Document:

f8k03230910iii_techprec.htm

     

     

    Exhibit
10.3

     

     

    
      EMPLOYMENT
AGREEMENT

       

      THIS EMPLOYMENT AGREEMENT (the “Agreement”) is
made as of March 23, 2009, between TechPrecision Corporation, a
Delaware corporation (the “Company”), and Richard F. Fitzgerald (the
“Employee”).

       

      RECITALS

       

      WHEREAS,
Company desires to employ the Employee in the capacity and on the terms and
conditions set forth herein, and the Employee desires to be employed by the
Company on the terms and conditions set forth herein;

       

      NOW,
THEREFORE, in consideration of the foregoing premises and the mutual promises,
terms, provisions and conditions set forth in this Agreement, the parties hereto
hereby agree as follows:

      

      1. Employment. The
Company agrees to employ the Employee during the Term specified in Paragraph 2
hereof and the Employee agrees to accept such employment, upon the terms and
conditions hereinafter set forth.

       

      2. Term. Company hereby
employs Employee and Employee hereby accepts employment with the Company, until
termination of this Agreement in accordance with the provisions of Paragraph 6
hereof (the “Term”).

       

      3. Duties and
Responsibilities.

       

      a. Employee
shall serve as Chief Financial Officer (“CFO”) of the Company.

       

      b. Subject
to the authority of the Chairman of the Company (“Chairman”) and the Board of
TechPrecision Corporation (“Board”) to modify the duties and responsibilities of
Employee, Employee's powers, duties and responsibilities shall initially consist
of such powers as listed in Exhibit A attached
hereto.  The Employee shall report to the Chief Executive Officer and
the Board of the Company and others at the direction of the Board at such time
and in such detail as the Board shall reasonably
require.  Notwithstanding anything contained herein to the contrary,
the Employee shall not be required to perform any act which would constitute or
require the violation of any federal, state or local law, rule, regulation,
ordinance or the like.  Any substantial change in Employee's duties or
title, without Employee's consent, shall be construed as termination without
cause pursuant to Paragraph 6(b) below.

       

      c. The
Employee shall devote not less than an average of forty (40) hours per week to
carrying out his duties hereunder and to the business of the Company, and during
the Term the Employee agrees that he will (i) devote his best efforts and all
his skill and ability to the performance of his duties hereunder; (ii) carry out
his duties in a competent and professional manner; and (iii) generally promote
the interests of the Company.  During the Term it shall not be a
violation of this Agreement for the Employee to serve on civic or charitable
boards or committees, to perform speaking engagements, or to manage his personal
passive investments, so long as such activities (individually or collectively)
do not interfere with the performance of the Employee's responsibilities as an
employee of the Company.

       

       

      
        
          
          

        

        
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      4. Compensation; Bonus; Stock
Options.

       

      a. As
compensation for services hereunder and in consideration of his agreement not to
compete as set forth in Paragraph 8 hereof, the Company shall pay the Employee
an initial base salary at the annual rate of One Hundred Ninety Five Thousand
Dollars ($195,000.00).  Such base salary shall be paid in equal
installments in accordance with the normal payroll policies of the
Company.

       

      b. Upon
execution of this agreement, Employee shall be paid a signing bonus of
Twenty-Five Thousand Dollars ($25,000.00).

       

      c. Employee's
base salary as set forth in Paragraph 4(a) above may be increased by order of
the Compensation Committee of the Corporate Board.

       

      d. Employee
shall be eligible for an annual cash performance bonus based upon the Company's
financial performance as set forth in a resolution of the Board within the first
three months of each year hereunder and based upon the Company's business
plan.

       

      e. Employee
is awarded 150,000 shares of TechPrecision stock options. The options will vest
in equal amounts of 50,000 over three years on the anniversary of the date of
this agreement. The option price will be at market price as of the date of
grant. Any additional future options will be as the Board shall in its sole
discretion institute.

       

      5. Expenses; Fringe
Benefits.

       

      a. The
Company agrees to pay or to reimburse the Employee during the Term for all
reasonable, ordinary and necessary business expenses incurred in the performance
of his services hereunder in accordance with the policies of the Company as are
from time to time in effect.  The Employee, as a condition to
obtaining such payment or reimbursement, shall provide to the Company any and
all statements, bills or receipts evidencing the travel or out-of-pocket
expenses for which the Employee seeks payment or reimbursement, and any other
information or materials required by such Company policy or as the Company may
otherwise from time to time reasonably require.

       

      b. During
the Term the Employee and, to the extent eligible, his dependents, shall be
entitled to participate in and receive all benefits under any welfare benefit
plans and programs provided by the Company (including without limitation,
medical, dental, disability, group life (including accidental death and
dismemberment) and business travel insurance plans and programs) applicable
generally to the employees of the Company, subject, however, to the generally
applicable eligibility and other provisions of the various plans and programs in
effect from time to time.

       

       

      
        
          
          

        

        
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      c. During
the Term the Employee shall be entitled to participate in all retirement plans
and programs (including without limitation any profit sharing/401(k) plan)
applicable generally to the employees of the Company, subject, however, to
generally applicable eligibility and other provisions of the various plans and
programs in effect from time to time.  In addition, during the Term
the Employee shall be entitled to receive fringe benefits and perquisites in
accordance with the plans, practices, programs and policies of the Company from
time to time in effect, available generally to the executive officers of the
Company and consistent with the generally applicable guidelines determined by
the Board.

       

      d. The
Employee shall be entitled to four (4) weeks vacation per year and such
holidays, sick days and personal days as are in accordance with the Company's
policy then in effect for its employees generally, upon such terms as may be
provided of general application to all employees of the Company.

       

      6. Termination.

       

      a. For
Cause.  The Company, shall have the right to terminate the
Employee's employment with the Company at any time for “Cause”; provided, that
any termination by the Company for Cause shall be communicated by the Company to
the Employee in writing indicating the basis for termination for Cause, and the
Employee shall have the opportunity for a period of seven (7) days following
such writing to contest his termination before the Board.  (The
effective date of the Employee's termination of employment with the Company,
regardless of the reason, is referred to as the “Date of Termination”). For
purposes of this Agreement, the term “Cause” shall be limited to the following
grounds:

       

      i. The
Employee's failure or refusal to perform his material duties and
responsibilities (other than any such failure resulting from Employee's
disability or death, which are governed by Paragraph 7) or his repeated failure
or refusal to follow lawful and reasonable directives of the
Company;

       

      ii. The
willful misappropriation by Employee of the funds or property of the
Company;

       

      iii. The
commission by the Employee of any willful or intentional act, which he should
reasonably have anticipated would reasonably be expected to have the effect of
materially injuring the reputation, business or business relationships of the
Company.

       

      iv. Use of
alcohol to excess or illegal drugs, continuing after written
warning;

       

       

      
        
          
          

        

        
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      v. Any
breach by the Employee (not covered by any of clauses (i) through (iv) and other
than in connection with the death or disability of Employee as set forth in
Paragraph 7) of any material provision of this Agreement.

       

      Upon the
termination of the Employee's employment with the Company for Cause, the Company
shall pay the Employee, subject to appropriate offsets (as permitted by
applicable law) for debts or money due to the Company, including without
limitation personal loans to the Employee and travel advances (“Offset”), his
salary compensation only through, and any unpaid reimbursable expenses
outstanding as of, the Date of Termination. Any benefits to which Employee or
his beneficiaries may be entitled under the plans and programs, described in
Paragraphs 5(b) and (c) hereof as of his Date of Termination shall be determined
in accordance with the terms of such plans and programs.  Except as
provided in this subparagraph, in connection with the Employee's termination by
the Company for Cause, the Company shall have no further liability to the
Employee or the Employee's heirs, beneficiaries or estate for damages,
compensation, benefits, indemnities or other amount of whatever
nature.

       

      b. Without
Cause.  The Company may terminate the Employee's employment
without Cause at any time.  In the event of a termination of the
Employee’s employment during the Term by the Company without Cause, the Company
shall nonetheless pay to the Employee or his estate, in equal installments in
accordance with the normal payroll policies of the Company, an amount equal to
one year of the Employee's base salary in effect at such time (the “Severance
Amount”), provided all such
rights to any Severance Amount and any amounts paid shall be forfeited and
recoverable by the Company in the event the Company determines in good faith
that the Employee has violated any provision in Paragraphs 8 and 9 hereof or any
other provisions of this Agreement.  Additionally, the Company shall
provide to the Employee, and his dependents, continued coverage for one year
thereafter under all health, life, disability and similar employee benefit plans
and programs of the Company on the same basis as the Employee and his dependents
were entitled to participate immediately prior to such termination, provided
that the Employee and his dependents’ continued participation is possible under
the general terms and provisions of such plans and
programs.  Employee’s receipt of the payments described in this
Paragraph 6(b) is conditioned upon his execution of a release of all claims in
favor of Company in substantially the form attached to this Agreement as Exhibit
B.  Employee will not be entitled to any other
compensation.

       

      
        
          
          

        

        
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      7. Disability;
Death.

       

      a. In the
event the Employee shall be unable to perform the essential functions of his
duties hereunder by virtue of illness or physical or mental incapacity or
disability (from any cause or causes whatsoever) in substantially the manner and
to the extent performed prior to the commencement of such disability (all such
causes being referred to as “Disability”) and the Employee shall fail to perform
such duties for periods aggregating ninety (90) days (inclusive of non-business
days), whether or not continuous, in any continuous period of one hundred and
eighty (180) days, the Company shall have the right to terminate the Employee's
employment hereunder at the end of any calendar month during the continuance of
such Disability upon at least ten (10) days prior written notice to
him.  In the event of termination under this Paragraph 7(a), the
Employee shall be entitled to receive when otherwise payable, subject to any
Offsets, all salary compensation earned but unpaid as of the Date of Termination
and any unpaid reimbursable expenses outstanding as of such date; and any
benefits to which the Employee or his beneficiaries may be entitled under the
plans and programs described in Paragraphs 5(b) and (c) hereof as of such Date
of Termination shall be determined in accordance with the terms of such plans
and programs. Nothing contained herein is intended to nullify or diminish the
Employee's rights under, and this Paragraph 7(a) is subject to, the Americans
with Disabilities Act of 1990 and the Family and Medical Leave Act of 1993, as
such Acts may be amended from time to time.

       

      b. The
employment of the Employee with the Company shall terminate on the date of the
Employee's death and in such event the Employee's estate shall be entitled to
receive when otherwise payable, subject to any Offsets, all salary compensation
earned but unpaid as of the date of his death and any unpaid reimbursable
expenses outstanding as of such date. In the event of the Employee's death, any
benefits to which the Employee or his beneficiaries may be entitled under the
plans and programs described in Paragraphs 5(b) and (c) hereof shall be
determined in accordance with the terms of such plans and programs.

       

      c. Except as
provided in Paragraphs 7(a) and (b) hereof, in the event of the Employee's
termination due to Disability or death, the Company shall have no further
liability to the Employee or the Employee's heirs, beneficiaries or estate for
damages, compensation, benefits, indemnities or other amounts of whatever
nature.

       

      8. Non-Competition and
Protection of Confidential Information.

       

      a. The
Employee agrees that his services to the Company are of a special, unique,
extraordinary and intellectual character and his position with the Company
places him in a position of confidence and trust with the employees and
customers of the Company and its affiliates.  Consequently, the
Employee agrees that it is reasonable and necessary for the protection of the
goodwill, intellectual property, trade secrets, designs, proprietary information
and business of the Company that the Employee make the covenants contained
herein. Accordingly, the Employee agrees that, during the period of the
Employee's employment hereunder and for the period of one (1) year immediately
following the termination of his employment hereunder, he shall not, directly or
indirectly:

       

      i. own,
operate, manage or be employed by or affiliated with any person or entity
headquartered within or with a management office in the United States that
engages in any business then being engaged or planned to be engaged in by the
Company or its subsidiaries or affiliates; or

       

      
        
          
          

        

        
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      ii. attempt
in any manner to solicit from any customer or supplier business of the type
performed for or by the Company or persuade any customer or supplier of the
Company to cease to do business or to reduce the amount of business which any
such customer or supplier has customarily done or contemplates doing with the
Company, whether or not the relationship between the Company and such customer
or supplier was originally established in whole or in part through his efforts;
or

       

      iii. employ as
an employee or retain as a consultant, or persuade or attempt to persuade any
person who is at the Date of Termination or at any time during the preceding
year was, or in the six (6) months following such termination becomes, an
employee of or exclusive consultant to the Company to leave the Company or to
become employed as an employee or retained as a consultant by anyone other than
the Company.

       

      iv. As used
in this Paragraph 8, the term: “customer” and “supplier” shall mean any person
or entity that is a customer or supplier of the Company at the Date of
Termination, or at any time during the preceding year was, or in the six (6)
months following such termination becomes, a customer or supplier of the
Company, or if the Employee's employment shall not have terminated, at the time
of the alleged prohibited conduct.

       

      b. The
Employee agrees that he will not at any time (whether during the Term or after
termination of this Agreement for any reason), disclose to anyone, any
confidential information or trade secret of the Company or utilize
such confidential information or trade secret for his own benefit, or for the
benefit of third parties, and all memoranda or other documents compiled by him
or made available to him during the Term pertaining to the business of the
Company shall be
the property of the Company and shall be delivered to the Company on the Date of
Termination or at any other time, as reasonable, upon request. The term
“confidential information or trade secret” does not include any information
which (i) becomes generally available to the public other than by breach of this
provision, or (ii) is required to be disclosed by law or legal
process.

       

      c. If the
Employee commits a breach or threatens to commit a breach of any of the
provisions of Paragraphs 8(a) or (b) hereof, the Company shall have the right to
have the provisions of this Agreement specifically enforced by any court having
jurisdiction without being required to post bond or other security and without
having to prove the inadequacy of any other available remedies, it being
acknowledged and agreed that any such breach will cause irreparable injury to
the Company and that money damages will not provide an adequate remedy to the
Company. In addition, the Company may take all such other actions and seek such
other remedies available to it in law or in equity and shall be entitled to such
damages as it can show it has sustained by reason of such breach.

       

       

      
        
          
          

        

        
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      d. The
parties acknowledge that the type and periods of restriction imposed in the
provisions of Paragraphs 8(a) and (b) hereof are fair and reasonable and are
reasonably required for the protection of the Company and the goodwill
associated with the business of the Company; and that the time, scope,
geographic area and other provisions of this Paragraph 8 have been specifically
negotiated by sophisticated parties and accordingly it is reasonable that the
restrictive covenants set forth herein are not limited by narrow geographic
area. If any of the covenants in Paragraphs 8(a) or (b) hereof, or any part
thereof, is hereafter construed to be invalid or unenforceable, it is the
intention of the parties that the same shall not affect the remainder of the
covenant or covenants, which shall be given full effect, without regard to the
invalid portions. If any of the covenants contained in Paragraphs 8(a) or (b),
or any part thereof, is held to be unenforceable because of the duration of such
provision or the area covered thereby, the parties agree that the court making
such determination should reduce the duration and/or areas of such provision
such that, in its reduced form, said provision shall then be enforceable. The
parties intend to and hereby confer jurisdiction to enforce the covenants
contained in Paragraphs 8(a) and (b) upon the courts of any jurisdiction within
the geographical scope of such covenants. In the event that the courts of any
one or more of such jurisdictions shall hold such covenants wholly unenforceable
by reason of the breadth of such time, scope or geographic area, it is the
intention of the parties hereto that such determination not bar or in any way
affect the Company's right to the relief provided above in the courts of any
other jurisdiction within the geographical scope of such covenants, as to
breaches of such covenants in such other respective jurisdictions, the above
covenants as they relate to each jurisdiction being, for this purpose, severable
into diverse and independent covenants.

       

      9. Intellectual
Property. During the Term, the Employee will disclose to the Company all
ideas, inventions, advertising campaigns, designs, logos, slogans, processes,
operations, products or improvements which may be patentable or copyrightable or
subject to any trade or service mark or name, and business plans developed by
him during such period, either individually or in collaboration with others,
which relate to the business of the Company (“Intellectual Property”). The
Employee agrees that such Intellectual Property will be the sole property of the
Company and that he will at the Company's request and cost do whatever is
reasonably necessary to secure the rights thereto by patent, copyright,
trademark or otherwise to the Company.

       

      10. Enforceability. The
failure of either party at any time to require performance by the other party of
any provision hereunder shall in no way affect the right of that party
thereafter to enforce the same, nor shall it affect any other party's right to
enforce the same, or to enforce any of the other provisions in this Agreement;
nor shall the waiver by either party of the breach of any provision hereof be
taken or held to be a waiver of any subsequent breach of such provision or as a
waiver of the provision itself.

       

      11. Assignment. This
Agreement is binding on and is for the benefit of the parties hereto and their
respective successors, heirs, executors, administrators and other legal
representatives. Neither this Agreement nor any right or obligation hereunder
may be sold, transferred, assigned, pledged or hypothecated by either party
hereto without the prior written consent of the other party; provided, the Company
may assign its rights and obligations under the Agreement without written
consent in connection with the sale or other transfer of all or substantially
all of the Company's business (whether by way of sale of stock, assets, merger
or otherwise).

       

      
        
          
          

        

        
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      12. Severability. In the
event any provision of this Agreement is found to be void and unenforceable by a
court of competent jurisdiction, the remaining provisions of this Agreement
shall nevertheless be binding upon the parties with the same effect as though
the void or unenforceable part had been severed and deleted.

       

      13. Life Insurance. The
Employee agrees that the Company shall have the right to obtain life insurance
on the Employee's life, at the Company's sole expense and with the Company as
the sole beneficiary thereof to that end, the Employee shall (a) cooperate fully
with the Company in obtaining such life insurance, (b) sign any necessary
consents, applications and other related forms or documents and (c) take any
reasonably required medical examinations.

       

      14. Notice. Any notice,
request, instrument or other document to be given under this Agreement by either
party hereto to the other shall be in writing and shall be deemed effective (a)
upon personal delivery, if delivered by hand, (b) three (3) days after the date
of deposit in the mails, postage prepaid, if mailed by certified or registered
mail, or (c) on the next business day, if sent by a prepaid overnight courier
service, and in each case addressed as follows:

       

      
        
          	
                  If
      to the Employee:

                	
                  Mr.
      Richard F. Fitzgerald

                  330
      Bair Road

                  Berwyn,
      PA 19312

                   

                
	
                  If
      to the Company:

                	
                  TechPrecision
      Corporation.

                  1
      Bella Drive

                  Westminster,
      MA  01473

                  Attention:
      Chief Executive Officer

                

        

      

      

      Any party
may change the address to which notices are to be sent by giving notice of such
change of address to the other party in the manner herein provided for giving
notice.

       

      15. No Conflict. The
Employee represents and warrants that he is not subject to any agreement,
instrument, order, judgment or decree of any kind, or any other restrictive
agreement of any character, which would prevent him from entering into this
Agreement or which would be breached by the Employee upon the performance of his
duties pursuant to this Agreement.

       

      16. Miscellaneous.

       

      a. The
headings contained in this Agreement are for reference purposes only, and shall
not affect the meaning or interpretation of this Agreement.

       

      b. The
Company may withhold from any amount payable under this Agreement such federal,
state or local taxes as shall be required to be withheld pursuant to applicable
law or regulation.

       

       

      
        
          
          

        

        
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      c. This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Delaware without giving effect to any choice or conflict of
law provision or rule that would cause the application of the laws of any other
jurisdiction. Any action arising out of the breach or threatened breach of this
Agreement shall be commenced in a state court of the State of Delaware and the
parties hereto hereby submit to the jurisdiction of such courts for the purpose
of enforcing this Agreement.

       

      d. This
Agreement, represents the entire agreement between the Company and the Employee
with respect to the subject matter hereof, and all prior agreements relating to
the employment of the Employee, written or oral, are nullified and superseded
hereby.

       

      e. This
Agreement may not be orally canceled, changed, modified or amended, and no
cancellation, change, modification or amendment shall be effective or binding,
unless in writing and signed by both parties to this Agreement, and any
provision hereof may be waived only by an instrument in writing signed by the
party or parties against whom or which enforcement of such waiver is
sought.

       

      f. As used
in this Agreement, any gender includes a reference to all other genders and the
singular includes a reference to the plural and vice versa.

       

      

       

      * * * *
*

       

      
        
          
          

        

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

       

      
        	
                COMPANY:

                 

                 

              	 
      	
                EMPLOYEE:

              
	
                TECHPRECISION
      CORPORATION.

                 

                 

              	 
      	
                /s/Richard
      F. Fitzgerald

              
	
                Richard
      F. Fitzgerald

              
	
                By:

              	
                /s/James
      G. Reindl

              	 
      	 
      
	 
      	
                James
      G. Reindl

                Chief
      Executive Officer

                TechPrecision
      Corporation

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Louis A. Winoski

              	 
      	 
      	 
      
	 
      	
                Louis
      A. Winoski

                Compensation
      Committee Chair

                TechPrecision
      Corporation

              	 
      	 
      	 
      

      

       

       

      
        
          
          

        

        
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      Exhibit
A

      

      

      Position
Description – Initial Duties and Responsibilities

      

      

      
        
          

        

      Chief
Financial Officer

       

      
        
          

        

      

      Overview:

      Directs
and coordinates company’s financial affairs according to the company’s operating
principals and all governmental regulations.

      

      Functions:

      
        	
                ·  

              	
                Reports
      to the Chief Executive Officer and Board of
  Directors.

              

      

      
        	
                ·  

              	
                Establishes
      major economic objectives and policies for the
  company.

              

      

      
        	
                ·  

              	
                Identifies
      and manages risks to the company.

              

      

      
        	
                ·  

              	
                Reports
      and recommends to top management and the Board of Directors in regard to
      policies and programs.

              

      

      
        	
                ·  

              	
                Plans
      and directs new operational procedures to obtain optimum efficiency and
      reduce costs.

              

      

      
        	
                ·  

              	
                Establishes
      the company’s line of credit and maintains good banking
      relationships.

              

      

      
        	
                ·  

              	
                Directs
      receipt, disbursement and expenditures of money or capital assets of the
      company.

              

      

      
        	
                ·  

              	
                Approves
      and executes documents effecting monetary
  transactions.

              

      

      
        	
                ·  

              	
                Directs
      the activities concerned with the safekeeping, control and accounting for
      assets and securities of the
company.

              

      

      
        	
                ·  

              	
                Directs
      the preparation of budgets, financial forecasts and strategic planning of
      the company.

              

      

      
        	
                ·  

              	
                Oversees
      the valuation, analysis and due-diligence associated with accretive
      acquisitions by the company.

              

      

      
        	
                ·  

              	
                Analyzes
      divisional or departmental budgeting requests to identify areas in which
      reductions can be made, and allocates operating
  budgets.

              

      

      
        	
                ·  

              	
                Directs
      the preparation of reports that outline the company’s financial position
      in areas of income, expenses and earnings based on past present and future
      operations of the company, e.g. SEC reporting
  requirements.

              

      

      
        	
                ·  

              	
                Directs
      the preparation of directions to divisional or departmental administrators
      outlining policy, program or operating changes to be implemented
      company-wide.

              

      

      
        	
                ·  

              	
                Promotes
      the company in financial markets to assure sources of requisite
      capital.

              

      

       

       

      
        
          
          

        

        
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      Exhibit
B

       

      FORM
OF GENERAL RELEASE OF ALL CLAIMS

       

      This
General Release of All Claims is made as of _________  __, 20__
(“General Release”), by and between Richard F. Fitzgerald (the “Employee”) and
TechPrecision Corporation., a Delaware corporation (the “Company”).

       

      WHEREAS,
the Company and the Employee are parties to that certain Employment Agreement
dated as of March 23, 2009 (the “Employment Agreement”);

       

      WHEREAS,
the Company wishes to terminate the Employee’s employment with the Company
without Cause;

       

      WHEREAS,
the execution of this General Release is a condition precedent to the payment of
severance as set forth in Paragraph 6(b) of the Employment
Agreement;

       

      WHEREAS,
in consideration for the Employee’s signing of this General Release, the Company
will provide the Employee with severance benefits pursuant to Paragraph 6(b) of
the Employment Agreement; and

       

      WHEREAS,
the Employee and the Company intend that this General Release shall be in full
satisfaction of the obligations described in this General Release owed to the
Employee by the Company, including those under the Employment
Agreement.

       

      NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements herein contained and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, intending to be legally
bound hereby, the Company and the Employee agree as follows:

       

      1. The
Employee, for himself, the Employee’s spouse, heirs, administrators, children,
representatives, executors, successors, assigns, and all other persons claiming
through the Employee, if any (collectively, “Releasors”), does hereby release,
waive, and forever discharge the Company and each of its respective agents,
subsidiaries, parents, affiliates, related organizations, employees, officers,
directors, attorneys, successors, and assigns (collectively, the “Releasees”)
from, and does fully waive any obligations of Releasees to Releasors for, any
and all liability, actions, charges, causes of action, demands, damages, or
claims for relief, remuneration, sums of money, accounts or expenses (including
attorneys’ fees and costs) of any kind whatsoever, whether known or unknown or
contingent or absolute, which heretofore have been or which hereafter may be
suffered or sustained, directly or indirectly, by Releasors in consequence of,
arising out of, or in any way relating to:  (a) the Employee’s
employment with the Company and any of its subsidiaries; (b) the termination of
the Employee’s employment with the Company and any of its subsidiaries; (c) the
Employment Agreement; or (d) any events, acts, agreements or conduct occurring
on or prior to the date of this General Release.  The foregoing
release and discharge, waiver and covenant not to sue includes, but is not
limited to, all claims and any obligations or causes of action arising from such
claims, under common law including wrongful or retaliatory discharge, breach of
contract (including but not limited to any claims under the Employment Agreement
and any claims 

       

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

         

        under any
restricted stock or stock option or similar agreements between the Employee, on
the one hand, and the Company or any of its subsidiaries, on the other hand) and
any action arising in tort including libel, slander, defamation or intentional
infliction of emotional distress, and claims under any federal, state or local
statute including the Age Discrimination in Employment Act (“ADEA”), Title VII
of the Civil Rights Act of 1964, the Civil Rights Act of 1866 and 1871 (42
U.S.C. § 1981), the National Labor Relations Act, the Fair Labor Standards Act,
the Employee Retirement Income Security Act, the Americans with Disabilities Act
of 1990, the Rehabilitation Act of 1973, or the discrimination or employment
laws of any state or municipality, and/or any claims under any express or
implied contract which Releasors may claim existed with
Releasees.  This also includes a release of any claims for wrongful
discharge and all claims for alleged physical or personal injury, emotional
distress relating to or arising out of the Employee’s employment with the
Company or any of its subsidiaries or the termination of that employment; and
any claims under the WARN Act or any similar law, which requires, among other
things, that advance notice be given of certain work force
reductions.  This release and waiver does not apply to:  (i)
any right to indemnification now existing under the charter or bylaws; (ii) any
rights to the receipt of employee benefits which vested on or prior to the date
of this General Release; (iii) the right to receive Severance Amount under
Paragraph 6(b) of the Employment Agreement and the right to reimbursement of
expenses under Paragraph 5(a) of the Employment Agreement; and (iv) right to
employee-paid continuation coverage pursuant to the Consolidated Omnibus Budget
Reconciliation Act, if available.

      

       

      2. Excluded
from this General Release and waiver are any claims which cannot be waived by
law, including but not limited to the right to participate in an investigation
conducted by certain government agencies.  The Employee does, however,
waive the Employee’s right to any monetary recovery should any agency (such as
the Equal Employment Opportunity Commission) pursue any claims on the Employee’s
behalf.  The Employee represents and warrants that the Employee has
not filed any complaint, charge, or lawsuit against the Releasees with any
government agency or any court.  The Employee also represents and
warrants that he has been paid for all time worked and has received all the
leave of absence and leave benefits and protections for which the Employee was
eligible.

       

      3. The
Employee agrees never to seek personal recovery from Releasees in any forum for
any claim covered by the above waiver and release language.  If the
Employee violates this General Release by suing Releasees, other than under the
ADEA or as otherwise set forth in Paragraph 1 hereof, the Employee shall be
liable to the Company for its reasonable attorneys’ fees and other litigation
costs incurred in defending against such a suit to the extent permitted by
law.

       

      4. The
Employee acknowledges and recites that:

       

      a. the
Employee has executed this General Release knowingly and voluntarily and is
knowingly and voluntarily waiving any rights he has under the ADEA;

       

      b. the
Employee has read and understands this General Release in its
entirety;

       

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      c. the
Employee has been advised and directed in writing (and this subparagraph (c)
constitutes such written direction) to seek legal counsel and any other advice
the Employee wishes with respect to the terms of this General Release before
executing it;

       

      d. the
Employee’s execution of this General Release has not been forced by any employee
or agent of the Company, and the Employee has had an opportunity to negotiate
about the terms of this General Release;

       

      e. the
Employee’s waiver does not apply to any rights or claims that arise after the
date the Employee signs this General Release;

       

      f. the
Employee has been offered twenty one (21) calendar days after receipt of this
General Release to consider its terms before executing it;1 and

       

      g. the
payment of severance pursuant to Paragraph 6(b) of the Employment Agreement is
consideration for the Employee’s covenants and agreements set forth in this
General Release and is in addition to anything of value to which the Employee is
otherwise entitled.

       

      5. This
General Release shall be governed by and construed in accordance with the
internal laws of the State of Delaware without giving effect to any choice or
conflict of law provision or rule that would cause the application of the laws
of any other jurisdiction, except for the application of pre-emptive Federal
law.

       

      6. The
Employee shall have seven (7) days from the date he executes this General
Release to revoke his waiver of any ADEA claims by providing written notice of
the revocation to the Company, as provided in Paragraph 14 of the Employment
Agreement.  In the event of such revocation, the terms of Paragraph
6(b) of the Employment Agreement shall govern.

       

      7. Defined
terms not defined in this General Release have the meanings given in the
Employment Agreement.

       

      PLEASE
READ THIS AGREEMENT CAREFULLY.  IT CONTAINS A RELEASE OF ALL KNOWN AND
UNKNOWN CLAIMS.

       

      
        
          
            
              	
                      Date:

                    	 
      	 
      
	 
      	 
      	
                      Richard
      F. Fitzgerald

                    

            

          

        

      

       

      

        

      

        
        1           In
the event the Company determines that the Employee’s termination constitutes “an
exit incentive or other employment termination program offered to a group or
class of employees” under the ADEA, the Company will provide the Employee
with:  (1) 45 days to consider the General Release; and (2) the
disclosure schedules required for an effective release under the
ADEA.

         

         

        -4-f10k2008ex4v_cybra.htm

    EXHIBIT
4.5

     

    NEITHER
THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE
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 COMPLIANCE WITH APPLICABLE STATE
SECURITIES OR BLUE SKY LAWS.  THESE SECURITIES AND THE SECURITIES
ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A
BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

     

    

     

    CYBRA
CORPORATION

     

    WARRANT

     

    Warrant
No. A--__ (2007 Series) Dated:  _________ __, 200_

     

    CYBRA
Corporation, a New York corporation (the “Company”), hereby certifies
that, for value received, ________________________ or its registered assigns
(the “Holder”), is
entitled to purchase from the Company up to a total of _____________________
shares of common stock, $0.001 par value per share (the “Common Stock”), of the Company
(each such share, a “Warrant
Share” and all such shares, the “Warrant Shares”) at an
exercise price equal to $0.75 per share (as adjusted from time to time as
provided in Section
9, the “Exercise
Price”), at any time and from time to time from and after the date hereof
and through and including the date that is five years from the date of issuance
hereof (the “Expiration
Date”), and subject to the following terms and
conditions.  This Warrant (this “Warrant”) is one of a series
of similar warrants issued in connection with a private placement offering of
Common Stock to a limited number of investors and has been issued pursuant to a
Securities Purchase Agreement, dated as of the date hereof, by and between the
Company and the Holder (the “Purchase
Agreement”).  All such warrants are referred to herein,
collectively, as the “Warrants.”

     

    1. Definitions.  In
addition to the terms defined elsewhere in this Warrant, capitalized terms that
are not otherwise defined herein have the meanings given to such terms in the
Purchase Agreement.

     

    2. Registration of
Warrant.  The Company shall register this Warrant, upon records
to be maintained by the Company for that purpose (the “Warrant Register”), in the
name of the record Holder hereof from time to time.  The Company may
deem and treat the registered Holder of this Warrant as the absolute owner
hereof for the purpose of any exercise hereof or any distribution to the Holder,
and for all other purposes, absent actual notice to the contrary.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    3. Registration of
Transfers.  The Company shall register the transfer of any
portion of this Warrant in the Warrant Register, upon surrender of this Warrant,
with the Form of Assignment attached hereto duly completed and signed, to the
Company at its address specified herein.  Upon any such registration
or transfer, a new warrant to purchase Common Stock, in substantially the form
of this Warrant (any such new warrant, a “New Warrant”), evidencing the
portion of this Warrant so transferred shall be issued to the transferee and a
New Warrant evidencing the remaining portion of this Warrant not so transferred,
if any, shall be issued to the transferring Holder.  The acceptance of
the New Warrant by the transferee thereof shall be deemed the acceptance by such
transferee of all of the rights and obligations of a holder of a
Warrant.

     

    4. Exercise and Duration of
Warrants.

     

    (a) This
Warrant shall be exercisable by the registered Holder at any time and from time
to time on or after the date hereof to and including the Expiration
Date.  At 5:00 P.M., New York City time on the Expiration Date, the
portion of this Warrant not exercised prior thereto shall be and become void and
of no value.

     

    (b) A Holder
may exercise this Warrant by delivering to the Company (i) an exercise notice,
in the form attached hereto (the “Exercise Notice”),
appropriately completed and duly signed, and (ii) payment of the Exercise
Price for the number of Warrant Shares as to which this Warrant is being
exercised, and the date such items are delivered to the Company (as determined
in accordance with the notice provisions hereof) is an “Exercise Date.”  The
Exercise Price may be paid by certified or bank check or wire transfer in
immediately available funds.  The Holder shall not be required to
deliver the original Warrant in order to effect an exercise
hereunder.  Execution and delivery of the Exercise Notice shall have
the same effect as cancellation of the original Warrant and issuance of a New
Warrant evidencing the right to purchase the remaining number of Warrant
Shares.

     

    5. Delivery of Warrant
Shares.

     

    (a) Upon
exercise of this Warrant, the Company shall promptly issue or cause to be issued
and cause to be delivered to or upon the written order of the Holder and in such
name or names as the Holder may designate, a certificate for the Warrant Shares
issuable upon such exercise, free of restrictive legends unless a registration
statement covering the resale of the Warrant Shares and naming the Holder as a
selling shareholder thereunder is not then effective and the Warrant Shares are
not freely transferable without volume restrictions pursuant to Rule 144 under
the Securities Act.  The Holder, or any Person (as hereinafter
defined) so designated by the Holder to receive Warrant Shares, shall be deemed
to have become holder of record of such Warrant Shares as of the Exercise
Date.  For purposes of this Warrant, the term “Person” means any individual
or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an
agency or subdivision thereof) or any court or other federal, state, local or
other governmental authority or other entity of any kind.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (b) This
Warrant is exercisable, either in its entirety or, from time to time, for a
portion of the number of Warrant Shares.  Upon surrender of this
Warrant following one or more partial exercises, the Company shall issue or
cause to be issued, at its expense, a New Warrant evidencing the right to
purchase the remaining number of Warrant Shares.

     

    (c) The
Company’s obligations to issue and deliver Warrant Shares in accordance with the
terms hereof are absolute and unconditional, irrespective of any action or
inaction by the Holder to enforce the same, any waiver or consent with respect
to any provision hereof, the recovery of any judgment against any Person or any
action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by the Holder or any other
Person of any obligation to the Company or any violation or alleged violation of
law by the Holder or any other Person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the
Holder in connection with the issuance of Warrant Shares.  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.

     

    6. Charges, Taxes and
Expenses.   Issuance and delivery of certificates for
shares of Common Stock upon exercise of this Warrant shall be made without
charge to the Holder for any issue or transfer tax, withholding tax, transfer
agent fee or other incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company;
provided, however, that the Company shall not be required to pay any tax which
may be payable in respect of any transfer involved in the registration of any
certificates for Warrant Shares or Warrants in a name other than that of the
Holder or an Affiliate thereof.  The Holder shall be responsible for
all other tax liability that may arise as a result of holding or transferring
this Warrant or receiving Warrant Shares upon exercise hereof.

     

    7. Replacement of
Warrant.  If this Warrant is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and
reasonable bond or indemnity, if requested.  Applicants for a New
Warrant under such circumstances shall also comply with such other reasonable
regulations and procedures and pay such other reasonable third-party costs as
the Company may prescribe.

     

    8. Reservation of Warrant
Shares.  The Company covenants that it will at all times
reserve and keep available out of the aggregate of its authorized but unissued
and otherwise unreserved Common Stock, solely for the purpose of enabling it to
issue Warrant Shares upon exercise of this Warrant as herein provided, the
number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other
contingent purchase rights of persons other than the Holder (after giving effect
to the adjustments and restrictions of Section 9, if any).
The Company covenants that all Warrant Shares so issuable and deliverable shall,
upon issuance and the payment of the applicable Exercise Price in accordance
with the terms hereof, be duly and validly authorized, issued and fully paid and
nonassessable.  The Company will take all such action as may be
necessary to assure that such shares of Common Stock may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of any securities exchange or automated quotation system upon which
the Common Stock may be listed.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    9. Certain
Adjustments.  The Exercise Price and number of Warrant Shares
issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this Section
9.

     

    (a) Stock Dividends and
Splits.  If the Company, at any time while this Warrant is
outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a
distribution on any class of capital stock that is payable in shares of Common
Stock, (ii) subdivides outstanding shares of Common Stock into a larger number
of shares, or (iii) combines outstanding shares of Common Stock into a smaller
number of shares, then in each such case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such
event.  Any adjustment made pursuant to clause (i) of this paragraph
shall become effective immediately after the record date for the determination
of shareholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
effective immediately after the effective date of such subdivision or
combination.

     

    (b) Fundamental
Transactions.  If, at any time while this Warrant is
outstanding, (i) the Company effects any merger or consolidation of the Company
with or into another Person, (ii) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions,
(iii) any tender offer or exchange offer (whether by the Company or another
Person) is completed pursuant to which holders of Common Stock are permitted to
tender or exchange their shares for other securities, cash or property, or (iv)
the Company effects any reclassification of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into
or exchanged for other securities, cash or property (other than as a result of a
subdivision or combination of shares of Common Stock covered by Section 9(a)
above) (in any such case, a “Fundamental Transaction”),
then the Holder shall have the right thereafter to receive, upon exercise of
this Warrant, the same amount and kind of securities, cash or property as it
would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction,
the holder of the number of Warrant Shares then issuable upon exercise in full
of this Warrant (the “Alternate
Consideration”).  The aggregate Exercise Price for this Warrant
will not be affected by any such Fundamental Transaction, but the Company shall
apportion such aggregate Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of
the Alternate Consideration.  If holders of Common Stock are given any
choice as to the securities, cash or property to be received in a Fundamental
Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction.  At the Holder’s request, any successor to
the Company or surviving entity in such Fundamental Transaction shall issue to
the Holder a new warrant consistent with the foregoing provisions and evidencing
the Holder’s right to purchase the Alternate Consideration for the aggregate
Exercise Price upon exercise thereof.  The terms of any agreement
pursuant to which a Fundamental Transaction is effected shall include terms
requiring any such successor or surviving entity to comply with the provisions
of this paragraph (b) and insuring that the Warrant (or any such replacement
security) will be similarly adjusted upon any subsequent transaction analogous
to a Fundamental Transaction.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (c) Subsequent Equity
Sales.

     

    (i) If the
Company or any Subsidiary issues additional shares of Common Stock or rights,
warrants, options or other securities or debt convertible, exercisable or
exchangeable for shares of Common Stock or otherwise entitling any Person to
acquire shares of Common Stock (collectively, “Common Stock Equivalents”) at
an effective price yielding gross proceeds to the Company per share of Common
Stock (the “Effective
Price”) less than the Exercise Price (as adjusted hereunder), then the
Exercise Price shall be reduced to equal the product of (A) the Exercise Price
in effect immediately prior to such issuance of Common Stock or Common Stock
Equivalents times (B) a fraction, the numerator of which is the sum of (1) the
number of shares of Common Stock outstanding immediately prior to such issuance,
plus (2) the number of shares of Common Stock which the aggregate Effective
Price of the Common Stock issued (or deemed to be issued) would purchase at the
Exercise Price, and the denominator of which is the aggregate number of shares
of Common Stock outstanding or deemed to be outstanding immediately after such
issuance.  For purposes of this paragraph, in connection with any
issuance of any Common Stock Equivalents, (A) the maximum number of shares of
Common Stock potentially issuable at any time upon conversion, exercise or
exchange of such Common Stock Equivalents (the “Deemed Number”) shall be
deemed to be outstanding upon issuance of such Common Stock Equivalents, (B) the
Effective Price applicable to such Common Stock shall equal the minimum dollar
value of consideration payable to the Company to purchase such Common Stock
Equivalents and to convert, exercise or exchange them into Common Stock (net of
any discounts, fees, commissions and other expenses), divided by the Deemed
Number, and (C) no further adjustment shall be made to the Exercise Price upon
the actual issuance of Common Stock upon conversion, exercise or exchange of
such Common Stock Equivalents.

     

    (ii) If, at
any time while this Warrant is outstanding, the Company or any Subsidiary issues
Common Stock Equivalents with an Effective Price or a number of underlying
shares that floats or resets or otherwise varies or is subject to adjustment
based (directly or indirectly) on market prices of the Common Stock (a “Floating Price Security”),
then for purposes of applying the preceding paragraph in connection with any
subsequent exercise, the Effective Price will be determined separately on each
Exercise Date and will be deemed to equal the lowest Effective Price at which
any holder of such Floating Price Security is entitled to acquire Common Stock
on such Exercise Date (regardless of whether any such holder actually acquires
any shares on such date).

     

    (iii) Notwithstanding
the foregoing, no adjustment will be made under this paragraph (c) in respect to
any issuance of Common Stock (A) upon the exercise or conversion of any options,
warrants or debentures issued and outstanding as of the date of this Warrant,
(B) upon the exercise or conversion of any other Warrants, whether or not
outstanding as of the date of this Warrant, or (C) in connection with any
issuance of shares or grant of options to employees, officers, directors or
consultants of the Company pursuant to a stock option plan or other stock
incentive plan duly adopted by the Company’s board of directors and approved by
its shareholders, or (D) the issuance of up to a total of 75,000 shares of
Common Stock and Common Stock Equivalents in transactions and to persons other
than those described in the preceding clauses (A), (B) and (C).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (d) Number of Warrant
Shares.  Simultaneously with any adjustment to the Exercise
Price pursuant to paragraphs (a) or (c) of this Section, the number of Warrant
Shares that may be purchased upon exercise of this Warrant shall be increased or
decreased proportionately, so that after such adjustment the aggregate Exercise
Price payable hereunder for the increased or decreased number of Warrant Shares
shall be the same as the aggregate Exercise Price in effect immediately prior to
such adjustment.

     

    (e) Calculations.  All
calculations under this Section 9 shall be
made to the nearest cent or the nearest 1/100th of a share, as
applicable.  The number of shares of Common Stock outstanding at any
given time shall not include shares owned or held by or for the account of the
Company, and the disposition of any such shares shall be considered an issue or
sale of Common Stock.

     

    (f) Notice of
Adjustments.  Upon the occurrence of each adjustment pursuant
to this Section
9, the Company at its expense will promptly compute such adjustment in
accordance with the terms of this Warrant and prepare a certificate setting
forth such adjustment, including a statement of the adjusted Exercise Price and
adjusted number or type of Warrant Shares or other securities issuable upon
exercise of this Warrant (as applicable), describing the transactions giving
rise to such adjustments and showing in detail the facts upon which such
adjustment is based.  Upon written request, the Company will promptly
deliver a copy of each such certificate to the Holder and to the Company’s
Transfer Agent.

     

    (g) Notice of Corporate
Events.  If the Company (i) declares a dividend or any other
distribution of cash, securities or other property in respect of its Common
Stock, including without limitation any granting of rights or warrants to
subscribe for or purchase any capital stock of the Company or any Subsidiary,
(ii) authorizes or approves, enters into any agreement contemplating or solicits
shareholder approval for any Fundamental Transaction or (iii) authorizes the
voluntary dissolution, liquidation or winding up of the affairs of the Company,
then the Company shall deliver to the Holder a notice describing the material
terms and conditions of such transaction, at least 20 calendar days prior to the
applicable record or effective date on which a Person would need to hold Common
Stock in order to participate in or vote with respect to such transaction, and
the Company will take all steps reasonably necessary in order to insure that the
Holder is given the practical opportunity to exercise this Warrant prior to such
time so as to participate in or vote with respect to such transaction; provided,
however, that the failure to deliver such notice or any defect therein shall not
affect the validity of the corporate action required to be described in such
notice.

     

    10. Fractional
Shares.  The Company shall not be required to issue or cause to
be issued fractional Warrant Shares on the exercise of this
Warrant.  If any fraction of a Warrant Share would, except for the
provisions of this Section, be issuable upon exercise of this Warrant, the
number of Warrant Shares to be issued will be rounded up to the nearest whole
share.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    11. Notices.  Any
and all notices or other communications or deliveries hereunder (including
without limitation any Exercise Notice) shall be in writing and shall be deemed
given and effective on the earliest of (i) the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number
specified in this Section prior to 5:00 p.m. (New York City time) on any day on
which trading occurs on the Nasdaq Stock Market (or any successor thereto) (a
“Trading Day”), (ii) the
next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number specified in this Section on
a day that is not a Trading Day or later than 5:00 p.m. (New York City time) on
any Trading Day, (iii) the Trading Day following the date of mailing, if sent by
nationally recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such notice is required to be given.  The address
for such notices or communications shall be as set forth in the Purchase
Agreement.

     

    12. Warrant
Agent.  The Company shall serve as warrant agent under this
Warrant.  Upon 30 days’ notice to the Holder, the Company may appoint
a new warrant agent.  Any corporation into which the Company or any
new warrant agent may be merged or any corporation resulting from any
consolidation to which the Company or any new warrant agent shall be a party or
any corporation to which the Company or any new warrant agent transfers
substantially all of its corporate trust or shareholders services business shall
be a successor warrant agent under this Warrant without any further
act.  Any such successor warrant agent shall promptly cause notice of
its succession as warrant agent to be mailed (by first class mail, postage
prepaid) to the Holder at the Holder's last address as shown on the Warrant
Register.

     

    13. Miscellaneous.

     

    (a) Subject
to the restrictions on transfer set forth on the first page hereof, this Warrant
may be assigned by the Holder.  This Warrant may not be assigned by
the Company except to a successor in the event of a Fundamental
Transaction.  This Warrant shall be binding on and inure to the
benefit of the parties hereto and their respective successors and
assigns.  Subject to the preceding sentence, nothing in this Warrant
shall be construed to give to any Person other than the Company and the Holder
any legal or equitable right, remedy or cause of action under this
Warrant.  This Warrant may be amended only in writing signed by the
Company and the Holder and their successors and assigns.

     

    (b) The
Company will not, by amendment of its governing documents 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 action as may be necessary or appropriate in order to protect
the rights of the Holder against impairment.  Without limiting the
generality of the foregoing, the Company (i) will not increase the par value of
any Warrant Shares above the amount payable therefor on such exercise, (ii) will
take all such action as may be reasonably necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable Warrant
Shares on the exercise of this Warrant, and (iii) will not close its shareholder
books or records in any manner which interferes with the timely exercise of this
Warrant.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (c) Governing Law; Venue; Waiver
Of Jury Trial.  all questions concerning the construction,
validity, enforcement and interpretation of this warrant shall be governed by
and construed and enforced in accordance with the laws of the state of new
york.  each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the city of new york,
borough of manhattan, for the adjudication of any dispute hereunder, and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such
court, that such suit, action or proceeding is improper.  each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by
law.  the company hereby waives all rights to a trial by
jury.

     

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

     

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

     

    SIGNATURE
PAGE FOLLOWS

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

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

     

    
      	 
      
	
              CYBRA
      CORPORATION

            
	 
      
	 
      
	
              By:                                                                

            
	
              Name:  Harold
      Brand

            
	
              Title:    President
      and Chief Executive Officer

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    FORM OF
EXERCISE NOTICE

     

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

     

    To:  CYBRA
CORPORATION

     

    The
undersigned is the Holder of Warrant No. _______ (the “Warrant”) issued by CYBRA
Corporation, a New York corporation (the “Company”).  Capitalized
terms used herein and not otherwise defined have the respective meanings set
forth in the Warrant.

     

    
      	
              1.  

            	
              The
      Warrant is currently exercisable to purchase a total of ______________
      Warrant Shares.

            

    

     

    
      	
              2.  

            	
              The
      undersigned Holder hereby exercises its right to purchase
      _________________ Warrant Shares pursuant to the
  Warrant.

            

    

     

    
      	
              3.  

            	
              The
      holder shall pay the sum of $____________ to the Company in accordance
      with the terms of the Warrant.

            

    

     

    
      	
              4.  

            	
              Pursuant
      to this exercise, the Company shall deliver to the holder _______________
      Warrant Shares in accordance with the terms of the
  Warrant.

            

    

     

    
      	
              5.  

            	
              Following
      this exercise, the Warrant shall be exercisable to purchase a total of
      ______________ Warrant Shares.

            

    

     

    
      	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Dated:                                      ,

            	 
      	
              Name
      of Holder:

            
	 
      	 
      	 
      
	 
      	 
      	
              (Print)                                                             

            
	 
      	 
      	 
      
	 
      	 
      	
              By:                                                             

            
	 
      	 
      	
              Name:                                                             

            
	 
      	 
      	
              Title:                                                             

            
	 
      	 
      	 
      
	 
      	 
      	
              (Signature
      must conform in all respects to name of holder as specified on the face of
      the Warrant)

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    FORM OF
ASSIGNMENT

     

    [To be
completed and signed only upon transfer of Warrant]

     

    FOR VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers unto
________________________________ the right represented by the within Warrant to
purchase  ____________ shares of Common Stock of CYBRA Corporation to
which the within Warrant relates and appoints ________________ attorney to
transfer said right on the books of CYBRA Corporation with full power of
substitution in the premises.

     

    
      	 
      	 
      
	 
      	 
      
	
              Dated:                                      ,

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	
              (Signature
      must conform in all respects to name of holder as specified on the face of
      the Warrant)

            
	 
      	 
      
	 
      	 
      
	 
      	
              Address
      of Transferee

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              In
      the presence of:

            	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

    

     

    11

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