Document:

Common Stock Purchase Warrant

 Exhibit 10.22 
  
 NEITHER THIS SECURITY NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE 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. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT. 
  
 COMMON STOCK PURCHASE WARRANT 
  
 To Purchase
                     Shares of Common Stock of 
  
 Novatel Wireless, Inc. 
  
 THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) CERTIFIES that, for value received,
                             (the “Holder”), is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any time on or after January 13, 2004 (the “Initial Exercise Date”) and on or prior to the fifth anniversary of the Initial Exercise Date (the
“Termination Date”) but not thereafter, to subscribe for and purchase from Novatel Wireless, Inc., a corporation incorporated in the State of Delaware (the “Company”), up to
                     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 $8.833. 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 January 13, 2004, among the Company and the purchasers signatory thereto. In the event of any conflict between the terms of this Warrant and the Purchase Agreement, the Purchase Agreement shall control. 
  
 1. [RESERVED] 
  
 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 after the Initial Exercise Date and before 5 p.m.
(Los Angeles, California time) on the Termination Date by the surrender of this Warrant and the Notice of Exercise Form annexed hereto duly executed, 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 payment of the Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States

  

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bank (the date all of the aforementioned items have been delivered to the Company, the “Exercise Date”), or by means of a cashless exercise
pursuant to paragraph (d) below, the Holder shall be entitled to receive a certificate for the number of Warrant Shares so purchased. This Warrant shall expire at 5 p.m. (Los Angeles, California time) on the Termination Date and be void thereafter.
Certificates for shares purchased hereunder shall be delivered to the Holder within 3 Trading Days after the Exercise Date (the “Warrant Share Delivery Date”); provided, however, at least 3 Trading Days prior to the
Exercise Date, the Holder shall have delivered to the Company a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Notwithstanding anything herein to the contrary, the Warrant Share Delivery Date shall be extended one
Trading Day for each Trading Day the Holder fails to give prior notice of exercise as required hereunder, up to a maximum of 3 Trading Days. This Warrant shall be deemed to have been exercised and such certificate or certificates shall be deemed to
have been issued, and Holder or, subject to compliance with Section 7(a) and with all applicable securities laws, 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 close of business on the Exercise Date. If the Company fails to deliver to the Holder a certificate or certificates representing the Warrant Shares pursuant to this Section 3(a) by the Warrant Share Delivery Date, then the Holder will have
the right to rescind such exercise. In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to deliver to the Holder a certificate or certificates representing the Warrant Shares pursuant to a proper
exercise by the third Trading Day after the Warrant Share Delivery Date, and if after such day 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 Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) 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 Warrant Shares that the Company was required to deliver to the Holder in connection with the
exercise at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which
such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. 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. 
  
 (b) If this Warrant shall have been exercised in part, the Company shall, at
the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in
all other respects be identical with this Warrant. 
  
 (c) The
Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 3(a) or otherwise, to the extent that after giving effect to such issuance after exercise, the Holder (together with the Holder’s affiliates), as set
forth on the applicable Notice of Exercise, would beneficially own in excess of 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to such issuance. For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall
exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its affiliates and (B) exercise or conversion of the 

  

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unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section 3(c), beneficial ownership shall be calculated
in accordance with Section 13(d) of the Exchange Act. To the extent that the limitation contained in this Section 3(c) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder) and of
which a portion of this Warrant is exercisable shall be in the sole discretion of such Holder, and the submission of a Notice of Exercise shall be deemed to be such Holder’s determination of whether this Warrant is exercisable (in relation to
other securities owned by such Holder) and of which portion of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify or confirm the accuracy of such
determination. For purposes of this Section 3(c), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q
or Form 10-K, as the case may be, (y) a more recent public announcement by the Company or (z) any other notice by the Company or the Company’s Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or
oral request of the Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. 

 
 (d) If, but only if, at any time after one year from the date of issuance
of this Warrant there is no effective Registration Statement registering the resale of the Warrant Shares by the Holder, 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 VWAP on the Trading Day immediately preceding the date of such election; 

  

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

  

	 	(X)	= the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

  
 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, subject to compliance with Section 7(a)
and all applicable securities laws, in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant
when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto. 
  
 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. 
  
  

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 7. Transfer, Division and Combination. 
  
 (a) This Warrant and the Warrant Shares shall not be sold,
transferred, pledged or hypothecated unless the proposed disposition is the subject of a currently effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), or unless the Company has
received an opinion of counsel reasonably satisfactory in form and scope to the Company that such registration is not required. Prior to 5 p.m. (Los Angeles, California time) on the Termination Date and subject to compliance with this
Section 7(a) and any applicable securities laws, 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, upon surrender of this
Warrant together with the Assignment Form annexed hereto properly endorsed and funds sufficient to pay any transfer taxes payable upon the making of such transfer. 
  
 (b) Subject to compliance with Section 7(a) and with any applicable securities laws, transfer of this
Warrant and all rights hereunder, in whole or in part, shall be registered on the books of the Company to be maintained for such purpose, upon surrender of this Warrant at the principal office of the Company, together with the Assignment Form
annexed hereto properly endorsed 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. 
  
 (c) Subject to compliance with Section 7(a) and all applicable securities laws, 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. 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. 
  
 (d) The Company shall prepare, issue and deliver at its own
expense (other than transfer taxes) the new Warrant or Warrants under this Section 7. 
  
 The Company agrees to maintain, at its aforesaid office, books for the registration and the registration of transfer of the Warrants. 
  
 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, delivery of a duly executed Notice of Warrant Exercise Form 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, 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. 
  

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 11. Adjustments of Exercise Price and Number of Warrant Shares; Stock Splits, Etc. 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, or (iv) issue any shares of its capital stock in a reclassification of the Common Stock, then 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 in advance thereof. Upon
each such adjustment of the kind and number of Warrant Shares or 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 by the number of Warrant Shares or other securities of the Company that are purchasable pursuant hereto immediately thereafter. An adjustment made pursuant to this paragraph shall become effective immediately after the
effective date of such event retroactive to the record date, if any, for 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 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, 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 and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for any such stock,
either immediately or upon the arrival of a specified date or the happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 12 shall similarly apply to
successive reorganizations, reclassifications, mergers, consolidations or disposition of assets. 
  
 13. Voluntary Adjustment by the Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors of the Company. 
  

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 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 the 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 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, if lawful to do so, (i) at least 20 calendar 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 calendar 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 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 represents that 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 will, upon the issuance of this Warrant, be fully authorized to do so. 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 Trading 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 

  

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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. All questions concerning the
construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement. 
  
 (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 at 5 p.m. (Los Angeles, California time) on the Termination Date. If the Company willfully and
knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to,
reasonable attorneys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 
  
 (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. 
  
 (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 compliance with Section 7(a) and all applicable securities laws and the provisions of this Warrant, 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. 
  

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 (h) Amendment. 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. 
  
 ******************** 
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly
authorized. 
  
 Dated: January 13, 2004 
  
 NOVATEL WIRELESS, INC. 
  
  

			
		
	By:	 	    /s/    PETER V. LEPARULO        
	 	 	

	 	 	 Name:    Peter V. Leparulo
 Title:    Chief Executive Officer

  
  

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 NOTICE OF EXERCISE 
  

	To:	Novatel Wireless, Inc. 

  
 (1) The undersigned hereby elects to purchase              Warrant Shares of Novatel
Wireless, 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): 
  
 [    ] in lawful money of the United States; or

  
 [    ] 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. 
  
 [PURCHASER] 
  
 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:
                                        
         
  
 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.EXHIBIT 4.1

 Exhibit 4.1 

  
 ASSET PURCHASE AGREEMENT 
  
 among 
  
 EURONET WORLDWIDE, INC. 
  
 AUSTIN INTERNATIONAL MARKETING AND INVESTMENTS, INC. 
  
 and 
  
 JOSEPH P. BODINE AND DAVID HAWKINS 
  

  
 Dated: August 23, 2003 
  

  
 TABLE OF CONTENTS

  

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 THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made as of August 23, 2003,
among: 
  
 EURONET WORLDWIDE, INC., a Delaware corporation (the
“Buyer”) whose principal place of business is at 4601 College Boulevard, 66211 Leawood, Kansas 66211; 
  
 Austin International Marketing and Investments, Inc., a Kansas corporation, located at 7009 West 81st, Suite 101, Overland Park, Kansas 66204 (the “Seller”); and 
  
 Joseph P. Bodine, residing at 4314 W. 112th Terrace, Leawood, Kansas 66211, and David Hawkins, residing at 816 Wagon Knob Road, Odessa, Missouri 64076 (Mr. Bodine and Mr. Hawkins are collectively
referred to herein as the “Shareholders”.) 
  
 WHEREAS: 
  
 A. Seller is engaged in the Business, as
defined on Schedule 1 to this Agreement, and desires to transfer to Buyer the Business and all of its properties and assets related to such Business; and 
  

B. Buyer desires to acquire such Business, properties and assets, all upon the terms and conditions set forth herein; 
  
 C. Certain capitalized terms used herein but not defined elsewhere in this Agreement
are defined in Schedule 1 hereof. 
  
 IN CONSIDERATION
of the mutual covenants, agreements, representations and warranties contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller agrees as follows:

  
 1. PURCHASE AND SALE OF ASSETS 
  

	 	1.1.	Purchase and Sale. On the terms and subject to the conditions of this Agreement, Seller will, at Closing, sell, convey, transfer, assign and deliver to Buyer, and Buyer will
purchase and acquire from Seller, free and clear of all liens (except for Permitted Liens), the entire right, title and interest in and to the following assets (“collectively, the “Assets”): 

  

	 	1.1.1.	Personal Property. All furniture, computers, printers, software, files, books, records, tools, supplies, equipment, furnishings, and all other tangible personal property
owned by Seller or used in the Business as of the date hereof or acquired for use in the Business by Seller between the date hereof and the Closing, including the items described in Schedule 1.1.1 (the “Personal
Property”). 

  

	 	1.1.2.	Inventory. All inventory and supplies (the “Inventory”) owned by Seller in the Business as of the Closing, including the PIN, card, and signage inventory
described in Schedule 1.1.2. 

  

	 	1.1.3.	Contract Rights. All Contracts, as defined in Section 2.13, that are assignable to Buyer without consent or for which consent to assignment to Buyer has been obtained on or
before the Closing (the “Transferred Contracts”). 

  

	 	1.1.4.	Accounts Receivable. All accounts receivable (the “Receivables”) of Seller outstanding as of the Closing, including those receivables listed on Schedule
1.1.4. 

  

	 	1.1.5.	Permits. All Permits that are assignable to Buyer. 

  

	 	1.1.6.	Records. All of Seller’s documents, records, files and reports, whether written, printed or electronically stored, related to the Business or the Assets.

  

	 	1.1.7.	Certain Claims. All of Seller’s rights and incidents of interest in and to causes of action, suits, proceedings, judgments, claims and demands of any nature, whenever
maturing or asserted, relating to or arising directly or indirectly out of the Assets or the Business, including all interests in and rights to claims under insurance policies and insurance contracts and claims thereunder. 

 

	 	1.1.8.	Intangible Assets. All goodwill of Seller associated with the Business, all Intellectual Property Rights owned or used by Seller, including the trade name “Austin
International Marketing and Investments, Inc.”, all telephone listings and telephone numbers, all lists of customers, files, books and records and other information relating to the day to day carrying on of the Business by Seller, and all other
rights used by Seller in connection with the Business (collectively, the “Goodwill”). 

  

	 	1.2.	Excluded Assets. Notwithstanding the Assets described in Section 1.1, the properties, assets, rights and interests owned by Seller and listed on Schedule 1.2
(collectively, the “Excluded Assets”) will be retained by Seller and will not be included in the Assets transferred to Buyer at the Closing. 

  

	 	1.3.	Liabilities. Subject to the terms and conditions of this Agreement, Buyer will, as of the Closing Date, assume and agree to discharge only those unpaid obligations and
liabilities and trade payables included in the Seller’s Financial Statements attached hereto as Schedule 2.17.1 and all liabilities and obligations arising after the date hereof with respect to any Contracts transferred to Seller in
accordance with this Agreement. 

  

 2 

	 	1.4.	Payment of Purchase Price. Buyer will pay the purchase price for the Assets as provided in Schedule 1.4 (the “Purchase Price”). Notwithstanding any
provision to the contrary, the payment of the Purchase Price shall not, in any way, be contingent upon either of the Shareholders’ employment or affiliation with Buyer. 

  
 2. REPRESENTATIONS AND WARRANTIES OF SELLER 
  

Seller and the Shareholders, jointly and severally, hereby represent and warrant to Buyer as follows, and acknowledge and confirm that Buyer is relying
upon such warranties and representations in connections with the purchase of the Assets. 
  

	 	2.1.	Organization, Power and Authority. Seller is a corporation duly organized, validly existing and in good standing under the Laws of the State of Kansas, and has the power and
authority to own, operate and lease its properties and carry on the Business as it is presently being conducted. Except for such lack of qualification that will not have a Material Adverse Effect on the Business, the Seller is duly qualified and
licensed to transaction business in each jurisdiction in which the nature of the Business or the location of its properties makes such qualification or licensing necessary. 

  

	 	2.2.	Validity of Agreement. Seller has the authority to execute and deliver this Agreement and the other agreements, documents and instruments entered into or to be entered into
by Seller in connection with this Agreement (this Agreement, together with such other agreements, documents and instruments required to be entered into by Seller by this Agreement being herein referred to collectively as the “Seller’s
Agreements”), to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby without the necessity of any act or Consent of any other Person. The Seller’s Agreements constitute,
or will, when executed and delivered, constitute the valid and legally biding obligations of Seller and the Shareholders, enforceable against the Seller and/or the Shareholders in accordance with their terms. 

  

	 	2.3.	 Conflicts and Defaults. Except as set forth on Schedule 2.3, neither the execution and delivery of Seller’s Agreements by Seller, nor the
performance by Seller of the transactions contemplated hereby will (i) violate or conflict with any of the terms of the Articles of Incorporation or Bylaws of Seller or any provision thereof; (ii) violate or constitute an occurrence of default under
any provision of, or conflict with, or result in acceleration of default under, or give rise to a right by any party to terminate its obligations under, any contract, sales commitment, license, permit, purchase order, security agreement, mortgage,
conveyance to secure debt, note, deed, loan, Lien, lease, agreement, instrument, order, judgment, decree or other arrangement by which any of the Assets are affected; (iii) result in the creation or imposition 

  

 3 

	 	 
of any Liens in favor of any third Person upon any of the Assets; or (iv) result in the violation or breach of or conflict with any Law applicable to Seller
or any of the Assets, except such violations or conflicts as do not have a Material Adverse Affect. Seller is not in violation of its Articles of Incorporation or Bylaws and, to Seller’s knowledge, except as set forth on Schedule 2.3,
Seller is not in violation of or default under any provision of any contract, Permit, order, judgment, decree to which Seller is a party or is bound or by which any of the Assets are affected which would have a Material Adverse Effect, and to
Seller’s and Shareholders’ knowledge there exists no condition or event which, after notice or lapse of time or both, would result in any such violation or default. 

  

	 	2.4.	Ownership of Assets and Leases; Condition. At the Closing Seller will have good and marketable title to or a valid and enforceable leasehold interest in, as the case may be,
the Assets, free and clear of any Liens, except for Liens expressly set forth in the Contracts (“Permitted Liens”). Except in connection with this Agreement, no person has any right to acquire the Assets or any portion thereof.
Since the Balance Sheet Date, none of the Assets have been materially and adversely affected in any way as a result of any casualty, whether or not covered by insurance. 

  

	 	2.5.	Real Property. Schedule 2.5 constitutes a complete and correct list of all Real Property that was leased or used in the Business by Seller. 

 

	 	2.6.	Licenses and Permits. To Seller’s and Shareholders’ knowledge, Schedule 2.6 sets forth a correct and complete list of all Permits required for the conduct of
the Business immediately prior to the Closing under any applicable Law. To Seller’s knowledge, Seller is in compliance with all of the material terms and conditions of the Permits. 

  

	 	2.7.	Nondisclosure and Non-competition Agreements. Except as set forth on Schedule 2.7, Seller is not a party to or bound by any nondisclosure, know-how or other similar
technology agreement relating to the Business, nor is Seller a party to any non-competition agreement or covenant, or any similar agreement relating to the Business. 

  

	 	2.8.	Labor Relations. Seller is not a party to any collective bargaining or union contract and to Seller’s knowledge there is no current union organization effort with
respect to Seller’s employees. During the most recent two-year period, Seller has not received any notice of, and there have not been, any strikes, slowdowns, work stoppages, lockouts or threats thereof, by or with respect to any of
Seller’s employees. 

  

 4 

	 	2.9.	Employees and Employee Plans. 

  

	 	2.9.1.	Schedule 2.9.1 lists (i) all employees of Seller and their respective starting dates, current titles, current rates of pay and benefits and (ii) all Employee Plans.

  

	 	2.9.2.	Neither Seller nor the Shareholders have taken any action directly or indirectly to obligate Seller to adopt any additional Employee Plans. True, correct and complete copies of all
written Employee Plans and related documents, including amendments thereto, any related trust agreements, any documents setting out Seller’s employee policies and procedures, any insurance contracts under which benefits are provided, as
currently in effect, and descriptions of any such plan that is not written, have been supplied to Buyer. 

  

	 	2.9.3.	Seller has fulfilled its obligations, to the extent applicable, under the minimum funding requirements of Section 302 of ERISA and Section 412 of the Code, with respect to each
“employee plan” (as defined in Section 3(2) of ERISA) set forth in Schedule 2.9.1. To Seller’s knowledge, each Employee Plan is in compliance with and has been administered in all respects consistent with, the presently
applicable provisions of ERISA, the Code and other applicable Laws. Seller has made all payments to all Employee Plans as required by the terms of each such plan in accordance, if applicable, with the actuarial and funding assumptions in effect as
of the most recent actuarial valuations of such plans. Seller has funded or will fund each Employee Plan attributable to it in accordance with the terms thereof through Closing, including payment of applicable premiums on any insurance contract
funding an Employee Plan for coverage provided through Closing. To the extent that any annual contribution for the current year is not yet required for any Employee Plan as of the Closing Date, Seller will make a pro rata contribution to such plan
for the period ended at the Closing Date or said contribution will be accrued on the closing balance sheet. 

  

	 	2.9.4.	To Seller’s knowledge, no “prohibited transaction”, as defined in Section 406 of ERISA and Section 4975 of the Code, has occurred in respect of any such Employee
Plan, and no civil or criminal action brought pursuant to Part 5 of Title I of ERISA is pending or to Seller’s knowledge threatened in writing or orally against any fiduciary of any such plan. 

  

	 	2.10. 	Litigation. 

  

	 	2.10.1. 	 Except as set forth on Schedule 2.10.1, no litigation, action, suit, judgment, investigation, claim or proceeding is pending or to Seller’s knowledge
threatened against Seller or the Assets, either at Law or in equity, before any Governmental Authority or any arbitration panel. To 

  

 5 

	 	 
Seller’s knowledge, there are no facts or circumstances or other events which have occurred that reasonably can be expected to give rise to any such
litigation. 

  

	 	2.10.2. 	There are no obligations or restrictions imposed on Seller, Seller’s conduct of the Business or the Assets as a result of any litigation involving Seller or the Assets.

  

	 	2.11. 	Tax. 

  

	 	2.11.1. 	Except as set forth on Schedule 2.11.1, Seller has, as of the date hereof, correctly and properly prepared, and will prior to Closing have duly and timely filed, all Tax
Returns required to be filed by it prior to such dates and has timely paid, or will prior to Closing timely pay, all Taxes shown as due on such returns and reports, including all withholding or other payroll related taxes shown on such returns and
reports. No assessments or notices of deficiency or other communications have been received by Seller with respect to any such Tax Return which has not been paid in full, completely discharged or fully reserved in the Seller Financial Statements.
There are no agreements between Seller and any Governmental Authority, including the Internal Revenue Service, waiving or extending any statute of limitations for assessment or collection with respect to any Tax Return which Seller has filed.

  

	 	2.11.2. 	Except as set forth on Schedule 2.11.2, Seller (i) has timely withheld proper and correct amounts in compliance with the Tax withholding provisions of all applicable Laws for
all compensation paid to Seller’s officers and employees, (ii) has correctly and properly prepared and duly and timely filed all returns and reports relating to those amounts withheld from its officers and employees and to its employer
liability for employment Taxes under the Code and applicable state and local Laws and (iii) has duly and timely paid and remitted to the appropriate Governmental Authorities the amounts withheld from its officers and employees and any additional
amounts that represent its employer liability under applicable Law for employment Taxes, except where the failure to take any of the above actions could not reasonably be expected to have a Material Adverse Effect. 

  

	 	2.11.3. 	No issue has been raised by the Internal Revenue Service or any state or local Governmental Authority in connection with any audit of Tax Returns or reports which Seller has filed
that will have, or can be expected to have, a Material Adverse Effect. 

  

	 	2.11.4. 	The Seller Financial Statements include for all periods up to and including the Closing Date, adequate provision for all unpaid applicable Taxes hereof relating to Seller.

  

 6 

	 	2.11.5. 	Seller is not a “United States real property holding corporation” as defined in Section 897(c)(2) of the Code. 

  

	 	2.11.6. 	Seller is not a party to any tax sharing agreement. 

  

	 	2.12. 	Compliance with Laws. Except as set forth on Schedule 2.12, to Seller’s knowledge Seller has complied with all Laws, except where the failure of Seller to comply
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. To Seller’s knowledge, no fact, circumstance, condition or situation exists which, after notice or lapse of time or both, would constitute
noncompliance by Seller (except where such noncompliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect) or give rise to any future liability of Seller with respect to any Laws heretofore or
currently in effect. Seller is not required to make any unusual expenditure to achieve or maintain compliance with any Laws. Seller has not received notice of any violation of any Law, or any potential liability under any Law, nor is Seller aware of
any such violation. Except as set forth on Schedule 2.12, to the knowledge of Seller, there is not any present requirement of any applicable Law which is due to be imposed on Seller or the Assets that is reasonably likely to increase the cost of
complying with such Laws. 

  

	 	2.13. 	Contracts. Schedules 2.13 (a), (b) and (c) to this Agreement constitute a complete and accurate list of each contract, lease, agreement, engagement or commitment,
whether oral or written, express or implied relating to the Business, to which Seller is a party by which Seller or any of the Assets is bound (the “Contracts”). Schedule 2.13(a) includes a complete and accurate list of all
carriers or providers of wireless or land based telecommunications services from which Seller has purchased the Products or other telecommunications time or services (“Telecom Carriers”), together with a list of all contracts or
amendments thereto that have been entered into between such Telecom Carriers and Seller. Schedule 2.13(b) constitutes a complete and accurate list of all persons or entities acting as resellers of telecommunications services, and includes a
complete and accurate list of (i) all ISOs, agents or distributors who are promoting the sale of the Products or are commissioned based on the sales of the Products, including all undocumented relationships with agents and distributors
(“Undocumented Agency Relationships”); and (ii) all merchants or retailers offering the Products for sale, including those operating POS terminals. Schedule 2.13(c) is a complete and accurate list of all other
contracts entered into by Seller or the Shareholders in connection with the Business. In each case, Schedule 2.13 indicates the name and address of the contracted party and identifies the type of contract concerned. Seller has delivered or made
available to Buyer complete copies of all Contracts and all modifications or amendments thereto. 

  

 7 

	 	2.14. 	Consents. The parties acknowledge that many of the Contracts require consent of the other contracting party prior to an assignment or transfer thereof and that consents, in
many cases, will not be obtained. Buyer and (subject to the terms of Section 4.1) Seller will continue to attempt to obtain consents to assignment for all of the Contracts following the Closing. 

  

	 	2.15. 	Brokers, Finders and Agents. Seller is not directly or indirectly obligated to anyone acting as an agent, broker, finder or in any other similar capacity in connection with
this Agreement or Seller’s Agreements or the transactions contemplated hereby or thereby. 

  

	 	2.16. 	Insurance. Schedule 2.16 to this Agreement constitutes a full and complete list of all insurance policies maintained by Seller with respect to the Assets. All such
policies are in full force and effect and, to Seller’s knowledge, no event has occurred that would give any insurance carrier a right to terminate any such policy. All premiums due on such policies have been paid in full.

  

	 	2.17. 	Financial Matters and Liabilities of Seller. 

  

	 	2.17.1. 	Schedule 2.17.1 to this Agreement contains true, correct and complete copies of Seller’s balance sheets as of July 31, 2003, and the related statements of earnings and
retained earnings (the “Seller Financial Statements”). The Seller Financial Statements are complete, have been prepared in accordance with Seller’s normal practices, fully and properly reflect all transactions of the Seller,
fairly present the financial condition of Seller as of the respective dates thereof and disclose all known liabilities of Seller, whether absolute, contingent, accrued or otherwise, existing as of the date thereof. 

  

	 	2.17.2. 	Seller has, and the Business is subject to, no liability or obligation (whether accrued, absolute, contingent or otherwise), except for (a) the liabilities and obligations which are
disclosed or reserved against in the Seller Financial Statements to the extent and in the amounts so disclosed or reserved against, and (b) liabilities incurred or accrued in the Ordinary Course since the Balance Sheet Date.

  

	 	2.17.3. 	Since the Balance Sheet Date, except for the payment of available cash to the Shareholders at or prior to Closing, there has not been (i) any Material Adverse Change in
Seller’s financial condition or the financial condition, (ii) any sale or transfer of any assets or properties except in the Ordinary Course with suitable replacements therefor, or (iii) capital expenditures by Seller involving payment in the
aggregate in excess of $5,000. 

  

	 	2.17.4. 	 The Financial Projections referred to in Schedule 2.17.4 reflect Seller’s good faith estimate of the future financial performance of Seller. To the
knowledge of Seller, except as disclosed in the Financial Projections or 

  

 8 

	 	 
any commentary thereto furnished by Seller, there are no market or business conditions or developments relating to the Business that could reasonably be
expected in the future to have a Material Adverse Effect. 

  

	 	2.18. 	Accounts Payable. All the accounts payable of the Business reflect actual transactions and have been incurred by Seller in the Ordinary Course. 

  

	 	2.19. 	Accounts Receivable. All the Receivables will reflect actual transactions, have arisen from bona fide transactions in the Ordinary Course and are not subject to any material
setoff or counterclaim. 

  

	 	2.20. 	Intellectual Property. 

  

	 	2.20.1. 	The Intellectual Property Rights constitute the only intellectual property rights used by Seller in connection with the conduct of the Business. 

  

	 	2.20.2. 	Seller has no patents, registered copyrights or registered trademarks, trade names or service marks or applications therefor. 

  

	 	2.20.3. 	Except as set forth on Schedule 2.20.3, Seller owns and has the exclusive right to use and sell, transfer and convey to Buyer the Intellectual Property Rights free and clear
of all Liens and free from any past, present or future royalty payments, license fees, charges or other payments, conditions or restrictions. 

  

	 	2.20.4. 	To the best knowledge of Seller, except as set forth in Schedule 2.20.4, there is no unresolved claim or demand by any third party asserting a conflict with the rights of
others in connection with Seller’s use of any of the Intellectual Property Rights in connection with the conduct of the Business, except inconsequential claims or demands that could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. 

  

	 	2.20.5. 	Except as set forth on Schedule 2.20.5, to the knowledge of Seller the conduct by Seller of the Business does not infringe upon and no claim or allegation has been made that
the conduct of the Business infringes upon any trademark, trade name, service mark, patent, invention, know-how, copyright, confidential business information, trade secret, proprietary information, industrial design, drawing, process, or formula
owned or licensed by any third party. 

  

	 	2.21. 	Customers and Suppliers. Schedule 2.21 lists the material customers and suppliers of the Business as of the Balance Sheet Date, and there has been no termination or
cancellation of, and no material modification or material change in, Seller’s business relationship with any material customer or group of customers or suppliers. 

  

 9 

	 	2.22. 	Operation of Business. Except for the distribution of cash to Shareholders at or prior to Closing, since the Balance Sheet Date the Seller has conducted the Business in the
Ordinary Course (as defined herein) and has not engaged in any action that would have violated Section 4.6 hereof had such Section applied to the Seller during such time period. 

  

	 	2.23. 	Disclosure. This Agreement and the Schedules hereto disclose all facts material to Seller and the Assets. Neither this Agreement nor any other certificate, financial
statement or other document delivered to Buyer in connection therewith contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements and facts contained therein, in light of the circumstances in
which they were or are made, not false or misleading. Any disclosure made in any Schedule hereto shall be deemed to be made in any other Schedule where applicable. 

  

	 	2.24. 	Accuracy. The representations and warranties of Seller set forth in this Agreement are true and correct on the date of this Agreement and will be true and correct as of the
Closing (with the same force and effect as if such representations and warranties were made anew at and as of the Closing). 

  
 3. REPRESENTATIONS AND WARRANTIES OF BUYER 
  
 Buyer hereby represents and warrants to Seller as follows: 
  

	 	3.1.	Organization, Power and Authority. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the corporate
power and authority to own, operate and lease its properties and to carry on its business as presently being conducted. 

  

	 	3.2.	Validity of Agreement. This Agreement, together with the other agreements, documents and instruments required to be entered into by Buyer by this Agreement (collectively,
“Buyer Agreements”), will, when executed and delivered by Buyer, constitute the legal, valid and binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms. The Buyer has the corporate power
and authority to enter into the Buyer Agreements and to undertake and perform fully the transactions contemplated hereby and thereby. 

  

	 	3.3.	Conflicts and Defaults. Neither the execution and delivery of the Buyer Agreements by Buyer nor the performance by Buyer of the transactions contemplated hereby or thereby
will violate or conflict with any of the terms of the Articles of Incorporation or Bylaws of Buyer or any provisions thereof. 

  

	 	3.4.	 Capitalization of Buyer. The authorized capital stock of Buyer consists of (i) sixty million (60,000,000) shares of common stock, $0.02 par value per 

  

 10 

	 	 
share (“Common Stock”), of which, as of June 30, 2003, approximately 26,681,768 were outstanding, and (ii) ten million (10,000,000) shares
of preferred stock, $1.00 par value per share, none of which are outstanding. All of the outstanding shares of Common Stock have been validly issued and are fully paid, nonassessable and not subject to any preemptive rights, and all shares of Common
Stock issued pursuant to this Agreement will be, when issued, duly authorized and validly issued, fully paid, nonassessable and not subject to any preemptive rights. All of the outstanding shares of Common Stock and options and warrants to purchase
shares of Common Stock (collectively, “Buyer Securities”) were issued in compliance with the Securities Act and applicable state securities laws. There are no stockholder agreements, voting trusts or other arrangements or understandings to
which Buyer is a party or by which it or the Buyer’s Board of Directors is bound. Approximately 925,000 shares of Buyer are issued and held by Buyer in its treasury as of the date hereof. 

  

	 	3.5.	SEC Reports; Financial Statements. Buyer has filed all required forms, reports and documents with the SEC since it became subject to the reporting requirements of the
Securities Exchange Act of 1934 (“Buyer SEC Reports”), and each of such Buyer SEC Reports complied at the time of filing in all material respects with all applicable requirements of the Securities Act and the Exchange Act, as
applicable, in each case as in effect on the dates such forms reports and documents were filed. None of the Buyer SEC Reports, including any financial statements or schedules included or incorporated by reference therein, contained when filed any
untrue statement of a material fact or omitted to state a material fact required to be stated or incorporated by reference therein or necessary in order to make the statements therein in light of the circumstances under which they were made not
misleading, except to the extent superseded by a Buyer SEC Report filed subsequently and prior to the date hereof. Each of the consolidated financial statements (including, in each case, any related notes and schedules thereto) contained in the
Buyer SEC Reports (the “Buyer Financial Statements”) have been prepared in all material respects in accordance with United States generally accepted accounting principles consistently applied and maintained throughout the periods
indicated, except where noted therein, and fairly present in all material respects the consolidated financial condition of Buyer at their respective dates and the results of their operations and changes in financial position for the periods covered
thereby, in each case in conformity with United States generally accepted accounting principles (subject to, in each case, normal year- end adjustments and except that unaudited financial statements do not contain all footnotes required for audited
financial statements). 

  

	 	3.6.	 Consents and Approvals; No Violations. Except for filings, permits, authorizations, consents, and approvals as may be required under and other applicable
requirements of the Securities Act of 1933, the Exchange Act, state securities or “blue sky” laws, no filing with or notice to, and no permit 

  

 11 

	 	 
authorization consent or approval of any governmental entity is necessary for the execution and delivery by Buyer of this Agreement or the consummation by
Buyer of the transactions contemplated hereby, except where the failure to obtain such permits, authorizations, consents or approvals or to make such filings or give such notice would not, individually or in the aggregate, have a Material Adverse
Effect on Buyer. Neither the execution, delivery and performance of this Agreement by Buyer nor the consummation by Buyer of the transactions contemplated hereby will (i) conflict with or result in any breach of any provision of the Certificate of
Incorporation or bylaws of Buyer; (ii) result in a violation or breach of or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, amendment, cancellation or acceleration or Lien) under
any of the terms, conditions or provisions of any note, bond, mortgage, indenture, lease, license, contract, agreement or other instrument or obligation to which Buyer is a party or by which any of them or any of their respective properties or
assets may be bound or (iii) violate any order, writ, injunction, decree, law, statute, rule or regulation applicable to Buyer or any of their respective properties or assets except, in the case of the foregoing clause (ii) or (iii), for violations,
breaches or defaults that would not, individually or in the aggregate, have a Material Adverse Effect on Buyer. 

  

	 	3.7.	Brokers, Finders and Agents. Buyer is not directly or indirectly obligated to anyone acting as a broker, finder or in any other similar capacity in connection with the Buyer
Agreements or the transactions contemplated hereby or thereby. 

  

	 	3.8.	Accuracy. The representations and warranties of Buyer set forth in this Agreement are true and correct on the date of this Agreement and will be true and correct as of the
Closing (with the same force and effect as if such representations and warranties were made anew at and as of the Closing). 

  
 4. COVENANTS OF SELLER AND THE SHAREHOLDERS 
  

	 	4.1.	 Procure Consents and Agreements. Seller will use all commercially reasonable efforts to (a) obtain any Consents required under this Agreement prior to
Closing and (b) provided that the Shareholders shall not be required to devote time to any tasks which the Shareholders believe, in the their reasonable opinion, will be detrimental to maximizing Gross Profits from the Business Unit, obtain such
other Consents to assignment of Contracts that are not Transferred Contracts following the Closing. With respect to any Contracts that are not Transferred Contracts, from and after the Closing the Parties will implement or enter into arrangements
which produce, in the reasonable opinion of Buyer the economic effect (as between the Parties) of an assignment to the Buyer. Such arrangements will, in all cases, include delegation to Buyer of the performance obligations of Seller and the transfer
to Buyer of all revenues received under such Contracts. Upon the request of 

  

 12 

	 	 
Buyer from and after the Closing, Seller will execute one or more amendment(s) to the Assignment and Assumption Agreement attached as Exhibit B to this
Agreement, including as a new schedule thereto a list of any Contracts that were not assigned to Buyer at Closing, but were able to be assigned to Buyer following the Closing. 

  

	 	4.2.	Goodwill. Seller will use all commercially reasonable efforts to protect the ongoing Goodwill of Seller’s Business and to maximize the possibility that key employees and
key independent contractors will commence an association with Buyer after the Closing Date. 

  

	 	4.3.	Access to Information. Seller will allow Buyer and its attorneys, accountants and other representatives have full access during regular business hours to the Assets and all
properties (including the Real Property), books, accounts, records, contracts and documents of or relating to Seller, the Assets and the Business. Seller agrees to furnish to Buyer and its representatives all relevant data and information concerning
the Assets, and Seller may be reasonably requested by Buyer to conduct a complete and thorough due diligence review of the Assets and Seller. Buyer will be able to prepare such extracts from or make copies of such data and information as Buyer may
reasonably request. 

  

	 	4.4.	Insurance. Seller will maintain in full force and effect through the Closing Date Seller’s existing policies of insurance. The Assets will remain at the risk of Seller
until the Closing. In the event of any material loss, Buyer may have the proceeds of insurance and complete the purchase of the Shares, or may cancel this Agreement. 

  

	 	4.5.	Further Assurances. From and after the Closing, Seller and the Shareholders, will execute all documents and do all such further deeds, acts, things and assurances that may be
reasonably requested by Buyer for more perfectly and absolutely assigning, transferring, assuring to and vesting in Buyer title to the Assets in accordance herewith, and for carrying out the intention of or facilitating the performance of the terms
of this Agreement. 

  

	 	4.6.	Conduct of Business Pending Closing. Prior to and through the Closing, except for the distribution at or prior to the Closing of available cash to the Shareholders, Seller
will: 

  

	 	4.6.1.	conduct the Business only in the Ordinary Course; 

  

	 	4.6.2.	make no increase in the compensation payable to or agreements with any employee or agent of Seller; 

  

	 	4.6.3.	not transfer, license or otherwise dispose of or agree to transfer, license or otherwise dispose of any of the Assets, except in the Ordinary Course; 

  

 13 

	 	4.6.4.	not enter into any compromise or settlement of any litigation, action, suit, claim, proceeding or investigation; 

  

	 	4.6.5.	not make any commitment to hire any individual as an employee, except to replace a current employee on substantially the same terms as the employee being replaced was employed;

  

	 	4.6.6.	not enter into any potential transaction or other arrangement with any officer, director, shareholder or Affiliate of Seller; 

  

	 	4.6.7.	promptly advise Buyer in writing of any matters arising or discovered after the date of this Agreement which, if existing or known at the date hereof, would be required to be set
forth or described in this Agreement or the Schedules hereto; 

  

	 	4.6.8.	not make any material changes in its accounting methods or practices. 

  

	 	4.7.	Net Assets. As of the date if the Closing, net assets associated with the Business shall be at least $0.00. Seller will distribute to the Shareholders all cash of Seller
prior to the Closing Date, provided that such distribution shall not result in a net assets at Closing of less than $0.00 at the Closing. As used in this Agreement, “net assets” means (a) current assets, excluding all accounts receivable
aged over 90 days less (b) current liabilities (as determined in accordance with Seller’s normal practice), excluding the current portion of Seller’s long-term debt and any liabilities paid out of the Purchase Price at the Closing,
[in each case as calculated in accordance with GAAP.] Seller will pay to Buyer in cash on or prior to the date which is 60 days after the Closing Date, an amount equal to the amount of working capital less than $0.00 as of the Closing Date.

  

	 	4.7.1.	If less than all of the Receivables (net of any allowance for doubtful accounts included in the foregoing calculation of working capital) have been collected by Seller in full by
the four month anniversary of the Closing Date (the “AR Collection Date”), Buyer may deliver a notice to Seller, which notice will include the dollar amount of the Receivables not collected as of the AR Collection Date. Within 30
days after Seller receives such notice, Seller will pay to Buyer the amount specified in the notice. If, after any payment is made under the previous sentence, Buyer receives payment of any of the Receivables covered by such payment, Buyer will
reimburse Seller for the amount received within 30 days of the date of receipt of such payment. Legal fees incurred by the Seller in connection with this Agreement are the responsibility of the Seller and are not included in current liabilities.

  

	 	4.7.2.	 If less than all of the wireless PIN Inventory transferred as of the Closing (net of any obsolescence and aged allowance or write down in the 

  

 14 

	 	 
foregoing calculation of working capital and Schedule 1.1.2) has been sold or otherwise productively used in full in the normal course of business
operations by the six month anniversary of the Closing (the “Inventory Sale Date”), the Buyer may deliver a notice to Seller, which notice will include the dollar amount of such Wireless PIN Inventory not sold or used as of the
Inventory Sale Date. Within 30 days after Seller receives such notice, Seller will pay to Buyer the amount specified in the notice. If, after any payment is made under the previous sentence, Buyer is able to sell any such Wireless PIN Inventory
covered by such payment, Buyer will reimburse Seller for the amount received within 30 days of the date of receipt of proceeds from such sale. 

  

	 	4.8.	Bank Accounts. Except after prior notification to, and with the prior written consent of, Buyer, Seller will not make, between the date of this Agreement and the Closing, any
change in its banking or safe deposit arrangements or grant any powers of attorney. 

  

	 	4.9.	Filing. Any transfer, stamp or sales Taxes or other similar state, federal or local Taxes attributable to the transfer of the Assets as contemplated by this Agreement,
together with all recording fees related to such transfer, will be borne and paid for by Seller. 

  

	 	4.10. 	Satisfaction of Conditions. Seller will use all commercially reasonable efforts to satisfy promptly all conditions precedent to the obligations of Buyer to consummate the
transactions contemplated by this Agreement. 

  

	 	4.11. 	Tax Matters. 

  

	 	4.11.1. 	 Seller covenants to correctly and properly prepare, and duly and timely file, with the appropriate federal, state and local Governmental Authorities, all Tax
Returns for all periods ending on or before the Closing including final payroll and unemployment Tax Returns and short period or interim federal and state Tax Returns on behalf of Seller for the period ending on the Closing Date, and to duly and
timely pay all Taxes due for such periods. For purposes of this Section 4.11, any such Tax Returns will be deemed timely filed if Seller has obtained an extension from the appropriate Governmental Authority as to the time in which it may file such
Tax Return, and Seller duly files such Tax Return with the appropriate Governmental Authority on or before the extended due date for such Tax Return or such extension remains in effect as of the Closing Date. Seller will submit all such Tax Returns
and to provide copies thereof to Buyer at least five business” days prior to the date they must be filed, and in the case of the short period or interim Federal tax Return, in no event later than May 31, of the year following the Closing. All
Taxes against or in respect of the Assets or the Business for the taxable period which includes the Closing Date shall be prorated between Buyer and 

  

 15 

	 	 
Seller as of the Closing Date. If the amount of such Taxes cannot be ascertained as of the Closing Date, proration shall be made on the basis of the
preceding year and to the extent that such proration may be inaccurate, Seller and Buyer agree to make such payment to the other after the tax statements have been received which are necessary to allocate such Taxes properly between Seller and Buyer
as of the Closing Date. 

  

	 	4.11.2. 	Seller covenants to correctly and properly to prepare, and distribute to all of its employees and to duly and timely file with the appropriate federal, state and local Governmental
Authorities all “W-2,” “1099,” or “SIT” type reports of employee earnings for all periods ending on or before the Closing. 

  

	 	4.11.3. 	If, in connection with any examination, investigation, audit or other proceeding concerning any Tax Return covering the operation of the Business on or before the Closing Date, any
Governmental Authority issues to Buyer a notice of deficiency, a proposed adjustment, an assertion of claim or a demand (collectively, an “Audit”) concerning a tax period covered by such Tax Return, Buyer will notify Seller that it
has received the same within 20 days of its receipt. 

  

	 	4.11.4. 	Seller will have the right to control of any Audit that relates solely to Kansas state income taxes or United States federal income taxes for tax periods ending on or before the
Closing Date. Seller will not resolve, settle, compromise or abandon any issue or claim relating to the Audit without the prior written consent of Buyer, which consent will not be unreasonably withheld. 

  

	 	4.11.5. 	In the event Seller receives a refund as a result of an Audit for a tax period ending on or before the Closing Date, Buyer will, promptly after receiving such refund, pay to Seller
an amount equal to that portion of such refund relating to such pre-Closing tax period. 

  

	 	4.12. 	Change of Name. Within 30 days of the Closing, Seller will change its corporate name and will not, at any time after the Closing, use the name “Austin International
Marketing and Investments, Inc.” or any name that is similar to that name. 

  

	 	4.13. 	Shareholders’ Obligations. The Shareholders, jointly and severally, hereby accept as primary obligations, and guarantee the full and timely performance by the Seller of,
any and all obligations of the Seller under this Agreement. In the event that the Seller is liquidated or becomes unable for any reason to perform its obligations hereunder, Buyer shall be entitled to enforce performance of any of Seller’s
obligations hereunder directly against either of the Shareholders. 

  

 16 

 5. CERTAIN COVENANTS 
  

	 	5.1.	Cooperation with Shareholders After Closing. For the period from the Closing up to and including the second anniversary of the Closing, Seller shall (i) permit the
Shareholders, as employees of Seller, to devote their full time and efforts to the development of the Business and (ii) refrain from taking any action the principal intention of which is to diminish the amount of the Purchase Price payable to the
Seller under this Agreement. Notwithstanding the above, and provided that the Shareholders shall not be required to devote time to any tasks which the Shareholders believe, in their reasonable opinion, will be detrimental to maximizing Gross Profits
from the Business Unit, the Seller may require the Shareholders to devote time to the following: 

  

	 	5.1.1 	obtaining the assignment to Buyer of any Contracts which were not assigned at Closing, or if any Contracts cannot be assigned, to obtaining new agreements signed directly with
Buyer. 

  

	 	5.1.2 	the integration of the Business into the Buyer’s PaySpot operations, (as defined in Schedule 1.4). Tasks involved in such integration shall include (i) systems development and
integration, (ii) branding and re-branding of existing retail outlets to PaySpot logos and materials, (iii) implementation of PaySpot policies and procedures at retail outlets, and (iv) establishment and improvement of terms or relationships with
service providers to PaySpot. 

  

	 	5.1.3 	reporting, administrative or general management responsibilities related to the Business Unit that are comparable to those required of other management level employees of Buyers.
Such responsibilities will include creation and presentation of regular budgets and forecasts, monthly reporting and compliance with administrative formalities or corporate policies that are applicable to management employees of Buyer generally.

  
 Seller acknowledges that following the Closing
(i) Buyer will cease to purchase PINs from Verizon for sale in any markets that are not included in the permitted distribution territory under the Seller’s agreement with Verizon. The parties will use commercially reasonable efforts to ensure
that Verizon PINs will continue to be available for distribution by the Business Unit after Closing. Neither this action, nor any other action that is taken by Buyer to bring the Business Unit in compliance with the terms of the Contracts or any
Permits required for the operation of the Business Unit after the Closing, will be considered an action of Buyer that violates clause (ii) above. 
  

	 	5.3	 Adjustment in Stock. If, between the date of the execution of this Agreement and prior to the Closing, the Common Stock of Buyer shall be recapitalized or
reclassified, the Buyer shall effect any stock dividend, stock split, or reverse stock split of the Common Stock of Buyer, or the Buyer shall merge, 

  

 17 

	 	 
consolidate, reorganize, or enter into another business combination with any other corporation or shall sell or exchange all or substantially all of its
assets, in each case in a transaction in which the Common Stock of the Buyer is exchanged for securities of the other corporation, then the shares of Common Stock to be delivered under Section 1.4 shall be appropriately and equitably adjusted
to the kind and amount of shares of stock and other securities and property to which the holders of those shares of the Buyer’s Common Stock would have been entitled had the stock been issued and outstanding as of the record date for
determining stockholders entitled to participate in that corporate event. The provisions of this Section 5.3 shall apply to successive mergers, consolidations, reorganizations, and combinations. 

  
 6. SURVIVAL OF REPRESENTATIONS. 
  
 Notwithstanding any investigations or inquiries made by Buyer or the waiver
of any conditions by Buyer, the representations, warranties, covenants and agreements of Seller will survive the Closing and, notwithstanding the closing of the purchase and sale provided for in this Agreement, will continue in full force and effect
without any time limitation except that those representations and warranties of Seller made in (a) Section 2.11 will survive the Closing and will continue in full force and effect only until 90 days after the expiration of the applicable statute of
limitations applicable to any claim against Seller or any other Buyer Indemnified Party in connection with the matters covered by such representations and warranties and (b) Sections 2.1, 2.3 (ii) through (iv), 2.4, 2.5, 2.6, 2.7, 2.8, 2.9 and 2.10,
and 2.12 through 2.22, inclusive and, to the extent applicable to the foregoing, Section 2.23 and 2.24 will survive the Closing and continue in full force and effect only until the second anniversary of the Closing Date. Notwithstanding any term or
condition to the contrary set forth herein, Buyer’s sole and exclusive remedy for any breach or violation of any term or condition of this Agreement or any Exhibit or Schedule hereto, including, without limitation, the representations and
warranties of the Seller and Shareholders, shall be a claim for indemnification under Section 7 below. 
  
 7. INDEMNITY 
  

	 	7.1.	Indemnification by Buyer. From and after the Closing, Buyer will indemnify, defend and hold Seller and the Shareholders harmless from and against any and all Losses suffered
or incurred by Seller or the Shareholders resulting or arising from any breach of, or misrepresentation in, the representations, warranties and covenants of Buyer contained in this Agreement or in the documents delivered pursuant to this Agreement.

  

	 	7.2.	 Indemnification by Seller. Subject to Section 7.3, from and after the Closing, Seller and the Shareholders will, jointly and severally, indemnify, defend and
hold Buyer and its Affiliates and Buyer’s and its Affiliates’ respective officers, directors, employees, parties, agents, and attorneys (collectively, the “Buyer Indemnified Parties”) harmless from and against any
and all Losses suffered 

  

 18 

	 	 
or incurred by Buyer Indemnified Parties, directly or indirectly, caused by, resulting from or arising out of (i) the failure of Seller to perform any
covenant, obligation or agreement of Seller contained in this Agreement or in Seller’s Agreements, or (ii) any breach by Seller of any representation or warranty of Seller contained in this Agreement or in the documents delivered pursuant to
the provisions of this Agreement, or (iii) any suit, action, proceeding, claim or investigation (a “Claim”) pending or threatened against or affecting the Business or any of the Assets arising from any matter or state of facts
existing prior to Closing, including any Claim of any Governmental Authority or any party to any contract with Seller or who has otherwise, directly or indirectly through its agents or distributors, conducted business with Seller; (v) any Claim made
or filed by any person claiming that any Intellectual Property violates any patent or other rights of such person, (vi) any Claim arising from or in connection with any Excluded Assets or any liability that has not been expressly assumed by the
Buyer under this Agreement; (v) any Claim of a trustee or receiver or other interested party in connection with or as a result of or otherwise following the insolvency, reorganization or bankruptcy of Seller, whether made or filed as part of formal
bankruptcy or reorganization proceedings or otherwise, which claim, demand, action, proceeding or lawsuit in any way challenges, seeks to set aside or deprive Buyer of the benefits of the transaction contemplated by this Agreement.

  

	 	7.3.	Basket. Notwithstanding the provisions of Section 7.2: 

  

	 	7.3.1.	the Seller and Shareholders will be liable for indemnification hereunder only if the aggregate of all indemnification claims brought by Buyer exceeds the amount of $75,000 (the
“Indemnification Basket”). If the amount of indemnification claims brought by Buyer exceeds the Indemnification Basket at any time, Seller and/or the Shareholders will be liable for the full amount of such claims, starting from the
first dollar. 

  

	 	7.3.2.	the total amount of liability of the Seller and/or the Shareholders hereunder shall not exceed the Purchase Price. 

  

	 	7.4.	Notice of Claim; Right to Participate and Defend Third Party Claims. 

  

	 	7.4.1.	 If any party entitled to indemnification hereunder receives notice of the assertion of any claim, the commencement of any suit, action or proceeding, or the
imposition of any penalty or assessment by a third party in respect of which indemnity may be sought hereunder (a “Third Party Claim”), and the indemnified party intends to seek indemnity hereunder, then the indemnified party will
promptly provide the indemnifying party with prompt written notice of the Third Party Claim, but in any event not later than 30 calendar days after receipt of such notice of Third Party Claim. The failure by an indemnified party to notify an
indemnifying party of a Third Party Claim will not relieve the indemnifying party of any 

  

 19 

	 	 
indemnification responsibility under this Section 7, except to the extent, if any, that such failure materially prejudices the ability of the indemnifying
party to defend such Third Party Claim. 

  

	 	7.4.2.	The indemnifying party will have the right to control the defense, compromise or settlement of the Third Party Claim with its own counsel (reasonably satisfactory to the indemnified
party) if the indemnifying party delivers written notice to the indemnified party within 14 days following the indemnifying party’s receipt of notice of the Third Party Claim from the indemnified party acknowledging its obligations to indemnify
the indemnified party with respect to such Third Party Claim in accordance with this Section 7; provided, however, that the indemnifying party will not enter into any settlement of any Third Party Claim which would impose or create any obligation or
any financial or other liability on the part of the indemnified party if such liability or obligation (i) requires more than the payment of a liquidated sum or (ii) is not covered by the indemnification provided to the indemnified party hereunder.
In its defense, compromise or settlement of any Third Party Claim, the indemnifying party will timely provide the indemnified party with such information with respect to such defense, compromise or settlement as the indemnified party may request,
and will not assume any position or take any action that would impose an obligation of any kind on, or restrict the actions of, the indemnified party. The indemnified party will be entitled (at the indemnified party’s expense) to participate in
the defense by the indemnifying party of any Third Party Claim with its own counsel. 

  

	 	7.4.3.	In the event that the indemnifying party does not undertake the defense, compromise or settlement of a Third Party Claim in accordance with Section 7.4.3 hereof, the indemnified
party will have the right to control the defense, or settlement of such Third party Claim with counsel of its choosing; provided, however, that the indemnified party will not settle or compromise any Third Party Claim without the indemnifying
party’s prior written consent, unless (i) the terms of such settlement or compromise release the indemnified party and the indemnifying party from any and all liability with respect to the Third Party Claim or (ii) the indemnifying party will
not have acknowledged its obligations to indemnify the indemnified party with respect to such Third Party Claim in accordance with this Section 7. The indemnifying party will be entitled (at the indemnifying party’s expense) to participate in
the defense of any Third Party Claim with its own counsel. The indemnifying party shall, in any event, have a right of subrogation from the indemnified party 

  

	 	7.4.4.	 Any indemnifiable claim hereunder that is not a Third Party Claim will be asserted by the indemnified party by promptly delivering notice thereof to the
indemnifying party. If the indemnifying party does not respond to such 

  

 20 

	 	 
notice within 60 days after its receipt, it will have no further right to contest the validity of such claim. 

  

	 	7.4.5.	If Seller has fully indemnified Buyer for any Third Party Claim, Seller may require Buyer to subrogate Seller to any and all rights of Buyer against the third party concerned.

  

	 	7.5.	Right of Setoff. In the event any Buyer Indemnified Party suffers a Loss for which Seller is obligated to indemnify such Buyer Indemnified Party pursuant to this Section 7,
Buyer may set-off an amount equal to the aggregate amount of any such Loss against any amount otherwise payable to Seller pursuant to Section 1.4 of this Agreement. The right of Buyer to set-off against any payments shall not be deemed or construed
to limit Seller’s liability under this Section 7. 

  
 8.
CONDITIONS PRECEDENT TO CLOSING 
  

	 	8.1.	Conditions to Buyer Closing. The obligations of Buyer to consummate the transactions contemplated by this Agreement are subject to the satisfaction on or before the Closing
of the following conditions, any one or more of which may be waived by Buyer at its option: 

  

	 	8.1.1.	the representations and warranties of Seller in this Agreement will be true and correct in all material respects, both on the date of this Agreement and at and as of the Closing;

  

	 	8.1.2.	Seller will have performed or complied with, in all material respects, all covenants and agreements contemplated by this Agreement to be performed or complied with by it at or prior
to the Closing, including those set forth in Section 4 hereof; 

  

	 	8.1.3.	Seller will have delivered, or caused to be delivered, to Buyer each of the documents required by Section 9.1 hereof; 

  

	 	8.1.4.	between the date of this Agreement and the Closing, there will not have been any material adverse change in the financial or other condition of the Business or the Assets;

  

	 	8.1.5.	no actions, suits, proceedings, assessments or judgments will be pending or threatened seeking to restrain or prohibit the consummation of the transactions contemplated by this
Agreement or any damages in connection therewith, or any material divestiture or to revoke or suspend any Material Contract or Permit by reason of any or all of the transactions contemplated by this Agreement, nor will there be any reasonable basis
to conclude that the consummation of the transactions contemplated by this Agreement would constitute a violation of any Law; 

  

 21 

	 	8.1.6.	except as otherwise permitted in this Agreement, all Consents required for the transfer of the Assets will have been made, given or obtained and will be in full force and effect;
provided that with respect to the Telecom Carriers, only the consent of three of the largest six Telecom Carriers will be require as a condition to Closing; 

  

	 	8.1.7.	Any security interests in any of the Assets granted to First National Bank of Kansas and Verizon shall have been removed. 

  

	 	8.1.8.	Buyer will be completely satisfied with the results of its business, legal, accounting and environmental due diligence review described in Sections 4.3 hereof;

  

	 	8.1.9.	the employees listed on Schedule 8.1.9 shall continue to be employed by Seller; 

  

	 	8.1.10. 	Buyer will have entered into an agreement with Transcom Communications, Inc. in form and substance reasonably satisfactory to Buyer. 

  

	 	8.1.11. 	Seller will have taken all steps necessary or reasonably considered appropriate by Buyer to ensure Buyer will not be liable for any claims or liabilities associated with the
Excluded Assets. 

  

	 	8.2.	Conditions to Seller Closing. The obligations of Seller to consummate the transactions contemplated by this Agreement are subject to the satisfaction on or before the Closing
of the following conditions, anyone or more of which may be waived by Seller at its option: 

  

	 	8.2.1.	The representations and warranties of Buyer contained in this Agreement will be true and correct in all material respects, both on the date of this Agreement and at and as of the
Closing, except for representations or warranties made as of a specified date, which as of the Closing will remain true and correct in all material respects as of such specified date; 

  

	 	8.2.2.	Buyer will have performed or complied in all material respects with all covenants and agreements contemplated by this Agreement to be performed or complied with by Buyer at or prior
to the Closing; 

  

	 	8.2.3.	Buyer will have delivered, or caused to be delivered, to Seller each of the documents required by Section 9.2; 

  

	 	8.2.4.	Between the date of this Agreement and the Closing, there will not have been any material adverse change in the financial or other condition of Buyer; and 

 

 22 

	 	8.2.5.	No actions, suits, proceedings, assessments or judgments will be pending or threatened seeking to restrain or prohibit the consummation of the transactions contemplated by this
Agreement or any damages in connection therewith, or any material divestiture or to revoke or suspend any Material Contract or Permit by reason of any or all of the transactions contemplated by this Agreement, nor will there be any reasonable basis
to conclude that the consummation of the transactions contemplated by this Agreement would constitute a violation of any Law. 

  
 9. CLOSING DOCUMENTS 
  

	 	9.1.	Closing Deliveries of Seller. At the Closing, Seller will deliver to Buyer the following documents in form and substance reasonably satisfactory to Buyer, duly executed as
required: 

  

	 	9.1.1.	the Assignment and Bill of Sale attached as Exhibit A and the Assignment Agreement attached as Exhibit B, conveying all right title and interest in and to the Assets
to the Buyer; 

  

	 	9.1.2.	a certificate of Seller, dated the Closing Date, to the effect that the conditions set forth in Sections 8.1.2, 8.1.5, 8.1.6, and 8.1.7 hereof have been satisfied;

  

	 	9.1.3.	a current certificate issued by the Secretary of State of the State of Kansas, certifying as to the existence and good standing of Seller; 

  

	 	9.1.4.	a certificate of Seller to the effect that it is not a foreign person within the meaning of Section 1445 of the Code; 

  

	 	9.1.5.	all files, books and records maintained by or in the possession of Seller which relate to the Business or the Assets; 

  

	 	9.1.6.	An opinion of Seller’s counsel, dated as of the Closing Date and addressed to Buyer, in form and substance mutually acceptable to Buyer’s and Seller’s counsel;

  

	 	9.1.7.	employment agreements in the form of Exhibit C to this Agreement with each of the Shareholders (the “Employment Agreements”); 

  

	 	9.1.8.	all bills of sale, deeds, transfers, assignments, acts, things and assurances as may be required in the reasonable opinion of Buyer for more perfectly and absolutely assigning,
transferring, conveying, assuring to and vesting in Buyer title to the Assets free and clear of all Liens. 

  

 23 

	 	9.1.9. 	The schedule of representations and warranties attached in the form of Exhibit D, subject to (i) the delivery by Buyer to Seller of a Private Placement Memorandum and Seller’s
full examination of and satisfaction with the contents thereof, and (ii) to the Seller’s satisfaction with the truth and accuracy of such representations and warranties. 

  

	 	9.2.	Closing Deliveries of Buyer. At the Closing, Buyer will deliver to Seller the following documents in form and substance reasonably satisfactory to Seller, duly executed as
required: 

  

	 	9.2.1. 	a certificate of Buyer, signed by an executive officer thereof, to the effect that the conditions set forth in Sections 8.2.1, 8.2.4 and 8.2.5 hereof have been satisfied;

  

	 	9.2.2. 	in the manner specified in Section 1.1 hereof, an amount equal to the Purchase Price, as adjusted pursuant to this Agreement; and 

  

	 	9.2.3. 	an opinion of Buyer’s counsel, dated as of the Closing Date and addressed to Seller, in form and substance mutually acceptable to Buyer’s and Seller’s counsel.

  

	 	9.3.	Closing Documents of Buyer and Seller. At the Closing, Buyer and Seller will mutually agree as to the allocation of the Purchase Price of the Assets and execute an I.R.S.
form 8594 – Asset Acquisition Statement. 

  
 10. CLOSING

  
 As used in this Agreement, the “Closing” means the time at
which Seller consummates the sale of the Assets to Buyer as provided for in, and in the manner contemplated by, this Agreement, against payment by Buyer to Seller in the manner set forth in Section 1.4 hereof. Subject to the fulfillment of
all conditions precedent, the Closing will take place at 10:00 a.m., at the offices of Buyer, 4601 College Boulevard, Suite 300, Leawood, Kansas, on September     , 2003 or at such other time and date as will be agreed
upon in writing between the parties or their respective attorneys (the “Closing Date”); provided, however, that Buyer may extend the Closing Date by not more than 30 days if Buyer reasonably determines that it requires such time to
complete its due diligence reviews contemplated by this Agreement. 
  
 11.
MISCELLANEOUS 
  

	 	11.1. 	 Acknowledgement and Waiver by Shareholders. The Shareholders acknowledge that they have an adequate opportunity to consult, and they have in fact consulted,
their own personal legal and tax advisors regarding the structuring of the transactions contemplated by this Agreement. The Shareholders agree that they will not raise any claim against Buyer, or any 

  

 24 

	 	 
defense to liability to Buyer, based upon reliance upon any tax, legal or structuring information or advice that Buyer may have given Shareholders or Seller
in connection with this Agreement. 

  

	 	11.2. 	Notices. All notices and other communications required or permitted hereunder will be in writing and, unless otherwise provided in this Agreement, will be deemed to have been
duly given when delivered in person or when dispatched by electronic facsimile transfer (confirmed in writing by mail simultaneously dispatched) or one business day after having been dispatched by a nationally recognized overnight courier service to
the appropriate party at the address specified below (or to such other address or addresses any such party may from time to time designate as to itself by like notice): 

  
 Seller or the Shareholders: 
  
 AIM International Investments, Inc. 
 7009
West 81st St., Suite 204 
 Overland Park, KS 66204 
 Fax: 
 Phone: 
  
 With a copy to: 
  
 Steve Willman and Jack Epps 
 Polsinelli
Shalton & Welte 
 6201 College Boulevard, Suite 500 
 Overland Park, KS 66211 
 Fax: (913) 451-6205 
 Phone: (913) 451-8788 
  
 Buyer: 
  
 Euronet Worldwide, Inc. 
 4601 College
Boulevard, Suite 300, 
 Leawood, Kansas 66211 
 Fax: (913) 327-1921 
 Phone: (913) 327-4200 
 Attn: Ron Ferguson 
  

 25 

 With a copy to: 
  

EFT Services France SAS 
 120 Avenue
Charles de Gaulle 
 92200 Neuilly sur Seine 
 France 
 Fax: +33-1-4722-3282 
 Phone: +33-1-4192-9560 
 Attn: Jeffrey B. Newman, General Counsel 
  

	 	11.3. 	Applicable Law. This Agreement will be deemed to be a contract made under the Laws of the State of Kansas and for all purposes will be governed by and interpreted in
accordance with the Laws prevailing in the State of Kansas, without regard to principals of conflicts of laws. 

  

	 	11.4. 	Counterparts. This Agreement may be executed in several counterparts, each of which when so executed will be deemed to be an original and all of which will together
constitute one and the same agreement. 

  

	 	11.5. 	Entire Agreement. The terms and provisions of this Agreement and its schedules constitute the entire agreement of the parties and there are no collateral agreements or
representations or warranties other than as expressly set forth or referred to in this Agreement. This Agreement (including the schedules) supersedes any other agreement, whether written or oral, that may have been made or entered into by any party
hereto or any of their respective Affiliates (or any director, officer or representative hereof) relating to the matters contemplated hereby, including the Memorandum of Intent. 

  

	 	11.6. 	Inurement. This Agreement will inure to the benefit of and be binding upon the parties, their heirs, administrators, successors and assigns. 

  

	 	11.7. 	Time of Essence. Time is of the essence of this Agreement. 

  

	 	11.8. 	Rights of the Parties. Nothing expressed or implied in this Agreement is intended or will be construed to confer upon or give any Person other than the parties hereto any
rights or remedies under or by reason of this Agreement or any transaction contemplated hereby. 

  

	 	11.9. 	Severability. If a court of competent jurisdiction should find any term or provision of this Agreement to be unenforceable and invalid by reason of being overly broad, the
parties agree that the court will limit the scope or duration of such provision to the maximum enforceable scope or duration allowed by Law. Any term or provision deemed by a court of competent jurisdiction to be unenforceable and invalid for any
other reason will be severed from this Agreement, and the remainder of this Agreement will continue in full force and effect. 

  

 26 

	 	11.10. 	Legal Fees and Costs. In the event of any disputes or controversies arising from this Agreement or its interpretation, the party or parties prevailing in any arbitration
proceeding or a court of competent jurisdiction will be entitled to receive reasonable legal fees and related costs incurred in connection with such dispute or controversy. 

  

	 	11.11. 	Remedies Not Exclusive. No remedy conferred by any of the specific provision of this Agreement is intended to be exclusive of any other remedy and each remedy will be
cumulative and will be in addition to every other remedy given hereunder or hereafter existing at Law or in equity or by statute or otherwise. The election of any one or more remedies will not constitute a waiver of the right to pursue other
available remedies. 

  

	 	11.12. 	Publicity. Except as may be required in connection with governmental filings and except as required by Law or a stock exchange, no party to this Agreement may issue or cause
publication of any press release or other public announcement, including announcements to employees, concerning the transactions contemplated by this Agreement without the prior written consent of the other party hereto. 

  

	 	11.13. 	Seller’s Release. SHAREHOLDERS AND SELLER, ON BEHALF OF THEMSELVES AND THEIR HEIRS, SUCCESSORS AND ASSIGNS, RELEASE AND FOREVER DISCHARGE, EFFECTIVE AS OF THE CLOSING,
THE BUYER AND ALL OF ITS AFFILIATES, AND ITS RESPECTIVE SUCCESSORS AND ASSIGNS, OF AND FROM ALL CLAIMS AND CAUSES OF ACTION KNOWN OR UNKNOWN, ACCRUED OR UNACCRUED, THAT ANY OF THEM HAS OR MAY HAVE AGAINST ANY THE ASSETS AND THE BUSINESS, INCLUDING
ALL CLAIMS FOR PAST WAGES AND ALL CLAIMS FOR COMPENSATORY, EXEMPLARY OR PUNITIVE DAMAGES FOR ANY CAUSE ARISING AT, OR PRIOR TO, THE CLOSING; PROVIDED, HOWEVER, THAT THIS RELEASE SHALL NOT AFFECT ANY RIGHTS OR REMEDIES THAT THE SELLER OR SHAREHOLDERS
MAY HAVE AS A RESULT OF ANY BREACH OF THIS AGREEMENT BY BUYER. 

  

	 	11.14. 	Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing Date: 

  

	 	11.14.1. 	by mutual agreement of Buyer and Seller; or 

  

	 	11.14.2. 	by Buyer on or after October 15, 2003, by written notice to Seller if any of the conditions to the obligations of the Buyer contained herein will not have been satisfied or, if
unsatisfied, will not have been waived in writing by Buyer on or prior to October 15, 2003. 

  

 27 

	 	11.14.3. 	by Seller on or after October 15, 2003, by written notice to Buyer if any of the conditions to the obligations of the Seller contained herein will not have been satisfied or, if
unsatisfied, will not have been waived in writing by Seller on or prior to October 15, 2003. 

  
 Provided, however, this Agreement shall automatically terminate in the event it has not closed by October 30, 2003. 
  

	 	11.15. 	Effect of Termination. If this Agreement is terminated pursuant to Section 11.14 hereof, all rights and obligations of the parties hereunder will terminate and no party will
have liability to the other parties, provided that the provisions of Sections 11.2, 11.3, 11.10 and 11.11, will survive termination of this Agreement, and except that nothing herein will relieve any party from liability for any breach of any
agreement or covenant contained herein prior to such termination. 

  
 IN WITNESS WHEREOF the parties have executed this Agreement as of the day and year first written above. 
  

			
	BUYER: 
	
	EURONET WORLDWIDE, INC.
		
	By:	 	 /s/ Michael J. Brown

	 	 	

	 Name:
	 	 MICHAEL J. BROWN

	 Title:
	 	 CEO

  

			
	 SELLER:

	
	AIM INTERNATIONAL MARKETING AND INVESTMENTS, INC.
		
	By:	 	 /s/ Joseph P. Bodine

	 	 	

	 Name:
	 	 Joseph P. Bodine

	 Title:
	 	 CEO

  

 28

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