferring upon the Holder hereof any rights as a shareholder of the Company or as
imposing any obligation on the Holder to purchase any securities or as imposing any liabilities on
the Holder as a shareholder of the Company, whether such obligation or liabilities are asserted by
the Company or by creditors of the Company.

13. Notices. Any notice or other communication required or permitted hereunder shall be
deemed given if in writing and delivered personally, telegraphed, telexed, sent by facsimile

 
	 	 	 
	Series B Warrant No.  B-4

	 	Page — 13

 

 

transmission or sent by certified, registered or express mail, postage prepaid. Any such notice
shall be deemed given when so delivered personally or sent by overnight air courier or facsimile
transmission or, if mailed, two days after the date of deposit in the United States mail, as
follows:

If to the initial Holder:

at the address set forth on such

Holder’s signature page of the

Securities Purchase Agreement

If to Viseon, Inc.:

Viseon, Inc.

Attn: President

8445 Freeport Parkway, Suite 245

Irving, TX 75063

With a copy to:

Albert B. Greco, Jr.

Law Offices of Albert B. Greco, Jr.

16901 N. Dallas Parkway, Suite 230

Addison, Texas 75001

Facsimile:  972-818-7343

Any party may be given notice in accordance with this Section by any other party at another address
or person for receipt of notices, if such party so designates such other person or address in
writing in accordance with this Section 13. The Company shall give notice to any subsequent Holder
at such address as it appears in the Warrant Register.

All such notices and communications (and deliveries) shall be deemed to have been duly given: at
the time delivered by hand, if personally delivered; when receipt is acknowledged, if telecopied;
on the next Business Day, if timely delivered to a courier guaranteeing overnight delivery; and
five days after being deposited in the mail, if sent first class or certified mail, return receipt
requested, postage prepaid; provided that the exercise of any Warrant shall be effective in
the manner provided in Section 1.

14. Amendments. This Warrant and any term hereof may not be amended, modified,
supplemented or terminated, and waivers or consents to departures from the provisions hereof may
not be given, except by written instrument duly executed by the party against which enforcement of
such amendment, modification, supplement, termination or consent to departure is sought.

 
	 	 	 
	Series B Warrant No.  B-4

	 	Page — 14

 

 

15. Descriptive Headings, Etc. The headings in this Warrant are for convenience of
reference only and shall not limit or otherwise affect the meaning of terms contained herein.
Unless the context of this Warrant otherwise requires: (1) words of any gender shall be deemed to
include each other gender; (2) words using the singular or plural number shall also include the
plural or singular number, respectively; (3) the words “hereof”, “herein” and “hereunder” and words
of similar import when used in this Warrant shall refer to this Warrant as a whole and not
to any particular provision of this Warrant, and Section and paragraph references are to the
Sections and paragraphs of this Warrant unless otherwise specified; (4) the word “including” and
words of similar import when used in this Warrant shall mean “including, without limitation,”
unless otherwise specified; (5) “or” is not exclusive; and (6) provisions apply to successive
events and transactions.

16. Law Governing Agreement. THIS WARRANT SHALL BE INTERPRETED, CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, AND SUBJECT TO, THE LAWS OF THE STATE OF NEVADA, EXCEPT TO THE EXTENT
THAT FEDERAL LAW MAY APPLY AND ITS CONSTRUCTION AND PERFORMANCE SHALL BE GOVERNED SUCH LAWS OF THE
STATE OF NEVADA WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD
RESULT IN THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEVADA.

17. Registration Rights Agreement. The shares of Common Stock (and Other Securities)
issuable upon exercise of this Warrant (or upon conversion of any shares of Common Stock issued
upon such exercise) shall constitute Registrable Securities (as such term is defined in the
Registration Rights Agreement). Each holder of this Warrant shall be entitled to all of the
benefits afforded to a holder of any such Registrable Securities under the Registration Rights
Agreement and such holder, by its acceptance of this Warrant, agrees to be bound by and to comply
with the terms and conditions of the Registration Rights Agreement applicable to such holder as a
holder of such Registrable Securities.

18. Redemption. Commencing on the first Trading Day after the Commission declares the
registration statement filed by the Company pursuant to Section 2 of the Registration Rights
Agreement effective, the Company has the right to redeem this Warrant for the redemption price of
ten cents ($0.10) per Warrant Share (the “Redemption Price”); provided that the average Closing
Price of the Company’s Common Stock for any twenty consecutive Trading Days is $3.00 or more, the
Registration Statement remains in effect and the average trading volume of the shares of Common
Stock has been 100,000 shares or more during the same 20 consecutive Trading Days at any time prior
to the exercise or expiration of this Warrant and provided further that following the occurrence of
any such event, the Company gives the Holder ten (10) days prior written notice of the Company’s
intention to redeem this Warrant (the “Redemption Notice”), identifying a date, no earlier than ten
days thereafter, on which the Company will exercise such rights.

The $3.00 amount set forth above (the “Trigger Amount”) shall be subject to adjustment in the
event that the Company shall (i) pay a dividend or make a distribution on its Common Stock, each in
shares of Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater number
of shares, or (iii) combine its outstanding shares of Common Stock into a smaller

	 	 	 
	Series B Warrant No.  B-4

	 	Page — 15

 

 

number of shares,
in each case, by multiplying the Trigger Amount by a fraction, the numerator of which is the number
of outstanding shares of Common Stock immediately prior to giving effect to such dividend,
distribution, subdivision, or combination and the denominator of which
is the number of shares of Common Stock outstanding immediately after giving effect to such
dividend, distribution, subdivision, or combination.

The Holder may exercise this Warrant at any time before the date fixed for the redemption of this
Warrant in the Redemption Notice, however, at the final bell signifying the close of the New York
Stock Exchange on the day preceding the date specified in the Redemption Notice, any Warrant or
portion thereof that remains unexercised shall thereupon be no longer exercisable, exchangeable or
convertible in any manner for or into any Warrant Shares or other equity securities of the Company
and the only consideration payable by the Company thereon and in exchange therefore or other
obligation of the Company with respect thereto shall be the payment of the Redemption Price upon
surrender of the original Warrant at the principal place of business of the Company or at any other
address or to the attention of any agent as the Company may specify in the Redemption Notice.

19. Restriction on Exercise by the Holder. Notwithstanding anything herein to the
contrary, in no event shall the Holder have the right or be required to exercise this Warrant to
the extent, and only to the extent, that as a result of such exercise, the aggregate number of
shares of Common Stock beneficially owned by such Holder, its Affiliates and any “group” (as
defined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder)
of which the Holder may be deemed to be a party would exceed 4.99% of the outstanding shares of the
Common Stock following such exercise. For purposes of this Section 19, beneficial ownership shall
be calculated in accordance with Sections 13(d) and Section 16(a) of the Exchange Act. The
provisions of this Section 19 may be waived by a Holder as to itself (and solely as to itself) upon
not less than sixty-five (65) days, prior written notice to the Company, and the provisions of this
Section 19 shall continue to apply until such 65th day (or later, if stated in the notice of
waiver). Nothing contained in this paragraph 19 or any other provision hereof shall restrict,
affect or limit in any manner the right of the Company to redeem this Warrant in accordance with
the provisions of paragraph 18 hereinabove.

20. Waiver of Jury Trial. EACH PARTY HEREBY KNOWINGLY, INTENTIONALLY AND
VOLUNTARILY WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION,
SUIT OR OTHER PROCEEDING BASED UPON, ARISING OUT OF OR IN ANY WAY RELATING TO THIS WARRANT
(INCLUDING ANY AMENDMENTS OR SUBSTITUTIONS HEREOF), OR ANY OF THE TRANSACTIONS CONTEMPLATED BY OR
RELATED TO THIS WARRANT OR ANY CONDUCT, ACT OR OMISSION OF THE PARTIES OR THEIR AFFILIATES (OR ANY
OF THEM) WITH RESPECT TO THIS WARRANT, INCLUDING ANY AMENDMENTS OR SUBSTITUTIONS, WHETHER SOUNDING
IN CONTRACT, TORT OR OTHERWISE, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION, SUIT OR OTHER
PROCEEDING; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH ACTION, SUIT OR OTHER
PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY, AND THAT EITHER

 
	 	 	 
	Series B Warrant No.  B-4

	 	Page — 16

 

 

PARTY MAY FILE A COPY
OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE STIPULATION AND
CONSENT OF THE OTHER TO THE WAIVER OF ANY RIGHT IT OR THEY MIGHT OTHERWISE HAVE TO A TRIAL BY JURY.

Viseon, Inc.
    (Formerly
RSI Systems, Inc.)

	 	 	 	 	 
	 	 	 
	By:

	 	John Harris	 	 
	Its:

	 	President and Chief Executive Officer	 	 

	 	 	 
	Series B Warrant No.  B-4

	 	Page — 17

 

 

Exhibit A

FORM OF SUBSCRIPTION

[To be executed only upon exercise of Warrant]

To: VISEON, INC. f/k/a RSI Systems, Inc.

The undersigned registered Holder of the within Warrant, being Viseon, Inc, common stock purchase
warrant Series B Warrant No.                     , hereby irrevocably exercises such Warrant for, and
purchases thereunder,                   
                                                              
(                    )1shares of Common stock
of VISEON, INC. f/k/a RSI Systems, Inc., and herewith makes payment in the amount of
                                                                                                    
($                    )2 therefor, and
requests that the certificates for such shares be issued in the name of, and delivered to
                                                                                                    , whose address is
                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                            

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(Signature must conform in all respects to the name of	 	 
	 

	 	 	 	 	 	holder as specified on the face of Warrant)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Street Address)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(City) (State) Zip Code)	 	 

 

			
	1	 	Insert here the number of shares called
for on the face of this Warrant (or, in the case of a partial exercise, the
portion thereof as to which this Warrant is being exercised), in either case
without making any adjustment for additional shares of Common Stock or any
other securities or property or cash which, pursuant to the adjustment
provisions of this Warrant, may be delivered upon exercise. In the case of
partial exercise, a new Warrant, representing the unexercised portion of the
Warrant, will be issued and delivered to the holder surrendering the
Warrant .
	 
	2	 	In the event that a cashless exercise of
this Warrant is available at the time of exercise, to the extent a requesting a
cashless exercise, print the word “cashless” in addition
to or in place of any dollar amount.

 
	 	 	 
	Series B Warrant — Exhibit A

	 	 

 

 

Exhibit B

FORM OF ASSIGNMENT

[To be executed only upon assignment of Warrant]

For value received, the undersigned registered holder of the within Warrant, being Viseon, Inc,
Series-B-Warrant No. , hereby sells, assigns and transfers unto
                                                                                 the right represented by such Warrant to purchase
                                                                                                    
shares of Common Stock of VISEON, INC. f/k/a RSI
Systems, Inc. to which such Warrant relates, and appoints                                                                                 ,
Attorney to make such transfer on the books of VISEON, INC. f/k/a RSI Systems, Inc. maintained for
such purpose, with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

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

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Street Address)	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(City) (State) Zip Code)	 	 

	 	 	 
	Signed in the presence of:

	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	(Printed name)
	 	 

 
	 	 	 
	Series B Warrant — Exhibit Bexv4w4

 

EXHIBIT
4.4    

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of August ___, 2005 by and
among Viseon, Inc., a Nevada corporation (the “Company”) and each Purchaser who has entered into a
Purchase Agreement (the “Purchase Agreement”) for the Offered Securities (as defined herein) (such
Purchasers are collectively referred to herein as the “Purchasers”). In order to induce the
Purchasers to enter into the Purchase Agreements, the Company has agreed to provide the
registration rights set forth in this Agreement. The execution of this Agreement is a condition to
the closing under the Purchase Agreements.

     The Company agrees with the Purchasers, (i) for their benefit as Purchasers and (ii) for the
benefit of the beneficial owners (including the Purchasers) from time to time of the Offered
Securities (as defined herein) and the beneficial owners from time to time of the Underlying Common
Stock (as defined herein) issued upon conversion of, or in payment of dividends on, the Offered
Securities (each of the foregoing a “Holder” and, together, the “Holders”), as follows:

     SECTION 1. Definitions. Capitalized terms used herein without definition shall have
their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the
following terms shall have the following meanings:

     “Affiliate”: With respect to any specified person, an “affiliate,” as defined in Rule 144, of
such person.

     “Amendment Effectiveness Deadline Date”: See Section 2(d) hereof.

     “Business Day”: Each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which banking institutions in The City of New York are authorized or obligated by law or executive
order to close.

     “Common Stock”: The shares of common stock, $.01 par value, of the Company including the
Underlying Common Stock.

     “Company”: The Company shall have the meaning set forth in the first paragraph of this
Agreement and shall also include the Company’s successors.

     “Deferral Notice”: See Section 3(i) hereof.

     “Deferral Period”: See Section 2(h) hereof.

     “Deferral Period Liquidated Damages”: See Section 2(h) hereof.

     “Effectiveness Deadline Date”: See Section 2(a) hereof.

     “Effectiveness Period”: Commencing on the date that the Initial Registration Statement is
declared effective until the first to occur of (i) the sale pursuant to a Registration Statement of
the Common Stock receivable upon conversion or exercise of all of the Offered Securities or (ii)
August 22, 2012.

 

 

     “Exchange Act”: The Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

     “Excess Deferral Period Liquidated Damages”: See Section 2(h) hereof.

     “Excluded Shares”: means any of: (i) shares of Common Stock issued or issuable pursuant to
the Company’s Series B Convertible Preferred Stock, Series B Warrants, or Series B-Agent Warrants,
specifically including all shares of Common Stock which may be issued upon conversion or exercise
thereof or which may be issued as dividends thereon, (ii) shares of Common Stock issued or issuable
pursuant to the Company’s Series A Convertible Preferred Stock, specifically including all
conversion shares and all shares that may be issued as dividends thereon, (iii) shares of Common
Stock issuable upon the exercise of any options or warrants outstanding on the Issue Date, (iv)
shares of Common Stock issuable pursuant to or upon the conversion of any note, debenture, debt
instrument and all other written agreements to which the Company is a party on the Issue Date (v)
shares of Common Stock (including grants, options and warrants) issuable pursuant to or in
accordance with any plan for which the Company has filed a registration statement that has been
declared effective including, without limitation, the 1994 Stock Plan, the 2005 Stock Plan and the
Consultant Compensation Plan, or any other stock plan, option plan or written agreements to which
the Company is a party on the Issue Date, including all modifications and replacements thereof,
(vi) shares of Common Stock issued or issuable pursuant to the Company’s Series A-1 Warrants, (vii)
shares of Common Stock issued or issuable pursuant to the Company’s Series A-2 Warrants and (viii)
shares of Common Stock issued or issuable pursuant to the Company’s Series A-Agent Warrants. Any
Excluded Shares issued and outstanding on the Series B Preferred Stock Issue Date that are
thereafter amended or modified pursuant to an agreement between the Company and the holder thereof
such that the effective price per share of the Common Stock to be issued on the exercise,
conversion or exchange thereof is less than the Conversion Price, shall as the result of such
amendment or modification thereupon not constitute Excluded Shares. The immediately preceding
sentence applies only to such issued and outstanding shares that are affected by such amendment or
modification and shall be effective concomitantly with any such amendment or modification taking
effect. For the purposes of this definition the effective price per share shall be calculated by
dividing the number of shares of Common Stock to be issued upon any such exchange or conversion by
the sum of (a) the amount of all consideration given or paid for the securities to be exchanged or
converted in to Common Stock and (b) the consideration to be paid upon such issue, exchange or
conversion for Common Stock.

     “Filing Deadline Date”: See Section 2(a) hereof.

     “Holder”: See the second paragraph of this Agreement.

     “Initial Registration Statement”: See Section 2(a) hereof.

     “Issue Date”: The date of the Closing (as that term is defined in the Purchase Agreements).

     “Liquidated Damages”: See Section 2(h) hereof.

     “Losses”: See Section 6 hereof.

2

 

     “Material Event”: See Section 3(i) hereof.

     “Offered Securities”: The Series B Convertible Preferred Stock and the Series B Warrants
purchased pursuant to the Purchase Agreements.

     “Offering”: The Offering identified in the Purchase Agreements.

     “Prospectus”: The prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses information previously omitted from a prospectus filed as
part of an effective registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any amendment or prospectus supplement, including
post-effective amendments, and all materials incorporated by reference or explicitly deemed to be
incorporated by reference in such Prospectus.

     “Purchase Agreements”: See the first paragraph of this Agreement.

     “Registrable Securities”: The Underlying Common Stock and any securities into or for which
such Underlying Common Stock have been converted or exchanged, and any security issued with respect
thereto upon any stock dividend, split or similar event until, in the case of any such security,
(A) the earliest of (i) its effective registration under the Securities Act and resale in
accordance with the Registration Statement covering it, (ii) the date such securities are eligible
for resale by the Holder and its affiliates under Rule 144(k) (iii) its sale to the public pursuant
to Rule 144, and (B) as a result of the event or circumstance described in any of the foregoing
clauses (i) through (iii), the legends with respect to transfer restrictions can be removed due to
the fact that such securities are no longer considered “restricted securities” as such term is
defined under the Securities Act, as and when held by the Holder and its affiliates.

     “Registration Statement”: Any registration statement of the Company that covers any of the
Registrable Securities pursuant to the provisions of this Agreement including the Prospectus,
amendments and supplements to such registration statement, including post-effective amendments, all
exhibits, and all materials incorporated by reference or explicitly deemed to be incorporated by
reference in such registration statement.

     “Restricted Securities”: As this term is defined in Rule 144.

     “Rule 144”: Rule 144 under the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the SEC.

     “SEC”: The Securities and Exchange Commission.

     “Securities Act”: The Securities Act of 1933, as amended, and the rules and regulations
promulgated by the SEC thereunder.

     “Subsequent Registration Statement”: See Section 2(b) hereof.

     “Underlying Common Stock”: The Common Stock receivable upon conversion or exercise of, or
received as dividends on, the Offered Securities.

3

 

     SECTION 2. Registration. (a) The Company shall prepare and file or cause to be
prepared and filed with the SEC, as soon as practicable but in any event by the date (the “Filing
Deadline Date”) which is September 30, 2005, a Registration Statement for an offering to be made on
a delayed or continuous basis pursuant to Rule 415 of the Securities Act registering the resale
from time to time by Holders thereof of all of the Registrable Securities, exclusive of any shares
of Common Stock that may be issued in payment of dividends (the “Initial Registration Statement”).
The Initial Registration Statement shall be on Form SB-2 or another appropriate form permitting
registration of such Registrable Securities for resale by such Holders in accordance with the
methods of distribution elected by the Holders and set forth in the Initial Registration Statement.
The Company shall use its best efforts to cause the Initial Registration Statement to be declared
effective under the Securities Act as promptly as is practicable but in any event by the date (the
“Effectiveness Deadline Date”) that is One Hundred Twenty (120) days after the Closing Date, and to
keep the Initial Registration Statement (or any Subsequent Registration Statement (as that term is
hereafter defined) continuously effective under the Securities Act until the expiration of the
Effectiveness Period. At the time the Initial Registration Statement is declared effective, each
Holder shall be named as a selling securityholder in the Initial Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such Prospectus to
purchasers of Registrable Securities in accordance with applicable law. Attached hereto as
Schedule 2 is a complete list of all securityholders having the right to have their securities
included in the Initial Registration Statement and the amount of securities they have the right to
include in the Registration Statement. The Company shall not include any other securities in the
Initial Registration Statement other than the Offered Securities and the securities identified in
Schedule 2. The Company shall not file any other registration statement (other than any update,
extension, supplement or continuation of a registration statement that is effective on the Closing
Date, a registration statement on Form S-8 or any other registration statement relating solely to
employee benefit plans) under the Securities Act with the SEC during the first ninety (90) day
period after the SEC declares the Initial Registration Statement effective.

          (b) If the Initial Registration Statement or any Subsequent Registration Statement ceases to
be effective for any reason at any time during the Effectiveness Period, the Company shall use its
best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and
in any event shall within thirty (30) days of such cessation of effectiveness amend the Initial
Registration Statement in a manner reasonably expected to obtain the withdrawal of the order
suspending the effectiveness thereof, or file an additional Registration Statement covering all of
the securities that as of the date of such filing are Registrable Securities (a “Subsequent
Registration Statement”). If a Subsequent Registration Statement is filed, the Company shall use
its best efforts to cause the Subsequent Registration Statement to become effective as promptly as
is practicable after such filing and to keep such Subsequent Registration Statement continuously
effective until the end of the Effectiveness Period.

          (c) It shall be a condition precedent to the obligation of the Company to include the
Registrable Securities of any Holder in the Initial Registration Statement or any Subsequent
Registration Statement or Additional Registration Statement that such Holder shall furnish to the
Company at least ten (10) days prior to the anticipated filing date such information regarding
itself, the Registrable Securities held by it, the intended method of disposition of the

4

 

Registrable Securities held by it, and all such other information as shall be reasonably
required to effect the registration of such Registrable Securities. At least twenty (20) days
prior to the first anticipated filing date of any such Registration Statement, other than the
Initial Registration Statement for which the applicable period shall be 15 days, the Company shall
notify each Holder, at the most recent address previously provided to the Company in writing, of
the information the Company requires from each such Holder for inclusion in such Registration
Statement and the anticipated filing date of such Registration Statement.

          (d) The Company shall not pay any dividend on the shares of Series B Preferred Stock in shares
of its Common Stock unless on the relevant Dividend Payment Date there is an effective Registration
Statement permitting the resale of the shares of Common Stock to be issued in payment of such
dividend (and in the absence of such an effective Registration Statement, the dividend on the
Shares of Series B Preferred Stock shall be paid by the Company in cash). The Company shall use
its best efforts to cause any such Registration Statement filed to remain continuously effective
under the Securities Act for no less than one year following the dividend payment date on which the
Company issued, as a dividend payment, any shares of Common Stock included in such Registration
Statement.

          (e) The Company shall supplement and amend the Registration Statement if required by the
rules, regulations or instructions applicable to the registration form used by the Company for such
Registration Statement, if required by the Securities Act or, to the extent to which the Company
does not reasonably object, as reasonably requested by the registered Holders or by any managing
underwriter in the event of an underwritten offering.

          (f) Each Holder of Registrable Securities agrees that if such Holder wishes to sell
Registrable Securities pursuant to a Registration Statement and related Prospectus, it will do so
only in accordance with Section 3(i). If the Company shall file a post-effective amendment to the
Registration Statement, it shall (i) use its best efforts to cause such post-effective amendment to
be declared effective under the Securities Act as promptly as is practicable; (ii) provide such
Holder copies of any documents filed in connection with such post-effective amendment; and (iii)
notify such Holder as promptly as practicable after the effectiveness under the Securities Act of
any such post-effective amendment.

          (g) From and after the date the Initial Registration Statement is declared effective, the
Company shall not be obligated to file any post-effective amendment to the Registration Statement
or supplement to the related Prospectus to solely to reflect a sale or transfer of Registrable
Securities by the Purchaser (or any subsequent Holder included in a Registration Statement filed by
the Company pursuant to this Section 2(g) that was not consummated pursuant to the plan of
distribution set forth in such Registration Statement, provided however, in the event the Company
intends to voluntarily file or is required by applicable law to file with the SEC a post-effective
amendment to the Registration Statement or prepare and, if required by applicable law, file a
supplement to the related Prospectus or a supplement or amendment to any document incorporated
therein by reference, the Company shall make such amendments to the Registration Statement as shall
be necessary to include the transferee of the Registrable Securities to be included as a selling
shareholder in the Registration Statement. It shall be a condition precedent to the obligation of
the Company to include such transferee Holder that such Holder shall furnish to the Company such
information regarding

5

 

itself, the Registrable Securities held by it, the intended method of disposition of the
Registrable Securities held by it, and all such other information as shall be reasonably required
to effect the registration of such Registrable Securities at least ten (10) days prior to the
anticipated filing date of a post-effective amendment to the Registration Statement pursuant to
this Section 2(g). The Company shall notify each transferee Holder, that was previously disclosed
to the Company in writing together with a valid and current mailing address, of the information the
Company requires from each such Holder for inclusion in such Registration Statement at least twenty
(20) days prior to the anticipated filing date of a post-effective amendment to the Registration
Statement.

          (h) The payments of liquidated damages identified and set forth in this Section 2(h)
hereinbelow are hereinafter referred to independently and collectively as “Liquidated Damages”.

	 	(i)	 	If (1) the Initial Registration Statement is
not filed by the Company with the SEC on or prior to the Filing
Deadline Date, then for each day following the Filing Deadline Date,
until but excluding the date the Registration Statement is filed, (such
liquidated damages payable with respect to such period being the
“Filing Deadline Date Liquidated Damages”) or (2) the Initial
Registration Statement is not declared effective by the SEC by the
Effectiveness Deadline Date, then for each day following the
Effectiveness Deadline Date, until but excluding the date the SEC
declares the Initial Registration Statement effective (such liquidated
damages payable with respect to such period being the “Effectiveness
Deadline Date Liquidated Damages”), in each case the Company shall, pay
the Purchaser with respect to any such failure, as liquidated damages
and not as a penalty, an amount per month (computed on the basis of a
360-day year consisting of twelve 30-day months) equal to one percent
(1%) of the purchase price paid by such Purchaser for the Offered
Securities purchased pursuant to the Purchase Agreement; which will be
deemed to accrue on a daily basis and, such payment shall be made, with
respect to the previous month, no later than the first business day of
the calendar month next succeeding the month in which any such day
occurs.
	 
	 	(ii)	 	In the event of the failure of the Company to
maintain a Registration Statement continually effective after it is
declared effective by the SEC for the full period required by this
Agreement the Company shall be entitled to exercise its rights under
Section 3(i) hereinbelow to suspend the availability of the
Registration Statement or any Prospectus, without incurring or accruing
any obligation to pay Liquidated Damages, for one or more periods not
to exceed 30 days in any 12-month period (any such period, during which
the availability of the Registration Statement and any Prospectus is
suspended being a “Deferral Period”). In the event that the aggregate
duration of all such Deferral Periods exceeds

6

 

	 	 	 	thirty (30) days in any twelve (12) month period, then, within five
(5) Business Days following the day that results in the aggregate
Deferral Period exceeding such thirty (30) days in any twelve (12)
month period, the Company shall pay to the Purchaser with respect to
such cumulative (30) day failure, as liquidated damages and not as a
penalty, an amount equal to three percent (3%) of the purchase price
paid by such Purchaser for the Offered Securities pursuant to the
Purchase Agreement. Such liquidated damages are payable on the first
occurrence that the aggregate length of time of one or more Deferral
Periods exceeds thirty (30) days in any twelve (12) month period.
Such Liquidated Damages payable with respect to such period being the
“Deferral Period Liquidated Damages.” Thereafter, commencing on
the calendar day following the expiration of any Deferral Period for
which Deferral Period Liquidated Damages are payable, until the day
preceding the next date on which the SEC declares a Registration
Statement effective, for Deferral Periods exceeding thirty (30) days
in the aggregate within that same 12-month period (an “Excess
Deferral Period”), the Company shall pay to the Purchaser with
respect to such Excess Deferral Period, as Liquidated Damages and not
as a penalty, an amount equal to three percent (3%) of the purchase
price paid by such Purchaser for the Offered Securities pursuant to
the Purchase Agreement. Such Liquidated Damages payable with respect
to such period being the “Excess Deferral Period Liquidated Damages.”

In addition to the payments of Liquidated Damages set forth in Section 2(h), beginning on the
sixty-first (61st) day following the Effectiveness Deadline Date during any time that
Effectiveness Deadline Date Liquidated Damages or Excess Deferral Damages are payable, as an offset
for any inconvenience occasioned thereby, but not as a penalty, the Company shall honor a
Purchaser’s request for a cashless exercise of such Purchaser’s Series B Warrant, in whole or in
part, pursuant to the following procedure. In connection with any exercise of a Purchaser’s Series
B Warrant made sixty-one (61) or more days after the Effectiveness Deadline Date, during a time
that Effectiveness Deadline Date Liquidated Damages or Excess Deferral Damages are payable
hereunder, the Purchaser may, at its option, instruct the Company, by written notice accompanying
the surrender of the Series B Warrant at the time of such exercise, to apply to the payment
required by Section 1.1 of the Series B Warrant such number of the shares of Common Stock otherwise
issuable to such Purchaser upon such exercise as shall be specified in such notice, in which case
an amount equal to the excess of the aggregate Closing Price (as defined in the Series B Warrant)
of such specified number of shares on the date of exercise over the portion of the payment required
by Section 1.1 of the Series B Warrant attributable to such shares shall be deemed to have been
paid to the Company and the number of shares issuable upon such exercise shall be reduced by such
specified number. The Company shall deliver the remaining balance of the shares issuable upon such
exercise together with payment in lieu of fractional shares, if any, as provided in Section 1.3 of
the Series B Warrant.

7

 

          (i) Payments of Liquidated Damages made pursuant to Section 2(h) shall not constitute the
Purchaser’s exclusive remedy for such events. Notwithstanding the foregoing provisions, in no
event shall the Company be obligated to pay Liquidated Damages to more than one Purchaser in
respect of the same Offered Securities for the same period of time nor shall the aggregate
Liquidated Damages paid to the Purchaser and all subsequent holders in respect of the same Offered
Securities exceed the sales price of such Offered Securities. Liquidated Damages shall be paid
only to the then current, at the time of the occurrence giving rise to the obligation of the
Company to pay such Liquidated Damages, Holders of issued and outstanding shares of Series B
Convertible Preferred Stock (or Common Stock received by such Holders upon the conversion of such
Series B Convertible Preferred Stock) and shall be payable thereon until such time as, with respect
to any such share, the Company is not required to file a registration statement or cause a
registration statement to be declared effective.

          (j) No Liquidated Damages shall be payable on the Series B Warrants or any shares of Common
Stock received by any Holders as dividends paid or payable on the Series B Convertible Preferred
Stock. No Liquidated Damages shall be payable with respect to any share of Series B Convertible
Preferred Stock for any period during which the Company does not have an obligation, with respect
to any shares of Common Stock receivable upon conversion of such shares of Series B Convertible
Preferred Stock, to file a registration statement or cause a registration statement to be declared
effective. No Liquidated Damages shall be payable with respect to any share of Common Stock
received upon conversion of the Series B Convertible Preferred Stock for any period during which
the Company does not have an obligation, with respect to any such share of Common Stock, to file a
registration statement or cause a registration statement to be declared effective. All Liquidated
Damages shall be payable in cash, on demand, following the date when due. Liquidated Damages that
remain unpaid thirty days following the date when due shall thereafter be past due (herinafter
“Past Due Liquidated Damages”). All Past Due Liquidated Damages shall accrue interest at the rate
of eighteen percent (18%) per annum until paid. Payments of Past Due Liquidated Damages shall
include the payment of all accrued interest thereon when paid.

     SECTION 3. Registration Procedures. In connection with the registration obligations
of the Company under Section 2 hereof, the Company shall:

          (a) Before filing any Registration Statement or Prospectus or any amendments or supplements
thereto with the SEC, furnish to the Purchasers copies of all such documents proposed to be filed
no later than three (3) Business Days prior to the day that each such document is filed.

          (b) Prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement continuously
effective for the applicable period specified in Section 2(a); cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to
Rule 424 (or any similar provisions then in force) under the Securities Act; and comply with the
provisions of the Securities Act applicable to it with respect to the disposition of all securities
covered by such Registration Statement during the Effectiveness Period in accordance with the
intended methods of disposition by the sellers

8

 

thereof set forth in such Registration Statement as so amended or such Prospectus as so
supplemented.

          (c) As promptly as practicable (i) give notice to the Holders when any Prospectus, Prospectus
supplement, Registration Statement or post-effective amendment to a Registration Statement has been
filed with the SEC and, with respect to a Registration Statement or any post-effective amendment,
when the same has been declared effective and (ii) give notice to the Holders (A) of any request,
following the effectiveness of the Initial Registration Statement under the Securities Act, by the
SEC or any other federal or state governmental authority for amendments or supplements to any
Registration Statement or related Prospectus or for additional information, (B) of the issuance by
the SEC or any other federal or state governmental authority of any stop order suspending the
effectiveness of any Registration Statement or the initiation or threatening of any proceedings for
that purpose, (C) of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable Securities for sale
in any jurisdiction or the initiation or threatening of any proceeding for such purpose, (D) of the
occurrence of (but not the nature of or details concerning) a Material Event and (E) of the
determination by the Company that a post-effective amendment to a Registration Statement will be
filed with the SEC, which notice may, at the discretion of the Company or as required pursuant to
Section 3(i), state that it constitutes a Deferral Notice, in which event the provisions of Section
3(i) shall apply.

          (d) Use its best efforts to obtain the withdrawal of any order suspending the effectiveness of
a Registration Statement or the lifting of any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any jurisdiction in which they have
been qualified for sale, in either case at the earliest possible moment.

          (e) If reasonably requested by any Holder, as promptly as practicable incorporate in a
Prospectus supplement or post-effective amendment to a Registration Statement such information as
such Holder shall, on the basis of an opinion of counsel experienced in such matters, determine to
be required to be included therein and make any required filings of such Prospectus supplement or
such post-effective amendment; provided, that the Company shall not be required to take any actions
under this Section 3(e) that are not, in the reasonable opinion of counsel for the Company, in
compliance with applicable law.

          (f) As promptly as practicable furnish to each Holder (when requested in writing by such
Holder), without charge, at least one (1) conformed copy of the Registration Statement and any
amendment thereto, including financial statements but excluding schedules, all documents
incorporated or deemed to be incorporated therein by reference and all exhibits (unless requested
in writing to the Company by such Holder).

          (g) During the Effectiveness Period, deliver to each Holder in connection with any sale of
Registrable Securities pursuant to a Registration Statement, without charge, as many copies of the
Prospectus or Prospectuses relating to such Registrable Securities (including each preliminary
prospectus) and any amendment or supplement thereto as such Holder may reasonably request; and the
Company hereby consents (except during such periods that a Deferral Notice is outstanding and has
not been revoked) to the use of such Prospectus or each

9

 

amendment or supplement thereto by each Holder in connection with any offering and sale of the
Registrable Securities covered by such Prospectus or any amendment or supplement thereto conducted
in compliance with all securities laws then in effect at the time of such offering or sale in the
manner set forth therein.

          (h) Prior to any public offering of the Registrable Securities pursuant to a Registration
Statement, register or qualify or cooperate with the Holders in connection with the registration or
qualification (or exemption from such registration or qualification) of such Registrable Securities
for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder reasonably requests in writing; prior to any public offering of the
Registrable Securities pursuant to a Registration Statement, keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period in connection with
such Holder’s offer and sale of Registrable Securities pursuant to such registration or
qualification (or exemption therefrom) and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of such Registrable Securities in the
manner set forth in the relevant Registration Statement and the related Prospectus; provided, that
the Company will not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it would not otherwise be required to qualify but for this
Agreement or (ii) take any action that would subject it to general service of process in suits or
to taxation in any such jurisdiction where it is not then so subject.

          (i) Upon (A) the issuance by the SEC of a stop order suspending the effectiveness of a
Registration Statement or the initiation of proceedings with respect to a Registration Statement
under Section 8(d) or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any fact (a “Material Event”) as a result of which any Registration Statement shall contain any
untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, or any Prospectus shall contain
any untrue statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading, or (C) the occurrence or existence of any pending corporate
development, public filing with the SEC or other similar event with respect to the Company that, in
the reasonable discretion of the Board of Directors of the Company, makes it appropriate to
suspend the availability of a Registration Statement and the related Prospectus, (i) in the case
of clause (B) above, subject to the next sentence, as promptly as practicable prepare and file, if
necessary pursuant to applicable law, a post-effective amendment to such Registration Statement or
a supplement to the related Prospectus or any document incorporated therein by reference or file
any other required document that would be incorporated by reference into such Registration
Statement and Prospectus so that such Registration Statement does not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, and such Prospectus does not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading, and, in the case of a post-effective amendment to a Registration Statement,
subject to the next sentence, use its best efforts to cause it to be declared effective as promptly
as is practicable, and (ii) give notice to the Holders that the availability of the Registration
Statement is suspended (a “Deferral Notice”) and, upon receipt of any Deferral Notice, each Holder
agrees not to sell any Registrable

10

 

Securities pursuant to the Registration Statement until such Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above, or until it is advised in
writing by the Company that the Prospectus may be used, and has received copies of any additional
or supplemental filings that are incorporated or deemed incorporated by reference in such
Prospectus. The Company will use its best efforts to ensure that the use of the Prospectus may be
resumed (x) in the case of clause (A) above, as promptly as is practicable, (y) in the case of
clause (B) above, as soon as, in the sole judgment of the Board of Directors of the Company, public
disclosure of such Material Event would not be prejudicial to or contrary to the interests of the
Company or, if necessary to avoid unreasonable burden or expense, as soon as practicable thereafter
and (z) in the case of clause (C) above, as soon as, in the discretion of the Board of Directors of
the Company, such suspension is no longer appropriate. Subject to Section 2(h) hereof, the Company
shall be entitled to exercise its right under this Section 3(i) to suspend the availability of the
Registration Statement or any Prospectus without incurring or accruing any obligation to pay
Liquidated Damages for one or more periods not to exceed 30 days in any 12-month period.

          (j) Use its best efforts to comply with all applicable rules and regulations of the SEC and
make generally available to its securityholders earning statements (which need not be audited)
satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any
similar rule promulgated under the Securities Act) no later than forty-five (45) days after the end
of any three (3) month period (or ninety (90) days after the end of any twelve (12) month period if
such period is a fiscal year) commencing on the first day of the first fiscal quarter of the
Company commencing after the effective date of a Registration Statement, which statements shall
cover said periods.

          (k) Cooperate with each Holder to facilitate the timely preparation and delivery of
certificates representing Registrable Securities sold or to be sold pursuant to a Registration
Statement, which certificates shall not bear any restrictive legends, and cause such Registrable
Securities to be in such names as such Holder may request in writing at least two (2) Business Days
prior to any sale of such Registrable Securities.

          (l) Provide a CUSIP number for all Registrable Securities covered by each Registration
Statement not later than the effective date of such Registration Statement and provide the Holders
with printed certificates for the Registrable Securities that are in a form eligible for deposit
with The Depository Trust Company.

          (m) Use its best efforts to cause the Underlying Common Stock to be listed on any securities
exchange or any automated quotation system on which similar securities issued by the Company are
then listed, to the extent the Underlying Common Stock satisfies applicable listing requirements.

          (n) Provide such information as is required for any filings required to be made with the
National Association of Securities Dealers, Inc.

     SECTION 4. Holder’s Obligations. Each Holder agrees, by acquisition of the
Registrable Securities, promptly to furnish to the Company all information required to be disclosed
in order to make the information previously furnished to the Company by such Holder

11

 

not misleading and any other information regarding such Holder and the distribution of such
Registrable Securities as the Company may from time to time reasonably request. Any sale of any
Registrable Securities by any Holder shall constitute a representation and warranty by such Holder
that the information relating to such Holder and its plan of distribution is as set forth in the
Prospectus delivered by such Holder in connection with such disposition, that such Prospectus does
not as of the time of such sale contain any untrue statement of a material fact relating to or
provided by such Holder or its plan of distribution and that such Prospectus does not as of the
time of such sale omit to state any material fact relating to or provided by such Holder or its
plan of distribution necessary to make the statements in such Prospectus, in the light of the
circumstances under which they were made, not misleading. Notwithstanding anything contained in
this Agreement to the contrary, it is expressly understood and agreed that any Holder may from time
to time purchase and/or sell securities of the Company and by virtue of such purchases and/or sales
the number of securities of the Company owned by such Holder which is listed in the Prospectus may
or may not be correct at any given time and that such Holder shall have no liability whatsoever to
any Person in the event that the number of securities of the Company owned by such Holder at any
given time differs from the number of securities of the Company owned by such Holder which is
listed in the Prospectus.

     SECTION 5. Registration Expenses. The Company shall bear all fees and expenses
incurred in connection with the performance by the Company of its obligations under this Agreement
whether or not any of the Registration Statements are declared effective. Such fees and expenses
shall include, without limitation, (i) all registration and filing fees (including, without
limitation, fees and expenses (x) with respect to filings required to be made with the National
Association of Securities Dealers, Inc. and (y) of compliance with federal and state securities or
Blue Sky laws (including, without limitation, reasonable fees and disbursements of counsel in
connection with Blue Sky qualifications of the Registrable Securities under the laws of such
jurisdictions as are designated by the Holders of a majority of the Registrable Securities being
sold pursuant to a Registration Statement, (ii) printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities in a form eligible for deposit with
The Depository Trust Company), (iii) duplication expenses relating to a reasonable number of copies
of each Registration Statement or Prospectus delivered to any Holders hereunder, (iv) fees and
disbursements of counsel for the Company in connection with the Registration Statement, (v) the
fees and disbursements of the independent public accountants of the Company, including the expenses
of any special audits or “cold comfort” letters required by or incident to such performance and
compliance, (vi) reasonable fees and disbursements of the transfer agent for the Common Stock and
its counsel and (vii) Securities Act liability insurance, if any, obtained by the Company in its
sole discretion. The Company shall bear or reimburse the Holders for the reasonable fees and
disbursements of one firm of legal counsel for the Holders in connection with services rendered for
the benefit of the Holders in connection with subsection 5(i)(y) hereinabove. In addition, the
Company shall pay the internal expenses of the Company (including, without limitation, all salaries
and expenses of officers and employees performing legal or accounting duties), the expense of any
annual audit, the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange on which similar securities of the Company are then listed
and the fees and expenses of any person, including special experts, retained by the Company. All
underwriting discounts and selling commissions resulting from the sale of any Registrable
Securities by a Holder shall be borne by the selling Holder incurring the same.

12

 

     SECTION 6. Indemnification.

For the purpose of this Section 6:

	 	(i)	 	the term “Purchaser/Affiliate” shall mean any
affiliate of the Purchaser, including a transferee who is an affiliate
of the Purchaser, and any person who controls the Purchaser or any
affiliate of the Purchaser within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act; and
	 
	 	(ii)	 	the term “Registration Statement” shall include
any preliminary prospectus, final prospectus, exhibit, supplement or
amendment included in or relating to, and any document incorporated by
reference in, the Registration Statement referred to in Section 2.

          (a) Indemnification by the Company. The Company agrees to indemnify and hold harmless
each Purchaser and each Purchaser/Affiliate against any losses, claims, damages, liabilities or
expenses, joint or several, to which such Purchaser may become subject, under the Securities Act,
the Exchange Act, or any other federal or state statutory law or regulation, or at common law or
otherwise (including in settlement of any litigation, if such settlement is effected with the prior
written consent of the Company), insofar as such losses, claims, damages, liabilities or expenses
(or actions in respect thereof as contemplated below) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in the Registration Statement,
including the Prospectus, financial statements and schedules, and all other documents filed as a
part thereof, as amended at the time of effectiveness of the Registration Statement, including any
information deemed to be a part thereof as of the time of effectiveness pursuant to paragraph (b)
of Rule 430A, or pursuant to Rule 434, of the rules and regulations promulgated under the
Securities Act, or the Prospectus, in the form first filed with the SEC pursuant to Rule 424(b) of
the Regulations, or filed as part of the Registration Statement at the time of effectiveness if no
Rule 424(b) filing is required, or any amendment or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state in any of them a material fact required to be
stated therein or necessary to make the statements in any of them, in light of the circumstances
under which they were made, not misleading, or arise out of or are based in whole or in part on any
inaccuracy in the representations or warranties of the Company contained in this Agreement, or any
failure of the Company to perform its obligations hereunder or under law, and will promptly
reimburse each such Purchaser and each such Purchaser/Affiliate for any legal and other expenses as
such expenses are reasonably incurred by such Purchaser or such Purchaser/Affiliate in connection
with investigating, defending or preparing to defend, settling, compromising or paying any such
loss, claim, damage, liability, expense or action; provided however, that the
Company will not be liable in any such case to the extent, but only to the extent, that any such
loss, claim, damage, liability or expense arises out of or is based upon (i) an untrue statement or
alleged untrue statement or omission or alleged omission made in the Registration Statement, the
Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written
information furnished to the Company by or on behalf of the Purchaser expressly for use therein, or
(ii) the failure of such Purchaser to comply with the covenants and agreements contained in Section
4, or (iii) the inaccuracy of any representation or warranty made by such Purchaser herein or (iv)
any statement or omission in

13

 

any Prospectus that is corrected in any subsequent Prospectus that was delivered to the
Purchaser prior to the pertinent sale or sales by the Purchaser.

          (b) Indemnification by Holders of Registrable Securities. Each Purchaser will
severally, and not jointly, indemnify and hold harmless the Company, each of its directors, each of
its executive officers, including such officers who signed the Registration Statement, and each
person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any losses, claims, damages, liabilities or expenses to
which the Company, each of its directors, each of its officers who signed the Registration
Statement or controlling person may become subject, under the Securities Act, the Exchange Act, or
any other federal or state statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written consent of such
Purchaser) insofar as such losses, claims, damages, liabilities or expenses (or actions in respect
thereof as contemplated below) arise out of or are based upon (i) any failure by such Purchaser to
comply with the covenants and agreements contained in Section 4 hereof, or (ii) the inaccuracy of
any representation or warranty made by such Purchaser herein, or (iii) any untrue or alleged untrue
statement of any material fact contained in the Registration Statement, the Prospectus, or any
amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made in the Registration
Statement, the Prospectus, or any amendment or supplement thereto, in reliance upon and in
conformity with written information furnished to the Company by or on behalf of any Purchaser
expressly for use therein, and will reimburse the Company, each of its directors, each of its
officers who signed the Registration Statement or controlling person for any legal and other
expense reasonably incurred by the Company, each of its directors, each of its officers who signed
the Registration Statement or controlling person in connection with investigating, defending,
settling, compromising or paying any such loss, claim, damage, liability, expense or action. In no
event shall the liability of any selling Holder of Registrable Securities hereunder be in excess of
the net proceeds that such Holder received from the sale of the Registrable Securities pursuant to
the Registration Statement giving rise to such indemnification obligation.

          (c) Conduct of Indemnification Proceedings. Promptly after receipt by an indemnified
party under this Section 6 of notice of the threat or commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against an indemnifying party under this
Section 6, promptly notify the indemnifying party in writing thereof; but the omission so to notify
the indemnifying party will not relieve it from any liability which it may have to any indemnified
party for contribution or otherwise under the indemnity agreement contained in this Section 6 to
the extent it is not prejudiced in its ability to defend such action as a result of such failure.
In case any such action is brought against any indemnified party and such indemnified party seeks
or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to
participate in, and, to the extent that it may wish, jointly with all other indemnifying parties
similarly notified, to assume the defense thereof with counsel reasonably satisfactory to such
indemnified party; provided however, if the defendants in any such action include
both the indemnified party and the indemnifying party and the indemnified party shall have
reasonably concluded, based on an opinion of counsel reasonably satisfactory to

14

 

the indemnifying party, that there may be a conflict of interest between the positions of the
indemnifying party and the indemnified party in conducting the defense of any such action or that
there may be legal defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party, the indemnified party or parties
shall have the right to select separate counsel to assume such legal defenses and to otherwise
participate in the defense of such action on behalf of such indemnified party or parties. Upon
receipt of notice from the indemnifying party to such indemnified party of its election to assume
the defense of such action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 6 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense thereof unless (i)
the indemnified party shall have employed such counsel in connection with the assumption of legal
defenses in accordance with the proviso to the preceding sentence (it being understood, however,
that the indemnifying party shall not be liable for the expenses of more than one separate counsel,
reasonably satisfactory to such indemnifying party, representing all of the indemnified parties who
are parties to such action) or (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of commencement of action, in each of which cases the reasonable fees
and expenses of counsel shall be at the expense of the indemnifying party. In no event shall any
indemnifying party be liable in respect of any amounts paid in settlement of any action unless the
indemnifying party shall have approved in writing the terms of such settlement, provided
that such consent shall not be unreasonably withheld. No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement of any pending or
threatened proceeding in respect of which any indemnified party is or could have been a party and
indemnification could have been sought hereunder by such indemnified party from all liability on
claims that are the subject matter of such proceeding.

          (d) Contribution. If the indemnification provided for in this Section 6 is required
by its terms but is for any reason held to be unavailable to or otherwise insufficient to hold
harmless an indemnified party under paragraphs (a), (b) or (c) of this Section 6 in respect to any
losses, claims, damages, liabilities or expenses referred to herein, then each applicable
indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of any losses, claims, damages, liabilities or expenses referred to herein (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company and the
Purchaser from the private placement of the Offered Securities to such Purchaser under the Purchase
Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but the relative fault of the Company and the Purchaser in connection with the
statements or omissions or inaccuracies in the representations and warranties in this Agreement
and/or the Registration Statement which resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The respective relative benefits
received by the Company on the one hand and each Purchaser on the other shall be deemed to be in
the same proportion as the amount paid by such Purchaser to the Company for the Offered Securities
purchased by such Purchaser pursuant to the Purchase Agreement that were sold pursuant to the
Registration Statement bears to the difference (the “Difference”) between the amount such Purchaser
paid for the Registrable Securities that were sold pursuant to the Registration Statement and the
amount received by such Purchaser from such sale. The relative fault of the Company, on the one
hand, and each Purchaser on the other

15

 

shall be determined by reference to, among other things, whether the untrue or alleged
statement of a material fact or the omission or alleged omission to state a material fact or the
inaccurate or the alleged inaccurate representation and/or warranty relates to information supplied
by the Company or by such Purchaser and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in paragraph (c) of this
Section 6, any legal or other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim. The provisions set forth in paragraph (c) of this
Section 6 with respect to the notice of the threat or commencement of any threat or action shall
apply if a claim for contribution is to be made under this paragraph (d); provided
however, that no additional notice shall be required with respect to any threat or action
for which notice has been given under paragraph (c) for purposes of indemnification. The Company
and each Purchaser agree that it would not be just and equitable if contribution pursuant to this
Section 6 were determined solely by pro rata allocation (even if the Purchasers were treated as one
entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in this paragraph. Notwithstanding the provisions of this
Section 6, no Purchaser shall be required to contribute any amount in excess of the amount by which
the Difference exceeds the amount of any damages that such Purchaser has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Purchasers’ obligations to contribute pursuant to this Section 6
are several and not joint.

          (e) The indemnity, contribution and expense reimbursement obligations of the parties hereunder
shall be in addition to any liability any indemnified party may otherwise have hereunder, under the
Purchase Agreement or otherwise.

          (f) The indemnity and contribution provisions contained in this Section 6 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of any Holder or any person controlling any Holder, or the
Company, or the Company’s officers or directors or any person controlling the Company and (iii) the
sale of any Registrable Securities by any Holder.

     SECTION 7. Information Requirements. The Company covenants that, if at any time
before the end of the Effectiveness Period the Company is not subject to the reporting requirements
of the Exchange Act, it will cooperate with any Holder of Registrable Securities and take such
further reasonable action as any Holder of Registrable Securities may reasonably request in writing
(including, without limitation, making such reasonable representations as any such Holder may
reasonably request), all to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Securities Act within the limitation of the
exemptions provided by Rule 144 and Rule 144A under the Securities Act and customarily taken in
connection with sales pursuant to such exemptions. Upon the written request of any Holder of
Registrable Securities, the Company shall deliver to such Holder a written statement as to whether
it has complied with such filing requirements, unless such a statement has been included in the
Company’s most recent report filed pursuant to Section 13 or

16

 

Section 15(d) of Exchange Act. Notwithstanding the foregoing, nothing in this Section 7 shall
be deemed to require the Company to register any of its securities (other than the Common Stock)
under any section of the Exchange Act.

     SECTION 8. Miscellaneous.

          (a) Piggyback Registrations. If at any time during the Effectiveness Period there is
not an effective Registration Statement covering all of the Registrable Securities and the Company
shall determine to prepare and file with the SEC a registration statement relating to an offering
for its own account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or
their then equivalents relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in connection with the stock
option or other employee benefit plans, then the Company shall send to each Holder a written notice
of such determination and, if within fifteen days after the date of such notice, any such Holder
shall so request in writing, the Company shall include in such registration statement all or any
part of such Registrable Securities such Holder requests to be registered; provided,
however, that, the Company shall not be required to register any Registrable Securities
pursuant to this Section 8(a) that are eligible for resale pursuant to Rule 144(k) promulgated
under the Securities Act or that are the subject of a then effective Registration Statement.

          (b) No Conflicting Agreements. The Company may be, as of the date hereof, but shall
not be as of the Closing Date under the Purchase Agreement a party to, nor shall it, on or after
the date of this Agreement, enter into, any agreement with respect to its securities that conflicts
with, or provides registration rights superior to, the rights granted to the Holders of Registrable
Securities in this Agreement. The Company represents and warrants that the rights granted to the
Holders of Registrable Securities hereunder do not in any way conflict with the rights granted to
the holders of the Company’s securities under any other agreements.

          (c) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, unless the Company has obtained the
written consent of Holders of a majority of the then outstanding Underlying Common Stock
constituting Registrable Securities (with Holders of the Series B Preferred Stock and warrants
deemed to be the Holders, for purposes of this Section, of the number of outstanding shares of
Common Stock into which such shares of Series B Preferred Stock or warrants are or would be
convertible or exercisable as of the date on which such consent is requested). Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Securities whose securities are being
sold pursuant to a Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable Securities may be given by Holders of at least a majority of
the Registrable Securities being sold by such Holders pursuant to such Registration Statement;
provided, that the provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding sentence. Each Holder of Registrable
Securities outstanding at the time of any such amendment, modification, supplement, waiver or
consent or thereafter shall be bound by any such amendment, modification, supplement, waiver or
consent effected pursuant to this

17

 

Section 8(c), whether or not any notice, writing or marking indicating such amendment,
modification, supplement, waiver or consent appears on the Registrable Securities or is delivered
to such Holder.

          (d) Notices. All notices and other communications provided for or permitted hereunder
shall he made in writing by hand delivery, by telecopier, by courier guaranteeing overnight
delivery or by first-class mail, return receipt requested, and shall be deemed given (i) when made,
if made by hand delivery, (ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day
after being deposited with such courier, if made by overnight courier or (iv) on the date indicated
on the notice of receipt, if made by first-class mail, to the parties as follows:

	 	(1)	 	if to a Purchaser, to the address
for such Purchaser set forth in the signature pages of this
Agreement;
	 
	 	(2)	 	if to another Holder, at the most
current address given by such Holder to the Company in its
notice given to the Company;
	 
	 	(3)	 	if to the Company, to:

	 	 	 	 	 
	 	 	Viseon, Inc.
	 	 	Attn: President
	 	 	8445 Freeport Parkway, Suite 245
	 	 	Dallas, TX 75063
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Albert B. Greco, Jr.
	 

	 	 	 	Law Offices of Albert B. Greco, Jr.
	 

	 	 	 	16901 N. Dallas Parkway, Suite 230
	 

	 	 	 	Addison, Texas 75001

or to such other address as such person may have furnished to the other persons identified in this
Section 8(d) in writing in accordance herewith.

          (e) Approval of Holders. Whenever the consent or approval of Holders of a specified
percentage of Registrable Securities is required hereunder, Registrable Securities held by the
Company or its affiliates (as such term is defined in Rule 405 under the Securities Act) shall not
be counted in determining whether such consent or approval was given by the Holders of such
required percentage.

          (f) Successors and Assigns. Any person who purchases any Registrable Securities from
any of the Purchasers shall be deemed, for purposes of this Agreement, to be an assignee of such
Purchaser. This Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties and shall inure to the benefit of and be binding upon each Holder of
any Registrable Securities.

18

 

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed shall be deemed to be
original and all of which taken together shall constitute one and the same agreement.

          (h) Headings. The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

          (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK EXCEPT TO THE EXTENT THAT FEDERAL LAW OR THE INTERNAL LAWS
OF THE STATE OF NEVADA IN RESPECT OF SECURITIES ISSUED BY ENTITIES DOMICILED WITHIN SUCH STATE OR
REGARDING CORPORATE GOVERNANCE MAY APPLY.

          (j) Severability. If any term provision, covenant or restriction of this Agreement is
held to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated thereby, and the parties hereto shall use their best
efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant or restriction, it being intended
that all of the rights and privileges of the parties shall be enforceable to the fullest extent
permitted by law.

          (k) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and is intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein and the
registration rights granted by the Company with respect to the Registrable Securities. Except as
provided in the Purchase Agreement, there are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein, with respect to the registration
rights granted by the Company with respect to the Registrable Securities. This Agreement
supersedes all prior agreements and undertakings among the parties with respect to such
registration rights. No party hereto shall have any rights, duties or obligations other than those
specifically set forth in this Agreement.

          (l) Termination. This Agreement and the obligations of the parties hereunder shall
terminate upon the end of the Effectiveness Period, except for (i) any liabilities or obligations
under Section 5 or 6 hereof and (ii) the obligations to make payments of any Liquidated Damages
under Section 2(h) hereof to the extent such damages accrue prior to the end of the Effectiveness
Period, each of which shall remain in effect in accordance with its terms and (iii) such
termination shall not relieve a party hereto of any liability arising out of or related to such
party’s breach of this Agreement prior to the end of the Effectiveness Period.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

19

 

	 	 	 	 	 
	 	VISEON, INC.

 	 
	 	By:  	 	 
	 	 	John Harris, President 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 	 	 
	 

	 	NAME OF PURCHASER
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Address of Purchaser:
	 	 

20

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