Document:

Exhibit 4.1

NATIONAL
STORM MANAGEMENT, INC.

Registration
Rights Agreement

This Registration
Rights Agreement (this “Agreement”)
is made and entered into as of December 28, 2005, by and among National Storm
Management, Inc., a Nevada corporation (the “Company”); and the investors
signatory hereto (each a “Purchaser”
and collectively, the “Purchaser”).

This Agreement is
made pursuant to the Securities Purchase Agreement, dated as of the date
hereof, among the Company and the Purchasers (the “Purchase Agreement”).

The Company and
the Purchasers hereby agree as follows:

1.             Definitions. Capitalized
terms used and not otherwise defined herein that are defined in the Purchase
Agreement shall have the meanings given such terms in the Purchase Agreement. As
used in this Agreement, the following terms shall have the respective meanings
set forth in this Section 1:

“Advice”
shall have the meaning set forth in Section 6(d).

“Effective Date”
means the date that the Registration Statement filed pursuant to Section
2(a) is first declared effective by the Commission.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

“Filing Date”
means the 10th calendar day following the date of this Agreement, provided that if such date is not a
Business Day, then the next subsequent Business Day after such 10th calendar
day.

“Holder”
or “Holders” means the Purchasers
and the holder or holders, as the case may be, from time to time of Registrable
Securities which have not been sold to the public who have received such Registrable
Securities from a Purchaser or a permitted successor or assignee of such
Purchaser pursuant to the Purchase Agreement and who have become parties to
this Agreement by executing a signature page hereto.

“Illinois Courts”
shall have the meaning set forth in Section 6(i).

“Indemnified Party”
shall have the meaning set forth in Section 5(c).

“Indemnifying Party”
shall have the meaning set forth in Section 5(c).

“Losses”
shall have the meaning set forth in Section 5(a).

“Majority Holders”
means Holders that hold a majority of the then outstanding Registrable
Securities held by all Holders.

 

“Material Permits”
shall have the meaning set forth in the Purchase Agreement.

“Proceeding”
means an action, demand, claim, litigation, suit, investigation, arbitration or
proceeding (including, without limitation, a partial proceeding, such as a
deposition), whether pending or threatened.

“Prospectus” means the prospectus included
in a Registration Statement (including, without, limitation, a prospectus that
includes any information previously omitted from a prospectus filed as part of
an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the
Registrable Securities covered by the Registration Statement, and all other
amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated, by reference or deemed to be incorporated
by reference in such Prospectus.

“Registrable
Securities” means (i) all of the Shares, (ii) all of the Warrant
Shares, (iii) securities issued or issuable upon any stock split, stock
dividend, recapitalization or similar event with respect to the Shares or the
Warrant Shares, and (iv) any other security issued as a dividend or other
distribution with respect to, in exchange for or in replacement of the
securities referred to in the preceding clauses.

“Registration
Statement” means the registration statement or statements required
to be filed hereunder, including (in each case) the Prospectus, amendments and
supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in such registration
statement.

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as
such Rule maybe amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such Rule.

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

“Selling Stockholder” means each Purchaser
who sells Registrable Securities pursuant to a Registration Statement.

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“Shares”
means the shares of Common Stock issued to the Purchasers pursuant to the
Purchase Agreement.

“Subsidiary”
means any “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X
promulgated by the Commission under the Exchange Act.

“Trading Day”
means (i) a day on which the Company’s common stock is traded on a Trading
Market, or (ii) if the common stock is not listed on a Trading Market, a day on
which the common stock is traded on the over-the-counter market, as reported by
the OTC Bulletin Board, or (iii) if the common stock is not quoted on the OTC
Bulletin Board, a day on which the Common Stock is quoted in the
over-the-counter market as reported by the National Quotation. Bureau
Incorporated (or any similar organization or agency succeeding its functions of
reporting prices); provided, that
in the event that the common stock is not listed or quoted as set forth in (i),
(ii) or (iii) hereof, then Trading Day shall mean a Business Day (as defined in
the Purchase Agreement).

“Trading Market”
means the following markets or exchanges on which the Company’s common stock is
listed or quoted for trading on the date in question: the American Stock
Exchange, the New York Stock Exchange, the Nasdaq National Market or the Nasdaq
SmallCap Market.

“Warrants”
means the Common Stock Purchase Warrants issued to the Purchasers at the
Closing pursuant to the Purchase Agreement.

“Warrant Shares”
means the shares of Common Stock issuable upon exercise of the Warrants.

2.             Piggy-Back Registrations. If
at any time there is not an effective Registration Statement covering all of
the Registrable Securities and the Company shall determine to prepare and file
with the Commission 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 stock option or
other employee benefit plans, then the Company shall send to each Holder
written notice of such determination and, if within ten days after receipt of
such notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable
Securities such holder requests to be registered, subject to customary
underwriter cutbacks equally applicable to all holders of registration rights.

3.             Registration Procedures. In
connection with any registration obligations hereunder, the Company shall:

(a)           Not less than three Trading Days
prior to the filing of a Registration Statement or any related Prospectus or
any amendment or supplement thereto, furnish to the

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Holders copies of all
such documents proposed to be filed which documents (other than those
incorporated or deemed to be incorporated by reference) will be subject to the
reasonable review of the Holders.

(b)           (i)
Prepare and file with the Commission such amendments, including post-effective
amendments, to each Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep such Registration Statement
continuously effective as to the applicable Registrable Securities and prepare
and file with the Commission such additional Registration Statements in order
to register for resale under the Securities Act all of the Registrable
Securities; (ii) cause the related Prospectus to be amended or supplemented by
any required Prospectus supplement, and as so supplemented or amended to be
filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to
any comments received from the Commission with respect to each Registration
Statement or any amendment thereto and, as promptly as reasonably possible,
upon request, provide the Holders true and complete copies of all
correspondence from and to the Commission relating to such Registration
Statement that would not result in the disclosure to the Holders of material
and non-public information concerning the Company; and (iv) comply in all
material respects with the provisions of the Securities Act and the Exchange
Act with respect to the Registration Statements and the disposition of all
Registrable Securities covered by. each Registration Statement during the
applicable period in accordance with the intended methods of disposition by the
Purchasers thereof set forth in the Registration Statement as so amended or in
such Prospectus as so supplemented.

(c)           Notify
the Holders as promptly as reasonably possible (and, in the case of (i)(A)
below, not less than three Trading Days prior to such filing) and (if requested
by any such Person) confirm such notice in writing promptly following the day
(i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed; (B) when the
Commission notifies the Company whether there will be a “review” of such
Registration Statement and whenever the Commission comments in writing on such
Registration Statement (the Company shall provide true and complete copies
thereof and all written responses thereto to the Holders that pertain to the
Holders as a Selling Stockholder or. to the Plan of Distribution, but not
information which the Company believes would constitute material and non-public
information); and (C) with respect to each Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any request
by the Commission or any other federal or state governmental authority for
amendments or supplements to a Registration Statement Or Prospectus or for
additional information; (iii) of the issuance by the Commission of any stop
order suspending the effectiveness of a Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose; and (v) of the occurrence of
any event or passage of time that makes the financial statements included in a
Registration Statement ineligible for inclusion therein or any statement made
in such Registration Statement or Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires any revisions to such Registration Statement, Prospectus or
other documents so that, in the case of such

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Registration Statement or the Prospectus, as the case
may be, it will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

(d)           Use
its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
of (i) any order suspending the effectiveness of a Registration Statement, or
(ii) any suspension of the qualification (or exemption from qualification) of
any of the Registrable Securities for sale in any jurisdiction, at the earliest
practicable moment.

(e)           Furnish
to each Holder by email, hand delivery or overnight courier, without charge, at
least one conformed copy of each Registration Statement and each amendment
thereto, and all exhibits to the extent requested by such Person (other than
those previously furnished or incorporated by reference) promptly after the
filing of such documents with the Commission.

(f)            Promptly
deliver to each Holder, without charge, as many copies of each Prospectus or
Prospectuses (including each form of prospectus) and each amendment or
supplement thereto as such Persons may reasonably request. The Company hereby
consents to the use of such Prospectus and each amendment or supplement thereto
by each of the selling Holders in connection with the offering and sale of the
Registrable Securities covered by such Prospectus and any amendment or
supplement thereto to the extent permitted by federal and state securities laws
and regulations.

(g)           Prior
to any public offering of Registrable Securities, use its reasonable best
efforts to register or qualify or cooperate with the selling Holders in
connection with the registration or qualification (or exemption from such
registration or qualification) of such Registrable Securities for offer and
sale under the securities or blue sky laws of such jurisdictions within the
United States as any Holder reasonably requests in writing, to keep each such
registration or qualification (or exemption therefrom) effective and to do any
and all other acts or things necessary or advisable to enable the disposition
in such jurisdictions of the Registrable Securities covered by the Registration
Statements; provided, that the Company shall not be obligated to file any
general consent to service of process or to qualify as a foreign corporation or
as a dealer in securities in any jurisdiction in which it is not so qualified
or to subject itself to material taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject.

(h)           Cooperate
with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be delivered to a
transferee pursuant to the Registration Statements, which certificates shall be
free, to the extent permitted by the Purchase Agreement, of all restrictive
legends; and to enable such Registrable Securities to be in such denominations
and registered in such names as any such Holders may request.

(i)            Upon the occurrence of any event
described in Section 3(c)(v), as promptly as reasonably possible,
prepare a supplement or amendment, including a post-effective amendment, to the
affected Registration Statements or a supplement to the related Prospectus or

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any document incorporated
or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, no Registration Statement nor any
Prospectus will contain an untrue statement of a material fact or omit to suite
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.

(j)            Comply
with all applicable rules and regulations of the Commission.

(k)           The
Company may require each selling Holder to furnish to the Company a certified
statement as to the number of shares of Common Stock beneficially owned by such
Holder and any controlling person thereof.

4.             Registration Expenses. All
fees and expenses incident to the performance of or compliance with this
Agreement by the Company shall be borne by the Company whether or not any Registrable
Securities are sold pursuant to a Registration Statement. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i)
all registration and filing fees (including, without limitation, fees and
expenses (A) with respect to filings required to be made with any Trading
Market on which the. Common Stock is then listed for trading, and (B) in
compliance with applicable state securities or blue sky laws), (ii) printing
expenses (including, without limitation, expenses of printing certificates for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the
Company, (v) the reasonable fees and disbursements of the Holders in connection
with any Registration Statement covering any Registrable Securities, not to
exceed $10,000 with respect to all Holders for any one Registration Statement,
(vi) Securities Act liability insurance, if the Company so desires such
insurance, and (vii) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated by
this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.

5.             Indemnification.

(a)           Indemnification by the Company.
The Company shall, notwithstanding any termination of this Agreement, indemnify
and hold harmless each. Holder, the officers, directors, agents, investment
advisors and employees of each of them, each Person who controls any such
Holder (within the meaning of Section 15 of the Securities Act or Section 20 of
the Exchange Act) and the officers, directors, agents and employees of each
such controlling Person, to the fullest extent permitted by applicable law,
from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable costs of preparation and reasonable
attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out
of or relating to any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, any Prospectus or any form of
prospectus or in any amendment or supplement

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thereto, or arising out
of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case
of any Prospectus or form of prospectus or supplement thereto, in light of the
circumstances under which they were made) not misleading, except to the extent,
but only to the extent, that (1) such untrue statements or omissions are based
solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such information
relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by
such Holder expressly for use in the Registration Statement, such Prospectus or
such form of Prospectus or in any amendment or supplement thereto (it being
understood that each Holder has approved Annex A hereto for this
purpose) or (2) in the case of an occurrence of an event of the type specified
in Section 3(c)(ii)-(v), the use by such Holder of an outdated or
defective Prospectus after the Company has notified such Holder in writing that
the Prospectus is outdated or defective arid prior to the receipt by such
Holder of the Advice contemplated in Section 6(d) or an amended or
supplemented Prospectus, but only if and to the extent that following the
receipt of the Advice or the amended or supplemented Prospectus the
misstatement or omission giving rise to such Loss would have been corrected in
all material respects by such Advice or the amended or supplemented Prospectus
and the Holder fails to deliver such Advice or amended or supplemented
Prospectus. The Company shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding of which the Company is aware in
connection with the transactions contemplated by this Agreement.

(b)           Indemnification by Holders. Each
Holder shall, severally and not jointly, indemnify and hold harmless the
Company, its directors, officers, agents and employees, each Person who
controls the Company (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by
applicable law, from and against all Losses, as incurred, arising out of or
based upon (x) such Holder’s failure to comply with the prospectus delivery
requirements of the Securities Act, if the delivery of such a prospectus would
have cured or prevented the Loss, or (y) any untrue statement of a material
fact contained in any Registration Statement, any Prospectus, or any form of
prospectus, or in any amendment or supplement thereto, or arising out of or
based upon any omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading to the extent, but only
to the extent that, (1) such untrue statements or omissions are based solely
upon information regarding such Holder furnished in writing to the Company by
such. Holder expressly for use therein, or to the extent that such information
relates to such Holder or such Holder’s proposed method of distribution of
Registrable Securities and was reviewed and expressly approved in writing by
such Holder expressly for use in the Registration Statement (it being understood
that each Holder has approved Annex A hereto for this purpose), such Prospectus
or such form of Prospectus or in any amendment or supplement thereto or (2) in
the case of an occurrence of an event of the type specified in Section
3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus
after the Company has notified such Holder in writing that the Prospectus is
outdated or defective and prior to the receipt by such Holder of an Advice or
an amended or supplemented Prospectus, but only if and to the extent that
following the receipt of the Advice or the amended or

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supplemented Prospectus
the misstatement or omission giving rise to such Loss would have been corrected
in all material respects by such Advice or the amended or supplemented
Prospectus and the Holder fails to deliver such Advice or amended or
supplemented Prospectus. In no event shall the liability of any selling Holder
hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving rise
to such indemnification obligation.

(c)           Conduct of Indemnification
Proceedings. If any Proceeding shall be brought or asserted: against arty
Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the Person
from whom indemnity is sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right
to assume the defense thereof, including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of all fees and expenses
incurred in connection with defense thereof; provided,
that the failure of any Indemnified Party to give such notice shall not relieve
the Indemnifying Party of its obligations or liabilities pursuant to this
Agreement, except (and only) to the extent that it is materially adversely
prejudiced thereby.

An Indemnified Party shall have the right to employ
separate counsel in any such Proceeding and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed
in writing to pay such fees and expenses; (2) the Indemnifying Party shall have
faired promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or
(3) the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and, such
Indemnified Party shall have been advised by counsel that a conflict of
interest is likely to exist if the same counsel were to represent such
Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall have the right to participate in such defense and such
counsel shall be it the expense of the Indemnifying Party). It being
understood, however, that the Indemnifying Party shall not, in connection with
any one such Proceeding be liable for the fees and expenses of more than one
separate firm of attorneys at any time for all Indemnified Parties, which firm
shall be appointed by a majority of the Indemnified Parties. The Indemnifying
Party shall not be liable for any settlement of any such Proceeding effected
without its written consent, which consent shall not be unreasonably withheld. No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any
Indemnified Party is a party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability on claims that are the
subject matter of such Proceeding with respect to which the Indemnified Party
is entitled to indemnity hereunder.

All reasonable
fees and expenses of the Indemnified Party (including reasonable fees and
expenses to the extent incurred in connection with investigating or preparing
to defend such Proceeding in a manner not inconsistent with this Section 5)
that are to be paid by the Indemnifying Party pursuant to this Section 5
shall be paid to the Indemnified Party, as incurred, within ten Trading Days of
written notice thereof to the Indemnifying Party; provided, that the Indemnifying Party may require such
Indemnified Party to reimburse all such fees and expenses

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to the extent it is
finally judicially determined that such Indemnified Party is not entitled to
indemnification hereunder.

(d)           Contribution. If a claim for
indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), 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 Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to,
among other things; whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a
result of any Losses shall be deemed to include, subject to the limitations set
forth in Section 5(c), any reasonable attorneys’ or other reasonable
fees or expenses incurred by such party in connection with any Proceeding to
the extent such party would have been indemnified for such fees or expenses if
the indemnification provided for in this Section was available to such party in
accordance with its terms.

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section
5{d) were determined by pro rata allocation or by any other method of
allocation that does not take into account the equitable considerations
referred to in the immediately preceding paragraph. Notwithstanding the
provisions of this Section 5(d), no Holder shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission, except in the case of fraud
by such Holder. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

The indemnity and
contribution agreements contained in this Section 5 are in addition to
any liability that the Indemnifying Parties may have to the Indemnified Parties.

6.             Miscellaneous.

(a)           Remedies. In the event of a
breach by the Company or by a Holder, of ally of heir obligations under this
Agreement, each Holder or the Company, as the case may be, in addition to being
entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, will be entitled to specific performance of its
rights under this Agreement. The Company and each Holder agree that monetary
damages would not provide adequate compensation for any losses incurred by
reason of a breach by it of any of the provisions of this Agreement and hereby
further agrees that, in the event of any action for

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specific performance in
respect of such breach, it shall waive the defense that a remedy at law would
be adequate.

(b)           Conflicting Agreements. The
Company shall not enter into any other agreements in which it grants
registration rights which would conflict with or adversely affect the rights of
Holder hereunder.

(c)           Compliance. Each Holder
covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to the Registration Statement.

(d)           Discontinued Disposition. Each
Holder agrees by its acquisition of such Registrable Securities that, upon
receipt of a notice from the Company of the occurrence of any event of the kind
described in Section 3(c), such Holder will forthwith discontinue
disposition of such Registrable Securities under the Registration Statement
until such Holder’s receipt of the copies of the supplemented Prospectus and/or
amended Registration Statement or until it is advised in writing (in each case,
“Advice”) by the Company that the
use of the applicable Prospectus may be resumed, and, in either case, has
received copies of any additional or supplemental filings that are incorporated
or deemed to be incorporated by reference in such Prospectus or Registration
Statement. The Company may provide appropriate stop orders to enforce the
provisions of this paragraph.

(e)           Amendments and Waivers. The
provisions of this Agreement, including the provisions of this sentence, may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in
writing and signed by the Company and the Majority Holders. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of certain Holders
and that does not directly or indirectly affect the rights of other Holders may
be given by Holders of at least a majority of the Registrable Securities to
which such waiver or consent relates, provided,
that the provisions of this sentence may not be amended, modified, or
supplemented except in accordance with the provisions of the immediately
preceding sentence.

(f)            Notices. Any and all notices
or other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the
earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in this Section
6(f) prior to 6:30 p.m. (Chicago time) on a Trading Day or by email to the
email address specified in this Section 6(f) if such email is sent prior
to 6:30 p.m. (Chicago time) on a Trading Day, (ii) the Trading Day after the
date of transmission or email, if such notice or communication is delivered via
facsimile at the facsimile telephone number specified in this Agreement or by
email to the email address specified in. this Section 6(g) later than
6:30 p.m. (Chicago time) on any date and earlier than 11:59 p.m. (Chicago
:time) on such date, (iii) the Trading Day following the date of mailing, if
sent by nationally recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is required to be given. The address
for such notices and communications shall be as follows:

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  If to the Company

  	
  National Storm Management, Inc.

  
	
   

  	
   

  	
  999 N. Main Street

  
	
   

  	
   

  	
  Suite 202

  
	
   

  	
   

  	
  Glen Ellyn, IL 60137

  
	
   

  	
   

  	
  Attn: Mark Noffke

  
	
   

  	
   

  	
  E-Mail: mnoffke@abcexteriors.com

  
	
   

  	
   

  	
  Facsimile No.: (630) 446-4400

  
	
   

  	
   

  	
   

  
	
   

  	
  If to a
  Purchaser:

  	
  To the address (or email or facsimile number)

  
	
   

  	
   

  	
  set forth under such Purchaser’s name on the

  
	
   

  	
   

  	
  signature pages hereto.

  
	
   

  	
   

  	
   

  
	
  If to any other
  Person

  	
   

  	
  To the address of such Holder as it appears in the

  
	
  who is then the

  	
   

  	
  stock transfer books of the Company

  
	
  registered
  Holder:

  	
   

  	
   

  

or such other address as may be designated in writing
hereafter, in the same manner, by such Person.

(g)           Successors and Assigns. This
Agreement shall inure to the benefit of and be binding upon the successors and
permitted assigns of each of the parties and shall inure to the benefit of each
Holder. The Company may not assign its rights or obligations hereunder without
the prior written consent of each Holder. Each Holder may assign their
respective rights hereunder in the manner and to the Persons who acquire
Registrable Securities as permitted to a Purchaser under the Purchase Agreement
and who become parties to this agreement by executing a counterpart signature
page hereto.

(h)           Execution and Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same Agreement. In the event that any signature is
delivered by facsimile transmission, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile
signature were the original thereof.

(i)            Governing Law. All questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with
the internal laws of the State of Illinois, without regard to the principles of
conflicts of law thereof. Each party agrees that all Proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Agreement (whether brought against a party hereto or its respective
Affiliates, employees or agents) shall be commenced exclusively in the state
and federal courts sitting in the City of Chicago, County of Cook (the “Illinois Courts”). Each party hereto hereby
irrevocably submits to the exclusive jurisdiction of the Illinois Courts for
the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any Proceeding, any claim that it is not
personally

 11
 

 

subject to the
jurisdiction of any Illinois Court, or that such Proceeding has been commenced
in an improper or inconvenient forum. Each party hereto hereby irrevocably
waives personal service of process and consents to process being served in any
such Proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by
jury in any Proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby. If either party shall commence a Proceeding
to enforce any provisions of this Agreement, then the prevailing party in such
Proceeding shall be reimbursed by the other party for its attorney’s fees and
other costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding.

(j)            Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of
any remedies provided by law.

(k)           Severability. If any term,
provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their reasonable efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter
declared invalid, illegal, void or unenforceable.

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

(m)          No
Conflicting Agreements. The Company shall not enter into any agreements,
arrangements or understandings that in any way conflict with this Agreement or
limit the Company’s ability to perform its obligations under this Agreement.

(n)           Independent Nature of Purchasers’
Obligations and Rights. The obligations of each Purchaser hereunder are
several and not joint with the obligations of any other Purchaser hereunder,
and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser hereunder. Nothing contained herein or in
any other agreement is document delivered at any closing, and no action taken
by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity or create a presumption that the Purchasers are in any way acting in
concert with respect to such obligations or the transactions contemplated by
this Agreement. Each Purchaser shall be entitled to protect and enforce its
rights, including without limitation the rights arising out of this Agreement,
and it shall not be necessary for any other Purchaser to be joined as an
additional parry in any proceeding for such purpose.

 12
 

 

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

	
   

  	
  NATIONAL STORM MANGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry Kiefer

  	
   

  
	
   

  	
   

  	
  Name:  Terry
  Kiefer

  
	
   

  	
   

  	
  Title: 
  President

  

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK

SIGNATURE PAGES OF
PURCHASERS TO FOLLOW]

 13
 

 

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

	
   

  	
   

  	
  NITE CAPITAL, LP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Keith
  Goodman

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Keith Goodman

  
	
   

  	
   

  	
   

  	
  Title: 
  Manager

  

 

 14

 

Annex A

Plan
of Distribution

The
Selling Stockholders and any of their pledgees, donees, assignees or
successors-in-interest in receipt of shares of Common Stock as a result of a
gift, partnership distribution, or other non-sale-related transfer, may, from
time to time and in one or more transactions, offer shares for sale pursuant to
a Prospectus. Subject to compliance with applicable law, the Selling
Stockholders may use any one or more of the following methods when selling
shares:

·        ordinary brokerage transactions and
transactions in which the broker-dealer solicits purchasers;

·        block trades in which the broker-dealer
will attempt to sell the shares as agent but may position and resell a portion
of the block as principal to facilitate the transaction;

·        purchases by a broker-dealer as
principal and resale by the broker-dealer for its account;

·        on any exchange distribution in
accordance with the rules of the applicable exchange, in The Nasdaq Stock
Market, the Nasdaq SmallCap Market or in the Over-the-Counter market;

·        privately negotiated transactions;

·        through the writing of options on
(whether the options are listed on an options exchange or otherwise), or
settlement of short sales of, the shares;

·        broker-dealers may agree with the
Selling Stockholders to sell a specified number of such shares at a stipulated
price per share;

·        a combination of two or more of these
methods; and

·        any other method permitted pursuant to
applicable law.

The
Selling Stockholders may also sell shares in transactions exempt from the
registration requirements of the Section 5 of the Securities Act, including
under Rule 144 under the Securities Act, if available, rather than under a
Prospectus.

Any of
these transactions may be effected at market prices prevailing at the time of
sale, at prices related to the prevailing market prices, at varying prices
determined at the time of sale or at negotiated or fixed prices, in each case
as determined by the Selling Stockholders or by agreement among or between the
Selling Stockholders and the underwriters, brokers, dealers, agents or
purchasers.

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from
the

 

Selling Stockholders (or, if any broker-dealer acts as
agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated. The Selling Stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved.

The
Selling Stockholders may from time to time pledge or grant a security interest
in some or all of the shares owned by them. If they default in the performance
of their secured obligations, the pledgees or secured parties may offer and
sell their shares from time to time under a Prospectus, or under a supplement
to a Prospectus under Rule 424(b)(3) or other applicable provision of the
Securities Act amending the list of Selling Stockholders to include the pledgee
or secured party as Selling Stockholders under a Prospectus.

Upon
the Company being notified in writing by a Selling Stockholder that .any
material arrangement has been entered into with a broker-dealer for the sale of
shares through a block trade, special offering, exchange distribution or secondary
distribution or a purchase by a broker or dealer, a supplement to a Prospectus
will be filed, if required, pursuant to Rule 424(b) under the Securities Act;
disclosing (i) the name of each such Selling Stockholder and of the
participating broker(s)-dealer(s), (ii) the number of shares involved, (iii)
the price at which such shares were sold, (iv) the commissions paid or
discounts or concessions allowed to such broker(s)-dealer(s), where applicable,
(v) that such broker(s)-dealer(s) did not conduct any investigation to verify
the information set out or incorporated by reference in a Prospectus, and (vi)
other facts material to the transaction. If a Selling Stockholder transfers the
shares covered by a Prospectus in a transaction exempt from the registration
requirements of Section 5 of the Securities Act, including under Rule 144 if
available, the transferees, pledgees or other successors in interest will be
the selling beneficial owners for purposes of a Prospectus, and a supplement to
a Prospectus will be filed pursuant to Rule 424(b) under the Securities Act to
reflect the transferee as the Selling Stockholder.

The
Selling Stockholders and any broker(s)-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act.

The
Company has agreed to pay all fees and expenses incident to the registration of
the shares. The Company also has agreed to indemnify the Selling Stockholders
against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.

The Company has
informed the Selling Stockholders that the anti-manipulation provisions of
Regulation M under the Exchange Act may apply to purchases and sales of shares
by the Selling Stockholders, and that there are restrictions on market making
activities by persons engaged in the distribution of the shares. The Company
has also advised the Selling Stockholders that if a particular offer of shares
is to be made on terms constituting a material change from the information
described under a Prospectus, then to the extent required, a supplement to a
Prospectus must be distributed setting forth the terms and relate information
as required.Exhibit 4.2

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH
THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STAKE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND,
ACCORDINGLY MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

COMMON
STOCK PURCHASE WARRANT

To Purchase 1,000,000
Shares of Common Stock of National Storm Management, Inc.

THIS COMMON STOCK
PURCHASE WARRANT CERTIFIES that, for value received, Nite Capital, L.P. (the “Holder”), is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth on or
prior to the close of business on December 31, 2010 (the “Termination Date”) but not thereafter, to
subscribe for and purchase from National Storm Management, Inc., a corporation
incorporated in the State of Nevada (the “Company”),
up to 1,000,000 shares (the “Warrant Shares”)
of common stock, par value $0.001 per share, of the Company (the “Common: Stock”). The purchase price of one
share of Common Stock (the “Exercise Price”) under this Warrant shall be $[20],
subject to adjustment hereunder. The Exercise Price and the number of Warrant
Shares for which the Warrant is exercisable shall be subject to adjustment as
provided herein. Capitalized terms used and not otherwise defined herein shall
have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated December 28,
2005, between the Company and the purchasers signatory thereto.

1.             Title
to Warrant. Prior to the Termination Date and subject to compliance with
applicable laws and Section 7 of this Warrant, this Warrant and all rights
hereunder are transferable, in whole or in part, at the office or agency of the
Company by the Holder in person or by duly authorized attorney, subject to
compliance with Section 4.1 of the Purchase Agreement and upon surrender of
this Warrant together with the Assignment Form annexed hereto properly endorsed.
The transferee shall sign an investment letter in form and substance reasonably
satisfactory to the Company.

2.             Authorization
of Shares. The Company covenants that all Warrant Shares which may be
issued upon the exercise of the purchase rights represented by this Warrant
will, upon exercise of the purchase rights represented by this Warrant, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such issue).

 

3.             Exercise
of Warrant.

(a)           Exercise
of the purchase rights represented by this Warrant may be made at any time or
times on or before the Termination Date by delivering the Notice of Exercise
Form annexed hereto duly completed and executed (which delivery may be by
facsimile), at the office of the Company (or such other office or agency of the
Company as it may designate by notice in writing-to the registered Holder at
the address of such Holder appearing on the books of the Company) and upon full
payment of the Exercise Price of the shares thereby purchased by wire transfer
or cashier’s check drawn on a United States bank or by means of a cashless
exercise pursuant to Section 3(d), the Holder shall be entitled to
receive a certificate for the number of Warrant Shares so purchased. Certificates
for shares purchased hereunder shall be delivered to the address specified by
the Holder in the Notice of Exercise within three (3) Trading Days from the
delivery to the Company of the Notice of Exercise Form, surrender of this
Warrant and payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery Date”). In lieu of
delivering physical certificates for the shares purchased hereunder, provided
the Company’s transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer
program, and so long: as the legend upon the certificates for the shares may be
removed in accordance with Section 4.1 of the Purchase Agreement, upon request
of the Holder, the Company shall use commercially reasonable efforts to cause
its transfer agent electronically to transmit such shares by crediting the
account of the Holder’s prime broker with DTC through its Deposit Withdrawal
Agent Commission system (provided that the same time limitations herein as for
stock certificates shall apply and that the Company may in all events satisfy
its obligations to deliver certificates by delivery of physical stock
certificates). This Warrant shall be deemed to have been exercised on the date
the Exercise Price is received by the Company. The Warrant Shares shall be
deemed to have been issued, and Holder or any other person so designated to be
named therein shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised by payment to
the Company of the Exercise Price.

(b)           In
addition to any other rights available to the holder, if the Company fails to
deliver or cause its transfer agent to deliver or transmit (in the manner
contemplated by clause (a) above) to the Holder a certificate or certificates
representing the Shares pursuant to an exercise on or before the Warrant Share
Delivery Date, and if after such date the holder is: required by its broker to
purchase (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a-sale by the holder of the Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall promptly honor its obligation to deliver to the Holder
such Warrant Shares and pay in cash to the holder the amount by which (x) the
holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of Shares that the Company was required to deliver
to the holder in connection with the exercise at issue times (B) the closing
price per share on date of exercise. The holder shall provide the Company
written notice indicating the amounts payable to the Holder in respect of the
Buy-In, together with applicable confirmations and other evidence reasonably
requested by the Company. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief
with respect to the Company’s failure to timely deliver

 

certificates representing
shares of Common Stock upon exercise of the Warrant as required pursuant to the
terms hereof.

(c)           Notwithstanding
anything to the contrary set forth herein, upon partial exercise of this
Warrant in accordance with the terms hereof, the Holder shall not be required
to physically surrender this Warrant to the Company unless such Holder is
purchasing the full amount of Warrant Shares then represented by this Warrant. The
Holder and the Company shall maintain records showing the number of Warrant
Shares so purchased hereunder and the dates of such purchases or shall use such
other method, reasonably satisfactory to the Holder and the Company, so as not
to require physical surrender of this Warrant upon each such exercise. The
requirement of physical surrender upon full exercise shall be satisfied by the
Holder mailing, postage prepaid, or arranging for delivery by commercial courier
this Warrant to the Company’s notice address.

(d)           This
Warrant may also be exercised at such time by means of a “cashless exercise” in
which the Holder shall be entitled to receive a certificate for the number of
Warrant Shares equal to the quotient obtained by dividing ((A-B) (X)) by (A),
where:

(A) =       the
last reported sale price of the Common Stock on the Trading Day immediately
preceding the date of such election or, if not reported, the fair market value
of such Common Stock as reasonably determined by the Company’s Board of
Directors;

(B) =       the
Exercise Price, as adjusted; and

(X) =       the number of Warrant
Shares with respect to which this Warrant is being exercised.

4.             No
Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price.

5.             Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall
be; issued in the name of the Holder or in such name or names as may be
directed by the Holder and the Company may require, as a condition thereto,
compliance with the provisions of Section 4.1 of the Purchase Agreement and an
investment letter from the transferee in form and substantive reasonably
satisfactory to the Company.

6.             Closing
of Books. The Company will not close its stockholder books or records in
any manner which prevents the timely exercise of this Warrant, pursuant to the
terms hereof.

 

7.             Transfer,
Division and Combination.

(a)           Subject
to compliance with any applicable securities laws and the conditions set forth
in Sections 1 and 7(e) hereof and to the provisions of Section
4.1 of the Purchase Agreement, this Warrant and all rights hereunder are
transferable, in whole or in part, upon surrender of this Warrant at the
principal office of the Company, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder
or its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

(b)           This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section
7(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

(c)           The
Company shall prepare, issue and deliver at its own expense (other than
transfer taxes) the new Warrant or Warrants under this Section 7.

(d)           The Company agrees to
maintain, at its aforesaid office, books for the registration and the registration
of transfer of the Warrants. If, at the time of the surrender of this Warrant
in connection with any transfer of this Warrant, the transfer of this Warrant
shall not be registered pursuant to an effective registration statement under
the Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer (i) that the
Holder or transferee of this Warrant, as the case may be, furnish to the
Company a written opinion of counsel (which opinion shall be in form, substance
and scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities
Act and under applicable state securities or blue sky laws, (ii) that the
holder or transferee execute and deliver to the Company an investment letter in
form and substance reasonably acceptable to the Company and (iii) that the
transferee be an “accredited investor” as defined in Rule 501(a) promulgated
under the Securities Act.

8.             No
Rights as Shareholder until Exercise. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price (or by means of a cashless exercise),
the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner: of such shares as of the close of business on the
later of the date of such surrender or payment.

 

9.             Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that
upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and
dated as of such cancellation, in lieu of such Warrant or stock certificate.

10.           Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any
action or the expiration of any right required or granted herein shall be a
Saturday, Sunday or a legal holiday, then such action may be taken or such
right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

11.           Adjustments
of Exercise Price and Number of Warrant Shares. The number and kind of
securities purchasable upon the exercise of this Warrant and the Exercise Price
shall be subject to adjustment from time to time upon the happening of any of
the following. In case the Company shall (i) pay a dividend in shares of Common
Stock or make a distribution in shares of Common Stock to holders of its
outstanding Common Stock, (ii) subdivide its outstanding shares of Common Stock
into a greater number of shares, (iii) combine its outstanding shares of Common
Stock into a smaller number of shares of Common Stock, (iv) issue any shares of
its capital stock in a reclassification of the Common Stock, or (v) issue
Additional Shares (as defined in the Purchase Agreement) for a price per share
that is less than the Exercise Price or issues indebtedness, shares or other
securities directly or indirectly convertible or exchangeable for Common Stock
at a price per share less than the Exercise Price, then with regard to
(i)-(iv), the number of Warrant Shares purchasable upon exercise of this
Warrant immediately prior thereto shall be adjusted so that the Holder shall be
entitled to receive the kind and number of Warrant Shares or other securities
of the Company which it would have owned or have been entitled to receive had
such Warrant been exercised immediately prior to the occurrence of such event
and with regard to number (v), the Exercise Price shall be adjusted to the
lowest price per share at which Additional Shares have been issued on at which
indebtedness, shares or other securities are directly or indirectly convertible
or exchangeable into Common Stock. Upon each such adjustment of the kind and
number of Warrant Shares of other securities of the Company which are
purchasable hereunder, the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at
an Exercise Price per Warrant Share or other security obtained by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Shares purchasable pursuant hereto immediately prior to such adjustment
and dividing such amount by the number of Warrant Shares or other securities of
the Company purchasable pursuant hereto as a result of adjustment (such that
the aggregate purchase price for all Warrant Shares or other securities
resulting from such adjustment upon full, exercise of this Warrant shall remain
the same). An adjustment made pursuant to this paragraph shall become effective
immediately after the effective date of such event.

12.           Reorganization,
Reclassification, Merger, Consolidation or Disposition of Assets. In case
the Company shall reorganize its capital, reclassify its capital stock,
consolidate or merge

 

with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the
Company), or sell, transfer or otherwise dispose of all, or substantially all
its property, assets or business to another corporation and pursuant to the
terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of
any nature whatsoever (including warrants or other subscription or purchase
rights) in addition to or in lieu of common stock of the successor or acquiring
corporation (“Other Property”),
are to be received by or distributed to the holders of Common Stock of the
Company, then the Holder shall have the right thereafter to receive upon
exercise of this Warrant (and this Warrant shall thereafter be exercisable only
for), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and Other
Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board
of Directors of the Company) in order to provide for adjustments of Warrant
Shares for which this Warrant is exercisable which shall be as nearly equivalent
as practicable to the adjustments provided for in this Section 12. For
purposes of this Section 12, “common stock of the successor or acquiring
corporation” shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such
corporation and which is not subject to redemption. The foregoing provisions of
this Section 12 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

13.           Intentionally
Deleted.

14.           Notice
of Adjustment. Whenever the number of Warrant Shares or number or kind of
securities or other property purchasable upon the exercise of this Warrant or
the Exercise Price is adjusted, as herein provided, the Company shall give
notice thereof to the Holder, which notice shall state the number of Warrant
Shares (and other securities or property) purchasable upon the exercise of this
Warrant and the Exercise Price of such Warrant Shares (and other securities or
property) after such adjustment, setting forth a brief statement of the facts
requiring such adjustment and setting forth the computation by which such
adjustment was made.

15.           Notice
of Corporate Action. If at any time:

(a)           the Company shall take a record
of they holders of its Common Stock for the purpose of entitling them to
receive a dividend or other distribution, or any right to subscribe for or
purchase any evidences of its indebtedness, any shares of stock of any class or
any other securities or property, or to receive any other right, or

 

(b)           there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all
or substantially all the property assets or business of the Company to, another
corporation that would trigger an adjustment pursuant to Section 12, or

(c)           there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

then, in any one or more
of such cases, the Company shall give to Holder (i) at least 20 days’ prior
written notice of the date on which a record date shall be selected for such
dividend, distribution or right or for determining rights to vote in respect of
any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, liquidation or winding up, and (ii) in the case of any
such reorganization, reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up, at least 20 days’ prior written notice
of the date when the same shall take place. Such notice in accordance with the
foregoing clause also shall specify(i) the date on which any such record is to
be taken for the purpose of such dividend, distribution or right, the date on
which the holders of Common Stock shall be entitled to any such dividend,
distribution or right, and the amount and character thereof, and (ii) the
estimated date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which
the holders of Common Stock shall be entitled to exchange their Warrant Shares
for securities or other property deliverable upon such disposition,
dissolution, liquidation or winding up. Each such written notice shall be
sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section-
17(d).

16.           Authorized
Shares. The Company covenants that during the period the Warrant is
outstanding, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares
upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the principal market
upon which the Common Stock may be listed.

Except and to the
extent as-waived or consented to by the Holder, the Company shall not by any
action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of
this Warrant, but will at all times in good faith assist in the carrying out of
all such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant
against impairment. Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any Warrant Shares above

 

the amount payable
therefor upon such exercise immediately prior to such increase in par value,
(b) take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Shares upon the exercise of this Warrant, and (c) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to
enable the Company to perform its obligations under this Warrant.

Before taking any
action which would result in an adjustment in the number of Warrant Shares for
which this Warrant is exercisable or in the Exercise Price, the Company shall
obtain all such authorizations or exemptions thereof, or consents thereto, as
may be necessary from any public regulatory body or bodies having jurisdiction
thereof.

17.           Miscellaneous.

(a)           Jurisdiction.
This Warrant shall constitute a contract under the laws of the State of
Illinois.

(b)           Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of
this Warrant, if not registered will have restrictions upon resale imposed by
state and federal securities laws.

(c)           Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder shall operate as a waiver of such right
or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding all
rights hereunder terminate on the Termination Date.

(d)           Notices.
Any notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement; provided upon any permitted assignment of
this Warrant, the assignee shall promptly provide the Company with its contact
information.

(e)           Limitation
of Liability. No provision hereof, in the absence of any affirmative action
by Holder to exercise this Warrant or purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, shall give rise to
any liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

(f)            Remedies.
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of
the provisions of this Warrant and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate.

(g)           Successors
and Assigns. Subject to applicable securities laws, this Warrant and the
rights and obligations evidenced hereby shall inure to the benefit of and be

 

binding upon the
successors of the Company and the successors and permitted assigns of Holder. The
provisions of this Warrant are intended to be for the benefit of all Holders
from time to time of this Warrant and shall be enforceable by any such Holder
or holder of Warrant Shares.

(h)           Amendment
and Waiver. This Warrant may be modified or amended or the provisions
hereof waived with the written consent of the Company and the Holder.

(i)            Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.

(j)            Headings. The headings
used in this Warrant are for the convenience of reference only and shall not,
for any purpose, be deemed a part of this Warrant.

(k)           Legal
Fees. Nite Capital L.P. will pay Holder’s reasonable attorneys’ fees and
costs in connection with the enforcement of this Agreement.

IN WITNESS
WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized.

Dated:  December 28, 2005

	
  

  	
  NATIONAL STORM MANAGEMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Terry Kiefer

  
	
   

  	
   

  	
  Name:

  	
  Terry Kiefer

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

NOTICE
OF EXERCISE

To:          National
Storm Management, Inc:

(1)           The
undersigned hereby elects to purchase                   
Warrant Shares of National Storm Management, Inc. pursuant to the terms of the
attached Warrant (only if exercised in full), and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if
any.

(2)           Payment shall take the form of
(check applicable box):

o            in
lawful money of the United states; or

o            the
cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 3(d), to exercise this Warrant
with respect to the maximum number of Warrant Shares purchasable pursuant to
the cashless exercise procedure set forth in subsection 3(d).

(3)           Please
issue a certificate or certificates representing said Warrant Shares in the
name of the undersigned or in such other name as is specified below:

The Warrant Shares shall
be delivered to the following:

(4)           Accredited
Investor. The undersigned is an “accredited investor” as defined in Regulation
D promulgated under the Securities Act of 1933, as amended.

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Dated:

  	
   

  
					

 

 

ASSIGNMENT
FORM

(To assign the foregoing
warrant, execute this form and supply required information. Do not use this
form to exercise the warrant.)

FOR VALUE
RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to                                                                            
 whose address is                                                                                                                                           .

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Holder’s Signature:

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Holder’s Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  Signature Guaranteed:

  	
   

  	
   

  
								

 

NOTE:  The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank or trust company. Officers of corporations and those acting in a fiduciary
or other representative capacity should file proper evidence of authority to
assign the foregoing Warrant.

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