Document:

exv4w5

 

Exhibit 4.5

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES
LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
WITH RESPECT THERETO IS EFFECTIVE UNDER THE 1933 ACT AND ANY APPLICABLE STATE
SECURITIES LAWS, OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933
ACT.

IN ADDITION, A PREFERRED STOCK PURCHASE AGREEMENT DATED AS OF MARCH 24, 2006 (THE
“PURCHASE AGREEMENT”), A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY AT ITS
PRINCIPAL EXECUTIVE OFFICE, CONTAINS CERTAIN ADDITIONAL AGREEMENTS BETWEEN THE
PARTIES WITH RESPECT TO THIS WARRANT.

 

Caneum, Inc.

COMMON STOCK PURCHASE WARRANT “C”

	 	 	 	 	 
	Number of Shares:

	 	Holder:
	

 

	 
	 	 	 	 
	Original Issue Date: March 24, 2006	 	 
	 
	 	 	 	 
	Expiration Date: March 24, 2010	 	 
	 
	 	 	 	 
	Exercise Price per Share: $1.50	 	 

Caneum, Inc, a company organized and existing under the laws of the State of Nevada (the
“Company”), hereby certifies that, for value received, ___, or its registered
assigns (the “Warrant Holder”), is entitled, subject to the terms set forth below, to
purchase from the Company up to ___(___) shares (as adjusted from time to time as
provided in Section 7, the “Warrant Shares”) of common stock, $.001 par value (the
“Common Stock”), of the Company at a price of One Dollar Fifty Cents (1.50) per Warrant
Share (as adjusted from time to time as provided in Section 7, the “Exercise Price”), at
any time and from time to time from and after the date thereof and through and including 5:00 p.m.
New York City time on March 24, 2010 (or eighteen months of effectiveness of a Registration
Statement subsequent to the issuance hereof (such eighteen months to be extended by one month for
each month or portion of a month during which a Registration Statement’s effectiveness has lapsed
or been suspended, except in regard to the filing of post-effective amendments to the

 

 

Registration Statement), whichever is longer) (the “Expiration Date”), and subject to the following
terms and conditions:

     1. Registration of Warrant. The Company shall register this Warrant upon records to
be maintained by the Company for that purpose (the “Warrant Register”), in the name of the
record Warrant Holder hereof from time to time. The Company may deem and treat the registered
Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof
or any distribution to the Warrant Holder, and for all other purposes, and the Company shall not be
affected by notice to the contrary.

     2. Investment Representation. The Warrant Holder by accepting this Warrant represents
that the Warrant Holder is acquiring this Warrant for its own account or the account of an
affiliate for investment purposes and not with the view to any offering or distribution and that
the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant
Shares in violation of applicable securities laws. The Warrant Holder acknowledges that the
certificates representing any Warrant Shares will bear a legend indicating that they have not been
registered under the United States Securities Act of 1933, as amended (the “1933 Act”) and
may not be sold by the Warrant Holder except pursuant to an effective registration statement or
pursuant to an exemption from registration requirements of the 1933 Act and in accordance with
federal and state securities laws. If this Warrant was acquired by the Warrant Holder pursuant to
the exemption from the registration requirements of the 1933 Act afforded by Regulation S
thereunder, the Warrant Holder acknowledges and covenants that this Warrant may not be exercised by
or on behalf of a Person during the one year distribution compliance period (as defined in
Regulation S) following the date hereof. “Person” means an individual, partnership, firm,
limited liability company, trust, joint venture, association, corporation, or any other legal
entity.

     3. Validity of Warrant and Issue of Shares. The Company represents and warrants that
this Warrant has been duly authorized and validly issued and warrants and agrees that all of Common
Stock that may be issued upon the exercise of the rights represented by this Warrant will, when
issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges with respect to the issue thereof. The Company further
warrants and agrees that during the period within which the rights represented by this Warrant may
be exercised, the Company will at all times have authorized and reserved a sufficient number of
Common Stock to provide for the exercise of the rights represented by this Warrant.

     4. Registration of Transfers and Exchange of Warrants.

          a. Subject to compliance with the legend set forth on the face of this Warrant, the Company
shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant with the Form of Assignment attached hereto duly completed and signed, to the
Company at the office specified in or pursuant to Section 13. Upon any such registration or
transfer, a new warrant to purchase Common Stock, in substantially the form of this Warrant (any
such new warrant, a “New 

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Warrant”), evidencing the portion of this Warrant so transferred shall be issued to
the transferee and a New Warrant evidencing the remaining portion of this Warrant not so
transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance of such transferee of all of the
rights and obligations of a Warrant Holder of a Warrant.

          b. This Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to the office
of the Company specified in or pursuant to Section 13 for one or more New Warrants, evidencing in
the aggregate the right to purchase the number of Warrant Shares which may then be purchased
hereunder. Any such New Warrant will be dated the date of such exchange.

     5. Exercise of Warrants.

          a. Upon surrender of this Warrant with the Form of Election to Purchase attached hereto duly
completed and signed to the Company, at its address set forth in Section 13, and upon payment and
delivery of the Exercise Price per Warrant Share multiplied by the number of Warrant Shares that
the Warrant Holder intends to purchase hereunder, in lawful money of the United States of America,
in cash or by certified or official bank check or checks, to the Company, all as specified by the
Warrant Holder in the Form of Election to Purchase, the Company shall promptly (but in no event
later than 7 business days after the Date of Exercise (as defined herein)) issue or cause to be
issued and cause to be delivered to or upon the written order of the Warrant Holder and in such
name or names as the Warrant Holder may designate (subject to the restrictions on transfer
described in the legend set forth on the face of this Warrant), a certificate for the Warrant
Shares issuable upon such exercise, with such restrictive legend as required by the 1933 Act. Any
person so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become
holder of record of such Warrant Shares as of the Date of Exercise of this Warrant.

          b. A “Date of Exercise” means the date on which the Company shall have received (i) this
Warrant (or any New Warrant, as applicable), with the Form of Election to Purchase attached hereto
(or attached to such New Warrant) appropriately completed and duly signed, and (ii) payment of the
Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.

          c. This Warrant shall be exercisable at any time and from time to time for such number of
Warrant Shares as is indicated in the attached Form of Election To Purchase. If less than all of
the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company
shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase
the remaining number of Warrant Shares for which no exercise has been evidenced by this Warrant.

          d. (i) Notwithstanding anything contained herein to the contrary but subject to Section 6,
the holder of this Warrant may, at its election exercised in its sole discretion, exercise this
Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be
made to the Company upon such exercise in

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payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net
Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

Net Number = (A x (B — C))/B

          (ii) For purposes of the foregoing formula:

	 	 	 	A= the total number shares with respect to which this Warrant is then
being exercised.
	 
	 	 	 	B= the last reported sale price (as reported by Bloomberg) of the Common
Stock on the trading day immediately preceding the date of the Exercise
Notice.
	 
	 	 	 	C= the Warrant Exercise Price then in effect at the time of such exercise.

          e. The holder of this Warrant agrees not to elect a Cashless Exercise for a period of six (6)
months or during any period following the filing of a post-effective amendment to the Registration
Statement and prior to the effectiveness thereof. The holder of this Warrant also agrees not to
elect a Cashless Exercise so long as there is an effective registration statement for the Warrant
Shares.

     6. Maximum Exercise. The Warrant Holder shall not be entitled to exercise this
Warrant on a Date of Exercise in connection with that number of shares of Common Stock which would
be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the
Warrant Holder and its affiliates on an exercise date, and (ii) the number of shares of Common
Stock issuable upon the exercise of this Warrant with respect to which the determination of this
limitation is being made on an exercise date, which would result in beneficial ownership by the
Warrant Holder and its affiliates of more than 4.9% of the outstanding shares of Common Stock on
such date. This Section 6 may be waived or amended only with the consent of the Holder and the
consent of holders of a majority of the shares of outstanding Common Stock of the Company who are
not Affiliates. For the purposes of the immediately preceding sentence, the term “Affiliate” shall
mean any person: (a) that directly, or indirectly through one or more intermediaries, controls, or
is controlled by, or is under common control with, the Company; or (b) who beneficially owns (i)
any shares of the Company’s Series A Convertible Preferred Stock, (ii) the Company’s Common Stock
Purchase Warrant “B” dated March 24, 2006, or (iii) this Warrant. For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.

     7. Adjustment of Exercise Price and Number of Shares. The character of the shares of
stock or other securities at the time issuable upon exercise of this Warrant and the Exercise Price
therefore, are subject to adjustment upon the occurrence of the following events, and all such
adjustments shall be cumulative:

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          a. Adjustment for Stock Splits, Stock Dividends, Recapitalizations, Etc. The Exercise Price
of this Warrant and the number of shares of Common Stock or other securities at the time issuable
upon exercise of this Warrant shall be appropriately adjusted to reflect any stock dividend, stock
split, combination of shares, reclassification, recapitalization or other similar event affecting
the number of outstanding shares of stock or securities.

          b. Adjustment for Reorganization, Consolidation, Merger, Etc. In case of any consolidation or
merger of the Company with or into any other corporation, entity or person, or any other corporate
reorganization, in which the Company shall not be the continuing or surviving entity of such
consolidation, merger or reorganization (any such transaction being hereinafter referred to as a
“Reorganization”), then, in each case, the holder of this Warrant, on exercise hereof at
any time after the consummation or effective date of such Reorganization (the “Effective
Date”), shall receive, in lieu of the shares of stock or other securities at any time issuable
upon the exercise of the Warrant issuable on such exercise prior to the Effective Date, the stock
and other securities and property (including cash) to which such holder would have been entitled
upon the Effective Date if such holder had exercised this Warrant immediately prior thereto (all
subject to further adjustment as provided in this Warrant).

          c. Certificate as to Adjustments. In case of any adjustment or readjustment in the price or
kind of securities issuable on the exercise of this Warrant, the Company will promptly give written
notice thereof to the holder of this Warrant in the form of a certificate, certified and confirmed
by the Board of Directors of the Company, setting forth such adjustment or readjustment and showing
in reasonable detail the facts upon which such adjustment or readjustment is based.

          d. Price Adjustment. In case the Company shall, when this Warrant is outstanding, issue
shares of its Common Stock or securities upon the conversion or exercise of which or pursuant to
the terms of which shares of Common Stock may be issued (other than (A) Exempt Issuances as defined
in the Purchase Agreement, or (B) shares issuable upon exercise or conversion of convertible
securities for which an adjustment has already been made pursuant to this Section 7(d)), for a
consideration per share or having a conversion or exercise price per share less than the Exercise
Price then in effect, the Exercise Price shall be adjusted immediately thereafter so that it shall
equal the price determined by multiplying the Exercise Price in effect immediately prior thereto by
a fraction, the numerator of which shall be the sum of the number of shares of Common Stock
outstanding immediately prior to the issuance of such additional shares and the number of shares
of Common Stock which the aggregate consideration received or receivable for the issuance of such
additional shares would purchase at the Exercise Price then in effect, and the denominator of which
shall be the number of shares of Common Stock outstanding immediately after the issuance of such
additional shares (including the exercise or conversion of all options, warrants and other
convertible securities). Such adjustment shall be made successively whenever such an issuance is
made. An adjustment pursuant to this Section 7(d) shall not result in any change in the number of
shares of Common Stock issuable upon exercise of this Warrant.

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          e. [RESERVED]

     8. Call Provision. At any time that the Average Closing Sale Price of the Common Stock for a
period of twenty (20) consecutive trading days shall equal or exceed 200% of the then existing
Exercise Price of the Warrants, and provided that a Registration Statement (as defined in the
Registration Rights Agreement between the Company and the original Holder) covering the Warrant is
available for the resale of the related Warrant Shares during such twenty trading day period, the
Company shall have the right, upon twenty (20) days written notice to the Warrant Holders (the
“Automatic Exercise Notice”), to call the Warrant for cancellation in whole or in part. Unless on
or prior to the expiration of such twenty-day period, a Warrant Holder exercises its right to
purchase any of the Warrant Shares covered by the Warrant pursuant to the terms of this Warrant,
such Warrant Holder shall forfeit its right to do so, and the Warrants not so exercised shall
automatically expire without any consideration to the Warrant Holder or any further action by the
Warrant Holder or the Company and the Warrants shall be canceled on the books and records of the
Company. For purposes of this provision, the “Average Closing Sale Price” shall mean the average
of the closing sale price of the Common Stock as reported on Bloomberg over a period of twenty
consecutive trading days. In no event may the Company require the Investor to exercise any such
warrant that would force the Investor to violate the 4.9% provision in the Stock Purchase Agreement
or this Warrant Agreement; provided that so long as such limitation effectively prevents conversion
of this Warrant as required by this call provision, the Holder will not convert any shares of
preferred stock acquired pursuant to the Purchase Agreement or exercise any other warrants held by
Investor for shares of Common Stock until all of the warrants have been exercised or expired
pursuant to this provision. In addition, Investor shall use its commercially best efforts to sell
or otherwise dispose of shares of Common Stock or rights to acquire Common Stock, or take such
other action such as to result in a reduction in the Holder’s percentage ownership of the Company
to a level which would permit this Warrant to be exercised in full. The Automatic Exercise Notice
shall remain applicable and effective until exercise or expiration of all of the thes Warrants
pursuant to this provision has occurred and shall not need to be requalified.

     9. Fractional Shares. The Company shall not be required to issue or cause to be
issued fractional Warrant Shares on the exercise of this Warrant. The number of full Warrant
Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis of
the aggregate number of Warrant Shares purchasable on exercise of this Warrant so presented. If
any fraction of a Warrant Share would, except for the provisions of this Section 9, be issuable on
the exercise of this Warrant, the Company shall, at its option, (i) pay an amount in cash equal to
the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable,
up to the next whole number.

     10. Sale or Merger of the Company. Upon a Change in Control, the 4.9% restriction
contained in Section 6 shall immediately be released and the Warrant Holder will have the right to
exercise this Warrant concurrently with such Change in Control event. For purposes of this
Warrant, the term “Change in Control” shall mean a consolidation or merger of the Company with or
into another company or entity in which

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the Company is not the surviving entity or the sale of all or substantially all of the assets
of the Company to another company or entity not controlled by the then existing stockholders of the
Company in a transaction or series of transactions.

     11. Notice of Intent to Sell or Merge the Company. The Company will give Warrant
Holder ten (10) business days notice before the event of a sale of all or substantially all of the
assets of the Company or the merger or consolidation of the Company in a transaction in which the
Company is not the surviving entity.

     12. Issuance of Substitute Warrant. In the event of a merger, consolidation,
recapitalization or reorganization of the Company or a reclassification of Company shares of stock,
which results in an adjustment to the number of shares subject to this Warrant and/or the Exercise
Price hereunder, the Company agrees to issue to the Warrant Holder a substitute Warrant reflecting
the adjusted number of shares and/or Exercise Price upon the surrender of this Warrant to the
Company.

     13. Notice. All notices and other communications hereunder shall be in writing and
shall be deemed to have been given (i) on the date they are delivered if delivered in person; (ii)
on the date initially received if delivered by facsimile transmission followed by registered or
certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv)
on the third business day after it is mailed by registered or certified mail, return receipt
requested with postage and other fees prepaid as follows:

	 	 	 	 	 
	 

	 	If to the Company:	 	 
	 
	 

	 	170 Newport Center Drive	 	 
	 

	 	Suite 220	 	 
	 

	 	Newport Beach, CA 92660	 	 
	 

	 	Attn: Alan Knitowski, Chairman
	 	 
	 

	 	Facsimile No.: (949) 273-4001	 	 
	 
	 	 	 	 
	 

	 	If to the Warrant Holder:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 
	 

	 	 	 	 
	 

	 	Facsimile No.:                                           	 	 
	 

	 	 

	 	 

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     14. Miscellaneous.

          a. This Warrant shall be binding on and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. This Warrant may be amended only by a writing signed
by the Company and the Warrant Holder.

          b. Nothing in this Warrant shall be construed to give to any person or corporation other than
the Company and the Warrant Holder any legal or equitable right, remedy or cause of action under
this Warrant; this Warrant shall be for the sole and exclusive benefit of the Company and the
Warrant Holder.

          c. This Warrant shall be governed by, construed and enforced in accordance with the internal
laws of the State of New York without regard to the principles of conflicts of law thereof.

          d. The headings herein are for convenience only, do not constitute a part of this Warrant and
shall not be deemed to limit or affect any of the provisions hereof.

          e. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable
in any respect, the validity and enforceablilty of the remaining terms and provisions of this
Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a commercially reasonably
substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this
Warrant.

          f. The Warrant Holder shall not, by virtue hereof, be entitled to any voting or other rights
of a shareholder of the Company, either at law or equity, and the rights of the Warrant Holder are
limited to those expressed in this Warrant.

[SIGNATURES ON FOLLOWING PAGE]

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     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by the authorized
officer as of the date first above stated.

Caneum, Inc., a Nevada corporation

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Its:

	 	 

President and Chief Executive Officer
	 	 

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FORM OF ELECTION TO PURCHASE

(To be executed by the Warrant Holder to exercise the right to purchase shares of Common Stock
under the foregoing Warrant)

To: Caneum, Inc.:

In accordance with the Warrant enclosed with this Form of Election to Purchase, the undersigned
hereby irrevocably elects to purchase ___ shares of Common Stock (“Common Stock”), $.001
par value, of Caneum, Inc. and encloses the warrant and $1.50 for each Warrant Share being
purchased or an aggregate of $___in cash or certified or official bank check or
checks, which sum represents the aggregate Exercise Price (as defined in the Warrant) together with
any applicable taxes payable by the undersigned pursuant to the Warrant.

The undersigned requests that certificates for the shares of Common Stock issuable upon this
exercise be issued in the name of:

 

 

 

 

 

(Please print name and address)

 

(Please insert Social Security or Tax Identification Number)

If the number of shares of Common Stock issuable upon this exercise shall not be all of the shares
of Common Stock which the undersigned is entitled to purchase in accordance with the enclosed
Warrant, the undersigned requests that a New Warrant (as defined in the Warrant) evidencing the
right to purchase the shares of Common Stock not issuable pursuant to the exercise evidenced hereby
be issued in the name of and delivered to:

 

 

 

 

 

(Please print name and address)

	 	 	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	Name of Warrant Holder:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Print)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	(By:)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name:)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	(Title:)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 	 	 	 	 	 	Signature must conform in all respects to name of	 	 
	 	 	 	 	 	 	Warrant Holder as specified on the face of the	 	 
	 	 	 	 	 	 	Warrant	 	 

10exv4w6

 

 Exhibit 4.6

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into as of the
24th day of March 2006 by and among Caneum, Inc., a corporation organized and existing under the
laws of the State of Nevada (“Caneum” or the “Company”), and Barron Partners L.P., a
Delaware limited partnership (hereinafter referred to as the “Investor”). Unless defined
otherwise, capitalized terms herein shall have the identical meaning as in the Preferred Stock
Purchase Agreement.

PRELIMINARY STATEMENT

     WHEREAS, pursuant to the Preferred Stock Purchase Agreement, of even date herewith, by and
among the Company and the Investor, as part of the consideration, Investor shall receive Preferred
Stock and Warrants, which upon conversion and exercise, in accordance with the terms of the
Preferred Stock Purchase Agreement and Warrant Agreement, entitle the Investor to receive Shares of
the Company; and

     WHEREAS, the ability of the Investors to sell their Shares of Common Stock is subject to
certain restrictions under the 1933 Act; and

     WHEREAS, as a condition to the Preferred Stock Purchase Agreement, the Company has agreed to
provide the Investor with a mechanism that will permit such Investor, to sell its Shares of Common
Stock in the future.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements,
and subject to the terms and conditions herein contained, the parties hereto hereby agree as
follows:

ARTICLE I

INCORPORATION BY REFERENCE, SUPERSEDER

1.1 Incorporation by Reference. The foregoing recitals and the Exhibits attached hereto
and referred to herein, are hereby acknowledged to be true and accurate, and are incorporated
herein by this reference.

1.2 Superseder. This Agreement, to the extent that it is inconsistent with any other
instrument or understanding among the parties governing the affairs of the Company, shall supersede
such instrument or understanding to the fullest extent permitted by law. A copy of this Agreement
shall be filed at the Company’s principal office.

 

 

ARTICLE II

DEMAND REGISTRATION RIGHTS

2.1 Registrable Securities. “Registrable Securities” means and includes the Shares of the
Company underlying the Preferred Stock and Warrants issued pursuant to the Preferred Stock Purchase
Agreement. As to any particular Registrable Securities, such securities will cease to be
Registrable Securities when (a) they have been effectively registered under the 1933 Act and
disposed of in accordance with the registration statement covering them, (b) they are or may be
freely traded without registration pursuant to Rule 144 under the 1933 Act (or any similar
provisions that are then in effect), or (c) they have been otherwise transferred and new
certificates for them not bearing a restrictive legend have been issued by the Company and the
Company shall not have “stop transfer” instructions against them. “Shares” shall mean,
collectively, the shares of Common Stock of the Company issuable upon conversion of the Preferred
Stock and those shares of Common Stock of the Company issuable to the Investor upon exercise of the
Warrants.

2.2 Registration of Registrable Securities.

     a. Initial Registration Statement. The Company shall prepare and file within ten (10)
business days following the filing of its Form 8-K in which the audited financial Statements of
Tier One Consulting, Inc. are filed with the SEC, but in no event longer than seventy-five (75)
seventy-five (75) days following the Closing Date (the “Filing Date”), a registration
statement (the “Registration Statement”) covering the resale of such number of shares of
the Registrable Securities as the Investor shall elect by written notice to the Company, and absent
such election, covering the resale of all of the shares of the Registrable Securities. The
registration rights provided herein shall be solely for the benefit of the Investor and shall not
be assignable by the Investor to any other person. The Company shall use its best efforts to cause
the Registration Statement to be declared effective by the SEC as promptly as possible after the
filing thereof and shall promptly respond to any comment letters furnished by the SEC in connection
with the Registration Statement (the “Required Effectiveness Date”). Nothing contained
herein shall be deemed to limit the number of Registrable Securities to be registered by the
Company hereunder. As a result, should the Registration Statement not relate to the maximum number
of Registrable Securities acquired by (or potentially acquirable by) the Investor pursuant to the
Preferred Stock Purchase Agreement, the Company shall be required to promptly file a separate
registration statement (utilizing Rule 462 promulgated under the 1933 Act, where applicable)
relating to such Registrable Securities which then remain unregistered. The provisions of this
Agreement shall relate to any such separate registration statement as if it were an amendment to
the Registration Statement.

     b. Post-Effective Amendments. As promptly as possible, but in any event no later than the
Post-Effective Amendment Filing Deadline, the Company shall prepare and file with the SEC a
Post-Effective Amendment. The Company shall use its best efforts to cause the Post-Effective
Amendment to be declared effective by the SEC as promptly as possible after the filing thereof and
shall promptly respond to any comment letters furnished by the SEC in connection with the
Post-Effective Amendment. The Company shall notify each Purchaser in writing promptly (and in any
event within one business day) after receiving notification from the SEC

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that the Post-Effective Amendment has been declared effective. “Post-Effective
Amendment” means a post-effective amendment to the Registration Statement. “Post-Effective
Amendment Filing Deadline” means the fifteenth trading day after the Registration Statement
ceases to be effective pursuant to applicable securities laws due to the passage of time or the
occurrence of an event requiring the Company to file a Post-Effective Amendment; provided, however,
that such number of trading days does not include any days that the Post-Effective Amendment cannot
be filed because the Investor has not provided the Company with information required to be
contained in the Post-Effective Amendment, but only to the extent the Investor fails to deliver
such information within five (5) trading days after the date that the Company reasonably requests,
in writing, the Investor to provide such information.

     c. Additional Shares. Nothing herein shall prohibit the Company from including in the
Registration Statement any additional shares of its Common Stock for which the Company has granted
registration rights prior to the date of this Agreement.

2.3 Demand Registration. Subject to the limitations of Section 2.2, at any time and from
time to time, the Investor may request the registration under the 1933 Act of all or part of the
Registrable Shares then outstanding (a “Demand Registration”). Subject to the conditions of
Section 3, the Company shall use its best efforts to file such registration statement under the
1933 Act as promptly as practicable after the date any such request is received by the Company and
to cause such registration statement to be declared effective. The Company shall notify the
Investor promptly when any such registration statement has been declared effective. If more than
eighty percent (80%) of the Shares issuable under the Preferred Stock Purchase Agreement have been
registered or sold, this provision shall expire.

2.4 Registration Statement Form. Registrations under Section 2.2 and Section 2.3 shall be
on the appropriate registration form of the SEC as shall permit the disposition of such Registrable
Securities in accordance with the intended method or methods of disposition specified in the
Registration Statement; provided, however, such intended method of disposition shall not include an
underwritten offering of the Registrable Securities.

2.5 Expenses. The Company will pay all Registration expenses in connection with any
registration required by under Sections 2.2 and Section 2.3 herein.

2.6 Effective Registration Statement. A registration requested pursuant to Sections 2.2 and
Section 2.3 shall not be deemed to have been effected (i) unless a Registration Statement with
respect thereto has become effective within the time period specified herein, provided that a
registration which does not become effective after the Company filed a Registration Statement with
respect thereto solely by reason of the refusal to proceed of any holder of Registrable Securities
(other than a refusal to proceed based upon the advice of counsel in the form of a letter signed by
such counsel and provided to the Company relating to a disclosure matter unrelated to such holder)
shall be deemed to have been effected by the Company unless the holders of the Registrable
Securities shall have elected to pay all Registration Expenses in connection with such
registration, (ii) if, after it has become effective, such registration becomes subject to any stop
order, injunction or other order or extraordinary requirement of the SEC or other governmental
agency or court for any reason or (iii) if, after it has become effective, such

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registration ceases to be effective for more than the allowable Black-Out Periods (as defined
herein).

2.7 Plan Of Distribution. The Company hereby agrees that the Registration Statement shall
include a plan of distribution section reasonably acceptable to the Investor; provided, however,
such plan of distribution section shall be modified by the Company so as to not provide for the
disposition of the Registrable Securities on the basis of an underwritten offering.

2.8 Liquidated Damages. If the Company fails to file a Registration Statement as provided
in Section 2.2(a) above, or if the Registration Statement filed pursuant to Section 2.2(a) herein
is not declared effective, or if the Registrable Securities are registered pursuant to an effective
Registration Statement and such Registration Statement (or other Registration Statement(s) demanded
by Investor including the Registrable Securities) does not remain effective during the period from
six (6) months from the Closing Date through two years following the date hereof (other than the
requirement of the Company to file a Post-Effective Amendment and for such Post-Effective Amendment
to be declared effective), the Company shall, for each thirty-day period thereafter or portion
thereof, issue to the Investor, as liquidated damages and not as a penalty, 30,000 shares of its
Common Stock. Such issuance shall be made no later than the tenth business day following the
thirty-day period in which such damages are incurred. However, in no event shall the Company be
required to pay any liquidated damages under this Section 2.8 in an amount exceeding 240,000 of the
shares underlying the Preferred Stock in the aggregate (as adjusted pursuant to the terms of the
Certificate of Designation).

The parties agree that the only damages payable for a violation of the terms of this Agreement with
respect to which liquidated damages are expressly provided shall be such liquidated damages.
Nothing shall preclude the Investor from pursuing or obtaining specific performance or other
equitable relief with respect to this Agreement.

The parties hereto agree that the liquidated damages provided for in this Section 2.8 constitute a
reasonable estimate of the damages that may be incurred by the Investor by reason of the failure of
the Registration Statement(s) to be filed or declared effective in accordance with the provisions
hereof.

The obligation of the Company terminates when the Investor no longer holds more than five percent
(5%) of its shares of Registrable Securities.

ARTICLE III

INCIDENTAL REGISTRATION RIGHTS

3.1 Right To Include (“Piggy-Back”) Registrable Securities. Provided that the Registrable
Securities have not been registered, if at any time after the date hereof but before the second
anniversary of the date hereof, the Company proposes to register any of its securities under the
1933 Act (other than by a registration in connection with an acquisition in a manner which would
not permit registration of Registrable Securities for sale to the public, on Form S-8, or any

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successor form thereto, on Form S-4, or any successor form thereto, and other than pursuant to
Section 2), on an underwritten basis (either best-efforts or firm-commitment), then, the Company
will each such time give prompt written notice to all holders of Registrable Securities of its
intention to do so and of such holders of Registrable Securities’ rights under this Section 3.1.
Upon the written request of any such holders of Registrable Securities made within ten (10) days
after the receipt of any such notice (which request shall specify the Registrable Securities
intended to be disposed of by such holders of Registrable Securities and the intended method of
disposition thereof), the Company will, subject to the terms of this Agreement, use its
commercially reasonable best efforts to effect the registration under the 1933 Act of the
Registrable Securities, to the extent requisite to permit the disposition (in accordance with the
intended methods thereof as aforesaid) of such Registrable Securities so to be registered, by
inclusion of such Registrable Securities in the registration statement which covers the securities
which the Company proposes to register, provided that if, at any time after written notice of its
intention to register any securities and prior to the effective date of the registration statement
filed in connection with such registration, the Company shall determine for any reason either not
to register or to delay registration of such securities, the Company may, at its election, give
written notice of such determination to each holders of Registrable Securities and, thereupon, (i)
in the case of a determination not to register, shall be relieved of this obligation to register
any Registrable Securities in connection with such registration (but not from its obligation to pay
the Registration Expenses in connection therewith), without prejudice, however, to the rights of
any holder or holders of Registrable Securities entitled to do so to request that such registration
be effected as a registration under Section 2, and (ii) in the case of a determination to delay
registering, shall be permitted to delay registering any Registrable Securities, for the same
period as the delay in registering such other securities. No registration effected under this
Section 3.1 shall relieve the Company of its obligation to effect any registration upon request
under Section 2. The Company will pay all Registration Expenses in connection with each
registration of Registrable Securities requested pursuant to this Section 3.1. The right provided
the Holders of the Registrable Securities pursuant to this Section shall be exercisable at their
sole discretion and will in no way limit any of the Company’s obligations to pay the Securities
according to their terms.

3.2 Priority In Incidental Registrations. If the managing underwriter of the underwritten
offering contemplated by this Section 3 shall inform the Company and holders of the Registrable
Securities requesting such registration by letter of its belief that the number of securities
requested to be included in such registration exceeds the number which can be sold in such
offering, then the Company will include in such registration, to the extent of the number which the
Company is so advised can be sold in such offering, (i) first securities proposed by the Company to
be sold for its own account, and (ii) second Registrable Securities and (iii) securities of other
selling security holders requested to be included in such registration.

3.3 Additional Registration Statements. Nothing contained herein shall prohibit or prevent
the Company from registering securities other than the Registrable Securities, including, but not
limited to, the filing of a registration statement on Form S-8 or S-4.

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ARTICLE IV

REGISTRATION PROCEDURES

4.1 Registration Procedures. If and whenever the Company is required to effect the
registration of any Registrable Securities under the 1933 Act as provided in Section 2.2 and, as
applicable, 2.3, the Company shall, as expeditiously as possible:

     (i) prepare and file with the SEC the Registration Statement, or amendments thereto, to effect
such registration (including such audited financial statements as may be required by the 1933 Act
or the rules and regulations promulgated thereunder) and thereafter use its commercially reasonable
best efforts to cause such registration statement to be declared effective by the SEC, as soon as
practicable, but in any event no later than the Required Effectiveness Date (with respect to a
registration pursuant to Section 2.2); provided, however, that before filing such registration
statement or any amendments thereto, the Company will furnish to the counsel selected by the
holders of Registrable Securities which are to be included in such registration, copies of all such
documents proposed to be filed;

     (ii) with respect to any registration statement pursuant to Section 2.2 or Section 2.3,
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 keep such registration statement
effective and to comply with the provisions of the 1933 Act with respect to the disposition of all
Registrable Securities covered by such registration statement until the earlier to occur of thirty
six (36) months after the date of this Agreement (subject to the right of the Company to suspend
the effectiveness thereof for not more than 10 consecutive Trading Days or an aggregate of 10
Trading Days during each year (each a “Black-Out Period”)) or such time as all of the
securities which are the subject of such registration statement cease to be Registrable Securities
(such period, in each case, the “Registration Maintenance Period”). The Company must
notify the Investor within twenty four (24) hours prior to any Black-Out Period;

     (iii) furnish to each holder of Registrable Securities covered by such registration statement
such number of conformed copies of such registration statement and of each such amendment and
supplement thereto (in each case including all exhibits), such number of copies of the prospectus
contained in such registration statement (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 under the 1933 Act, in conformity with
the requirements of the 1933 Act, and such other documents, as such holder of Registrable
Securities and underwriter, if any, may reasonably request in order to facilitate the public sale
or other disposition of the Registrable Securities owned by such holder of Registrable Securities;

     (iv) use its commercially reasonable best efforts to register or qualify all Registrable
Securities and other securities covered by such registration statement under such other U.S.
federal or state securities laws or U.S. state blue sky laws as any U.S. holder of Registrable
Securities thereof shall reasonably request in writing, to keep such registrations or
qualifications in effect for so long as such registration statement remains in effect, and take any
other action which may be reasonably necessary to enable such holder of Registrable Securities to
consummate the disposition in such jurisdictions of the securities owned by such holder of

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Registrable Securities, except that the Company shall not for any such purpose be required to
qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not
but for the requirements of this subdivision (iv) be obligated to be so qualified or to consent to
general service of process in any such jurisdiction;

     (v) use its commercially reasonable best efforts to cause all Registrable Securities covered
by such registration statement to be registered with or approved by such other governmental
agencies or authorities as may be necessary to enable the U.S. holder of Registrable Securities
thereof to consummate the disposition of such Registrable Securities;

     (vi) furnish to each holder of Registrable Securities a signed counterpart, addressed to such
holder of Registrable Securities, and the underwriters, if any, of an opinion of counsel for the
Company, dated the effective date of such registration statement (or, if such registration includes
an underwritten public offering, an opinion dated the date of the closing under the underwriting
agreement), reasonably satisfactory in form and substance to such holder of Registrable Securities,
that to the best of counsel’s knowledge, the prospectus and any prospectus supplement forming a
part of the Registration Statement does not contain an untrue statement of a material fact or omits
a material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading, and

     (vii) notify the Investor and its counsel promptly and confirm such advice in writing promptly
after the Company has knowledge thereof:

          (a) when the Registration Statement, the prospectus or any prospectus supplement related
thereto or Post-Effective Amendment to the Registration Statement has been filed, and, with respect
to the Registration Statement or any Post-Effective Amendment thereto, when the same has become
effective;

          (b) of any request by the SEC for amendments or supplements to the Registration Statement or
the prospectus or for additional information;

          (c) of the issuance by the SEC of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceedings by any Person for that purpose; and

          (d) of the receipt by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the securities or blue sky laws of any
jurisdiction or the initiation or threat of any proceeding for such purpose;

     (viii) notify each holder of Registrable Securities covered by such registration statement, at
any time when a prospectus relating thereto is required to be delivered under the 1933 Act, upon
discovery that, or upon 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 any material facts required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing, and at the request of any
such holder of Registrable Securities promptly prepare and furnish to such holder of Registrable
Securities a reasonable number of copies of a supplement to or an

7

 

amendment of such prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such securities, such prospectus shall not include 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 not misleading in the light of the circumstances then existing;use its best
efforts to obtain the withdrawal of any order suspending the effectiveness of the Registration
Statement at the earliest possible moment;

     (ix) otherwise use its commercially reasonable best efforts to comply with all applicable
rules and regulations of the SEC, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve months, but not more than
eighteen months, beginning with the first full calendar month after the effective date of such
registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of
the 1933 Act and Rule 158 thereunder;

     (x) enter into such agreements and take such other actions as the Investors shall reasonably
request in writing (at the expense of the requesting or benefiting Investors) in order to expedite
or facilitate the disposition of such Registrable Securities; and

     (xi) use its commercially reasonable best efforts to list all Registrable Securities covered
by such registration statement on any securities exchange on which any of the Registrable
Securities are then listed.

          The Company may require each holder of Registrable Securities as to which any registration is
being effected to furnish the Company such information regarding such holder of Registrable
Securities and the distribution of such securities as the Company may from time to time reasonably
request in writing.

4.2 The Company will not file any registration statement pursuant to Section 2.2 or Section 2.3, or
amendment thereto or any prospectus or any supplement thereto to which the Investors shall
reasonably object, provided that the Company may file such documents in a form required by law or
upon the advice of its counsel.

4.3 The Company represents and warrants to each holder of Registrable Securities that it has
obtained all necessary waivers, consents and authorizations necessary to execute this Agreement and
consummate the transactions contemplated hereby other than such waivers, consents and/or
authorizations specifically contemplated by the Preferred Stock Purchase Agreement.

4.4 Each holder of Registrable Securities (hereinafter a “Holder”) agrees that, upon receipt of any
notice from the Company of the occurrence of any event of the kind described in subdivision (viii)
of Section 4.1, such Holder will forthwith discontinue such holder of Registrable Securities’
disposition of Registrable Securities pursuant to the Registration Statement relating to such
Registrable Securities until such holder of Registrable Securities’ receipt of the copies of the
supplemented or amended prospectus contemplated by subdivision (viii) of Section 4.1 and, if so
directed by the Company, will deliver to the Company (at the Company’s expense) all copies, other
than permanent file copies, then in such Holder’s possession of the prospectus relating to such
Registrable Securities current at the time of receipt of such notice.

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ARTICLE V

UNDERWRITTEN OFFERINGS 

5.1 Incidental Underwritten Offerings. If the Company at any time proposes to register any
of its securities under the 1933 Act as contemplated by Section 3.1 and such securities are to be
distributed by or through one or more underwriters, the Company will, if requested by any holder of
Registrable Securities as provided in Section 3.1 and subject to the provisions of Section 3.2, use
its commercially reasonable best efforts to arrange for such underwriters to include all the
Registrable Securities to be offered and sold by such holder among the securities to be distributed
by such underwriters. In no event shall any Investor be deemed an underwriter for purposes of this
Agreement.

5.2 Participation In Underwritten Offerings. No holder of Registrable Securities may
participate in any underwritten offering under Section 3.1 unless such holder of Registrable
Securities (i) agrees to sell such Person’s securities on the basis provided in any underwriting
arrangements approved, subject to the terms and conditions hereof, by the holders of a majority of
Registrable Securities to be included in such underwritten offering and (ii) completes and executes
all questionnaires, indemnities, underwriting agreements and other documents (other than powers of
attorney) required under the terms of such underwriting arrangements. Notwithstanding the
foregoing, no underwriting agreement (or other agreement in connection with such offering) shall
require any holder of Registrable Securities to make a representation or warranty to or agreements
with the Company or the underwriters other than representations and warranties contained in a
writing furnished by such holder of Registrable Securities expressly for use in the related
registration statement or representations, warranties or agreements regarding such holder of
Registrable Securities, such holder’s Registrable Securities and such holder’s intended method of
distribution and any other representation required by law.

5.3 Preparation; Reasonable Investigation. In connection with the preparation and filing of
each registration statement under the 1933 Act pursuant to this Agreement, the Company will permit
any Holder of Registerable Securities which Holder, in such Holder’s reasonable judgment, might be
deemed to be an underwriter or a controlling person of the Company, to participate in the
preparation of such registration or comparable statement and to require the insertion therein of
material in form and substance satisfactory to such Holder and to the Company and furnished to the
Company in writing, which in the reasonable judgment of such Holder and its counsel should be
included. The Company will give each such person access to its books and records and such
opportunities to discuss the business of the Company with its officers and the independent public
accountants who have certified its financial statements as shall be necessary, in the reasonable
opinion of such holders’ and such underwriters’ respective counsel, to conduct a reasonable
investigation within the meaning of the 1933 Act.

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ARTICLE VI

INDEMNIFICATION 

6.1 Indemnification by the Company. In the event of any registration of any securities of
the Company under the 1933 Act, the Company will, and hereby does agree to indemnify and hold
harmless the Investor as holder of any Registrable Securities covered by such registration
statement, its directors and officers, each other Person who participates as an underwriter in the
offering or sale of such securities and each other Person, if any, who controls such holder or any
such underwriter within the meaning of the 1933 Act against any losses, claims, damages or
liabilities, joint or several, to which such holder or any such director or officer or underwriter
or controlling person may become subject under the 1933 Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in any registration statement under which such securities were
registered under the 1933 Act, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, or any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, and the Company will reimburse such holder and each such director, officer,
underwriter and controlling person for any legal or any other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, liability, action or
proceeding, provided that the Company shall not be liable in any such case to the extent that any
such loss, claim, damage, liability, (or action or proceeding in respect thereof) or expense arises
out of or is based upon an untrue statement or alleged untrue statement or omission or alleged
omission made in such registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity with written
information furnished to the Company by such holder or underwriter stating that it is for use in
the preparation thereof and, provided further that the Company shall not be liable to any Person
who participates as an underwriter in the offering or sale of Registrable Securities or to any
other Person, if any, who controls such underwriter within the meaning of the 1933 Act, in any such
case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect
thereof) or expense arises out of such Person’s failure to send or give a copy of the final
prospectus, as the same may be then supplemented or amended, within the time required by the 1933
Act to the Person asserting the existence of an untrue statement or alleged untrue statement or
omission or alleged omission at or prior to the written confirmation of the sale of Registrable
Securities to such Person if such statement or omission was corrected in such final prospectus or
an amendment or supplement thereto. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such holder or any such director, officer, underwriter
or controlling person and shall survive the transfer of such securities by such holder. The
indemnification by the Company shall be limited to Fifty Thousand ($50,000) Dollars.

6.2 Indemnification by the Investor. The Company may require, as a condition to including
any Registrable Securities in any registration statement filed pursuant to this Agreement, that the

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Company shall have received an undertaking satisfactory to it from the prospective holder of such
Registrable Securities, to indemnify and hold harmless (in the same manner and to the same extent
as set forth in Section 6.1) the Company, each director of the Company, each officer of the Company
and each other Person, if any, who controls the Company within the meaning of the 1933 Act, with
respect to any statement or alleged statement in or omission or alleged omission from such
registration statement, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, if such statement or alleged statement
or omission or alleged omission was made in reliance upon and in conformity with written
information furnished to the Company through an instrument duly executed by such holder of
Registrable Securities specifically stating that it is for use in the preparation of such
registration statement, preliminary prospectus, final prospectus, summary prospectus, amendment or
supplement. Any such indemnity shall remain in full force and effect, regardless of any
investigation made by or on behalf of the Company or any such director, officer or controlling
person and shall survive the transfer of such securities by such Investor. The indemnification by
the Investors shall be limited to Fifty Thousand ($50,000) Dollars.

6.3 Notices Of Claims, Etc. Promptly after receipt by an indemnified party of notice of the
commencement of any action or proceeding involving a claim referred to in Sections 6.1 and Section
6.2, such indemnified party will, if claim in respect thereof is to be made against an
indemnifying party, give written notice to the latter of the commencement of such action, provided
that the failure of any indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under Sections 6.1 and Section 6.2, except to the extent that
the indemnifying party is actually prejudiced by such failure to give notice. In case any such
action is brought against an indemnified party, unless in such indemnified party’s reasonable
judgment a conflict of interest between such indemnified and indemnifying parties may exist in
respect of such claim, the indemnifying party shall be entitled to participate in and to assume the
defense thereof, jointly with any other indemnifying party similarly notified, to the extent that
the indemnifying party may wish, with counsel reasonably satisfactory to such indemnified party,
and after notice from the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party shall not be liable to such indemnified party for any
legal or other expenses subsequently incurred by the latter in connection with the defense thereof
other than reasonable costs of investigation. No indemnifying party shall, without the consent of
the indemnified party, consent to entry of any judgment or enter into any settlement of any such
action which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified party of a release from all liability, or a covenant not to sue, in
respect to such claim or litigation. No indemnified party shall consent to entry of any judgment or
enter into any settlement of any such action the defense of which has been assumed by an
indemnifying party without the consent of such indemnifying party.

6.4 Other Indemnification. Indemnification similar to that specified in Sections 6.1 and
Section 6.2 (with appropriate modifications) shall be given by the Company and each holder of
Registrable Securities (but only if and to the extent required pursuant to the terms herein) with
respect to any required registration or other qualification of securities under any Federal or
state law or regulation of any governmental authority, other than the 1933 Act.

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6.5 Indemnification Payments. The indemnification required by Sections 6.1 and Section 6.2
shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as and when bills are received or expense, loss, damage or liability is incurred.

6.6 Contribution. If the indemnification provided for in Sections 6.1 and Section 6.2 is
unavailable to an indemnified party in respect of any expense, loss, claim, damage or liability
referred to therein, then each indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party as a result of such
expense, loss, claim, damage or liability (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and the holder of Registrable Securities
or underwriter, as the case may be, on the other from the distribution of the Registrable
Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the Company on the one hand and of the holder of
Registrable Securities or underwriter, as the case may be, on the other in connection with the
statements or omissions which resulted in such expense, loss, damage or liability, as well as any
other relevant equitable considerations. The relative benefits received by the Company on the one
hand and the holder of Registrable Securities or underwriter, as the case may be, on the other in
connection with the distribution of the Registrable Securities shall be deemed to be in the same
proportion as the total net proceeds received by the Company from the initial sale of the
Registrable Securities by the Company to the purchasers bear to the gain, if any, realized by all
selling holders participating in such offering or the underwriting discounts and commissions
received by the underwriter, as the case may be. The relative fault of the Company on the one hand
and of the holder of Registrable Securities or underwriter, as the case may be, on the other shall
be determined by reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or omission to state a material fact relates to information supplied by the
Company, by the holder of Registrable Securities or by the underwriter and the parties’ relative
intent, knowledge, access to information supplied by the Company, by the holder of Registrable
Securities or by the underwriter and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission, provided that the foregoing
contribution agreement shall not inure to the benefit of any indemnified party if indemnification
would be unavailable to such indemnified party by reason of the provisions contained herein, and in
no event shall the obligation of any indemnifying party to contribute under this Section 6.6 exceed
the amount that such indemnifying party would have been obligated to pay by way of indemnification
if the indemnification provided for hereunder had been available under the circumstances.

     The Company and the holders of Registrable Securities agree that it would not be just and
equitable if contribution pursuant to this Section 6.6 were determined by pro rata allocation (even
if the holders of Registrable Securities and any underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount paid or payable by an
indemnified party as a result of the losses, claims, damages and liabilities referred to in the
immediately preceding paragraph shall be deemed to include, subject to the limitations set forth
herein, any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim.

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     Notwithstanding the provisions of this Section 6.6, no holder of Registrable Securities or
underwriter shall be required to contribute any amount in excess of the amount by which (i) in the
case of any such holder, the net proceeds received by such holder from the sale of Registrable
Securities in the applicable Registration Statement or (ii) in the case of an underwriter, the
total price at which the Registrable Securities purchased by it and distributed to the public were
offered to the public exceeds, in any such case, the amount of any damages that such holder or
underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.

ARTICLE VII

RULE 144

7.1 Rule 144. The Company shall file in a timely manner the reports required to be filed by
the Company under the 1933 Act and the 1934 Act (including but not limited to the reports under
Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c) of Rule 144 adopted by
the SEC under the 1933 Act) and the rules and regulations adopted by the SEC thereunder (or, if the
Company is not required to file such reports, will, upon the request of any holder of Registrable
Securities, make publicly available other information) and will take such further action as any
holder of Registrable Securities may reasonably request, all to the extent required from time to
time to enable such holder to sell Registrable Securities without registration under the 1933 Act
within the limitation of the exemptions provided by (a) Rule 144 under the 1933 Act, as such Rule
may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the
SEC. Upon the request of any holder of Registrable Securities, the Company will deliver to such
holder a written statement as to whether it has complied with the requirements of this Section 7.1.

ARTICLE VIII

MISCELLANEOUS 

8.1 Amendments And Waivers. This Agreement may be amended and the Company may take any
action herein prohibited, or omit to perform any act herein required to be performed by it, only if
the Company shall have obtained the written consent to such amendment, action or omission to act,
of the holder or holders of the sum of the fifty-one percent (51%) or more of the shares of (i)
Registrable Securities issued at such time, plus (ii) Registrable Securities issuable upon exercise
or conversion of the Securities then constituting derivative securities (if such Securities were
not fully exchanged or converted in full as of the date such consent if sought).

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Each holder of any Registrable Securities at the time or thereafter outstanding shall be bound by
any consent authorized by this Section 8.1, whether or not such Registrable Securities shall have
been marked to indicate such consent.

8.2 Nominees For Beneficial Owners. In the event that any Registrable Securities are held
by a nominee for the beneficial owner thereof, the beneficial owner thereof may, at its election,
be treated as the holder of such Registrable Securities for purposes of any request or other action
by any holder or holders of Registrable Securities pursuant to this Agreement or any determination
of any number of percentage of shares of Registrable Securities held by a holder or holders of
Registrable Securities contemplated by this Agreement. If the beneficial owner of any Registrable
Securities so elects, the Company may require assurances reasonably satisfactory to it of such
owner’s beneficial ownership or such Registrable Securities.

8.3 Notices. Except as otherwise provided in this Agreement, all notices, requests and
other communications to any Person provided for hereunder shall be in writing and shall be given to
such Person (a) in the case of a party hereto other than the Company, addressed to such party in
the manner set forth in the Preferred Stock Purchase Agreement or at such other address as such
party shall have furnished to the Company in writing, or (b) in the case of any other holder of
Registrable Securities, at the address that such holder shall have furnished to the Company in
writing, or, until any such other holder so furnishes to the Company an address, then to and at the
address of the last holder of such Registrable Securities who has furnished an address to the
Company, or (c) in the case of the Company, at the address set forth on the signature page hereto,
to the attention of its President, or at such other address, or to the attention of such other
officer, as the Company shall have furnished to each holder of Registrable Securities at the time
outstanding. Each such notice, request or other communication shall be effective (i) if given by
mail, 72 hours after such communication is deposited in the mail with first class postage prepaid,
addressed as aforesaid or (ii) if given by any other means (including, without limitation, by fax
or air courier), when delivered at the address specified above, provided that any such notice,
request or communication shall not be effective until received.

8.4 Assignment. This Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto. In addition, and whether or not any express assignment shall
have been made, the provisions of this Agreement which are for the benefit of the parties hereto
other than the Company shall also be for the benefit of and enforceable by any subsequent holder of
any Registrable Securities. Each of the Holders of the Registrable Securities agrees, by accepting
any portion of the Registrable Securities after the date hereof, to the provisions of this
Agreement including, without limitation, appointment of the Investors’ Representative to act on
behalf of such Holder pursuant to the terms hereof which such actions shall be made in the good
faith discretion of the Investors’ Representative and be binding on all persons for all purposes.

8.5 Descriptive Headings. The descriptive headings of the several sections and paragraphs
of this Agreement are inserted for reference only and shall not limit or otherwise affect the
meaning hereof.

8.6 Governing Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York, without giving effect to applicable principles of conflicts of
law.

14

 

8.7 Jurisdiction. This Agreement shall be exclusively governed by and construed in
accordance with the laws of the State of New York. If any action is brought among the parties with
respect to this Agreement or otherwise, by way of a claim or counterclaim, the parties agree that
in any such action, and on all issues, the parties irrevocably waive their right to a trial by
jury. Exclusive jurisdiction and venue for any such action shall be the State or Federal Courts
serving the State of New York. In the event suit or action is brought by any party under this
Agreement to enforce any of its terms, or in any appeal therefrom, it is agreed that the prevailing
party shall be entitled to reasonable attorneys fees to be fixed by the arbitrator, trial court,
and/or appellate court.

8.8 Entire Agreement. This Agreement embodies the entire agreement and understanding
between the Company and each other party hereto relating to the subject matter hereof and
supercedes all prior agreements and understandings relating to such subject matter.

8.9 Severability. If any provision of this Agreement, or the application of such provisions
to any Person or circumstance, shall be held invalid, the remainder of this Agreement, or the
application of such provision to Persons or circumstances other than those to which it is held
invalid, shall not be affected thereby.

8.10 Binding Effect. All the terms and provisions of this Agreement whether so expressed or
not, shall be binding upon, inure to the benefit of, and be enforceable by the parties and their
respective administrators, executors, legal representatives, heirs, successors and assignees.

8.11 Preparation of Agreement. This Agreement shall not be construed more strongly against
any party regardless of who is responsible for its preparation. The parties acknowledge each
contributed and is equally responsible for its preparation.

8.12 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the
part of any party hereto in the exercise of any right hereunder shall impair such right or be
construed to be a waiver of, or acquiescence in, any breach of any representation, warranty,
covenant or agreement herein, nor shall nay single or partial exercise of any such right preclude
other or further exercise thereof or of any other right. All rights and remedies existing under
this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

8.13 Counterparts. This Agreement may be executed in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed shall be deemed to
be an original, but all of which taken together shall constitute one and the same agreement. A
facsimile transmission of this signed Agreement shall be legal and binding on all parties hereto.

[SIGNATURES ON FOLLOWING PAGE]

15

 

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

	 	 	 
	Caneum, Inc.
	 	 
	 
	 	 
	/s/ Suki Mudan

	 	 
	 	 	 
	By: Suki Mudan
	 	 
	Title:President
	 	 
	 
	 	 
	INVESTOR
	 	 
	 
	 	 
	BARRON PARTNERS LP
	 	 
	By: Barron Capital Advisors, LLC, its General Partners
	 	 
	 
	 	 
	By: /s/ Andrew Barron Worden

 

	 	 
	Andrew Barron Worden
	 	 
	President
	 	 
	730 Fifth Avenue, 9th Floor
	 	 
	New York NY 10019
	 	 

16

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