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Exhibit 10.7  

 
 

STOCK PURCHASE AGREEMENT    
    

        This STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered into as of June     , 2002
by and among Van Nuys Studios, Inc. (the "Company"), a corporation organized under the laws of the State of Delaware, with its principles offices
at 14795 Oxnard Street, Van Nuys, California 91411, and the purchaser whose name and address is set forth on the signature page attached hereto (the
"Purchaser"), with reference to the following. 

 
 

RECITALS:    

        WHEREAS,
the Company desires to issue and sell to the Purchaser, and the Purchaser desires purchase from the company, unregistered shares of the Company's common stock, par value $.001
per share (the "Common Stock"); 

        WHEREAS,
the company has authorized the issuance and sale of an aggregate of 2,000,000 shares of Common Stock at a purchase price of $.10, subject to the terms and conditions of this
agreement; 

        NOW,
THEREFORE, in consideration of the conditions and promises herein contained, the parties hereto agree as follows: 

 
 

AGREEMENT:    

1.     SALE AND ISSUANCE OF COMMON STOCK.

	(a)
	The
Purchaser agrees to purchase from the Company and the Company agrees to sell and issue to the Purchaser the aggregate of the number of shares of Common Stock listed below such
Purchaser's name on the signature page attached hereto at a price of $0.10 per share (the "Shares").

	(b)
	The
purchase and the sale of the Common Stock (the "Closing") shall take place at 10:00 a.m. on the date of this Agreement at the offices of Pollet & Richardson,
10900 Wilshire Blvd., Suite 500, Los Angeles, California 90024 or at such other places as the company and the Purchaser shall mutually agree.

	(c)
	At
the Closing, the Company shall deliver to Purchaser a certificate representing the Shares and Purchaser shall deliver to the company the aggregate purchase price listed below such
account as designated in, and in accordance with, the payment instructions attached hereto as Exhibit A, or such other form as the parties shall mutually agree. 

2.     REPRESENTATIONS AND WARRANTIES OF COMPANY

        The
Company represents and warrants to the purchaser as follows: 

	1.
	Organization; Good Standing; Qualification. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, has all requisite corporate power and authority to own and operate its properties and assets and to carry on its business as now conducted and as
presently proposed to be conducted, to execute and deliver this Agreement and to issue and sell the Common Stock.

	2.
	Authorization. All corporate action on the part of the Company necessary for the authorization, execution and delivery by
the Company of this Agreement, the performance of all obligations of the Company hereunder including but not limited to the authorization, issuance (or reservation for issuance), sale and delivery of
the Common Stock has been taken and this Agreement constitutes valid and legally binding obligations of the Company, enforceable in accordance with their respective terms expect (i) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application 

 

affecting
enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and
(iii) to the extent that the indemnification provisions contained in Section 4 herein may be limited by applicable laws. 

	3.
	Valid Issuance of Common Stock. The Common Stock that is being purchased hereunder, when issued, sold and delivered by the
in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable, and will be free of restrictions on transfer other
than restrictions on transfer under applicable state and federal securities laws. 

3.     REPRESENTATIONS AND WARRANTIES OF PURCHASER

        The
Purchaser represents and warrants to the Company as follows: 

	1.
	No Representations or Warranties. The Purchaser confirms that neither the Company nor any of its authorized agents has
made any representation or warranty to the purchaser about the Company or the Common Stock other than those set forth in this Agreement, and that such Purchaser has not relied upon any other
representation or warranty, express or implied, in purchasing the Common Stock.

	2.
	Financial Situation. The Purchaser is an "accredited investor" as that term is defined in Securities and Exchange
Commission Rule 501 of Regulation D of the Securities Act of 1993, as amended and presently in effect. The Purchaser has adequate means of providing for such Purchaser's current needs
and possible personal contingencies, and has no need for liquidity of such Purchaser's investment in the Company, such purchaser can bear the economic risk of losing such Purchaser's entire investment
herein, such Purchaser has knowledge and experience in financial and business matters that such Purchaser is capable of evaluating the relative risks and merits of this investment, and such Purchaser
is capable of evaluating the relative risks and merits of this investment, and such Purchaser's overall commitment to investments which are not readily marketable is not disproportionate to such
Purchaser's net worth and the investment made hereby will not cause such overall commitment to become excessive.

	3.
	Common Stock Not Registered. The Purchaser understands that the Common Stock has not been registered under the Securities
Act or qualified under any state securities laws in reliance on exemptions from registration provided thereunder, and further understands that such Purchaser is acquiring the Common Stock without
being furnished any literature or prospects.

	4.
	Purchase for Own Account. The Purchaser is purchasing the Common Stock for such Purchaser's own account, for
long-term investment, and not with a view to, or for sale in connection with, the distribution thereof. The Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the Common Stock within the meaning of Section 2 (11) of the Securities Act. The Common Stock will not be resold without registration under the Securities Act and
qualification under the securities laws of all applicable states, unless such sale would be exempt therefrom.

	5.
	Opportunity to Ask Questions and to Review Documents, Books and Records. During the course of the transaction contemplated
by this Agreement, and before purchasing the Common Stock, the Purchaser has had the opportunity (i) to be provided with financial and other written information about the Company,
(ii) to ask questions and receive answers concerning the terms and finances, (iii) to review all documents, books and records of the company and (iv) to review all documents,
registration statements and prospectuses publicly filed by the 

2

 

Company.
The Purchaser has, to the extent such Purchaser has availed himself of this opportunity, received satisfactory information and answers. 

	6.
	Pre-Existing Relationship and/or Sophistication. The Purchaser represents that such Purchaser either has a
pre-existing business relationship with the Company or any of it's officers, directors or controlling persons, or that by reason of such Purchaser's business or financial experience of
such Purchaser's professional advisors who are unaffiliated with and who are not compensated by the Company or any affiliate or selling agent of the Company, directly or indirectly, such Purchaser has
the capacity to protect such Purchaser's own interest in connection with the transactions contemplated by this Agreement.

	7.
	Risk Associated with Investment. The Purchaser acknowledges and is aware that:

	(i)
	The
Company has limited financial or operating history and that the Common Stock is a speculative investment which involves a high degree of risk of loss by the
Purchaser of such Purchase's entire investment in the Company.

	(ii)
	No
federal or state agency has made any finding or determination as to the fairness of the offering of the Common Stock for investment or any recommendation or
endorsement offering; and

	(iii)
	It
never has been represented, guaranteed or warranted to such Purchaser by the Company, its agents, or employees or any other person, expressly or by implication, any
of the following: (1) the approximate or exact length of that time such Purchaser will be required to remain as owner of the Common Stock; (2) the profit or return, if any, to be
realized as a result of the Company's venture; and (3) that the past performance or experience on the part of the Company or any affiliate, its agents, or employees or of any other person, will
in any way indicate the predictable results of the ownership of the Common Stock or the overall Company venture

	8.
	Investment Risks. The Purchaser has been informed and understands and agrees as follows: (i) an investment in the
Company is a speculative investment with high degree of risk of loss and such Purchaser must, therefore, be able to presently afford a complete loss of this investment; (ii) such Purchaser must
be able to hold the Common Stock indefinitely due to substantial restrictions on the transferability of the Common Stock and the fact that there is no public market for resale of the Common Stock; and
(iii) it may not be possible to liquidate the Common Stock and the case of emergency and/or other need and such Purchaser must, therefor, have adequate means of providing for such Purchaser's
current and future needs and personal contingencies and have no need for liquidity in this investment. Such Purchaser has evaluated such Purchaser's financial resources and investment position in view
of the foregoing, and is able to bear the economic risk of this investment.

	9.
	No Advertising. To the best of the Purchaser's knowledge and belief the offer and sale of the Common Stock was not
accomplished by the publication of any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television, radio or the internet;
nor was the offer and sale of the Common Stock accomplished through any seminar or meeting to which such Purchaser was invited by and any such publication or advertisement.

	10.
	Authorization. The Purchaser represents that such Purchaser is at least twenty one (21) years of age, has full
right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and
performance of this Agreement. The Purchaser further agrees that upon the execution and delivery of this Agreement, this Agreement shall constitute a valid and binging obligation of the Purchaser
enforceable in accordance with its terms, 

3

 

except
as enforce ability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium may be subject to general principles of equity (regardless of whether such enforce ability is
considered in a proceeding in equity or at law) and except as the indemnification agreements of the Purchaser in Section 4 hereof may be legally unenforceable. 

	11.
	No Material Changes. The Purchaser has no reason to anticipate any changes in such Purchaser's personal circumstances,
financial or otherwise, which may cause or require any sale or distribution by such Purchaser of all or any part of the Common Stock purchased pursuant hereto.

	12.
	Legend. The Purchaser understands and agrees that the certificate representing the Common Stock shall bear a legend
similar to the following:

	

	THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION ("THE COMMISSION") UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1993, AS AMENDED (THE "SECURITIES ACT"), IN RELIANCE UPON ONE OR MORE EXEMPTIONS FROM REGISTRATION OR QUALIFICATION
AFFORDED BY THE SECURITIES ACT AND/OR RULES PROMULGATED BY THE COMMISSION PURSUANT THERETO. THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE ALSO NOT BEEN REGISTERED OR QUALIFIED (AS THE CASE
MAY BE) UNDER THE SECURITIES LAWS OF ANY STATES OR TERRITORY OF THE UNITED STATES ("THE BLUE SKY LAWS"), IN RELIANCE UPON ONE OR MORE EXEMPTIONS FROM REGISTRATION OR QUALIFICATION (AS THE CASE
MAY BE) AFFORDED UNDER SUCH SECURITIES REGULATORY AGENCY OF ANY STATE OR TERRITORY OF THE UNITED STATES HAS REVIEWED OR PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING CONTEMPLATED BY THIS
CERTIFICATE, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES HAVE BEEN ACQUIRED FOR THE HOLDER'S OWN ACCOUNT FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW FOR RESALE
OR DISTRIBUTION.

	

	The
Purchaser understands that the foregoing representations and warranties are to be relied upon by the company as a basis for exemption of
the sale of the Common Stock under the Securities Act and under the securities laws of all applicable states and for other purposes. The purchasers warrants that information provided to the Company by
such Purchaser is true and correct as of the date hereof, and the Purchaser agrees to advise the Company, Prior to the execution of this Agreement, of any material change in any such information. 

13.   INDEMNIFICATION.

        The
Purchaser acknowledged that such Purchaser understands the meaning and legal consequences of the representations, warranties and agreements contained in this Agreement, that the
Company and Escrow Agent are relying on the accuracy of the representations, warranties and agreements by him as contained herein, and that such Purchaser would not be permitted to purchase the Common
Stock if any representation or warranty were known to be materially false. Accordingly, the Purchaser hereby agrees to indemnify and hold harmless the Company and its Escrow Agent from and against any
and all loss damage, liability, cost or expense, including attorney's fees, due to arising from a breach of any representation, warranty or agreement contained in or pertaining to this Agreement. 

        The
Company acknowledges and agrees that the Escrow Agent is relying entirely on the accuracy of the statements of the Company, as represented by the Company, both directly to the Escrow
Agent and indirectly through this Agreement and accordingly hereby agrees to indemnify and hold harmless the Escrow Agent from and against any and all loss, damage, liability, cost or expenses,
including 

4

 

attorney's
fees, due to or arising from a breach of any representation, warranty or agreement contained in or pertaining to this Agreement. 

14.   MARKET STAND-OFF OBLIGATIONS.

	(a)
	General.
To the extent requested by the company or any underwriter of securities of the Company in connection with a firm commitment underwriting, the Purchaser shall not transfer any
Common Stock not included in such underwriting, or not previously registered pursuant to a registration statement filed under the Securities Act, during the period requested by the Company and the
underwriter following the effective date of the registration statement filed with the Commission.

	(b)
	Legend.
To facilitate compliance with the terms of this section, the Company shall have the right to place a legend, reasonably determined appropriate by the Company, on the share
certificate or certificates for the Common Stock. 

15.   MISCELLANEOUS.

(a)   Interpretation.

	(i)
	Survival. All representations and warranties made by any party in connection with any transaction contemplated by this
Agreement shall survive the execution and delivery of this Agreement, the performance or consummation of any transaction described in this Agreement, and the termination of this Agreement.

	(ii)
	Entire Agreement/No Collateral Representations. Each party expressly acknowledges and agrees that this Agreement
(1) is the final, complete and exclusive statement of the agreement of the parties with respect to the subject matter of it; (2) supersedes any prior or contemporaneous agreements,
understandings, or course of dealing; and (3) may not be varied supplemented or contradicted by evidence of prior agreements, or by evidence of subsequent oral agreements.

	(iii)
	Amendment; Wavier; Forbearance. Except as expressly otherwise provided herein, neither this Agreement nor any of the
terms, provisions, obligations or rights contained herein may be amended, modified, supplemented, augmented, rescinded, discharged or terminated (other than by performance), except by a written
instruments signed by all of the parties to this Agreement. No wavier of any breach of any term, provision or Agreement herein contained, or of the performance of same, shall be effective and binding
unless such wavier shall be in a written instrument or instruments signed by each party claimed to have given or consented to such wavier and each party affected by such wavier.

	(iv)
	Remedies Cumulative. The remedies of each party under this Agreement are cumulative and shall not exclude any other
remedies to which such party may be lawfully entitled.

	(v)
	Severability. If any term or provision of this Agreement or the application thereof to any person or circumstances shall,
to any extent, be determined to be invalid, illegal or unenforceable under present or future laws effective during the term of this Agreement, then and, in that event: (1) the performance of
the offending term or provision (but only to the extent its application is invalid, illegal or unforceable) shall be excused as if it had never been incorporated into this Agreement, such excused
provision as may be possible and be legal, valid and enforceable, and (2) the remaining part of this Agreement (including the application of the offending term or provision to persons or
circumstances other shall continue in full force and effect to the fullest extent provided by law. 

5

 

	(vi)
	Headings; References; Incorporation; Person Gender. The headings used in this Agreement are for convenience and
reference purposes only, and shall not be used in construing or interpreting the scope or intent of this Agreement or any provision hereof. Reference to this Agreement shall included all amendments or
renewals thereof.

	(vii)
	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original,
but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other
parties.

	(b)
	Enforcement.
	(i)
	Applicable Law. This Agreement and the rights and remedies of each party arising out of or relating to this Agreement
(including, without limitation, equitable remedies) shall be solely governed by, interpreted under, and construed and enforced in accordance with the laws (without regard to the conflicts of law
principles thereof) of the State of California, as if this Agreement were made, and as if its obligations are to be performed, wholly within the State of California.

	(ii)
	Consent to Jurisdiction. Any and all proceedings resulting from or arising out of a controversy or claim relating to
this Agreement or the breach thereof, shall be held exclusively in the County of Los Angeles in the State of California, and the parties hereto expressly consent to hold themselves subject to such
jurisdiction for the purposes of any and all such proceedings.

	(c)
	Assignment and Delegation; Successors and Assigns.
	(i)
	Prohibition Against Assignment or Delegation. Except as specifically provided in this Agreement, neither the Company nor
the Purchaser may sell, license, transfer or assign (by operation of law or otherwise) any of such party's rights or interest in this Agreement or delegate such party's duties or obligations under
this Agreement, in whole or in part, without the prior written consent of the party, which consent may be withheld in such other party's sole discretion.

	(ii)
	Successors and Assigns. Subject to the foregoing, all of the representations, warranties, covenants, conditions and
provisions of this Agreement shall be binding upon and shall inure to the benefit of each party and such party's respective successors and permitted assigns.

	(d)
	Escrow Agent. All fees and expenses incurred by the escrow Agent shall be paid by the Company. The Escrow Agent is hereby
instructed to receive (i) the purchase price of the investment to be deposited by the Purchaser at the Closing and held in Escrow Account; (ii) the validly issued certificate of Common
Stock described in Section 1(c) herein; and (iii) original or copies of signature pages of this Agreement. At the Closing, the Escrow Agent shall release (x) the deposited
funds along with original or copies of the signature pages to this Agreement to the Company; and (y) the certificate of Common Stock along with copies of the signature pages to
this Agreement to the Purchaser.

	(e)
	Reliance by Escrow Agent. The Escrow Agent may conclusively rely on, and shall be protected when it acts in good faith
upon, any statement, certificate, notice, request, consent, order or other document and its sole responsibility shall be to act only as set forth in this Agreement. The Escrow Agent shall be under no
obligation to institute or defend any action, suit, or proceeding in connection with this Agreement unless it is indemnified to its satisfaction and such indemnification is memorialized in an
Indemnification Agreement, mutually agreed upon by both the Escrow Agent and the indemnifying party. The Escrow Agent shall not be liable for any action taken or omitted, if such action shall be taken
or committed, in good faith or 

6

 

upon
advise of counsel. In performing any of its duties hereunder, the Escrow Agent shall not incur any liability to anyone for damages, losses, or expenses except for its willful misconduct or gross
negligence. All monies held pursuant to this Agreement shall constitute custodial funds. The escrow Agent shall not be liable for any interest incurred or accrued on either the purchase price or the
shares. 

	(f)
	Notices. Unless otherwise specifically provided in this Agreement, all notices, demands, request, consents, approvals or
other communications (collectively and severally called "Notices") required or permitted to be given hereunder, or which are given with respect to this Agreement shall be in writing, and shall be
given by (I) personal delivery (which form of Notice shall be deemed to have been given upon delivery), (ii) by telegraph or by private airborne/overnight delivery services postage
prepaid (which form of Notice shall be deemed to have been given upon confirmed delivery by the delivery agency), (iii) by electronic or facsimile or telephonic transmission, provided the
receiving party has a compatible device or confirms receipt thereof (which form of Notice shall be deemed delivered upon confirmed transmission or confirmation of receipt), or (iv) by mailing
in the United State mail by registered or certified mail, return requested, postage prepaid (which shall be deemed to have been given upon the 5th business day following the date
mailed). 

        Such
Notices shall be addressed as follows: 

	(i)
	Of
to the Company

	

	Van
Nuys Studios, Inc.

147459 Oxnard Street

Van Nuys, CA 91411

	

	With
a copy to:

	

	Pollet &
Ricardson

10900 Wilshire Boulevard, Suite 500

Los Angeles, CA 90024

AttnL Nimish Patel, Esq.

	(ii)
	If
to Purchaser:

	

	See
Signature Page Attached hereto. 

7

 

	 	 	COMPANY:
	

 	
 	

VAN NUYS STUDIOS, INC.
	

 	
 	

By:	

/s/  ALIA KHAN      
 Alia Khan

Its CEO

 
 

[SIGNATURES CONTINUED ON NEXT PAGE]    

8

 
 
 

[SIGNATURE PAGE TWO]
  PURCHASER:    

	

 Name of Purchaser (Individual or Institution)	
 	

 Name of Individual representing Purchaser

(If an institution)
	

 Title of Individual representing Purchaser

(if an Institution)	
 	

 Signature of Individual Purchaser or

Individual representing Purchaser
	

 	
 	

Address:

	

 	
 	

Telephone:

	Numbers of Shares to be Purchased
	 	Price Per Share in Dollars
	 	Aggregate Purchase Price

	 	 	$	 	 	$	 

9

 
 
 

EXHIBIT A    
    

 
 

Escrow Agent and Agreements    

        Pollet &
Richardson, located at 10900 Wilshire Boulevard, Suite 500, Los Angeles, California 90024 (the "Escrow Agent") has been appointed as the Escrow Agent
for the sale of Shares pursuant to the attached Agreement. All Agreements and any tender funds should be delivered to the Escrow Agent, attention Mr. Nimish Patel, at the above address. Any
tendered funds should be in the form of a check, enclosed with the Agreement and made payable to "Manhattan West, Inc." All tendered funds received in connection with this Agreement will be
deposited into the Escrow Agent's trust account. 

        The
Purchaser will receive no additional Common Stock or other consideration for the foregoing interest. 

        The
Escrow Agent is only acting in that capacity as an accommodation for the Company in connection with this Agreement. The Escrow Agent shall not be presumed or construed, by
implication or otherwise, to be acting as legal counsel to any of the Purchasers of Common Stock, hereunder. In Addition, the Escrow Agent does not and has not endorsed,
recommended or guaranteed the purchase or value of the Common Stock offered hereby.

 
 

HOW TO PURCHASE SHARES    
    

        The purchase Shares pursuant to this Agreement, each Purchaser must provide the following to our Escrow Agent: 

	1.
	Complete,
sign and date the signature pages of the Stock Purchase Agreement.

	2.
	Make
your check payable to: Manhattan West, Inc. 

Or

	

	if
you are using wire transfer to pay for the Shares use the following wiring Instructions: 

Account
Name: Manhattan West, Inc. 

ABA
Routing Number: 122235821 

Account
Number: 153491810195 

	Bank Name:	 	US Bank

Watergardens Branch

Santa Monica, CA 90404

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QuickLinks

STOCK PURCHASE AGREEMENT

RECITALS

AGREEMENT

[SIGNATURES CONTINUED ON NEXT PAGE]

[SIGNATURE PAGE TWO] PURCHASER

EXHIBIT A

Escrow Agent and Agreements

HOW TO PURCHASE SHARESExhibit 4.2  

FIRST AMENDMENT TO THE

REGISTRATION RIGHTS AGREEMENT  

        This First Amendment to the Registration Rights Agreement ("Agreement") dated February 27, 2003 by and among SafeNet, Inc. ("Company"), Raqia
Networks, Inc. ("Stockholder"), Rachelle Heller, Innovation Investments, LLC, Helmsbridge Holdings Ltd., Orin Hirschman and Paul Jacobs (collectively and together with the Stockholder,
"Holders of a Majority of the Remaining Registrable Securities") is made as of this 24th day of June, 2003. Defined terms not defined herein shall have the meaning given in the Agreement. 

        WHEREAS, pursuant to the Agreement and a registration request delivered to the Company pursuant to Section 2.1(a) of the Agreement,
the Company was obligated to file a registration statement with the Commission for the resale of all of the Registrable Securities by May 28, 2003. 

        WHEREAS, on May 27, 2003, the Company notified the Stockholder and Permitted Transferees that the Company would exercise its right
to delay such filing pursuant to Section 2.1(c) of the Agreement. 

        WHEREAS, on June 13, 2003, the Company filed with the Commission a registration statement on Form S-3 (as
amended from time to time, the "Registration Statement") for the sale by the Company of up to 2,875,000 shares of common stock of the Company in an underwritten offering (as amended to reflect the
terms of this First Amendment, the "Offering") 

        WHEREAS, the Company is willing to include up to 176,929 of the Registrable Securities in the Offering subject to the holders of at least
a majority of the remaining Registrable Securities agreeing (x) to amend the Agreement to permit the Company to postpone the filing of a registration statement with respect to the remaining
Registrable Securities until ninety (90) days after the consummation of the Offering contemplated by the Registration Statement and (y) that no other Registrable Securities shall be
included in the Offering. 

        WHEREAS, the Company and the holders of at least a majority of the Registrable Securities (which includes the Stockholder and the Holders
of a Majority of the Remaining Registrable Securities) have agreed to amend the Agreement in order to achieve the objectives outlined above. 

        NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto,
for themselves, their successors and assigns, hereby agree to amend the Agreement to contain the provisions set forth in paragraphs 1 through 3 below and as follows: 

	1.
	The
Company shall include in the Registration Statement 176,929 Registrable Securities, such Securities being those that were placed into escrow pursuant to an escrow agreement dated
February 27, 2003 among the Company, the Stockholder and Wachovia Bank, National Association and that, subject to any claims being made pursuant thereto, shall be distributed to Stockholder on
June 27, 2003. Such Registrable Securities shall be included in the initial offering pursuant to such Registration Statement and not in any over-allotment offering. Stockholder
represents and warrants that upon such distribution, Stockholder will be the sole record and beneficial holder of such Registrable Securities and Stockholder has not taken any action to authorize the
distribution of such shares.

	2.
	Stockholder
agrees to hold the 176,929 Registrable Securities upon such distribution and to not distribute same until the Registration Statement is withdrawn. Upon execution of an
underwriting agreement in connection with the Offering, Stockholder shall deliver such Registrable Securities to the custodian designated under a Custody Agreement in the form attached hereto. The
Holders of a Majority of the Remaining Registrable Securities agree to cause Stockholder to comply with the provisions of this paragraph 2. 

	3.
	The
Stockholder and Holders of a Majority of the Remaining Registrable Securities agree as follows:

	a)
	For
the purpose of Section 2.1(c)(x)(i) of the Agreement, notwithstanding anything to the contrary contained in the Agreement, with respect to the postponement of the
filing of the registration statement as to which the Company gave notice on May 27, 2003, the Company shall have the right to delay the filing of a registration statement with respect to the
remaining Registrable Securities pursuant to Section 2.1(c), which was requested by the Stockholder pursuant to Section 2.1(a) (the "Demand Registration"), until ninety (90) days
after the consummation of the Offering contemplated by the Registration Statement. The Company acknowledges that (i) no further notice pursuant to Section 2.1(a) is required with respect
to the Demand Registration and (ii) the Company has no further right to postpone the filing or effectiveness of the registration statement relating to the Demand Registration pursuant to
Section 2.1(c) or otherwise.

	b)
	Except
as provided in paragraph 1 of this First Amendment, no Holder shall have the right to include any Registrable Securities in the Offering pursuant to Section 2.1(a)
or 2.2(a) of the Agreement or otherwise. Further, the Company shall not be required to comply with the obligations under Section 2.2(a) to provide notice in connection with the Offering.

	4.
	The
Stockholder agrees to execute and deliver to the underwriters named therein, the Underwriting Agreement, Custody Agreement and Irrevocable Power of Attorney of Selling Stockholder
in substantially the same forms as attached hereto when requested by the representatives of such underwriters as therein identified.

	5.
	The
Agreement, except as otherwise expressly amended hereby, shall remain in full force and effect.

	6.
	This
First Amendment shall be governed by and construed in accordance with the laws of the State of Delaware as applied to contracts entered into and performed entirely in Delaware.

	7.
	This
First Amendment may be executed simultaneously in any number of counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute one
and the same instrument. 

        IN
WITNESS WHEREOF, the parties have cause the First Amendment to the Registration Rights Agreement to be executed under seal as of the date first above written. 

	SAFENET, INC.	 	RAQIA NETWORKS, INC.
	

By:	

  

/s/  CAROLE D. ARGO      
	
 	

By:	

  

/s/  ROBERT JACOBS      

	Name: Carole D. Argo

Title: CFO	 	Name: Robert Jacobs

Title: CFO

HOLDERS OF A MAJORITY

    OF THE REMAINING

    REGISTRABLE SECURITIES:  

	
HELMSBRIDGE HOLDINGS LTD.	
 	

INNOVATION INVESTMENTS, LLC
	
By:	

  

/s/  ANTHONY HELLER      
 Name: Anthony Heller

Title: President	
 	

By:	

 

/s/  ERIC GREENBERG      
 Name: Eric Greenberg

Title: President
	

/s/  RACHELLE HELLER      
 Rachelle Heller	
 	

 	

 
	

/s/  ORIN HIRSCHMAN      
 Orin Hirschman	
 	

 	

 
	

/s/  PAUL JACOBS      
 Paul Jacobs

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