Document:

Exhibit 4.2

 

Exhibit A

to

Securities Purchase Agreement

 

FORM OF WARRANT

 

NEITHER THIS SECURITY NOR ANY SECURITIES
WHICH MAY BE ISSUED UPON EXERCISE OF THIS SECURITY HAVE BEEN REGISTERED
WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY U.S. STATE OR OTHER JURISDICTION OR ANY EXCHANGE OR SELF-REGULATORY
ORGANIZATION, IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED, AND SUCH OTHER LAWS AND REQUIREMENTS, AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT OR LISTING OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AND/OR LISTING
REQUIREMENTS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH WILL BE REASONABLY ACCEPTABLE TO THE
COMPANY.

.

ASPYRA, INC.

 

COMMON STOCK WARRANT

 

	
  No.                  

  	
   

  	
          February            ,
  2009

  

 

ASPYRA,
INC., a California
corporation (the “Company”), hereby certifies that                                                                       ,
its permissible transferees, designees, successors and assigns (collectively,
the “Holder”), for value received, is entitled to purchase from the
Company at any time commencing on the effective date (the “Effective Date”),
which shall be the date of the Closing (as defined in the Securities Purchase Agreement,
dated as of February      , 2009, by and among
the Company and the Purchasers listed on Schedule 1 thereto (the “Securities
Purchase Agreement”)), and terminating on the third anniversary of such date
(the “Termination Date”) up to                           
shares (each, a “Share” and collectively the “Shares”) of the
Company’s common stock, no par value per Share (the “Common Stock”), at
an exercise price per Share equal to thirty one cents ($0.31) (the “Exercise
Price”).  The number of Shares
purchasable hereunder and the Exercise Price are subject to adjustment as
provided in Section 4 hereof.

 

 

1.                                       Method of Exercise; Payment.

 

()             Cash Exercise.  The purchase rights represented by this
Warrant may be exercised by the Holder, in whole or in part, at any time, or
from time to time, by the surrender of this Warrant (with the notice of
exercise form (the “Notice of Exercise”) attached hereto as Exhibit A
duly executed) at the principal office of the Company, and by payment to the
Company of an amount equal to the Exercise Price multiplied by the number of
the Shares being purchased, which amount may be paid, at the election of the
Holder, by wire transfer or certified check payable to the order of the Company.
The person or persons in whose name(s) any certificate(s) representing
Shares shall be issuable upon exercise of this Warrant shall be deemed to have
become the holder(s) of record of, and shall be treated for all purposes
as the record holder(s) of, the Shares represented thereby (and such
Shares shall be deemed to have been issued) immediately prior to the close of
business on the date or dates upon which this Warrant is exercised.

 

(b)           Net Issue
Exercise. In lieu of exercising this warrant pursuant to Section l (a) hereof,
the Holder may elect to receive a number of Shares equal to of the value (as
determined below) of such portion of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company
together with Notice of Cashless Exercise annexed hereto as Exhibit C duly
executed; provided that the Net Issue Exercise set forth in this Section 1(b) is
subject to adjustments set forth in Section 4 of this Warrant. In such
event, the Company shall issue to the Holder a number of Shares computed using
the following formula:

 

	
   

  	
            X  =  Y
  (A-B)

  
	
   

  	
                          A

  

 

	
  Where 

  	
  X

  	
  =

  	
  the number of Shares to be issued to the Holder.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Y

  	
  =

  	
  the number of Shares subject to this Warrant or, if only a portion of
  this Warrant is being exercised, the portion of the Warrant being canceled
  (at the time of such calculation).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A

  	
  =

  	
  the fair market value of one share of the Company’s Common Stock (at
  the date of such calculation).

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B

  	
  =

  	
  the Exercise Price (as adjusted to the date of such calculation).

  

 

 

(c)           Fair Market Value.  For purposes of this Section 1, the fair
market value of the Company’s Common Stock shall mean:

 

()             The average of the
closing sales prices of the Company’s Common Stock quoted on the NYSE Alternext
(“Alternext”), or if the Alternext is not the principal market for the Company’s
Common Stock, then the Nasdaq Stock Market or in the Over-The-Counter Market
Summary or the closing price quoted on any other exchange on which the Common
Stock is listed, whichever is applicable, as published in the The Wall
Street Journal for the ten (10) trading days prior to the date of
determination of fair market value;

 

 

()             If the Company’s
Common Stock is not traded on the Nasdaq Stock Market or Over-The-Counter or on
an exchange, the fair market value of the Common Stock per share shall be
agreed upon by the parties hereto.  If
parties cannot agree on the fair market value within five (5) business
days of delivery of the Notice of Exercise, the Board of Directors in good
faith shall determine the fair market value of the Common Stock; provided,
however, that the fair market value of the Common Stock shall be no greater
than the price at which the Company last sold its Common Stock or the exercise
price of its last granted options, whichever occurs later.

 

(d)           Stock
Certificates.  In the event of any
exercise of the rights represented by this Warrant, as promptly as practicable
after this Warrant is surrendered and delivered to the Company along with all
other appropriate documentation on or after the date of exercise and in any
event within ten (10) days thereafter, the Company at its expense shall
issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of Shares issuable upon such
exercise.  In the event this Warrant is
exercised in part, the Company at its expense will execute and deliver a new
Warrant of like tenor exercisable for the number of Shares for which this
Warrant may then be exercised.

 

(e)           Taxes.  The issuance of the Shares upon the exercise
of this Warrant, and the delivery of certificates or other instruments
representing such Shares, shall be made without charge to the Holder for any
tax or other charge in respect of such issuance.

 

2.                                       Warrant.

 

(a)           Exchange,
Transfer and Replacement.  At any
time prior to the exercise hereof, this Warrant may be exchanged upon presentation
and surrender to the Company, alone or with other warrants of like tenor of
different denominations registered in the name of the same Holder, for another
warrant or warrants of like tenor in the name of such Holder exercisable for
the aggregate number of Shares as the warrant or warrants surrendered.

 

(b)           Replacement
of Warrant.  Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction, or
mutilation of this Warrant and, in the case of any such loss, theft, or destruction,
upon delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company, or, in the case of any such mutilation, upon surrender
and cancellation of this Warrant, the Company, at its expense, will execute and
deliver in lieu thereof, a new Warrant of like tenor.

 

(c)           Cancellation;
Payment of Expenses.  Upon the
surrender of this Warrant in connection with any transfer, exchange or
replacement as provided in this Section 2, this Warrant shall be
promptly canceled by the Company.  The
Holder shall 

pay all taxes and all other expenses (including legal expenses, if any,
incurred by the Holder or transferees) and charges payable in connection with
the preparation, execution and delivery of Warrants pursuant to this Section 2.

 

 

(d)           Warrant
Register.  The Company shall
maintain, at its principal executive offices (or at the offices of the transfer
agent for the Warrant or such other office or agency of the Company as it may
designate by notice to the holder hereof), a register for this Warrant (the “Warrant
Register”), in which the Company shall record the name and address of the
person in whose name this Warrant has been issued, as well as the name and
address of each transferee and each prior owner of this Warrant.

 

3.                                       Rights and Obligations of Holders of this
Warrant.  The Holder of this Warrant shall not, by
virtue hereof, be entitled to any rights of a stockholder in the Company,
either at law or in equity; provided, however, that in the event
any certificate representing shares of Common Stock or other securities is
issued to the holder hereof upon exercise of this Warrant, such holder shall,
for all purposes, be deemed to have become the holder of record of such Common
Stock on the date on which this Warrant, together with a duly executed Election
to Purchase, was surrendered and payment of the aggregate Exercise Price was
made, irrespective of the date of delivery of such Common Stock certificate.

 

4.                                       Adjustments.

 

(a)           Stock
Dividends, Reclassifications, Recapitalizations, Etc.  While this Warrant is outstanding, in the
event the Company:  (i) pays a
dividend in Common Stock or makes a distribution in Common Stock, (ii) subdivides
its outstanding Common Stock into a greater number of shares, (iii) combines
its outstanding Common Stock into a smaller number of shares or (iv) increases
or decreases the number of shares of Common Stock outstanding by
reclassification of its Common Stock (including a recapitalization in
connection with a consolidation or merger in which the Company is the
continuing corporation), then (1) the Exercise Price on the record date of
such division or distribution or the effective date of such action shall be
adjusted by multiplying such Exercise Price by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately before
such event and the denominator of which is the number of shares of Common Stock
outstanding immediately after such event, and (2) the number of shares of
Common Stock for which this Warrant may be exercised immediately before such
event shall be adjusted by multiplying such number by a fraction, the numerator
of which is the Exercise Price immediately before such event and the
denominator of which is the Exercise Price immediately after such event.

 

(b)           Combination:
Liquidation.  While this Warrant is
outstanding, (i) In the event of a Combination (as defined below), each
Holder shall have the right to receive upon exercise of the Warrant the kind
and amount of shares of capital stock or other securities or property which
such Holder would have been entitled to receive upon or as a result of such
Combination had such Warrant been exercised immediately prior to such event
(subject to further adjustment in accordance with the terms hereof).  Unless 

 

 

paragraph (ii) is applicable to a Combination, the Company
shall provide that the surviving or acquiring Person (the “Successor Company”)
in such Combination will assume by written instrument the obligations under
this Section 4 and the obligations to deliver to the Holder such
shares of stock, securities or assets as, in accordance with the foregoing
provisions, the Holder may be entitled to acquire. “Combination” means
an event in which the Company consolidates with, mergers with or into, or sells
all or substantially all of its assets to another Person, where “Person”
means any individual, corporation, partnership, joint venture, limited
liability company, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any
other entity; (ii)  In the event of (x) a Combination where
consideration to the holders of Common Stock in exchange for their shares is
payable solely in cash or (y) the dissolution, liquidation or winding-up
of the Company, the Holders shall be entitled to receive, upon surrender of
their Warrant, distributions on an equal basis with the holders of Common Stock
or other securities issuable upon exercise of the Warrant, as if the Warrant
had been exercised immediately prior to such event, less the Exercise
Price.  In case of any Combination
described in this Section 4, the surviving or acquiring Person and,
in the event of any dissolution, liquidation or winding-up of the Company, the
Company, shall deposit promptly with an agent or trustee for the benefit of the
Holders of the funds, if any, necessary to pay to the Holders the amounts to
which they are entitled as described above. 
After such funds and the surrendered Warrant are received, the Company
is required to deliver a check in such amount as is appropriate (or, in the
case or consideration other than cash, such other consideration as is
appropriate) to such Person or Persons as it may be directed in writing by the
Holders surrendering such Warrant.

 

(c)  Notice of Adjustment.  Whenever the Exercise Price or the number of
shares of Common Stock and other property, if any, issuable upon exercise of
the Warrant is adjusted, as herein provided, the Company shall deliver to the
holders of the Warrant in accordance with Section 10 a certificate
of the Company’s Chief Financial Officer setting forth, in reasonable detail,
the event requiring the adjustment and the method by which such adjustment was
calculated (including a description of the basis on which (i) the Board of
Directors determined the fair value of any evidences of indebtedness, other
securities or property or warrants, options or other subscription or purchase
rights and (ii) the Current Market Value of the Common Stock was
determined, if either of such determinations were required), and specifying the
Exercise Price and number of shares of Common Stock issuable upon exercise of
Warrant after giving effect to such adjustment.

 

(d)  Notice of Certain Transactions.  While this Warrant is outstanding, in the
event that the Company shall propose (a) to pay any dividend payable in
securities of any class to the holders of its Common Stock or to make any other
non-cash dividend or distribution to the holders of its Common Stock, (b) to
offer the holders of its Common Stock rights to subscribe for or to purchase
any securities convertible into shares of Common Stock or shares of stock of
any class or any other securities, rights or options, (c) to effect any
capital reorganization, reclassification, consolidation or merger affecting the
class of Common Stock, as a whole, or (d) to effect the voluntary or
involuntary dissolution, liquidation or winding-up of the Company, the Company
shall, within the 

 

 

time limits specified below, send to each Holder a notice of such proposed
action or offer.  Such notice shall be
mailed to the Holders at their addresses as they appear in the Warrant Register
(as defined in Section 2(d)), which shall specify the record date
for the purposes of such dividend, distribution or rights, or the date such
issuance or event is to take place and the date of participation therein by the
holders of Common Stock, if any such date is to be fixed, and shall briefly
indicate the effect of such action on the Common Stock and on the number and
kind of any other shares of stock and on other property, if any, and the number
of shares of Common Stock and other property, if any, issuable upon exercise of
each Warrant and the Exercise Price after giving effect to any adjustment
pursuant to Section 4 which will be required as a result of such
action.  Such notice shall be given as
promptly as possible and (x) in the case of any action covered by clause (a) or
(b) above, at least ten (10) days prior to the record date for
determining holders of the Common Stock for purposes of such action or (y) in
the case of any other such action, at least twenty (20) days prior to the date
of the taking of such proposed action or the date of participation therein by
the holders of Common Stock, whichever shall be the earlier.

 

(e)  Current Market Value.  “Current Market Value” per share of
Common Stock or any other security at any date means (i) if the security
is not registered under the Securities Exchange Act of 1934 and/or traded on a
national securities exchange, quotation system or bulletin board, as amended
(the “Exchange Act”), (a) the value of the security, determined in
good faith by the Board of Directors of the Company and certified in a board
resolution, based on the most recently completed arm’s-length transaction between
the Company and a Person other than an affiliate of the Company or between any
two such Persons and the closing of which occurs on such date or shall have
occurred within the six-month period preceding such date, or (b) if no
such transaction shall have occurred within the six-month period, the value of
the security as determined by an independent financial expert or an agreed upon
financial valuation model or (ii) if the security is registered under the
Exchange Act and/or traded on a national securities exchange, quotation system
or bulletin board, the average of the daily closing bid prices (or the
equivalent in an over-the-counter market) for each day on which the Common
Stock is traded for any period on the principal securities exchange or other securities
market on which the common Stock is being traded (each, a “Trading Day”)
during the period commencing thirty (30) days before such date and ending on
the date one day prior to such date.

 

5.                                       Fractional Shares. 
In lieu of issuance of a fractional share upon any exercise hereunder,
the Company will issue an additional whole share in lieu of that fractional
share, calculated on the basis of the Exercise Price.

 

6.                                       Legends.  Prior to
issuance of the shares of Common Stock underlying this Warrant, all such
certificates representing such shares shall bear a restrictive legend to the
effect that the Shares represented by such certificate have not been registered
under the 1933 Act, and that the Shares may not be sold or transferred in the
absence of such registration or an exemption therefrom, such legend to be
substantially in the form of the bold-face language appearing at the top of Page 1
of this Warrant.

 

 

7.             Disposition
of Warrants or Shares.  The Holder of
this Warrant, each transferee hereof and any holder and transferee of any
Shares, by his or its acceptance thereof, agrees that no public distribution of
Warrants or Shares will be made in violation of the provisions of the 1933
Act.  Furthermore, it shall be a
condition to the transfer of this Warrant that any transferee thereof deliver
to the Company his or its written agreement to accept and be bound by all of
the terms and conditions contained in this Warrant.

 

8.             Merger
or Consolidation.  The Company will
not merge or consolidate with or into any other corporation, or sell or
otherwise transfer its property, assets and business substantially as an
entirety to another corporation, unless the corporation resulting from such
merger or consolidation (if not the Company), or such transferee corporation,
as the case may be, shall expressly assume, by supplemental agreement
reasonably satisfactory in form and substance to the Holder, the due and
punctual performance and observance of each and every covenant and condition of
this Warrant to be performed and observed by the Company.

 

9.             Notices.  Except as otherwise specified herein to the
contrary, all notices, requests, demands and other communications required or
desired to be given hereunder shall only be effective if given in writing by
certified or registered U.S. mail with return receipt requested and postage
prepaid; by private overnight delivery service (e.g. Federal Express); by
facsimile transmission (if no original documents or instruments must accompany
the notice); or by personal delivery. 
Any such notice shall be deemed to have been given (a) on the
business day immediately following the mailing thereof, if mailed by certified
or registered U.S. mail as specified above; (b) on the business day
immediately following deposit with a private overnight delivery service if sent
by said service; (c) upon receipt of confirmation of transmission if sent
by facsimile transmission; or (d) upon personal delivery of the
notice.  All such notices shall be sent
to the following addresses (or to such other address or addresses as a party
may have advised the other in the manner provided in this Section 9):

 

	
  if
  to the Company:

  	
   

  	
  Aspyra, Inc.

  
	
   

  	
   

  	
  26115-A Mureau Road

  
	
   

  	
   

  	
  Calabasas, California
  91302

  
	
   

  	
   

  	
  Attention:

  	
   

  
	
   

  	
   

  	
  Facsimile: 

  	
   

  
	
   

  	
   

  	
   

  
	
  with
  copy to:

  	
   

  	
  Sichenzia Ross Friedman
  Ference LLP

  
	
   

  	
   

  	
  1065 Avenue of the
  Americas, 21st Floor

  
	
   

  	
   

  	
  New York, NY 10018

  
	
   

  	
   

  	
  Attention: Darrin M. Ocasio, Esq.

  
	
   

  	
   

  	
  Facsimile: (212) 930-9725

  
	
   

  	
   

  	
   

  
	
  if to the Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:

  

 

 

Notwithstanding the time
of effectiveness of notices set forth in this Section, an Election to Purchase
shall not be deemed effectively given until it has been duly completed and
submitted to the Company together with this original Warrant and payment of the
Exercise Price in a manner set forth in this Section.

 

10.           Limitation on
Exercise. Notwithstanding anything to the contrary contained herein, the
number of shares of Common Stock that may be acquired by the Holder upon
any exercise of this Warrant (or otherwise in respect hereof) shall be limited
to the extent necessary to insure that, following such exercise (or other
issuance), the total number of shares of Common Stock then beneficially owned
by such Holder and its affiliates and any other persons whose beneficial ownership
of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of
the Exchange Act, does not exceed [4.999%/9.999%] of the total number of issued
and outstanding shares of Common Stock (including for such purpose the shares
of Common Stock issuable upon such exercise). For such purposes, beneficial
ownership shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. Each
delivery of an Exercise Notice hereunder will constitute a representation by
the Holder that it has evaluated the limitation set forth in this paragraph and
determined that issuance of the full number of Warrant Shares requested in such
Exercise Notice is permitted under this paragraph. This provision shall not
restrict the number of shares of Common Stock which a Holder may receive
or beneficially own in order to determine the amount of securities or other
consideration that such Holder may receive in the event of a merger or
other business combination or reclassification involving the Company. This
restriction may not be waived without the consent of the Holder.

 

11.           Governing
Law.  This Warrant shall be governed
by and construed in accordance with the laws of the State of New York applicable
to contracts made and to be performed in the State of New York.

 

12.           Successors
and Assigns.  This Warrant shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective successors and assigns.

 

13.           Headings.  The headings of various sections of this
Warrant have been inserted for reference only and shall not affect the meaning
or construction of any of the provisions hereof.

 

 

14.           Severability.
If any provision of this Warrant is held to be unenforceable under applicable
law, such provision shall be excluded from this Warrant, and the balance hereof
shall be interpreted as if such provision were so excluded.

 

15.           Modification
and Waiver.  This Warrant and any
provision hereof may be amended, waived, discharged or terminated only by an
instrument in writing signed by the Company and the Holder.

 

16.           Specific
Enforcement.  The Company and the
Holder acknowledge and agree that irreparable damage would occur in the event
that any of the provisions of this Warrant were not performed in accordance
with their specific terms or were otherwise breached.  It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches
of the provisions of this Warrant and to enforce specifically the terms and
provisions hereof, this being in addition to any other remedy to which either
of them may be entitled by law or equity.

 

17.           Assignment.  Subject to prior written approval by the
Company, this Warrant may be transferred or assigned, in whole or in part, at
any time and from time to time by the then Holder by submitting this Warrant to
the Company together with a duly executed Assignment in substantially the form
and substance of the Form of Assignment which accompanies this Warrant, as
Exhibit B hereto,
and, upon the Company’s receipt hereof, and in any event, within five (5) business
days thereafter, the Company shall issue a warrant to the Holder to evidence
that portion of this Warrant, if any as shall not have been so transferred or
assigned.

 

18.           Shareholder
Approval.    Unless and until Shareholder Approval has been
obtained and deemed effective, the Company shall not upon exercise of this
Warrant issue shares of Common Stock to the extent that such issuance, together
with all previous issuances of Common Stock pursuant to the exercise of all
Warrants and the conversion of all Notes issued pursuant to the Securities
Purchase Agreement would in the aggregate exceed a number of shares of Common
Stock equal to more than 19.99% of the Company’s issued and outstanding Common
Stock on the Closing Date.

 

(signature page immediately follows)

 

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be duly executed, manually or by facsimile,
by one of its officers thereunto duly authorized.

 

	
   

  	
  ASPYRA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: February 12, 2009

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:   President and Chief Executive Officer

  

 

 

EXHIBIT A

TO

WARRANT CERTIFICATE

 

ELECTION TO
PURCHASE

 

To Be Executed by the
Holder

in Order to Exercise the Warrant

 

The undersigned Holder
hereby elects to purchase                Shares pursuant to the attached Warrant, and
requests that certificates for securities be issued in the name of:

 

 

(Please type or
print name and address)

 

 

(Social Security
or Tax Identification Number)

 

and delivered

to:

 

 

(Please type or
print name and address if different from above)

 

If such number of Shares
being purchased hereby shall not be all the Shares that may be purchased
pursuant to the attached Warrant, a new Warrant for the balance of such Shares
shall be registered in the name of, and delivered to, the Holder at the address
set forth below.

 

In full payment of the
purchase price with respect to the Shares purchased and transfer taxes, if any,
the undersigned hereby tenders payment of $                   
by check, money order or wire transfer payable in United States currency to the
order of ASPYRA, INC.

 

	
   

  	
  HOLDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  

 

 

EXHIBIT B

TO

WARRANT

 

FORM OF
ASSIGNMENT

(To be signed only on 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 Aspyra, Inc., a California corporation, to which
the within Warrant relates, and appoints                                       
Attorney to transfer such right on the books of Aspyra, Inc., a California
corporation, with full power of substitution of premises.

 

 

	
  Dated:

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  (signature must conform to name

  
	
   

  	
  of holder as specified on the fact

  
	
   

  	
  of the Warrant)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  

 

 

Signed in the presence of
:

 

 

Dated:

 

 

EXHIBIT C

TO

WARRANT

 

NOTICE OF EXERCISE OF COMMON STOCK WARRANT

PURSUANT TO NET ISSUE (“CASHLESS”) EXERCISE
PROVISIONS

 

Aspyra, Inc.

26115-A Mureau Road

Calabasas, California 91302

 

	
   

  	
  Number
  of Shares of

  Common Stock to be

  Issued Under this

  Notice:

  

 

CASHLESS EXERCISE

 

Gentlemen:

 

The undersigned, registered holder of the Warrant to Purchase Common
Stock delivered herewith (“Warrant”) hereby irrevocably exercises such Warrant
for, and purchases thereunder, shares of the Common Stock of ASPYRA, INC., a California corporation, as
provided below.  Capitalized terms used
herein, unless otherwise defined herein, shall have the meanings given in the
Warrant.  The portion of the Aggregate
Price (as hereinafter defined) to be applied toward the purchase of Common
Stock pursuant to this Notice of Exercise is $                ,
thereby leaving a remainder Aggregate Price (if any) equal to $                .  Such exercise shall be pursuant to the net
issue exercise provisions of Section 1(b) of the Warrant. Therefore,
the holder makes no payment with this Notice of Exercise.  The number of shares to be issued pursuant to
this exercise shall be determined by reference to the formula in Section 1(b) of
the Warrant which requires the use of the fair market value (as defined in Section 1(c) of
the Warrant) of the Company’s Common Stock on the business day immediately
preceding the day on which this Notice is received by the Company.  To the extent the foregoing exercise is for
less than the full Aggregate Price of the Warrant, the remainder of the Warrant
representing a number of Shares equal to the quotient obtained by dividing the
remainder of the Aggregate Price by the Warrant Price (and otherwise of like
form, tenor and effect) may be exercised under Section 1(b) of the
Warrant. For purposes of this Notice the term “Aggregate Price” means the
product obtained by multiplying (i) the number of shares of Common Stock
for which the Warrant is exercisable times the Warrant Price;

 

 

	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:ex10_1.htm

    
      

    

    Exhibit
10.1

     

    
      THIS AGREEMENT made
on  February 12, 2009

      

      
        	
                BETWEEN:

              	
                EXCELARON LLC a company
      incorporated in the State of California and having its principal executive
      office at 1075 Court Street, Suite 207, San Luis Obispo, California,
      United States of America ("Company")

              

      

      

      
        	
                AND

              	
                MOGUL ENERGY INTERNATIONAL INC
      a company having its principal executive office at 201 47 Colborne
      St, Toronto, Ontario, Canada (“Mogul”)

              

      

      

      RECITAL:

      

      The
Company has agreed to permit Mogul to subscribe for a 40% Members Percentage
Interest in the Company in consideration of the Capital Contribution by Mogul to
the Company of US$2,300,000 (which monies the Company shall use to acquire and
develop the Californian Leases (defined below) for the benefit of all Members
and to repay the shareholder loan in accordance with clause 6) on and subject to
the following terms and conditions.

      

      
        THE
PARTIES AGREE:

      

      

      
        	
                1.

              	
                DEFINITIONS
      AND INTERPRETATION

              

      

      

      To the
extent that any terms which are defined in the Company’s Operating Agreement are
used in this Agreement, they shall have the same meaning as in the Operating
Agreement.

      

      “California
Leases” means the petroleum and natural gas lease or permits the members and
Mogul have agreed to cause the Company to acquire in California USA for the
development thereof by the Company.

      

      
        	
                2.

              	
                SUBSCRIPTION
      AND PAYMENT

              

      

      

      Mogul
agrees to subscribe for a 40% Member’s Percentage Interest in the Company by the
payment of a Capital Contribution in the sum of US$2,300,000 as
follows:

      

      
        
          	
                	
                  (a)

                	
                  US$175,000
      within 24 hours of the mutual execution of this
  Agreement;

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  US$275,000
      on 15 April 2009;

                

        

      

      

      
        
          	
                	
                  (c)

                	
                  US$500,000
      on 1 June 2009;

                

        

      

      

      
        
          	
                	
                  (d)

                	
                  US$500,000
      on 1 August 2009; and

                

        

      

      

      
        
          	
                	
                  (e)

                	
                  US$850,000
      on 1 October 2009.

                

        

      

      

      
        	
                3.

              	
                COMPLETION

              

      

      

      The 40%
Member’s Percentage Interest in the Company referred to in the Recitals shall be
issued to Mogul upon payment of the first installment of Capital Contributions
referred to in Clause 2(a).  The Parties will obtain:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        
          	
                	
                  (a)

                	
                  Any
      contractual consent relating to this Agreement and any consent or
      agreement from any persons to the performance of this Agreement necessary
      or desirable to prevent default invalidation or a prejudicial effect in
      relation to any agreement created or property held by
      Excelaron;

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  Any
      Government consent relating to this
Agreement;

                

        

      

      

      
        
          	
                	
                  (c)

                	
                  Any
      securities legislation compliance certificates that may be required for
      Mogul’s purchase of the Member’s Percentage Interest, which Mogul shall
      approve, sign, and deliver as such legislation may
  require;

                

        

      

      

      
        
          	
                	
                  (d)

                	
                  If
      necessary the execution of an agreement by Barisan Energy Limited, W
      Devine (or his approved transferee) and Australian Oil Company No. 2 Pty
      Limited to give effect to amendments of the Operating Agreement required
      in accordance with Clause 9 below;
and

                

        

      

      

      
        
          	
                	
                  (e)

                	
                  To
      the extent the loan outstanding from the Company to AOC comprises short
      term indebtedness of the Company confirmed by its having accepted as
      payable, invoices from AOC for fees for services, the Managers shall have
      so confirmed such debt, and have issued one or more evidences of such
      indebtedness to AOC in respect
therof.

                

        

      

      

      The
Parties will use their best endeavours to achieve contract completion by not
later than 12 February 2009.

      

      
        	
                4.

              	
                NON
      PERFORMANCE

              

      

      

      If for
any reason Mogul fails to make any Capital Contribution payment required under
Clause 2 of this Agreement Excelaron may at its election:

      

      
        
          	
                	
                  (a)

                	
                  Deliver
      a Notice of Default to Mogul that shall have been pre-approved by
      Australian Oil Company Limited and which Notice shall so certify, therein
      providing Mogul with 15 business days from receipt thereof by Mogul to
      commence to resolve or settle the alleged
  default;

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  Deliver
      to Mogul a Notice of Termination of this Agreement if after 15 business
      days following Mogul’s receipt of a Members Notice of Default Mogul does
      not commence to resolve or settle the alleged default set out in a Notice
      of Default issued per (a) above or such default is not resolved or settled
      within a further 10 business
days;

                

        

      

      

      
        
          	
                	
                  (c)

                	
                  If
      Mogul, receives a Notice of Termination of this Agreement and such has
      been approved by Australian Oil Company Limited, the following shall be
      the exclusive remedies of the Members of the Company and the consequences
      arising therefrom:

                

        

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        
          	
                	
                  (i)

                	
                  the
      Member’s Percentage Interest Mogul shall have subscribed for in the
      Company shall be amended to be a 2.00% Member’s Percentage Interest for
      each US$250,000.00 Mogul shall have already paid to the Company up to
      $1,000,000; (and part thereof as applicable);  and a 5% Member’s
      Percentage Interest for each US$250,000.00 Mogul shall have already paid
      to the Company in an amount greater than $1,000,000 (and part thereof as
      applicable);

                

        

      

      

      
        
          	
                	
                  (ii)

                	
                  Irrespective
      of that which may become Mogul’s Member’s Percentage Interest upon its
      completion of delivery of Capital Contributions hereunder, all other
      Members’ Percentage Interests shall be reduced from those Members’
      Percentage Interest as they existed prior to the effective date of this
      Agreement to Mogul Member’s Percentage Interest, and relate one to the
      other in the proportions Barisan 4:  UHC 21:  AOC
      35;

                

        

      

      

      
        
          	
                	
                  (iii)

                	
                  despite
      the agreed Amendments to the Company’s Operating Agreement, Mogul shall
      have no Manager Representative if its Member’s Percentage Interest is less
      than 10% and Mogul shall only be entitled to one Manager Representative if
      its Member’s Percentage Interest exceeds 10%, but is less than 20% and the
      amendment to the Operating Agreement as to Section 5.10 shall not come
      into effect.;

                

        

      

      

      

      
        	
                5.

              	
                DELAY

              

      

      

      The
payments of the fourth and fifth installments as set out in sub-clauses (d) and
(e) of Clause 2 of this Agreement may be delayed to the extent that the Company
does not secure Conditional User Permit(s) for the planned operations for the
California Leases until June 30, 2009;  and which delays for each
payment due date, shall be equal to one day for each day from and after June 30,
2009 to and including the day the Company acquires those licenses..

      

      
        	
                6.

              	
                USE
      OF FUNDS

              

      

      

      The
Company will apply the sum of US$235,520 in two installments of $US$120,000 and
US$115,520 from the first and second installments respectively of Mogul’s
Capital Contributions paid in accordance with Clause 2 to repay the shareholder
loan owing by the Company to Australian Oil Company Limited.  The
balance of the Capital Contribution subscribed by Mogul pursuant to this
Agreement will be applied towards budgeted operating expenses.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        	
                7.

              	
                MANAGERS

              

      

      

      Subject
to having satisfied its obligations under Clause 3, the Members of the Company
shall appoint as Managers whom Mogul nominates from time to time, subject to
those restrictions set out in Clause 4(iii)., in addition to its existing two
Managers.

      

      
        	
                8.

              	
                PRO
      RATA CONTRIBUTIONS

              

      

      

      Upon
payment by Mogul of the five installments of Capital Contributions pursuant to
Clause 2 of this Agreement the Members’ Percentage Interests of all Members
shall be as follows:

      

      
        
          
            
              	
                      Barisan
      Energy Limited

                    	 	 	4	%
	
                      United
      Hydrocarbon Corporation

                    	 	 	21	%
	
                      Australian
      Oil Company No. 2 Limited

                    	 	 	35	%
	
                      Mogul

                    	 	 	40	%
	
                      Total

                    	 	 	100	%

            

          

        

      

      

      At such
time the Managers shall prepare a revised Schedule “B” to the Operating
Agreement reporting the above changes to the Members’ Percentage Interests made
in accordance with the table above, or should the provisions of Clause 4(c)
apply, amended in accordance with the application of that Clause.

      

      
        	
                9.

              	
                OPERATING
      AGREEMENT

              

      

      

      The
Members agree to amend the Operating Agreement as necessary to give full effect
to the matters hereby agreed, to the matters set out in the Schedule hereto and
to incorporate the normal terms applicable to an operating oil exploration,
development and production joint venture.

      

      
        	
                10.

              	
                REPRESENTATIONS
      AND WARRANTIES

              

      

      

      
        	
                10.1

              	
                Company
      Warranties

              

      

      

      The
Company represents and warrants to Mogul that each of the following statements
is true and correct on the date of this Agreement and will be true and correct
as at the date of issue of the Member’s Percentage Interest as if made on that
date:

      

      
        
          	
                	
                  (a)

                	
                  the
      Member’s Percentage Interest will be validly issued and
      allotted;

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  the
      Company has the power to enter into and perform this Agreement;
      and

                

        

      

      

      
        
          	
                	
                  (c)

                	
                  the
      entry into and performance of this Agreement by it does not constitute a
      breach of any obligation or default of any agreement or undertaking by
      which it is bound nor a breach of its Operating
  Agreement.

                

        

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      
        	
                10.2

              	
                Mogul
      Warranties

              

      

      

      Mogul
represents and warrants to the Company that each of the following statements is
true and correct on the date of this Agreement and will be true and correct as
at the date of issue of the Member’s Percentage Interest as if made on that
date.

      

      
        
          	
                	
                  (a)

                	
                  Mogul
      has the power to enter into and perform this Agreement and has, or will at
      the date of issue of the Member’s Percentage Interest, have obtained all
      necessary consents to enable it to do
so;

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  the
      entry into and performance of this Agreement by it does not constitute a
      breach of any obligation or default of any agreement or undertaking by
      which it is bound nor a breach of its
  constitution.

                

        

      

      

      
        	
                11.

              	
                MISCELLANEOUS

              

      

      

      
        	
                11.1

              	
                Entire
      Agreement

              

      

      

      This
Agreement is the entire agreement of the parties about the subject matter of
this Agreement and supersedes all other representations, negotiations,
arrangements, understandings or agreements and all other communications. No
party has entered into this Agreement relying on any representations made by or
on behalf of the other, other than those expressly made in this
Agreement.

      

      
        	
                11.2

              	
                Further
      assurances

              

      

      

      Each
party must, at its own expense, whenever reasonably requested by the other
party, promptly do or arrange for others to do, everything reasonably necessary
to give full effect to this Agreement and the transactions contemplated by this
Agreement.

      

      
        	
                11.3

              	
                Costs

              

      

      

      Each
party must pay its own costs in respect of this Agreement and the documents and
transactions contemplated by this Agreement except that the Company must pay all
stamp duty on this Agreement.

      

      
        	
                11.4

              	
                Amendment

              

      

      

      This
Agreement may be amended only by a document signed by all parties.

      

      
        	
                11.5

              	
                Counterparts

              

      

      

      This
Agreement may be signed in counterparts and all counterparts taken together
constitute one document.

      

      
        	
                11.6

              	
                Governing
      law

              

      

      

      
        This
Agreement is governed by the laws of California.

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
        	
                11.7

              	
                Jurisdiction

              

      

      

      Each
party irrevocably and unconditionally:

      

      
        
          	
                	
                  (a)

                	
                  submits
      to the non-exclusive jurisdiction of the courts of California;
      and

                

        

      

      

      
        
          	
                	
                  (b)

                	
                  waives,
      without limitation, any claim or objection based on absence of
      jurisdiction or inconvenient
forum.

                

        

      

      

      EXECUTED as an
agreement

      

      
        
          	
                  SIGNED for and on behalf
      of

                  EXCELARON LLC by its
      duly

                  authorised
      representative in the

                  presence
      of:

                	
                  )

                  )

                  )

                  )

                	 
      
	 
      	 
      	 
      
	
                  /s/ (illegible)

                	 
      	
                  /s/ (illegible)

                
	
                  Witness

                	 
      	 
      

        

      

      

      
        
          	
                  SIGNED for and on behalf
      of

                  MOGUL ENERGY
      INTERNATIONAL

                  INC by its duly
      authorised

                  representative
      in the presence of:

                	
                  )

                  )

                  )

                  )

                	 
      
	 
      	 
      	 
      
	
                  /s/ Creenagh Flynn

                	 
      	
                  /s/ Naeem Tyab

                
	
                  Witness

                	 
      	 
      

        

      

      

      Ratified
and Confirmed by the Following as to the applicable Clauses above as shall apply
to all Members and in respect to the Amendments to the Operating Agreement –
Schedule “A” hereto:

      

      
        
          	
                  SIGNED for and on behalf
      of

                  AUSTRALIAN OIL COMPANY
      #2

                  LTD.  by its
      duly authorised

                  representative
      in the presence of:

                	
                  )

                  )

                  )

                  )

                	 
      
	 
      	 
      	 
      
	
                  /s/ (illegible)

                	 
      	
                  /s/ (illegible)

                
	
                  Witness

                	 
      	 
      

        

      

      

      

      
        
          	
                  SIGNED for and on behalf
      of

                  BARISAN ENERGY LTD. by
      its duly

                  authorised
      representative in the

                  presence
      of:

                	
                  )

                  )

                  )

                  )

                	 
      
	 
      	 
      	 
      
	
                  /s/ (illegible)

                	 
      	
                  /s/ (illegible)

                
	
                  Witness

                	 
      	 
      

        

      

      

      

      
        
          	
                  SIGNED for and on behalf
      of

                  UNITED HYDROCARBON INCORPORATED
      by its duly

                  authorised
      representative in the

                  presence
      of:

                	
                  )

                  )

                  )

                  )

                	 
      
	 
      	 
      	 
      
	
                  /s/ Creenagh Flynn

                	 
      	
                  /s/ William Divine

                
	
                  Witness

                	 
      	 
      

        

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      SCHEDULE
“A”

      

      AMENDMENTS
TO OPERATING AGREEMENT

      

      The
Operating Agreement will be amended, by inserting the following
Sections:

      

      5.10            
Notwithstanding Sections 5.1 to 5.3 hereof inclusive, Australian Oil Company
Limited (“AOC”) and
Mogul will jointly control the Company such that:

      

      5.10.1  all
decisions requiring a vote of the “Majority of Members” will need to be agreed
by both AOC and Mogul;

      

      5.10.2  AOC
and Mogul will at all times have a equal number of nominees acting as Managers
and at any meeting of Managers the nominees of AOC and Mogul respectively shall
have a equal number of votes regardless of the actual number of Managers
present;

      

      5.10.3 
in the event that a matter is not agreed by AOC and Mogul as Members or by their
respective nominee Managers, the Members agree to negotiate in good faith to
seek agreement on the matter.  If within 10 business days the Members
have not reached agreement, the Member that originally proposed the matter may
refer it at that Member’s cost, for determination by an independent
person.  If the Members cannot agree upon an independent person, such
person will be appointed at the request of the referring Member by the President
of the Association for Dispute Resolution of Northern California.  The
independent person shall hear submissions from both Members with respect to the
matter and determine it.  The independent person’s determination shall
be binding on both Member.

      

      3.9             
 All Members’ loan and Capital Contributions required to be made will be
made by each Member pro-rata in proportion to its Member’s Percentage
Interest.  Once the Managers approve a Capital Contribution cash call,
they shall deliver a notice to all Members of that cash call, with full
particulars of the use of funds thereof and AFE back-up for the operations the
Company is to conduct with such Capital.  Such notices shall be deemed
received on the next business day of that of being if sent, if sent via
facsimile or email, or on the fifth business day of that of being if sent, if
sent via first class mail.  Each Member shall have until 3:00 p.m. PST
on the 15th
business day following the deemed date of receipt of that cash call notice for
that Member (that Member’s “payment due date”) to remit to the Company a Capital
Contribution equal to that Member’s Percentage Interest in that cash call (plus,
if that Member chooses, a notice to participate in any Capital Contribution cash
call shortfall – see Section 3.9.6 below) or be deemed to have irrevocably
declined to have participated in that cash call.  In the event that a
Member declines to remit timely to the Company a Capital Contribution equal to
that Member’s Percentage Interest in that cash call its Member’s Participating
Interest shall be revised in accordance with the provisions of this
Section:

      

      
        	
              	
                3.9.1

              	
                the
      agreement between the Company and Mogul Energy International Inc. (“Mogul”) made effective
      on _________, 2009 to permit Mogul to become a Member of the Company shall
      be referred to as the “Mogul Agreement”, and
      the aggregate of the payments as to a Member’s Capital Contribution that
      Mogul makes under the Mogul Agreement shall be rounded down to the nearest
      $5,000.00 and be referred to as the “Mogul
      Contribution”;

              

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	
              	
                3.9.2

              	
                the
      Capital Contributions of the Members other than Mogul made to the date
      hereof for the purposes only of this Section shall be deemed to be
      $1,000,000 and the total Capital Contributions of the Members including
      that of the Mogul Contribution shall be referred to as the “Stage 2 Capital
      Contributions”;

              

      

      

      
        	
              	
                3.9.3

              	
                the
      Managers shall determine all Members’ Percentage Interests based upon the
      Member’s Percentage Interest that Mogul acquires under the Mogul Agreement
      as provided for in the Mogul Agreement, and such Members’ Percentage
      Interests shall be factored into the Stage 2 Capital Contributions to
      determine each Member’s “Stage 2 Contribution
      Factor”;  for example, if the Mogul Contribution is
      $2,300,000 as set out in the Mogul Agreement, the Stage 2 Capital
      Contributions will be $3.3 mm and the following calculations of Members’
      Stage 2 Contribution Factors shall
apply:

              

      

      

      
        
          
            
              
                
                  	
                          Member

                        	
                          Capital Contribution

                          Calculation

                        	
                          Stage 2 Contribution
  Factor

                        
	
                          Mogul

                        	
                          40%
      x $(1 + 2.3) mm

                        	
                          $1.320
      mm

                        
	
                          AOC

                        	
                          35%
      x $(1 + 2.3) mm

                        	
                          $1.155
      mm

                        
	
                          UHC

                        	
                          21%
      x $(1 + 2.3) mm

                        	
                          $0.693
      mm

                        
	
                          Barisan

                        	
                          4%    x $(1 + 2.3)
      mm

                        	
                          $0.132 mm

                        
	
                          All Members

                        	
                          100% x $(1 + 2.3)mm

                        	
                          $3.300
mm

                        

                

              

            

          

        

      

      

      
        	
              	
                3.9.4

              	
                The
      Members’ Percentage Interests portions of the next Capital Contribution
      cash call  - the “Stage 3 Capital
      Contributions” shall apply, and if Members effect a Stage 3 Capital
      Contribution that may be equal to, less than or greater than each Member’s
      Percentage Interest portion thereof, that Member’s Percentage Interest
      shall be re-calculated in accordance with the
  following:

              

      

      

      
        
          
            
              	
                      Abbreviation

                    	
                      Definition

                    
	
                      RMI

                    	
                      Revised
      Member’s Percentage Interest after a Member makes whatever its final
      contribution may be to the Stage 3 Capital Contribution cash
      call

                    
	 
      	 
      
	
                      St2
      CF

                    	
                      Stage
      2 Contribution Factor for a Member

                    
	 
      	 
      
	
                      St2
      TCC

                    	
                      Total
      of Stage 2 Capital Contributions of all Members

                    
	 
      	 
      
	
                      St3
      CC

                    	
                      Stage
      3 Capital Contribution being the final contribution amount of a Member to
      a Stage 3 Capital Contribution

                    
	 
      	 
      
	
                      St3
      TCC

                    	
                      Total
      of Stage 3 Capital Contributions of all
Members

                    

            

          

        

      

      

      For each
Member the formula for the re-calculation of its Member’s Percentage Interest
for the Stage 3 Capital Contribution shall be as follows:

      

      
        	
              	
                RMI        =

              	
                St2 CF + St3
      CC

              

      

      St2 TCC +
St3 TCC

      

      For the
Fifth Capital Contribution cash call the formula for each Member would thus be
as follows, the expressions in italics being extrapolated from those
above:

      

      
        	
              	
                RMI        =      
      

              	
                             
      St4 CF +
      St5
      CC          
                 
      

              

      

        
Σ (St2 TCC   St3 TCC   St4
TCC St5
TCC)

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
        	
              	
                3.9.5

              	
                For
      the next Capital Contribution (a Stage 4 Capital Contribution) the
      procedure shall be repeated and so on.  Once a Member’s
      Percentage Interest is increased or decreased following the Capital
      Contributions actually made for a Capital Contribution cash call, that
      adjusted Member’s Percentage Interest shall be that in effect thereafter
      for that Member in respect of all assets and liabilities of the Company
      effective the payment due date for that Capital Contribution cash call,
      and until such Member’s Percentage Interest might be further amended
      effective the payment due date of any subsequent Capital Contribution cash
      call.

              

      

      

      
        	
              	
                3.9.6

              	
                When
      a Member remits timely to the Company a Capital Contribution equal to that
      Member’s Percentage Interest in a Capital Contribution cash call, that
      Member shall be entitled to give a notice to the Company to accompany its
      remittance of such Capital Contribution cash call, and to contribute
      towards all or any portion of the shortfall of all Members’ Capital
      Contribution cash calls not paid timely and in full by one or more other
      Members.

              

      

      

      
        	
              	
                3.9.7

              	
                Hence,
      if one or more Members do not timely advance their Member’s Percentage
      Interest portion of a Capital Contribution cash call, the Members who
      timely pay their Member’s Percentage Interest portions of Capital
      Contribution cash calls and give notice to the Company of their
      willingness to make additional Capital Contributions as above, shall be
      entitled to contribute to the shortfall in the total Capital Contribution
      cash call as follows:

              

      

      

      3.9.7.1           all
that shortfall in the total Capital Contribution cash call, subject to Sections
3.9.7.2 to 3.9.7.5 below;

      

      3.9.7.2           if
more than one Member wishes to contribute pursuant to Section 3.9.7.2 above, or
to contribute in an amount equal to that Member’s Percentage Interest portion of
the shortfall as such Member’s Percentage Interest relates to the total of all
Members’ Percentage Interests who so wish to contribute to that shortfall, that
portion of the shortfall in the Capital Contribution equal to that Member’s
Percentage Interest;

      

      3.9.7.3           a
specified amount of a Capital Contribution shortfall less than that which would
be equal to that Member’s Percentage Interest portion of the shortfall as such
Member’s Percentage Interest relates to the total of Members’ Percentage
Interests for those who wish to contribute to that shortfall in accordance with
their Member’s Percentage Interests;

      

      3.9.7.4           if
any shortfall of a Capital Contribution cash call remains unpaid following the
above procedure’s having been implemented, and one or more Members wish to
contribute to that final shortfall, the Managers shall decide the allocation
thereof being fair and reasonable in the process between one or more Members so
wishing to contribute to that shortfall; and

      

      3.9.7.5           if
any shortfall of a Capital Contribution cash call remains unpaid following the
above procedure’s having been implemented, and one or more Members wish to
contribute to that final shortfall, the Managers shall decide the allocation
thereof being fair and reasonable in the process between one or more Members so
wishing to contribute to that shortfall.

       

       

      9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]