Document:

Exhibit
4.4

 

NEITHER THE FACT THAT A REGISTRATION
STATEMENT OR AN APPLICATION FOR A LICENSE HAS BEEN FILED UNDER NEW HAMPSHIRE
REVISED STATUTES ANNOTATED (“RSA”) CHAPTER 421-B WITH THE STATE OF NEW
HAMPSHIRE NOR THE FACT THAT A SECURITY IS EFFECTIVELY REGISTERED OR A PERSON IS
LICENSED IN THE STATE OF NEW HAMPSHIRE CONSTITUTES A FINDING BY THE SECRETARY
OF STATE THAT ANY DOCUMENT FILED UNDER RSA 421-B IS TRUE, COMPLETE AND NOT
MISLEADING.  NEITHER ANY SUCH FACT NOR THE
FACT THAT AN EXEMPTION OR EXCEPTION IS AVAILABLE FOR A SECURITY OR A
TRANSACTION MEANS THAT THE SECRETARY OF STATE HAS PASSED IN ANY WAY UPON THE
MERITS OR QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO, ANY PERSON,
SECURITY, OR TRANSACTION.  IT IS
UNLAWFUL TO MAKE, OR CAUSE TO BE MADE, TO ANY PROSPECTIVE PURCHASER, CUSTOMER,
OR CLIENT ANY REPRESENTATION INCONSISTENT WITH THE PROVISIONS OF THIS
PARAGRAPH.

 

THIS
WARRANT HAS NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES LAWS, AND IS SUBJECT
TO CERTAIN INVESTMENT REPRESENTATIONS. 
THIS WARRANT MAY NOT BE SOLD, ASSIGNED, PLEDGED, OFFERED FOR SALE OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER THE ACT
AND SUCH APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

(WC-10)

WARRANT TO PURCHASE SHARES OF COMMON
STOCK

 

	
  Date of Grant:

  	
   

  	
  March 25, 2004

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
  Intrusion Inc., a Delaware corporation (the “Company”)

  
	
   

  	
   

  	
   

  
	
  Holder:

  	
   

  	
  Black Point Partners, Inc.

  
	
   

  	
   

  	
  100 Cummings Center, Suite
  335A

  
	
   

  	
   

  	
  Beverly, Massachusetts
  01915

  
	
   

  	
   

  	
   

  
	
  Warrant Shares:

  	
   

  	
  257,633

  
	
   

  	
   

  	
   

  
	
  Stock:

  	
   

  	
  Common Stock, $0.01 par value

  
	
   

  	
   

  	
   

  
	
  Initial Exercise Price:

  	
   

  	
  $0.786 per share

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  March 25, 2009

  

 

THIS CERTIFIES THAT, for
value received, the Holder
is entitled to purchase the above number of warrant shares of the Stock
of the Company at a price per share equal to the initial exercise price set
forth above, subject to the provisions and upon the terms and conditions set
forth in this Warrant to Purchase Shares of Common Stock (this “Warrant”).

 

 

1.                                       Definitions.   As used in this Warrant, the following
terms shall have the following meanings:

 

“Board” means the
Board of Directors of the Company.

 

“Common Stock”
means shares of the presently authorized common stock of the Company, $0.01 par
value, and any stock into which such common stock may hereafter be exchanged.

 

“Expiration Date”
means the date so specified above, or such earlier date as may be determined
pursuant to Section 5.

 

“Holder” means the
person or entity so identified above, or any subsequent person or entity who
shall at the time be the holder of this Warrant.

 

“Purchase Price”
means the Warrant Price in effect at the time of exercise of this Warrant,
multiplied by the number of Warrant Shares then being purchased.

 

“Subscription”
means the form of subscription attached hereto as Appendix A.

 

“Warrant Price”
means the Initial Exercise Price at which this Warrant may be exercised, as adjusted
pursuant to Section 4.

 

“Warrant Shares”
means the number of shares of Common Stock so specified above, as adjusted
pursuant to Section 4.

 

Other capitalized terms shall have the definitions given to such terms
elsewhere in this Warrant.

 

2.                                       Term.   The
purchase right represented by this Warrant is exercisable at any time on or
before the Expiration Date.

 

3.                                       Method
of Exercise; Payment; Issuance of New Warrant.

 

3.1.                              Exercise.   This Warrant may be exercised by the
Holder, in whole or in part, by delivering to the Company, at its then
principal office or such other location as the Company may designate, on or
before the Expiration Date:

 

(a)                                  a
duly executed Subscription specifying the number of whole Warrant Shares being
purchased (the “Purchased Shares”);

 

(b)                                 the
original of this Warrant; and

 

(c)                                  payment
of the Purchase Price for the Purchased Shares in accordance with the
provisions of Section 3.2 (or, if applicable, on a “net issuance” basis
pursuant to Section 3.3).

 

3.2                                 Payment.   Except as otherwise provided in Section
3.3, the Purchase Price for the Purchased Shares shall be paid by the Holder
either in cash, by check made payable to the Company drawn on a United States
bank and for United States funds, or by such other method of payment as may be
acceptable to the Company.

 

2

 

3.3                                 Net
Issuance.

 

(a)                                  In
lieu of payment for the Purchased Shares pursuant to Section 3.2, the Holder
may elect (the “Net Issuance Election”) to exercise this Warrant, in
whole or in part, by receiving a number of Warrant Shares equal to the net
issuance value (as determined below) of this Warrant, or any part hereof.  In order to make a Net Issuance Election,
the Holder shall designate such election in the completed Subscription
delivered to the Company.  In such
event, the Company shall issue to the Holder a number of Purchased Shares
computed using the following formula:

 

X = Y (A-B)

A

 

where:                                     X
=             the number of
Purchased Shares to be issued to the Holder

 

Y =              the number of whole
Warrant Shares as to which this Warrant is to be exercised

 

A =            the fair value of a
share of Common Stock (the “Fair Value”) on the date on which the Net
Issuance Election is made, as determined in good faith by the Board

 

B =              the Warrant Price in
effect on the date on which the Net Issuance Election is made

 

(b)                                 No
fractional shares shall be issuable upon exercise of the Net Issuance Election,
and, if the number of Purchased Shares to be issued determined in accordance
with the provisions of subsection (a) above is other than a whole number, (i)
the number of Purchased Shares shall be rounded down to the nearest whole
number, and (ii) the Company shall pay to the Holder an amount in cash equal to
the Fair Value of the fractional share so rounded-down.

 

3.4.                              Issuance
of Certificates and New Warrant.  
In the event of the exercise of this Warrant, a stock certificate for
the Purchased Shares shall be delivered to the Holder within thirty (30) days
following the Company’s receipt of a duly executed Subscription and payment of
the applicable Purchase Price for the Purchased Shares.  If this Warrant is exercised in part, the
Holder is entitled to receive a new Warrant covering the remaining number of
Warrant Shares in respect of which this Warrant has not been exercised.

 

4.                                       Adjustments
to Warrant Price and Warrant Shares.

 

4.1                                 Reclassification, Reorganization,
Consolidation, or Merger.   In the event of any reclassification of the
Common Stock, or any reorganization, consolidation, or merger of the Company
with or into another corporation (other than a merger or reorganization with
respect to which the Company is the continuing corporation and which does not
result in any reclassification of the Common Stock) where the Company has not
accelerated the Expiration Date pursuant to Section 5, the Company, or such
successor corporation, as the case may be, shall execute a new warrant,
providing that the Holder shall have the right to exercise such new warrant and
upon such exercise to receive, in lieu of each share of Common Stock
theretofore issuable upon exercise of this Warrant, the number and kind of
securities receivable upon such reclassification, reorganization,
consolidation, or merger by a holder of shares of Common Stock for each share
of Common Stock.  The aggregate warrant
price of the new warrant shall be the aggregate Warrant Price in effect
immediately prior to the reclassification, reorganization, consolidation, or
merger.  Such new warrant shall provide
for adjustments which shall be as

 

3

 

nearly equivalent as may be practicable to the adjustments provided for
in this Section 4 (including, without limitation, adjustments to the Warrant
Price and to the number of Warrant Shares). 
The provisions of this Section 4.1 shall similarly apply to successive
reclassifications, reorganizations, consolidations, or mergers.

 

4.2                                 Split,
Subdivision, Reverse Stock Split, or Combination of Common Stock.   If, at any time while this Warrant remains
outstanding and unexpired, there shall be a split or subdivision of the Common
Stock or a reverse stock split or combination of the Common Stock, then:

 

(a)                                  in
the case of a split or subdivision, the Warrant Price shall be proportionately
decreased (to the nearest tenth of a
cent), and the number of Warrant Shares shall be proportionately
increased pursuant to Section 4.4; or

 

(b)                                 in
the case of a reverse stock split or combination, the Warrant Price shall be
proportionately increased (to the
nearest tenth of a cent), and the number of Warrant Shares shall be
proportionately decreased pursuant to Section 4.4.

 

Any adjustment under this Section 4.2 shall become effective when the
split, subdivision, reverse stock split, or combination becomes effective.

 

4.3                                 Stock
Dividends.   If, at any time while
this Warrant remains outstanding and unexpired, the Company shall pay a
dividend with respect to the Common Stock that is payable in shares of Common
Stock, then the Warrant Price shall be adjusted (to the nearest tenth of a cent), from and after the date of
determination of the shareholders entitled to receive such dividend, to that
price determined by multiplying:

 

(a)                                  the
Warrant Price in effect immediately prior to such date of determination, times

 

(b)                                 a
fraction, (i) the numerator of which shall be the total number of shares of
Common Stock outstanding immediately prior to such dividend, and (ii) the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately after such dividend.

 

In such event, the number of Warrant Shares shall be proportionately
adjusted pursuant to Section 4.4.  Any
adjustment under this Section 4.3 shall become effective on the record date for
such dividend.

 

4.4                                 Adjustment
of Number of Warrant Shares.   Upon
each adjustment in the Warrant Price pursuant to Sections 4.2 or 4.3, the
number of Warrant Shares shall be adjusted to the product obtained by
multiplying:

 

(a)                                  the
number of Warrant Shares issuable immediately prior to such adjustment in the
Warrant Price, times

 

(b)                                 a
fraction, (i) the numerator of which shall be the Warrant Price in effect
immediately prior to such adjustment, and (ii) the denominator of which shall
be the Warrant Price in effect immediately after such adjustment.

 

4.5                                 No
Other Adjustments.   Except as
expressly provided in this Section 4, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number of shares of Common Stock issuable upon exercise of this
Warrant or the Warrant

 

4

 

Price.  Furthermore, no
adjustments shall be made for dividends paid on the Common Stock in cash or in
property other than shares of Common Stock.

 

5.                                       Acceleration
of Expiration Date in Event of Change of Control.

 

(a)                                  In
anticipation of the occurrence of:

 

(i)                                     the
sale to a non-affiliated third party of all or substantially all of Company’s
assets (an “Asset Sale”); or

 

(ii)                                  the
issuance, sale, or exchange of stock, or a merger, consolidation,
recapitalization, reorganization, or other transaction involving the Company,
after which a majority of the voting power of the Company (or, if applicable,
the surviving corporation or entity) will be held by one or more parties that
do not control a majority of the voting power of the Company immediately before
such transaction (an “Extraordinary Stock Transaction”),

 

the Company shall have the right to accelerate the Expiration Date in
the manner set forth in this Section with respect to any then-unexercised
Warrant Shares.  As used herein, a “Change
of Control” shall mean either an Asset Sale or an Extraordinary Stock
Transaction.

 

(b)                                 If
the Company elects to accelerate the Expiration Date in anticipation of a
Change of Control, written notice of the anticipated Change of Control,
including the date on which the Change of Control is expected to close (the “Expected
Closing Date”) and the accelerated Expiration Date designated by the Company
(the “Accelerated Expiration Date”), shall be mailed (or, at the
Company’s option, hand-delivered) by the Company to the Holder not less than
five calendar (5) days prior to the Accelerated Expiration Date.

 

(c)                                  The
Holder shall be entitled to condition exercise of the Warrant on the closing of
the anticipated Change of Control by providing the Company with a written
notice thereof (the “Conditional Exercise Notice”) contemporaneously
with the delivery of the Holder’s Subscription.  In such event, the Holder’s Subscription and payment for the
Purchased Shares hereunder, and the Purchased Shares issued by the Company
thereby, shall be held in escrow by Company’s attorney or other third party
designated by the Company until either:

 

(i)                                     the
closing on the Change of Control occurs, in which event the Holder’s purchase
of the escrowed Purchased Shares shall be deemed to have occurred immediately
prior to such closing; or

 

(ii)                                  the
Company notifies the escrow agent that such closing will not occur, in which
event this Warrant will be deemed not to have been exercised with respect to
the escrowed Purchased Shares, the Purchased Shares shall be deemed not to have
been issued, and the escrow agent shall return to the Holder the Subscription,
the Conditional Exercise Notice, and any payment for the escrowed Purchased
Shares.

 

(d)                                 Unless
otherwise specified in writing by the Company to the Holder, upon the closing
of a Change of Control this Warrant shall automatically terminate and,
thereafter, the Holder shall have no further rights of purchase with respect to
any remaining unpurchased Warrant Shares.

 

6.                                       Replacement
of Warrant.   Upon receipt by the
Company of (a) evidence reasonably satisfactory to it of the loss, theft,
destruction, or mutilation of this Warrant (and, in such case, of an indemnity
or security reasonably satisfactory to the Company), and (b) reimbursement to
the Company of all reasonable expenses incidental thereto, and upon surrender

 

5

 

and cancellation of this Warrant, if mutilated, the Company will make
and deliver a new Warrant of like tenor to the Holder in lieu of this Warrant.

 

7.                                       No
Stockholder Rights with Respect to Unexercised Warrant Shares.   The Holder shall not be entitled to any rights
of a stockholder of the Company (including, without limitation, the right to
vote, receive dividends or other distributions, or receive notice of any
proceedings of the Company) with respect to any unexercised Warrant Shares.

 

8.                                       Compliance
With Act; Transferability of Warrant.

 

8.1.                              Legends.   This Warrant and any information statement
or stock certificate for the Warrant Shares issued upon exercise thereof shall
be imprinted with a legend in substantially the following form:

 

“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER
EITHER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE
SECURITIES LAWS, AND ARE SUBJECT TO CERTAIN INVESTMENT REPRESENTATIONS.  THESE SECURITIES MAY NOT BE SOLD, ASSIGNED,
PLEDGED, OFFERED FOR SALE OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION UNDER THE ACT AND SUCH APPLICABLE STATE SECURITIES LAWS,
OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED.”

 

8.2.                              Transferability
and Non-Negotiability of Warrant.  
This Warrant may not be transferred or assigned, in whole or in part,
without (a) the written consent of the Company, which may be withheld or given
in the Company’s sole and absolute discretion, and (b) compliance with
applicable federal and state securities laws by the transferor and the
transferee (including, without limitation, the delivery of investment
representation letters and legal opinions reasonably satisfactory to the
Company, if reasonably requested by the Company).

 

9.                                       Miscellaneous.   The terms and provisions of this Warrant
shall be for the benefit of and binding upon the Company and the Holder and
their respective successors and permitted assigns.  This Warrant shall be governed by and construed under the laws of
the State of Delaware, without regard to its conflict of law provisions.  The titles of the sections and subsections
of this Warrant are for convenience only and are not to be considered in
construing this Warrant.  All pronouns
used in this Warrant shall be deemed to include masculine, feminine, and neuter
forms.

 

[Signature Page Follows]

 

6

 

	
   

  	
  Intrusion Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G. WARD PAXTON

  	
   

  
	
   

  	
   

  	
  G. Ward Paxton, Chairman, President & CEO

  

 

 

[Signature
Page to Black Point Partners Warrant]

 

 

APPENDIX A

TO

WARRANT TO PURCHASE SHARES OF COMMON STOCK

 

 

SUBSCRIPTION

 

 

To:                              Intrusion
Inc.

 

 

 

1.                                       The
undersigned, pursuant to the provisions set forth in the attached Warrant
hereby irrevocably elects to purchase certain shares of the Common Stock
covered by such Warrant, as follows (please check/complete as appropriate):

 

o            The
undersigned hereby elects to purchase
                
Warrant Shares (the “Purchased Shares”) for a purchase price (the “Purchase
Price”) equal to
$                
(i.e., the product obtained by multiplying the number of Purchased Shares by
the current Warrant Price of
$            per
share).  The Purchase Price for the
Purchased Shares is being made in cash or by check made payable to the Company
drawn on a United States bank and for United States funds.

 

o            The
undersigned hereby makes a Net Issuance Election to purchase the number of
Warrant Shares (the “Purchased Shares”) determined in accordance with
the following formula (and, for purposes hereof, the number of Warrant Shares
specified as “Y” below is equal to
                ):

 

X = Y (A-B)

A

 

where:                                     X
=             the number of
Purchased Shares to be issued to the undersigned

 

Y =              the number of whole
Warrant Shares as to which this Warrant is to be exercised

 

A =            the fair value of a
share of Common Stock (the “Fair Value”) on the date on which this Net
Issuance Election is made, as determined in good faith by the Board

 

B =              the Warrant Price in
effect on the date on which this Net Issuance Election is made

 

2.                                       The
undersigned is aware that the Purchased Shares have not been registered under
the Securities Act of 1933, as amended (the “Act”), or any state
securities laws.  The undersigned
understands that the reliance by the Company on exemptions under the Act is
predicated in part upon the truth and accuracy of the statements of the
undersigned in this Subscription.

 

1

 

3.                                       The
undersigned represents and warrants that the undersigned has:

 

(a)                                  been
furnished with all information which the undersigned deems necessary to
evaluate the merits and risks of the purchase of the Purchased Shares;

 

(b)                                 had
the opportunity to ask questions concerning the Purchased Shares and the
Company and all questions posed have been answered to the undersigned’s
satisfaction;

 

(c)                                  been
given the opportunity to obtain any additional information it deems necessary
to verify the accuracy of any information obtained concerning the Purchased
Shares and the Company; and

 

(d)                                 such
knowledge and experience in financial and business matters that the undersigned
is able to evaluate the merits and risks of purchasing the Purchased Shares and
to make an informed investment decision relating thereto.

 

4.                                       The
undersigned hereby represents and warrants that the undersigned is purchasing
the Purchased Shares for the undersigned’s own account and not with a view to
the sale or distribution of all or any part of the Purchased Shares.

 

5.                                       The
undersigned understands that (a) because the Purchased Shares have not been
registered under the Act, the undersigned must continue to bear the economic
risk of the investment for an indefinite time, and (b) the Purchased Shares
cannot be sold unless they are subsequently registered under applicable federal
and state securities laws or an exemption from such registration is available.

 

6.                                       The
undersigned agrees that the undersigned will in no event sell or distribute or
otherwise dispose of all or any part of the Purchased Shares unless (a) there
is an effective registration statement under the Act and applicable state
securities laws covering any such transaction involving the Purchased Shares,
or (b) the Company receives an opinion of legal counsel to the undersigned
(concurred in by legal counsel for the Company) stating that such transaction
is exempt from registration or the Company otherwise satisfies itself that such
transaction is exempt from registration.

 

7.                                       The
undersigned consents to the placing of a legend on the stock certificate for
the Purchased Shares stating that the Purchased Shares have not been registered
and setting forth the restriction on transfer contemplated hereby and to the
placing of a stop transfer order on the books of the Company and with any
transfer agents against the Purchased Shares until the Purchased Shares may be
legally resold or distributed without restriction.

 

8.                                       The
undersigned has considered the Federal and state income tax implications of the
exercise of the Warrant and the purchase and subsequent sale of the Purchased
Shares.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Print/type name of Warrant holder

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title (if applicable)

  
						

 

2Exhibit
4.5

 

LOCK-UP
AGREEMENT

 

Lock-Up Agreement (this “Agreement”) is entered into as of
February       , 2004, by and between Intrusion
Inc., a Delaware corporation (the “Company”), and the stockholder of the
Company named on the signature page hereof (the “Stockholder”).

 

RECITALS:

 

A.                                   The Company and certain purchasers (the “Purchasers”)
have entered into a Securities Purchase Agreement dated as of February
      , 2004 (the “Purchase Agreement”), pursuant
to which the Purchasers have agreed to purchase, and the Company has agreed to
sell, shares of the Company’s 5% Convertible Preferred Stock, par value $0.01
per share, and common stock, par value $0.01 per share (the “Common Stock”).

 

B.                                     Stockholder is a stockholder of the Company
and owns and/or controls shares of Common Stock (the “Common Shares”).

 

C.                                     As a condition to the Purchasers entering
into the Purchaser Agreement, Stockholder has agreed to the lock-up set forth
in Section 1 hereof.

 

D.                                    Capitalized terms used in this Agreement but
not otherwise defined herein shall have the meanings ascribed to such terms in
the Purchase Agreement.

 

AGREEMENTS:

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Lock-Up. Stockholder hereby agrees that, except as set forth in Section 2
below, from the date hereof until the date that the Registration Statement is
first declared effective by the Commission (the “Lock-up Period”),
without the prior written consent of the Company and Purchasers owning more
than 50% of the Shares, he will not offer, pledge, sell, contract to sell,
grant any options for the sale of or otherwise transfer, distribute or dispose
of, directly or indirectly (collectively “Dispose of”), any Common
Shares (the “Lock-up”). On and after the day immediately following the
last day of the Lock-up Period, no Common Shares shall be subject to the
Lock-up.

 

2.                                       Permitted Dispositions. The following dispositions of Common Shares
shall not be subject to the Lock-up set forth in Section 1:

 

1

 

(a)                                  Stockholder may Dispose of Common Shares to
his spouse, siblings, parents or any natural or adopted children or other
descendants or to any personal trust in which any such family member or
Stockholder retains the entire beneficial interest;

 

(b)                                 Stockholder may Dispose of Common Shares on
his death to Stockholder’s estate, executor, administrator or personal
representative or to Stockholder’s beneficiaries pursuant to a devise or
bequest or by laws of descent and distribution;

 

(c)                                  Stockholder may Dispose of Common Shares as a
gift or other transfer without consideration; and

 

(d)                                 Stockholder may make a bona fide pledge of
Common Shares to a lender;

 

provided,
however, that in the
case of any transfer of Common Shares pursuant to clauses (a), (c), and (d),
the transferor shall, at the request of the Company, provide evidence (which
may include, without limitation, an opinion of counsel satisfactory in form,
scope and substance to the Company in its sole discretion as the issuer
thereof) satisfactory to the Company that the transfer is exempt from the
registration requirements of the Securities Act.

 

In the event Stockholder Disposes of Common Shares described in this
Section 2, such Common Shares shall remain subject to this Agreement and, as a
condition of the validity of such disposition, the transferee shall be required
to execute and deliver a counterpart of this Agreement. Thereafter, such
transferee shall be deemed to be the Stockholder for purposes of this
Agreement.

 

3.                                       Miscellaneous.

 

(a)                                  Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given other than as initially agreed upon in
writing by the Company, Stockholder and Purchasers owning more than 50% of the
Shares.

 

(b)                                 Successors and Assigns. Stockholder shall not assign any rights or
benefits under this Agreement without the prior written consent of the Company
and Purchasers owning more than 50% of the Shares.

 

(c)                                  Counterparts. This Agreement may be executed in a number
of identical counterparts and it shall not be necessary for the Company and
Stockholder to execute each of such counterparts, but when each has executed
and delivered one or more of such counterparts, the several parts, when taken
together, shall be deemed to constitute one and the same instrument,
enforceable against each in accordance with its terms. In making proof of this
Agreement, it shall not be necessary to produce or account for more than one
such counterpart executed by the party against whom enforcement of this
Agreement is sought.

 

2

 

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

 

(e)                                  Governing Law; Venue. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELWARE, WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OR CHOICE OF LAW. The Company and Stockholder (i)
hereby irrevocably submit to the exclusive jurisdiction of the United States
District Court sitting in the Northern District of Texas and the courts of the
State of Texas located in Dallas County for the purposes of any suit, action or
proceeding arising out of or relating to this Agreement, and (ii) hereby waive,
and agree not to assert in any such suit, action or proceeding, any claim that
he or it is not personally subject to the jurisdiction of such court, that the
suit, action or proceeding is brought in an inconvenient forum or that the
venue of the suit, action or proceeding is improper.

 

(f)                                    Severability. If any provision of this Agreement is held
to be illegal, invalid or unenforceable under present or future laws effective
during the term of this Agreement, such provision shall be fully severable;
this Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part of this Agreement; and the
remaining provisions of this Agreement shall remain in full force and effect
and shall not be affected by the illegal, invalid or unenforceable provision or
by its severance from this Agreement. Furthermore, in lieu of each such
illegal, invalid or unenforceable provision, there shall be added automatically
as a part of this Agreement a provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and be legal, valid and
enforceable.

 

(g)                                 Entire Agreement. This Agreement is intended by the Company
and the Stockholder as a final expression of their agreement and is intended to
be a complete and exclusive statement of their agreement and understanding in
respect of the subject matter contained herein. This Agreement supersedes all
prior agreements and understandings between the Company and the Stockholder
with respect to such subject matter.

 

(h)                                 Third Party Beneficiaries. This Agreement is intended for the benefit
of the Company, Stockholder and the Purchasers and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision
hereof be enforced by, any other person or entity. The Company and Stockholder
each specifically acknowledge and agree that each Purchaser is a third party
beneficiary of this Agreement.

 

3

 

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

 

 

	
   

  	
  INTRUSION INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  G. Ward Paxton, Chairman,
  CEO and President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “STOCKHOLDER”:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  (signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title of signatory:

  	
   

  	
   

  
	
   

  	
  (if not an individual)

  
							

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]