Document:

Exhibit 10.1

Small World Kids, Inc.

INSTRUCTION SHEET FOR
INVESTOR

To be read in conjunction
with the entire attached Securities Purchase Agreement and Investor
Questionnaire. All capitalized terms used but not defined herein shall have the
meaning assigned to each such term in the Securities Purchase Agreement.

A.         Complete the following items in the Securities Purchase
Agreement, and in the Investor Questionnaire:

 

             1.          Provide
the information regarding the Investor requested on the signature page to
the Securities Purchase Agreement and in the Investor Questionnaire. The
Securities Purchase Agreement must be executed by an individual authorized to
bind the Investor.

 

             2.          Return
the signed Securities Purchase Agreement and Investor Questionnaire to:

 

	
  Troy & Gould, Professional Corporation

  1801 Century Park East, Suite 1600

  Los Angeles, California 90067

  Attn: David Ficksman Phone:

  (310) 789-1290

  Facsimile: (310) 789-1490

  
	
   

  
	
  And fax copies to:

  
	
   

  
	
  Small World Kids, Inc.

  Attn: John Matise

  Phone: (310) 645-9680

  Facsimile: (310) 258-1195

  

 

B.          Instructions regarding the transfer of
funds for the purchase of Preferred Shares will be faxed to the Investor at a
later date.

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SECURITIES PURCHASE
AGREEMENT

Small
World Kids, Inc.

5711 Buckingham Parkway

Culver City, CA  90230

Phone:  (310) 645-9680 

Facsimile:  (310) 258-1195

Ladies
and Gentlemen:

The
undersigned investor (the “Investor”), hereby confirms its agreement with you
as follows:

1.             This Securities Purchase Agreement, including Annex I,
and the exhibits thereto (the “Agreement”) is made as of May 26, 2006
between Small World Kids, Inc.(the “Company”) and the Investor with
respect to the sale of shares (the “Preferred Shares”) of the Company’s Class A-1
Convertible Preferred Stock (the “Class A-1 Preferred Stock”). The
powers, designations, preferences and other rights of such of Class A-1
Preferred Stock are set forth on Exhibit A.

2.             The Company and the Investor agree that the Investor
will purchase from the Company, and the Company will sell to the Investor, the
number of Preferred Shares set forth opposite the Investor’s name on the
signature page of this Agreement, at a purchase price per Preferred Share
of $1.10, pursuant to the Terms and Conditions for Purchase of Securities
attached hereto as Annex I and incorporated herein by reference as if fully set
forth herein. Unless otherwise requested by the Investor, certificates
representing the Preferred Shares will be registered in the Investor’s name and
address as set forth below.

The next page is the signature page.

 

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Please confirm that the
foregoing correctly sets forth the agreement between us by signing in the space
provided below for that purpose. 

 

AGREED AND ACCEPTED:

 

	
  

  	
  COMPANY: SMALL WORLD KIDS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  John Matise

  
	
   

  	
   

  	
   

  	
  Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INVESTOR:

  	
   

  	
   

  
	
   

  	
   

  	
  name of investor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of Preferred Shares:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Signature of
  investor or authorized person

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
  Title of
  authorized person

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Contact Name:

  	
   

  
	
   

  	
   

  	
  Facsimile Number:

  	
   

  
	
   

  	
   

  	
  Email Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name in which share certificates should be 

  
	
   

  	
   

  	
  registered (if different):

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Social Security

  	
   

  
	
   

  	
   

  	
  or Tax I.D. No:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address where share certificates should be sent

  
	
   

  	
   

  	
  (if different):

  	
   

  
																

 

 

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ANNEX I

TERMS AND CONDITIONS FOR
PURCHASE OF SECURITIES

1.             Authorization.
Subject to the terms and conditions in this Annex I, the Company has
authorized the sale of up to 12,000,000 shares of Class A-1
Preferred Stock.

2.             Agreement
to Sell and Purchase the Preferred Shares; Subscription Date.

2.1           At
the Closing (as defined in Section 2), the Company will sell to the
Investor, and the Investor will purchase from the Company, upon the terms and
conditions hereinafter set forth, the Preferred Shares.

2.2           The
Company is entering into a substantially similar form of Securities Purchase
Agreement, including these Terms and Conditions, with the other investors
listed along with the Investor (the “Other Investors”). (The Investor and the
Other Investors are hereinafter sometimes collectively referred to as the “Investors,”
and the Securities Purchase Agreement to which these Terms and Conditions are
attached and the securities purchase agreements executed by the Other Investors
are hereinafter sometimes collectively referred to as the “Purchase Agreements.”)

3.             Delivery
of the at Closing. The completion of the purchase and sale of the Preferred
Shares (the “Closing”) shall occur no later than June 5, 2006 (the “Closing
Date”), at the offices of Troy & Gould, Professional Corporation, the
Company’s counsel, it being understood however, that additional Closings of the
sale of Preferred Shares (“Additional Closings”) may occur from time to time
within 120 days of the initial Closing Date. At the Closing, the Company shall
deliver to the Investor (i) one or more stock certificates representing,
in the aggregate, the Preferred Shares, each such stock certificate to be
registered in the name of the Investor or, if so indicated on the signature page of
the Securities Purchase Agreement, in the name of a nominee designated by the
Investor. If neither the Investor nor a representative of Investor is present
at the Closing to take physical delivery of the certificates, then delivery
shall be deemed made at Closing by the transmission of a facsimile of the
certificates to the Investor (or nominee designated by the Investor) followed
by delivery by a nationally recognized overnight express courier.

The
Company’s obligation to issue the Preferred Shares to the Investor shall be
subject to the following conditions, any one or more of which may be waived by
the Company:

(a)           receipt
by the Company, or the nominee designated by the Company, as applicable, of a
certified or official bank check or wire transfer of funds in the full amount of
the aggregate purchase price for the Preferred Shares;

(b)           other
than with respect to the occurrence of any Additional Closings, completion of
the purchases and sales under the Agreements with the Other Investors; and

 

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(c)           the
accuracy of the representations and warranties made by the Investors and the
fulfillment of those undertakings of the Investors to be fulfilled prior to the
Closing.

The
Investor’s obligation to purchase the Preferred Shares shall be subject to the
following conditions, any one or more of which may be waived by the Investor:

(a)           the
representations and warranties of the Company set forth herein shall be true
and complete as of the Closing Date in all material respects;

(b)           the
Investor shall have received such documents as the Investor shall reasonably
have requested;

(c)           the
Company shall not have experienced a Material Adverse Change (as defined in
paragraph 4.11);

(d)           the
Company shall have delivered to the Investor a certificate of its Chief
Executive Officer dated as of the Closing Date certifying (i) that the
representations and warranties of the Company remain true as of the Closing
Date, (ii) that the Company has performed all covenants in the Agreements
to be performed by it on or prior to Closing Date, (iii)  that the Company
has not experienced a Material Adverse Change, (iv) that the Common Stock
has not been suspended from trading on the Over-the-Counter Bulletin Board (“OTCBB”),
and (v) that the Company is not subject to a stop order of the Securities
and Exchange Commission (the “SEC”) or any state securities agency;

(e)           together
with the sale of Preferred Shares pursuant to this Agreement, the Company shall
have received from Investors at least $2,000,000 from the sale of Preferred
Shares;

(f)            the
existing holder of the Company’s Class A Convertible Preferred Stock shall
have converted such stock (including accrued dividends) into approximately
4,908,158 Preferred Shares (the “Preferred Conversion Shares”);

(g)           the
holders of the Company’s outstanding indebtedness for borrowed money other than
Laurus Master Fund Ltd., Horizon Financial Services Group (USA), Eddy
Goldwasser and St. Cloud Capital Partners LP (“St. Cloud”) shall have
converted such indebtedness into 2,763,635 Preferred Shares;

(h)           the
outstanding indebtedness owed to St. Cloud in the principal amount of
$2,500,000 shall have been restructured as provided in the Third Amendment to
Note Purchase Agreement (the “Third Amendment”) as follows (and St. Cloud shall
have executed and delivered the Third Amendment and surrendered the old note
for cancellation):

(1)           the
Company shall prepay $50,000

(2)           the
remaining principal amount shall be evidenced by two notes (the “Notes”). The
first note in the principal amount of $200,000 will be for twelve months with
monthly amortization payments at a 10% interest rate. The second note will be
for

 

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$2,250,000 with interest at 10% per annum, interest only payable on June 30,
2006 and September 15, 2006. Commencing September 16, 2006, payments
will be interest only each month through September 15, 2008 and commencing
October 15, 2008, monthly amortization payments (based on a five-year
amortization) with all interest plus unpaid principal due on September 15,
2011. The second note will be convertible into shares of the Common Stock of
the Company at $4.00 per share (subject to adjustment);

(i)            the
Company shall have amended its Articles of Incorporation to increase the
authorized shares of Preferred Stock to 15,000,000 of which 12,000,000 shares
shall be designated Class A-1 Convertible Preferred Stock;

(j)            the Company shall have executed and
delivered a counterpart copy of the Registration Rights Agreement referred to
in Section 7.1; and

(k)           the Investors shall have received a
legal opinion from Troy & Gould, counsel to the Company, in form and
substance acceptable to the Investors.

4.             Representations,
Warranties and Covenants of the Company. The Company hereby represents and
warrants to, and covenants with, the Investor, as follows:

4.1           Subsidiaries;
Organization. All of the subsidiaries of the Company (the “Subsidiaries”)
are set forth on Schedule 4.1(a). Each of the Company and the Subsidiaries
is duly organized and validly existing and is in good standing under the laws
of the jurisdiction of its organization. Each of the Company and the
Subsidiaries has full power and authority to own, operate and occupy its
properties and to conduct its business as presently conducted and as described
in Company’s SEC Documents (as defined in paragraph 4.4), and is
registered or qualified to do business and is in good standing in each
jurisdiction in which the failure to be so qualified would have a material
adverse effect upon the business, condition (financial or otherwise), business
prospects, properties or operations of the Company and its Subsidiaries,
considered as one enterprise (“Material Adverse Effect”), and no proceeding has
been instituted in any such jurisdiction, revoking, limiting or curtailing, or
seeking to revoke, limit or curtail, such power and authority or qualification.

4.2           Due
Authorization and Valid Issuance. The Company has all requisite power and
authority to execute, deliver and perform its obligations under the Purchase
Agreement, the Third Amendment, the Notes and the Registration Rights Agreement
referred to in Section 7.1 (collectively, the “Transaction Documents”),
and the Agreements have been duly authorized and validly executed and delivered
by the Company and constitute legal, valid and binding agreements of the
Company enforceable against the Company in accordance with their terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or similar laws affecting
creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

4.3           Non-Contravention.
The execution and delivery of the Transaction Documents by the Company, the
issuance and sale of the Preferred Shares to be sold by the

 

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Company under the Agreements, the fulfillment of the terms of the
Agreements by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby will not (A) conflict with or
constitute a violation of, or default or require notice or consent (with the
passage of time or otherwise) under (i) any material bond, debenture, note
or other evidence of indebtedness, or under any material lease, contract,
indenture, mortgage, deed of trust, loan agreement, joint venture or other
agreement or instrument to which the Company or any of the Subsidiaries is a
party or by which the Company or any of the Subsidiaries or their respective
properties are bound, (ii) the charter, by-laws or other organizational
documents of the Company or any of the Subsidiaries, or (iii) any material
law, administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority applicable to the Company or any of the
Subsidiaries or their respective properties, or (B) result in the creation
or imposition of any lien, encumbrance, claim, security interest or restriction
whatsoever upon any of the material properties or assets of the Company or any
of the Subsidiaries or an acceleration of indebtedness pursuant to any
obligation, agreement or condition contained in any material bond, debenture,
note or any other evidence of indebtedness or any material indenture, mortgage,
deed of trust or any other agreement or instrument to which the Company or any
of the Subsidiaries is a party or by which any of them is bound or to which any
of the property or assets of the Company or any of the Subsidiaries is subject.
No consent, approval, authorization or other order of, or registration,
qualification or filing with, any regulatory body, administrative agency, or
other governmental body in the United States is required for the execution and
delivery of the Transaction Documents by the Company and the valid issuance and
sale of the Preferred Shares to be sold by the Company pursuant to the
Agreements, other than such as have been made or obtained, and except for any
post-closing securities filings or notifications required to be made under
federal or state securities laws.

4.4           Reporting
Status. The Company has filed in a timely manner all documents that the
Company was required to file under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) during the 12 months preceding the date of this
Agreement, including all certifications and statements required by (x) 13a-14
or 15d-14 under the Exchange Act or (y) 18 USC 1350 (Section 906
of Sarbanes Oxley Act) (such filings, including all exhibits, supplements  and amendments thereto, the “SEC Documents”).
The SEC Documents and all other materials filed with the Securities and
Exchange Commission (the “SEC”) during such period complied in all material
respects with the SEC’s requirements as of their respective filing dates, and
the information contained therein as of the dates thereof did not contain an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein in light of
the circumstances under which they were made not misleading.

4.5           Capitalization.
The capitalization of the Company is as set forth on Schedule 4.5. All
outstanding shares are duly authorized, validly issued and are fully paid and
nonassessable. None of the outstanding shares has been offered or issued in
violation of federal or state securities laws, or in violation of or subject to
any preemptive rights or other rights to subscribe for or purchase securities. The
Company has not issued any capital stock since December 31, 2005 other
than pursuant to (i) employee benefit plans disclosed in the SEC
Documents, or (ii) outstanding warrants, options or other securities
disclosed in the SEC Documents. The Preferred Shares to be issued on the date
hereof, when issued in compliance with the provisions of the Agreements,
including without limitation payment in full of the

 

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consideration therefor, will be duly authorized, and the Preferred
Shares and the shares of the Common Stock issuable upon conversion of the
Preferred Shares (the “Conversion Shares”) when issued will be validly issued,
fully paid and nonassessable, and will not subject the holder to any liability
as a result of being a holder. Except as set forth on Schedule 4.5, there are
no outstanding rights (including, without limitation, preemptive rights),
warrants or options to acquire, or instruments convertible into or exchangeable
for, any unissued shares of capital stock or other equity interest in the
Company or the Subsidiaries, or any contract, commitment, agreement,
understanding or arrangement of any kind to which the Company is a party or of
which the Company has knowledge and relating to the issuance or sale of any
capital stock of the Company or the Subsidiaries, any such convertible or
exchangeable securities or any such rights, warrants or options. Without
limiting the foregoing, no preemptive right, co-sale right, right of first
refusal, registration right (except as set forth herein), or other similar
right exists with respect to the Preferred Shares or the Company’s Common Stock
to be issued and sold by the Company or the issuance and sale thereof. No
further approval or authorization of any stockholder, the Board of Directors of
the Company or others is required for the issuance and sale of the Preferred
Shares or the Company’s Common Stock by the Company. There are no stockholders’
agreements, voting agreements or other similar agreements with respect to the
Preferred Shares or the Company’s Common Stock to which the Company is a party
or, to the knowledge of the Company, between or among any of the Company’s
stockholders. Except as set forth on Schedule 4.5, no holder of any of the
securities of the Company has any rights (“demand,” “piggyback” or otherwise)
to have such securities registered by reason of the intention to file, filing
or effectiveness of a Registration Statement (as defined in Section 7.1
hereof). The Company has duly reserved sufficient shares of Common Stock for
issuance upon conversion of the Preferred Shares.

4.6           Legal
Proceedings. There is no material legal or governmental proceeding pending
or, to the knowledge of the Company, threatened to which the Company or any of
the Subsidiaries is or may be a party or of which the business or property of
the Company or any of the Subsidiaries is subject. There is no action, suit,
proceeding, inquiry or investigation before or by any court, public board or
body (including, without limitation, the SEC) pending or, to the knowledge of
the Company, threatened against or affecting the Company or the Subsidiaries or
any of their respective business or properties, wherein an unfavorable
decision, ruling or finding could adversely affect the validity or
enforceability of, or the authority or ability of the Company to perform its
obligations under the Agreements.

4.7           No
Violations. Neither the Company nor any Subsidiary is in violation of its
charter, bylaws, or other organizational document, or in violation of any
material law, administrative regulation, ordinance or order of any court or
governmental agency, arbitration panel or authority applicable to the Company
or any Subsidiary, or in default or violation (and there exists no condition
that, with the passage of time or otherwise, would constitute a default or
violation) in any respect in the performance of any material bond, debenture,
note or any other evidence of indebtedness in any indenture, mortgage, deed of
trust or any other material agreement or instrument to which the Company or any
Subsidiary is a party or by which the Company or any Subsidiary is bound or by
which the properties of the Company or any Subsidiary are bound. Without
limiting the generality of the foregoing, the Company is not in violation of
any of the rules, regulations or requirements of the OTCBB and has no knowledge
of any facts or circumstances which would reasonably lead to suspension of the
Common Stock by the OTCBB in the foreseeable future.

 

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4.8           Governmental
Permits, Etc. The Company and the Subsidiaries possess all necessary
franchises, licenses, certificates and other authorizations from any foreign,
federal, state or local government or governmental agency, department, or body
that are currently necessary for the operation of their respective business as
currently conducted, except where the failure to currently possess could not
reasonably be expected to have a Material Adverse Effect.

4.9           Intellectual
Property. The Company and the Subsidiaries own or possess sufficient rights
to use all patents, patent rights, trademarks, copyrights, licenses,
inventions, trade secrets, trade names and know-how (collectively, “Intellectual
Property”) that are necessary for the conduct of their respective businesses as
now conducted. Neither the Company nor any Subsidiary has received any notice
of, or has any knowledge of, any infringement of asserted rights of a third
party with respect to any Intellectual Property, and neither the Company nor
any Subsidiary has any knowledge of any infringement by a third party with
respect to any Intellectual Property of the Company or any Subsidiary.

4.10         Financial
Statements. The consolidated financial statements of the Company and the
related notes contained in the SEC Documents present fairly, in accordance with
the rules and regulations of the SEC, the consolidated financial position
of the Company as of the dates indicated, and the results of its operations and
cash flows for the periods therein specified. Such financial statements
(including the related notes) have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis throughout the
periods therein specified, except as set forth in the financial statements (and
the related notes).

4.11         No
Material Adverse Change. Since December 31, 2005, there has not been (i) any
material adverse change in the financial condition or earnings of the Company
and the Subsidiaries taken as a whole, nor has any material adverse event
occurred with respect to the Company or the Subsidiaries, (ii) any
obligation, direct or contingent, that is material to the Company and the
Subsidiaries taken as a whole, incurred by the Company or any Subsidiary,
except obligations incurred in the ordinary course of business, (iii) any
dividend or distribution of any kind declared, paid or made on the capital
stock of the Company, or (iv) any loss or damage (whether or not insured)
to the physical property of the Company or any Subsidiary which has been
sustained which has a material adverse effect on the condition (financial or
otherwise), earnings, operations, business or business prospects of the Company
and the Subsidiaries taken as a whole. Since December 31, 2005, neither
the Company nor any Subsidiary has (a) sold, assigned, transferred,
abandoned, mortgaged, pledged or subjected to lien any of its material
properties, tangible or intangible, or rights under any material contract,
permit, license, franchise or other agreement or (b) waived or cancelled
any material indebtedness or other material obligations owed to the Company or
such Subsidiary. The occurrence of any of the events described in clauses (i) through
(iv) and clauses (a) and (b) of this paragraph is referred
to as a “Material Adverse Change.”

4.12         No
Manipulation of Securities. The Company has not taken and will not, in
violation of applicable law take, any action designed to or that might
reasonably be expected 

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to cause or result in stabilization or manipulation of the price of the
Common Stock to facilitate the sale or resale of the Preferred Shares.

4.13         OCTBB
Status. The Common Stock is traded on the OTCBB. The Company has no reason
to believe that the Common Stock will be ineligible for quotation on the OTCBB.

4.14         Insurance.
The Company and the Subsidiaries maintain and will continue to maintain
insurance against loss or damage by fire or other casualty and such other
insurance, including, but not limited to, product liability insurance, in such
amounts and covering such risks as is reasonably adequate consistent with
industry practice for the conduct of their respective businesses and the value
of their respective properties.

4.15         Tax
Matters. The Company and the Subsidiaries have filed all material federal,
state, local and foreign income and franchise and other tax returns required to
be filed by them in any jurisdiction to which they are subject, and have paid
or accrued all taxes due in accordance therewith; and no tax deficiency has
been determined adversely to the Company or any Subsidiary which has had (nor
does the Company or the Subsidiaries have any knowledge of any tax deficiency
which, if determined adversely to the Company or any of the Subsidiaries, would
reasonably be expected to have) a Material Adverse Effect.

4.16         Investment
Company. The Company is not an “investment company” within the meaning of
such term under the Investment Company Act of 1940 and the rules and
regulations of the SEC thereunder.

4.17         No
Registration. No form of general solicitation or general advertising was
used by the Company or, to the best of its knowledge, any other Person acting
on behalf of the Company, in respect of the Preferred Shares or in connection
with the offer and sale of the Preferred Shares. Assuming the accuracy of the
representations and warranties made by, and compliance with the covenants of, (i) the
Investors in Section 5 of the Terms and Conditions to each of the
Agreements, no registration of the Preferred Shares under the Securities Act is
required in connection with the offer and sale of the Preferred Shares by the
Company to the Investors as contemplated by the Agreements.

4.18         Internal
Accounting Controls. The Company and the Subsidiaries maintain a system of
internal accounting controls sufficient, in the judgment of the Company’s board
of directors, to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of consolidated financial statements
in conformity with generally accepted accounting principles and to maintain
asset accountability, (iii) access to assets is permitted only in
accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences. The Company has established disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e) for
the Company and designed such disclosure controls and procedures to ensure that
material information relating to the Company, is made known to the certifying
officers by others within those entities, particularly during the period in
which the Company’s Form 10-KSB or 

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10-QSB, as the case may be, is being prepared. The Company’s
certifying officers have evaluated the effectiveness of the Company’s controls
and procedures as of the end of the period covered by the most recently filed Form 10-KSB
(such date, the “Evaluation Date”). The Company presented in its most recently
filed Form 10-KSB the conclusions of the certifying officers about
the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no significant changes in the Company’s internal controls (as such term is
defined in Exchange Act Rules 13a-15(f) that has affected, or
is reasonably likely to materially affect, the Company’s internal controls over
financial reporting.

4.19         Form D.
Subject to the continuing accuracy of the representations and warranties made
by, and compliance with the covenants of, the Investors in Section 5 of
the Terms and Conditions to each of the Agreements the Company agrees to file
one or more Form D with respect to the Preferred Shares on a timely basis
as required under Regulation D under the Securities Act to claim the
exemption provided by Rule 506 of Regulation D and to provide a copy
thereof to the Investors and their counsel promptly after such filing.

4.20         Integration and Future Financings

(a)           The
Company shall not, and shall use its best efforts to ensure that no affiliate
of the Company shall, sell, offer for sale or solicit offers to buy or
otherwise negotiate in respect of any security (as defined in Section 2 of
the Securities Act) that would be integrated with the Offering in a manner that
would require the registration of the issuance of the Preferred Shares under
the Securities Act, or cause the sale of the Preferred Shares to the Investors
to be integrated with prior offerings by the Company.

4.21         Use
of Proceeds. The Company will use the net proceeds from the sale of the
Preferred Shares for working capital and general corporate purposes.

4.22         No
Undisclosed Events, Liabilities, Developments or Circumstances. No event,
liability, development, circumstance or transaction has occurred or exists,
with respect to the Company or any Subsidiary or their respective business,
properties, prospects, operations or financial condition, that would be
required to be disclosed by the Company under applicable securities laws
(including pursuant to the anti-fraud provisions thereof) on a registration
statement on Form SB-2 filed with the SEC relating to an issuance
and sale by the Company of its Common Stock and which has not been publicly
announced.

4.23         Employee
Relations. Neither the Company nor any Subsidiary is a party to any
collective bargaining agreement or employs any member of a union. The Company
and its Subsidiaries believe that their relations with their employees are good.
No executive officer of the Company (as defined in Rule 501(f) under
the Securities Act) has notified the Company that such officer intends to leave
the Company or otherwise terminate such officer’s employment with the Company. No
executive officer of the Company, to the knowledge of the Company, is, or is
now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement, non-competition
agreement, or any other contract or agreement or any restrictive covenant, and,
to the knowledge of the Company, the continued employment of each such
executive officer does not subject the 

 8
 

 

Company or any Subsidiary to any material liability with respect to any
of the foregoing matters. The Company and its Subsidiaries are in compliance
with all federal, state, local and foreign laws and regulations respecting
employment and employment practices, terms and conditions of employment and
wages and hours, except where failure to be in compliance could not, either
individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect.

4.24         Sarbanes-Oxley
Act. The Company is in compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and
any and all applicable rules and regulations promulgated by the SEC
thereunder that are effective as of the date hereof.

5.             Representations, Warranties and
Covenants of the Investor.

5.1           The
Investor represents and warrants to, and covenants with, the Company that:  (i) the Investor is an “accredited
investor” as defined in Rule 501 of Regulation D under the Securities
Act , and the Investor is also knowledgeable, sophisticated and experienced in
making, and is qualified to make decisions with respect to, investments in
securities presenting an investment decision like that involved in the purchase
of the Preferred Shares, including investments in securities issued by the Company
and investments in comparable companies, and has requested, received, reviewed
and considered all information it deemed relevant in making an informed
decision to purchase the Preferred Shares; (ii) the Investor is acquiring
the Preferred Shares in the ordinary course of its business and for its own
account for investment only and with no present intention of distributing any
of such Preferred Shares or any arrangement or understanding with any other
persons regarding the distribution of such Preferred Shares; (iii) the
Investor will not, directly or indirectly, offer, sell, pledge, transfer or
otherwise dispose of (or solicit any offers to buy, purchase or otherwise
acquire or take a pledge of) any of the Preferred Shares except in compliance
with the Securities Act, applicable state securities laws and the respective rules and
regulations promulgated thereunder, except that the Investor may pledge the
Preferred Shares in connection with a bona fide margin account or other loan or
financing; (iv) the Investor and the Investor’s representatives, if any,
have been solely responsible for the Investor’s own “due diligence”
investigation of the Company and its management and business, for its own
analysis of the merits and risks of this investment, and for the Investor’s own
analysis of the fairness and desirability of the terms of the investment; and (v) the
Investor has, in connection with its decision to purchase the Preferred Shares,
relied only upon the SEC Documents and the representations and warranties of
the Company contained herein. The Investor understands that its acquisition of
the Preferred Shares has not been registered under the Securities Act or
registered or qualified under any state securities law in reliance on specific
exemptions therefrom, which exemptions may depend upon, among other things, the
bona fide nature of the Investor’s investment intent as expressed herein. The
Investor has completed or caused to be completed and delivered to the Company
the Investor Questionnaire attached to this Annex I as Exhibit A, which
completed questionnaire is true, correct and complete in all material respects.

5.2           The Investor hereby
covenants with the Company not to make any sale of the Shares or the Conversion
Shares without complying with the provisions of this Agreement, and the
Investor acknowledges that the certificates evidencing the Preferred Shares and
the 

 

 9

 

Conversion Shares will be imprinted with a legend that prohibits their
transfer except in accordance therewith.

5.3           The
Investor further represents and warrants to, and covenants with, the Company
that (i) the Investor has full right, power, authority and capacity to
enter into this Agreement and to consummate the transactions contemplated
hereby and has taken all necessary action to authorize the execution, delivery
and performance of this Agreement, and (ii) this Agreement constitutes a
valid and binding obligation of the Investor enforceable against the Investor
in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

5.4           The
Investor understands that nothing in the SEC Documents, this Agreement or any
other materials presented to the Investor in connection with the purchase and
sale of the Preferred Shares constitutes legal, tax or investment advice. The
Investor has consulted such legal, tax and investment advisors as it, in its
sole discretion, has deemed necessary or appropriate in connection with its
purchase of the Preferred Shares.

6.             Survival
of Representations, Warranties and Agreements. Notwithstanding any
investigation made by any party to this Agreement, all covenants, agreements,
representations and warranties made herein by the Company and the Investor
shall survive the execution of this Agreement, the delivery to the Investor of
the Preferred Shares being purchased and the payment therefor.

7.             Registration of the Shares and
the Preferred Shares; Compliance with the Securities Act.

7.1           Piggy-Back
Registrations. If at any time 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 include in such
registration statement all or any part of the Conversion Shares the Investor
requests to be registered, subject to customary underwriter cutbacks. The terms
of such registration rights shall be set forth in a Registration Rights
Agreement substantially in the form of Exhibit B attached herein.

7.2           Rule 144.
The Company covenants that it will file the reports required to be filed by it
under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder (or, if the Company is not required
to file such reports, it will, upon the request of the Investor holding Securities
purchased hereunder made after the first anniversary of the Closing Date, make
publicly available such information as necessary to permit sales of the
Conversion Shares pursuant to Rule 144 under the Securities Act), and it
will take such further action as the Investor may reasonably request, all to
the extent required from time to 

 10
 

 

time to enable the Investor to sell the Conversion Shares purchased
hereunder without registration under the Securities Act within the limitation
of the exemptions provided by (a) Rule 144 under the Securities Act,
as such rule may be amended from time to time, or (b) any similar rule or
regulation hereafter adopted by the SEC.

8.             Covenants (post Closing).

8.1           Participation in Future Financing.

(a)           From
the date hereof until 36 months from the date hereof, upon any equity financing
by the Company which the Company proposes to undertake (a “Subsequent
Financing”), the Investor shall have the right to participate in such
Subsequent Financing in amount so that the Investor may maintain the Investor’s
percentage stock ownership in the Company on a fully-diluted, as-converted
basis arising from and as of the date of the Investor’s purchase of Preferred
Shares. Notwithstanding the foregoing, the provisions of this Section 8.1
shall not apply to (i) the issuance of any additional shares approved by
the Company’s Board of Directors to employees, officers, or directors of, or
advisors or consultants to, the Company pursuant to its stock purchase or
option plans, (ii) Common Stock issued pursuant to strategic partnering
arrangements relating to distribution, supply or customer acquisition, as
approved by the Board of Directors, (iii) the issuance of any additional
shares pursuant to the exercise or conversion of warrants and options of the
Company issued as of the Closing Date; and (iv) the issuance of the
Preferred Shares to Other Investors and the issuance of the Preferred
Conversion Shares together with the conversion of such Shares.

(b)           The
Company shall deliver to the Investor a written notice of its intention to
effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask
the Investor if it wants to review the details of such financing. Upon the
written request of the Investor for the details of such financing (but subject
to the provisions of (c) below), and only upon such a request by such
Purchaser, the Company shall promptly, but no later than two business days
after such request, deliver a notice that describes such details (a “Subsequent
Financing Notice”) to Investor. The Subsequent Financing Notice shall
describe in reasonable detail the proposed terms of such Subsequent Financing,
the amount of proceeds intended to be raised thereunder, the person(s) if
any, with whom such Subsequent Financing is proposed to be effected, and
attached to which shall be a term sheet or similar document relating thereto.

(c)           If
the Investor desires to participate in such Subsequent Financing, the Investor
must provide written notice to the Company by not later than 5:30 p.m.
(Los Angeles time) on the 10th calendar day after Investor has been sent the
Pre-Notice that the Investor is willing to participate in the Subsequent
Financing, the amount of the Investor participation, and that the Investor has
such funds ready, willing, and available for investment on the terms set forth
in the Subsequent Financing Notice. If the Company receives no notice from the
Investor as of 10th calendar day after the Investor receives the Pre-Notice,
the Investor shall be deemed to have notified the Company that it does not
elect to participate and the Company may effect such Subsequent Financing on
the terms set forth in the Subsequent Financing Notice.

(d)           The
Company must provide the Investor with a second Subsequent Financing Notice,
and the Investor will again have the right of participation set forth above in 

 11
 

 

this Section 8.1, if the Subsequent Financing subject to the
initial Subsequent Financing Notice is not consummated for any reason on
substantially the terms set forth in such Subsequent Financing Notice within 90
days after the date of the initial Subsequent Financing Notice.

(e)           Upon
exercise of any of the rights granted to the Investor hereunder, such Investor’s
right shall be conditioned upon the Investor entering into the same documents
agreed to by the third party investors in the Subsequent Financing.

8.2           Observer. During the period
that the Investor holds Preferred Shares, the Investor shall have the right to
attend (but not participate) in all board of director meetings and receive such
materials as are disseminated to the Company’s directors. The Investor
acknowledges and agrees that the Investor shall be subject to the Company’s
Insider Trading Policy in effect from time to time.

9.             Notices.
All notices, requests, consents and other communications hereunder shall be in
writing, shall be mailed (A) if within the United States by first-class
registered mail, Express Mail or nationally recognized overnight express
courier, postage prepaid, or by facsimile, or (B) if delivered from
outside the United States, by International Federal Express or facsimile, and
shall be deemed given (i) if delivered by first-class registered mail,
three business days after so mailed, (ii) if delivered by Express Mail or
a nationally recognized overnight carrier, one business day after so mailed, (iii) if
delivered by International Federal Express, two business days after so mailed, (iv) if
delivered by facsimile, upon electronic confirmation of receipt and shall be
delivered as addressed as follows:

                

	
  (a)

  	
   

  	
  if to the
  Company, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Small World
  Kids, Inc.

  5711 Buckingham Parkway

  Culver City, California 90230

  Attention: John Matise

  Phone: (310) 645-9680

  Fax: (310) 268-1195

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Troy &
  Gould, Professional Corporation

  1801 Century Park East, Suite 1600

  Los Angeles, California 90067

  Attn: David
  Ficksman

  Phone: (310) 789-1290

  Facsimile: (310) 789-1490

  

 

(b)           if
to the Investor, at its address on the signature page hereto, or at such
other address or addresses as may have been furnished to the Company in writing

10.           Changes.
This Agreement may not be modified or amended except pursuant to an instrument
in writing signed by the Company and the Investor.

 

 12

11.           Headings.
The headings of the various sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed to be part of this
Agreement.

12.           Severability.
In case any provision contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby.

13.           Governing
Law. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of California, without giving effect to the
principles of conflicts of law.

14.           Entire
Agreement. This Agreement constitutes the entire agreement between the
parties hereto pertaining to the subject matter hereof, and any and all other
written or oral agreements relating to such subject matter are expressly
cancelled.

15.           Finders’
Fees. Neither the Company nor the Investor nor any affiliate thereof has
incurred any obligation which will result in the obligation of the other party
to pay any finder’s fee or commission in connection with this transaction,
except for fees payable by the Company to the Placement Agent.

16.           Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute
but one instrument, and shall become effective when one or more counterparts
have been signed by each party hereto and delivered (including by facsimile) to
the other parties.

17.           Confidential
Information; 8-K Filing. Investor represents to the Company that, at
all times during the Company’s offering of the Preferred Shares, Investor has
maintained in confidence all non-public information regarding the Company
received by Investor from the Company or its agents, has not traded in the
Company’s securities on the basis of any non-public information and covenants
that it will continue to maintain in confidence such information until such
information becomes generally publicly available, other than through a
violation of this provision by Investor or its agents. Within two (2) business
days after the Closing Date, the Company shall file a Form 8-K
concerning the Agreements and the transactions contemplated thereby, which Form 8-K
shall attach a Form of the Securities Purchase Agreement and the
Registration Rights Agreement as exhibits to such Form 8-K (the “8-K
Filing”). From and after the 8-K Filing, the Company hereby acknowledges
that no Investor shall be in possession of any material nonpublic information
received from the Company or any of its respective officers, directors,
employees or agents, that is not disclosed in the 8-K Filing.

18.           Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and permitted assigns of the Company and the Investor, including
without limitation and without the need for an express assignment, affiliates
of the Investor. With respect to transfers that are not made pursuant to the
Registration Rights Agreement, the rights and obligations of an Investor under
this Agreement shall be automatically assigned by the Investor to any
transferee of all or any portion of the Investor’s Shares who is a Permitted
Transferee (as defined below); provided, however, that within two business days
prior to the transfer, (i) the Company is provided notice of the transfer
including the name and address of the 

 13
 

transferee and the number of Shares transferred; and (ii) that
such transferee agrees in writing to be bound by the terms of this Agreement. (For
purposes of this Agreement, a “Permitted Transferee” shall mean any person who (a) is
an “accredited investor,” as that term is defined in Rule 501(a) of
Regulation D under the Securities Act and (b) is a transferee of at
least 25% of the Investor’s Shares received in a transaction permitted under
the securities laws of the United States). Upon any transfer permitted by the
second sentence of this Section 18, the Company shall be obligated to such
transferee to perform all of its covenants under this Agreement as if such
transferee were an Investor.

19.           Expenses.
The Company shall pay the actual reasonable legal fees and expense of one
counsel (up to $50,000) for the Investors, provided that if the Closing does
not occur for any reason other than the breach by the Company, the Investors
shall bear such fees and expenses.

20.           Access
to Information. From and after the date hereof through the Closing, on
reasonable notice to the Company, the Company shall permit access to, and shall
make available to the Investors’ representatives and their counsel for
inspection, such information and documents as the Investors reasonably request,
and shall make available at reasonable times and to a reasonable extent
officers and employees of the Company (who are at the Vice President level and
above) to discuss the business and affairs of the Company.

21.           Further
Assurances. The Company shall provide such further documentation and take
such further steps as may be reasonably requested by Investors in connection
with the issuance and sale of the Preferred Shares and the Company’s
obligations pursuant to the Transaction Documents.

22.           Exculpation
Among Investors. Each Investor agrees that no Investor nor the respective
controlling persons, officers, directors, partners, agents, or employees of any
Investor shall be liable to any other Investor for any action heretofore or
hereafter taken or omitted to be taken by any of them in connection with this
Agreement. In particular, each Investor acknowledges that Frontera Group, LLC
has acted as “lead” Investor in negotiating this Agreement and the other
Transaction Documents and has retained the services of Sheppard, Mullin,
Richter & Hampton LLP (“Sheppard”) to act as its special
counsel in connection herewith. Each Investor acknowledges that Sheppard is
representing only Frontera Group, LLC though the other Investors may receive
some benefit from its services, that there is no attorney-client relationship
between Sheppard and any of the other Investors, and thus Sheppard shall not be
liable to any other Investor for any other action heretofore or hereafter taken
or omitted to be taken by Sheppard in connection with this Agreement and/or any
other Transaction Document.

 14

Schedule I

Investors

[Names]

 

 

EXHIBIT A

SMALL WORLD KIDS,
INC. INVESTOR QUESTIONNAIRE

(ALL INFORMATION WILL BE TREATED CONFIDENTIALLY)

To:          Small World Kids, Inc.

This
Investor Questionnaire (“Questionnaire”) must be completed by each potential
investor in connection with the offer and sale of shares of the Company’s Class A-1
Convertible Preferred Stock (the “Preferred Shares”). The Preferred Shares are
being offered and sold by Small World Kids, Inc. (the “Company”) without
registration under the Securities Act of 1933, as amended (the “Act”), and the
securities laws of certain states, in reliance on the exemptions contained in Section 4(2) of
the Act and on Regulation D promulgated thereunder and in reliance on
similar exemptions under applicable state laws. The Company must determine that
a potential investor meets certain suitability requirements before offering or
selling the Preferred Shares to such investor. The purpose of this
Questionnaire is to assure the Company that each investor will meet the
applicable suitability requirements. The information supplied by the potential
investor will be used in determining whether such investor meets such criteria,
and reliance on the private offering exemption from registration is based in
part on the information supplied in this Questionnaire.

This
Questionnaire does not constitute an offer to sell or a solicitation of an
offer to buy any security. Except as expressly permitted herein, the potential
investor’s answers are to be kept strictly confidential. However, by signing
this Questionnaire the potential investor will be authorizing the Company to
provide a completed copy of this Questionnaire to such parties as the Company
deems appropriate in order to ensure that the offer and sale of the Securities
will not result in a violation of the Act or the securities laws of any state,
and that the potential investor otherwise satisfies the suitability standards
applicable to purchasers of the Securities. All potential investors must answer
all applicable questions and complete, date and sign this Questionnaire. Please
print or type the responses and attach additional sheets of paper if necessary
to complete the answers to any item.

A.            BACKGROUND
INFORMATION

Name:                                                                                                                                                                                                     

Business Address:                                                                                                                                                                              

(Number and Street)

                                                                                                                                                                                                                                

(City)                                                                                      (State)                                                                    (Zip
Code)

Telephone Number: (___)                                                                                                                                                                  

Residence Address:                                                                                                                                                                            

(Number and Street)

                                                                                                                                                                                                                                

(City)                                                                                      (State)                                                                    (Zip
Code)

Telephone Number: (___)                                                                                                                                                                  

 A-2
 

 

 

If
an individual:

Age:       _____ 
Citizenship:              _______________  Where registered to vote:              ____________

If
a corporation, partnership, limited liability company, trust or other entity:

Type of entity:      ____________________________________________________________

State of formation:               __________________  Date of formation:    __________________

Social
Security or Taxpayer Identification No.                ____________________________________

Send
all correspondence to (check one):         ___
Residence Address     ___ Business Address

B.            STATUS
AS ACCREDITED INVESTOR

The undersigned is an “accredited
investor” as such term is defined in Regulation D under the Act, as at the
time of the sale of the Preferred Shares the undersigned falls within one or
more of the following categories (Please initial one or more, as applicable)(1)

(1)           a bank as defined in Section 3(a)(2) of
the Act, or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of
the Act whether acting in its individual or fiduciary capacity; a broker or
dealer registered pursuant to Section 15 of the Securities Exchange Act of
1934; an insurance company as defined in Section 2(13) of the Act; an
investment company registered under the Investment Corporation Act of 1940 or a
business development company as defined in Section 2(a)(48) of that Act; a
Small Business Investment Corporation licensed by the U.S. Small Business
Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958; a plan established and maintained by a state, its
political subdivisions, or any agency or instrumentality of a state or its
political subdivisions for the benefit of its employees, if such plan has total
assets in excess of $5,000,000; an employee benefit plan within the meaning of
the Employee Retirement Income Security Act of 1974 if the investment decision
is made by a plan fiduciary, as defined in Section 3(21) of such Act,
which is either a bank, savings and loan association, insurance company, or
registered investment adviser, or if the employee benefit plan has total assets
in excess of $5,000,000 or, if a self-directed plan, with the investment
decisions made solely by persons that are accredited investors;

(2)           a private business development
company as defined in Section 202(a)(22) of the Investment Advisers Act of
1940;

(3)           an organization described in Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended, corporation, Massachusetts or
similar business trust, or partnership, not formed for the specific purpose of
acquiring the Securities offered, with total assets in excess of $5,000,000;

(1)             As
used in this Questionnaire, the tem “net worth” means the excess of total
assets over total liabilities.  In
computing net worth for the purpose of subsection (4), the principal residence
of the investor must be valued at cost, including cost of improvements, or at
recently appraised value by an institutional lender making a secured loan, net
of encumbrances.  In determining income,
the investor should add to the investor’s adjusted gross income any amounts
attributable to tax exempt income received, losses claimed as a limited partner
in any limited partnership, deductions claimed for depiction, contributions to
an IRA or KEOGH retirement plan, alimony payments, and any amount by which
income from long-term capital gains has been reduced in arriving at adjusted
gross income.

 A-3
 

 

 

(4)           a natural person whose individual net
worth, or joint net worth with that person’s spouse, at the time of such person’s
purchase of the Preferred Shares exceeds $1,000,000;

(5)           a natural person who had an
individual income in excess of $200,000, or joint income with that person’s
spouse in excess of $300,000, in 2004 and 2005 and has a reasonable expectation
of reaching the same income level in 2006;

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

(7)           an entity in which all of the equity
owners are accredited investors (as defined above).

C.            REPRESENTATIONS

The
undersigned hereby represents and warrants to the Company as follows:

1.             Any purchase of the Preferred Shares would be solely for
the account of the undersigned and not for the account of any other person or
with a view to any resale, fractionalization, division, or distribution
thereof.

2.             The information contained herein is complete and
accurate and may be relied upon by the Company, and the undersigned will notify
the Company immediately of any material change in any of such information
occurring prior to the closing, if any, with respect to the purchase of
Preferred Shares by the undersigned or any co-purchaser.

3.             There are no suits, pending litigation, or claims
against the undersigned that could materially affect the net worth of the
undersigned as reported in this Questionnaire.

4.             The undersigned is aware that, the Preferred Shares and
the Conversion Shares will not be subject to ready liquidation. The overall
commitment of the undersigned to investments which are not readily marketable
is not excessive in view of the undersigned’s net worth and financial
circumstances, and any purchase of the Preferred Shares will not cause such
commitment to become excessive. The undersigned is able to bear the economic
risk of an investment in the Securities.

5.             In addition to reviewing the Company’s filings with the
Securities and Exchange Commission, the undersigned has carefully considered
the potential risks relating to the Corporation and a purchase of the Preferred
Shares, and fully understands that the Securities are speculative investments
which involve a high degree of risk of loss of the undersigned’s entire
investment.

 A-4
 

 

 

IN
WITNESS WHEREOF, the undersigned has executed this Questionnaire as of this 26th day of May, 2006, and declares under oath that
it is truthful and correct.

	
  

  	
   

  
	
   

  	
  Print Name

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Signature

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   (required for
  any purchaser that is a corporation, partnership, trust or other entity)

  

 

 A-5Exhibit 10.2

REGISTRATION RIGHTS
AGREEMENT

This
Registration Rights Agreement (“Agreement”) is entered into as of May 26,
2006 by and among Small World Kids, Inc., a Nevada corporation (the “Company”)
and the Purchasers (the “Purchasers”) of the Company’s Class A-1
Convertible Preferred Stock pursuant to that certain Securities Purchase
Agreement of even date herewith (the “Purchase Agreement”) and named in Exhibit A
hereto.

WHEREAS,
in connection with the Company’s issuance of Class A-1 Convertible
Preferred Stock pursuant to the Purchase Agreement, the Company has agreed to
enter into this Registration Rights Agreement as a condition to the closing
thereunder.

NOW
THEREFORE, in consideration of the mutual agreements, covenants and conditions
and releases contained herein, the Company and the Purchasers hereby agree as
follows:

1.             Definitions.
As used herein:

1.1           The term “Holder” means any person owning or having the
right to acquire Registrable Shares or any assignee thereof in accordance with Section 2.8
hereof.

1.2           The terms “register,” “registered,” and “registration”
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act (as defined below) and the
applicable rules and regulations thereunder, and the declaration or
ordering of the effectiveness of such registration statement.

1.3           For the purposes hereof, the term “Registrable Shares”
means and includes (i) the shares of common stock of the Company issued or
issuable upon conversion of the Class A-1 Convertible Preferred
Stock (the “Class A Shares”) and (ii) any common stock of the Company
issued, or issuable (A) upon the conversion or exercise of any warrant,
right or other security which is issued, or (B) as a result of a stock
split, dividend or other distribution with respect to or in exchange for or in
replacement of the shares referenced in (i) above, excluding in all cases,
however, any Registrable Shares sold by a person in a transaction in which his
or her rights under Section 2 are not assigned.

1.4           The term “Ownership Percentage” means and includes, with
respect to each Holder of Registrable Shares requesting inclusion of
Registrable Shares in an offering pursuant to this Agreement, the number of
Registrable Shares held by such Holder divided by the aggregate of (i) all
Registrable Shares held by all Holders requesting registration in such offering
and (ii) the total number of all other securities entitled to registration
pursuant to any agreement with the Company and held by others participating in
the underwriting.

1.5           The term “Securities Act” means the Securities Act of
1933, as amended.

1.6           The term “Public Offering” means and includes the closing
of an underwritten public offering pursuant to an effective registration
statement under the Securities

 

Act, covering the offer and sale of securities to the
general public for the account of the Company.

2.             Registration
Rights.

2.1           “Piggy Back”
Registration. If at any time the Company shall determine to register
under the Securities Act (including pursuant to a demand of any stockholder of
the Company exercising registration rights) any of its common stock (other than
a registration relating solely to the sale of securities to participants in a
Company employee benefits plan, a registration on any form which does not
include substantially the same information as would be required to be included
in a registration statement covering the sale of the Registrable Shares or a
registration in which the only common stock being registered is common stock
issuable upon conversion of debt securities which are also being registered),
it shall send to each Holder written notice of such determination and, if
within ten (10) business days after receipt of such notice, such Holder
shall so request in writing, the Company shall use its best efforts to include
in such registration statement all of the Registrable Shares that such Holder
requests to be registered, except that if, in connection with any offering
involving an underwriting of common stock to be issued by the Company, the
managing underwriter shall impose a limitation on the number of shares of
common stock included in any such registration statement because, in such
underwriter’s judgment, such limitation is necessary based on market
conditions, the Company shall be obligated to include in such registration
statement, with respect to the requesting Holder, only an amount of Registrable
Shares equal to the product of (i) the number of Registrable Shares that
remain available for registration after the underwriter’s cut back and (ii) such
Holder’s Ownership Percentage, as that term is defined in Section 1.4. Notwithstanding
the foregoing, no such reduction shall be made with respect to securities being
offered by the Company for its own account. If any Holder disapproves of the
terms of such underwriting, he may elect to withdraw therefrom by written
notice to the Company and the underwriter.

2.2           Effectiveness.

(a)           The
Company will use its best efforts to maintain the effectiveness for the period
described in the plan of distribution set forth in the registration statement.

(b)           The
Company will from time to time amend or supplement such registration statement
and the prospectus contained therein as and to the extent necessary to comply
with the Securities Act and any applicable state securities statute or
regulation.

2.3           Indemnification.

(a)           Indemnification
of Holders. In the event that the Company registers any of the Registrable
Shares under the Securities Act, the Company will indemnify and hold harmless
each Holder and each underwriter of the Registrable Shares so registered
(including any broker or dealer through whom such shares may be sold) and each
person, if any, who controls such Holder within the meaning of the Securities
Act or any such underwriter within the meaning of Section 15 of the
Securities Act from and against any and all losses, claims, damages, expenses
or liabilities (or any action in respect thereof), joint or several, to

 2
 

 

which they or any of them become subject under the
Securities Act or under any other statute or at common law or otherwise, and,
except as hereinafter provided, will reimburse each such Holder, each such
underwriter and each such controlling person, if any, for any legal or other
expenses reasonably incurred by them or any of them, as such expenses are
incurred, in connection with investigating, defending, or settling any actions
whether or not resulting in any liability, insofar as such losses, claims,
damages, expenses, liabilities or actions arise out of or are based upon (i) any
untrue statement or alleged untrue statement of a material fact contained in
the registration statement, in any preliminary or amended preliminary
prospectus or in the prospectus (or the registration statement or prospectus as
from time to time amended or supplemented by the Company); (ii) 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 in order to make the
statements therein not misleading; or (iii) any violation by the Company
of the Securities Act, the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), a state securities law or any rule or regulation under the
Securities Act, the Exchange Act or any state securities law; provided, however,
that the indemnity contained in this Section 2.3(a) will not apply
where such untrue statement or omission was made in such registration
statement, preliminary or amended, preliminary prospectus or prospectus in
reliance upon and in conformity with information furnished in writing to the
Company in connection therewith by such Holder of Registrable Shares, any such
underwriter or any such controlling person expressly for use therein. Promptly
after receipt by any Holder of Registrable Shares, any underwriter or any
controlling person of notice of the commencement of any action in respect of
which indemnity may be sought against the Company, such Holder of Registrable
Shares, or such underwriter or such controlling person, as the case may be,
will notify the Company in writing of the commencement thereof, and, subject to
the provisions hereinafter stated, the Company shall assume the defense of such
action (including the employment of counsel, who shall be counsel reasonably
satisfactory to such Holder of Registrable Shares, such underwriter or such
controlling person, as the case may be), and the payment of expenses insofar as
such action shall relate to any alleged liability in respect of which indemnity
may be sought against the Company. Such Holder of Registrable Shares, any such
underwriter or any such controlling person shall have the right to employ
separate counsel in any such action and to participate in the defense thereof
in the event the representation of such Holder, underwriter or controlling
person by counsel retained by or on the behalf of the Company would be
inappropriate due to conflicts of interest between any such person and any
other party represented by such counsel in such proceeding or action, in which
case the Company shall pay, as incurred, the fees and expenses of such separate
counsel. The Company shall not be liable to indemnify any person under this Section 2.3(a) for
any settlement of any such action effected without the Company’s consent (which
consent shall not be unreasonably withheld). The Company shall not, except with
the approval of each party being indemnified under this Section 2.3(a) (which
approval will not be unreasonably withheld), consent to entry of any judgment
or enter into any settlement that does not include as an unconditional term
thereof the giving by the claimant or plaintiff to the parties being so
indemnified of a release from all liability in respect to such claim or
litigation.

(b)           Indemnification
of Company. In the event that the Company registers any of the Registrable
Shares under the Securities Act, each Holder of the Registrable Shares so
registered will indemnify and hold harmless the Company, each of its directors,
each of

 3
 

 

its officers who have signed the registration
statement, each underwriter of the Registrable Shares so registered (including
any broker or dealer through whom any of such shares may be sold) and each
person, if any, who controls the Company within the meaning of Section 15
of the Securities Act from and against any and all losses, claims, damages,
expenses or liabilities (or any action in respect thereof), joint or several,
to which they or any of them may become subject under the Securities Act or
under any other statute or at common law or otherwise, and, except as hereinafter
provided, will reimburse the Company and each such director, officer,
underwriter or controlling person for any legal or other expenses reasonably
incurred by them or any of them, as such expenses are incurred, in connection
with investigating or defending any actions whether or not resulting in any
liability, insofar as such losses, claims, damages, expenses, liabilities or
actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the registration statement, in any
preliminary or amended preliminary prospectus or in the prospectus (or the
registration statement or prospectus as from time to time amended or
supplemented) 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 in order to make the statements therein not misleading, but only
insofar as any such statement or omission was made in reliance upon and in
conformity with information furnished in writing to the Company in connection
therewith by such Holder, expressly for use therein; provided, however, that
such Holder’s obligations hereunder shall be limited to an amount equal to the
net proceeds to such Holder of the Registrable Shares sold in such registration.
Promptly after receipt of notice of the commencement of any action in respect
of which indemnity may be sought against such Holder of Registrable Shares, the
Company will notify such Holder of Registrable Shares in writing of the
commencement thereof, and such Holder of Registrable Shares shall, subject to
the provisions hereinafter stated, assume the defense of such action (including
the employment of counsel, who shall be counsel reasonably satisfactory to the
Company) and the payment of expenses insofar as such action shall relate to the
alleged liability in respect of which indemnity may be sought against such
Holder of Registrable Shares. The Company and each such director, officer,
underwriter or controlling person shall have the right to employ separate
counsel in any such action and to participate in the defense thereof in the
event the representation of the Company, any of its officers or directors or
any underwriter or controlling person by counsel retained by or on the behalf
of such Holder would be inappropriate due to conflicts of interest between any
such person and any other party represented by such counsel in such proceeding
or action, in which case such Holder shall pay, as incurred, the fees and
expenses of such separate counsel, but only one such counsel. Notwithstanding
the two preceding sentences, if the action is one in which the Company may be
obligated to indemnify any Holder of Registrable Shares pursuant to Section 2.3,
the Company shall have the right to assume the defense of such action, subject
to the right of such Holders to participate therein as permitted by Section 2.3.
Such Holder shall not be liable to indemnify any person for any settlement of
any such action effected without such Holder’s consent (which consent shall not
be unreasonably withheld). Such Holder shall not, except with the approval of
the Company (which approval shall not be unreasonably withheld), consent to
entry of any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by the claimant or plaintiff to the party
being so indemnified of a release from all liability in respect to such claim
or litigation.

 

 4

 

2.4           Contribution.
If the indemnification provided for in Section 2.3 is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect
to any loss, liability, claim, damage, or expense referred to therein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amount paid or payable by such indemnified party as a
result of such loss, liability, claim, damage, or expense in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the
one hand and of the indemnified party on the other in connection with the
statements or omissions that resulted in such loss, liability, claim, damage,
or expense as well as any other relevant equitable considerations. The relative
fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified
party and the parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

2.5           Exchange Act
Registration. With a view to making available to the Holders the
benefits of Rule 144 promulgated under the Act and any other rule or
regulation of the Securities and Exchange Commission (the “SEC”) that may at
any time permit a Holder to sell securities of the Company to the public
without registration or pursuant to a registration on Form S-3, the
Company agrees to:

(a)           file
on a timely basis with the Securities and Exchange Commission all information
that the Commission may require under either of Section 13 or Section 15(d) of
the Exchange Act and, so long as it is required to file such information, take
all action that may be required as a condition to the availability of Rule 144
under the Securities Act (or any successor exemptive rule hereinafter in
effect) with respect to the Company’s common stock; and

(b)           furnish
to any Holder forthwith upon request (i) a written statement by the
Company as to its compliance with the reporting requirements of Rule 144, (ii) a
copy of the most recent annual or quarterly report of the Company as filed with
the Securities and Exchange Commission, and (iii) any other reports and
documents that a Holder may reasonably request in availing itself of any rule or
regulation of the SEC allowing a Holder to sell any such Registrable Shares
without registration.

2.6           Further Obligations of the Company. Whenever
the Company is required hereunder to register Registrable Shares, it agrees
that it shall also do the following:

(a)           Furnish
to each selling Holder such copies of each preliminary and final prospectus and
any other documents that such Holder may reasonably request to facilitate the
public offering of its Registrable Shares;

(b)           Use
its best efforts to register or qualify the Registrable Shares to be registered
pursuant to this Agreement under the applicable securities or “blue sky” laws
of such jurisdictions as any selling Holder may reasonably request and keep
such registration or qualification effective during the period set forth in Section 2.6(j) below;
provided, however, that the Company shall not be obligated to qualify to do
business in any jurisdiction where it is not

 5
 

 

then so qualified or to take any action that would
subject it to the service of process in suits other than those arising out of
the offer or sale of the securities covered by the registration statement in
any jurisdiction where it is not then so subject;

(c)           Notify
each Holder of Registrable Shares covered by such registration statement at any
time when a prospectus relating thereto is required to be delivered under the
Act of the happening of any event as a result of which the prospectus included
in such registration statement, as then in effect, includes an untrue statement
of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing;

(d)           Cause
all such Registrable Shares registered pursuant hereunder to be listed on each
securities exchange on which similar securities issued by the Company are then
listed;

(e)           Provide
a transfer agent and registrar for all Registrable Shares registered pursuant
hereunder and a CUSIP number for all such Registrable Shares, in each case not
later than the effective date of such registration;

(f)            In
the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement and other customary agreements, in
usual and customary form, with the managing underwriter of such offering. Each
Holder participating in such underwriting shall also enter into and perform its
obligations under such an agreement;

(g)           Furnish,
at the request of any Holder requesting registration of Registrable Shares
pursuant to this Section 2, on the date that such Registrable Shares are
delivered to the underwriters for sale in connection with a registration
pursuant to this Section 2, if such securities are being sold through
underwriters, or, if such securities are not being sold through underwriters,
on the date that the registration statement with respect to such securities
becomes effective:

(i)            at the request of
any Holder, to furnish on the effective date of the Registration Statement or,
if the offering is underwritten, on the date that Registrable Shares are
delivered to the underwriters for sale, an opinion of counsel, dated such date,
representing the Company for the purposes of such registration, addressed to
the underwriters and to such Holder, stating that such registration statement
has become effective under the Securities Act and that (i) to the best
knowledge of such counsel, no stop order suspending the effectiveness thereof
has been issued and no proceedings for that purpose have been instituted or are
pending or contemplated under the Securities Act, (ii) the registration
statement, the related prospectus and each amendment or supplement thereof
comply as to form in all material respects with the requirements of the
Securities Act (except that such counsel need not express any opinion as to
financial statements or other financial data contained therein), and (iii) such
other opinions as reasonably may be requested by counsel for the underwriters
or by such Holder or its counsel;

 6
 

 

(ii)           “comfort” letters
signed by the Company’s independent public accountants who have examined and
reported on the Company’s financial statements included in the registration
statement, to the extent permitted by the standards of the American Institute
of Certified Public Accountants, covering substantially the same matters with
respect to the registration statement (and the prospectus included therein) and
(in the case of the accountants’ “comfort” letters) with respect to events
subsequent to the date of the financial statements, as are customarily covered
in opinions of issuer’s counsel and in accountants’ “comfort” letters delivered
to the underwriters in underwritten public offerings of securities, but only if
and to the extent that the Company is required to deliver or cause the delivery
of such opinion or “comfort” letters to the underwriters in an underwritten public
offering of securities;

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

(i)            Furnish
to each selling Holder, upon request, a copy of all documents filed and all
correspondence from or to the Securities and Exchange Commission in connection
with any such offering unless confidential treatment of such information has
been requested of the Securities and Exchange Commission;

(j)            Keep
such registration continuously effective for such reasonable period necessary
to permit the Holder or Holders to complete the distribution described in the
registration statement relating thereto or 180 days, whichever first occurs;

(k)           promptly
prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may
be necessary to comply with the provisions of the Securities Act, and to keep
such registration statement effective for that period of time specified in Section 2.6(j) above;

(l)            use
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 of any of the Registrable Shares for sale in any jurisdiction, at
the earliest possible moment; and

(m)          Take
such other actions as shall be reasonably requested by any Holder.

2.7           Expenses. In
the case of a registration under Section 2.1 the Company shall bear all
costs and expenses of each such registration, including, but not limited to,
printing, legal and accounting expenses, Securities and Exchange Commission
filing fees and “blue sky” fees and expenses; provided, however, that the
Company shall have no obligation to pay or otherwise bear (i) any portion
of the fees or disbursements of more than one counsel for the Holders in connection
with the registration of their Registrable Shares, which in no event shall 

 7
 

 

exceed $75,000, (ii) any portion of the
underwriter’s commissions or discounts attributable to the Registrable Shares
being offered and sold by the Holders of Registrable Shares, or (iii) any
of such expenses if the payment of such expenses by the Company is prohibited
by the laws of a state in which such offering is qualified and only to the
extent so prohibited.

2.8           Transfer of Registration
Rights. The registration rights of a Holder of Registrable Shares
under this Agreement may be transferred as set forth below provided (1) the
transferee is bound by the terms of this Agreement and (2) the Company is
given written notice prior to such transfer. Accordingly, the registration
rights of a Holder of Registrable Shares may be transferred (i) to any
partner or affiliate of a Holder, (ii) in the case of an individual, to
any member of the immediate family of such individual or to any trust for the
benefit of the individual or any such family member or members, or (iii) to
any other transferee which receives at least 250,000 Registrable Shares. Notwithstanding
the foregoing, the registration rights of a Holder under this Agreement may not
be transferred to an entity, or a person controlled by, under common control
with or controlling such entity, which is a direct competitor of the Company.

2.9           Market Stand-Off
Agreement. Provided that all Holders are treated equally and all
officers and directors of the Company are also so bound, no Holder shall, to
the extent requested by any managing underwriter of the Company, sell or
otherwise transfer or dispose of (other than to donees who agree to be
similarly bound) any Registrable Shares during a period (the “Stand-Off Period”)
not to exceed 180 days following the effective date of a registration statement
of any secondary offering of the Company under the Securities Act, (or in each
case such shorter period as the Company or managing underwriter may authorize),
and except in each case, for securities sold as part of the offering covered by
such registration statement in accordance with the provisions of this Agreement.
In order to enforce the foregoing covenant, the Company may impose stock
transfer restrictions with respect to the Registrable Shares of each Holder
until the end of the Stand-Off Period; provided, that (a) the
Holders shall not be subject to this provision unless each officer, director
and each person then owning greater than one percent (1%) of the outstanding
Common Stock (on a fully diluted basis) has executed and remains bound by a
comparable obligation; and (b) nothing herein shall prevent any Holder
from making a distribution of Registrable Shares to an affiliate of such Holder
that is otherwise in compliance with applicable securities laws, so long as
such distributee agrees to be so bound.

Notwithstanding
the foregoing, the obligations described in this Section 2.9 shall not
apply to a registration relating solely to employee benefit plans on Form S-1
or Form S-8 or similar forms which may be promulgated in the future,
or a registration relating solely to an SEC Rule 145 transaction on Form S-4
or similar forms which may be promulgated in the future.

2.10         Termination of Registration Rights. The
obligations of the Company to register any Holder’s Registrable Shares pursuant
to this Section 2 shall terminate at such time as all of a Holder’s
Registrable Shares may immediately be sold under Rule 144  taking into account any volume limitations.

3.             Assignability.
This Agreement shall be binding upon and inure to the benefit of the respective
heirs, successors and assigns of the parties hereto.

 8
 

 

4.             Law.
This Agreement shall be governed by and construed in accordance with the laws
of the State of California.

5.             Amendment. Any modification,
amendment, or waiver of this Agreement or any provision hereof, either
retroactively or prospectively, shall be in writing and executed by the Company
and the holders of not less than fifty percent (50%) of the Registrable Shares
which shall be binding upon all of the parties hereto.

6.             Counterparts. This Agreement may be
executed in any number of counterparts and via facsimile, each of which shall
be an original, but all of which together shall constitute one instrument.

7.             Notice. Any notices and other
communications required or permitted under this Agreement shall be effective if
in writing and delivered personally or sent by telecopier, federal express or
registered or certified mail, postage prepaid, addressed as follows:

	
  If to the Purchasers, to:

  	
   

  	
  The names and addresses set forth on Exhibit A
  hereto.

  
	
   

  	
   

  	
   

  
	
  If to the Company, to:

  	
   

  	
  Small World Kids, Inc.

  5711 Buckingham Parkway

  Culver City, California 90230

  Facsimile: (310) 252-1195

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  David L. Ficksman

  Troy & Gould Professional Corporation

  1801 Century Park East, 16th Floor

  Los Angeles, California 90067

  

 

Unless
otherwise specified herein, such notices or other communications shall be
deemed effective (a) on the date delivered, if delivered personally, (b) two
business days after being sent, if sent by Federal Express, (c) one
business day after being sent, if sent by telecopier with confirmation of good
transmission and receipt, and (d) three business days after being sent, if
sent by registered or certified mail. Each of the parties herewith shall be
entitled to specify another address by giving notice as aforesaid to each of
the other parties hereto.

 9

 

 

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

	
  

  	
   

  	
  SMALL WORLD KIDS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  John Matise

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chief Operating Officer

  

 

 10
 

 

 

This
is page 10 to the Registration Rights Agreement to which Small World Kids, Inc.,
a Nevada corporation, and the Purchaser set forth below are parties:

 

	
  PURCHASER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchaser’s Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 11

 

 

EXHIBIT A

 

	
  Name and Addresses of
  Purchasers

  	
   

  	
  Number of Shares

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 A-1

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