Document:

Registration Rights Agreement

  
 Exhibit 4.6 

 
 REGISTRATION RIGHTS AGREEMENT 
  
 This Registration Rights Agreement (this “Agreement”) is made and
entered into on or as of November 15, 2004, by and among Knobias, Inc., a Delaware corporation (the “Company”) and those certain persons listed on the signature pages attached hereto as Exhibit A and made a part hereof by this reference
(individually, an “Investor” and, collectively, the “Investors”). 
  
 Upon the terms and subject to the conditions of the Subscription Agreements between the Investors and the Company, the Company has agreed to issue and sell to the Investors certain shares of the Company’s capital
stock. 
  
 In order to induce the Investors to execute and deliver
the Subscription Agreements, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute, and the Company and the Investors
desire to set forth in this Agreement certain rights and obligations with respect to the registration of the shares of capital stock of the Company. 
  
 Now, therefore, premises considered, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows: 
  
 Article 1. Definitions.

  
 Section 1.1. General. Capitalized terms used herein
shall, unless defined elsewhere in this Agreement, have the meanings set forth in this Section. 
  
 “Act” means the Securities Act of 1933, as amended. 
  
 “Amended and Restated Certificate of Incorporation” means the Amended and Restated Certificate of Incorporation of the Company filed with the
Delaware Secretary of State on November 15, 2004. 
  
 “Common
Stock” means, collectively, the 95,000,000 shares of Common Stock with a par value of $.01 per share of the Company authorized by the Amended and Restated Certificate of Incorporation. 
  
 “Commission” means the United States Securities and Exchange
Commission. 
  
 “Person” means any individual,
corporation, general or limited partnership, limited liability company, limited liability partnership, estate, trust or governmental body or officer or any other entity or association that has the power to own property, enter into contracts or to
sue and be sued. 
  
 “Preferred Stock” means the
Company’s Series A Preferred Stock, par value of $.01, authorized by the Amended and Restated Certificate of Incorporation, the terms, conditions, rights, preferences and privileges of which are set forth in the Certificate of Designation of
Series 

  

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A Preferred Stock of the Company, filed with the Delaware Secretary of State on November     , 2004. 
  
 “Registrable Securities” means shares of Common Stock that are or
could be issued pursuant to the conversion of the Preferred Stock and any Common Stock issued in respect thereof in any recapitalization or reorganization of the Company; provided, however, that “Registrable Securities” shall not include
any shares of Common Stock which have previously been registered and sold or which have been sold to the public under Rule 144. 
  
 “Registration” means a registration effected by preparing and filing a registration statement in compliance with the Act and the applicable
Rules of the Commission, and the ordering by the Commission of the effectiveness of the registration statement. 
  
 “Registration Expenses” means all expenses incurred in effecting any Registration pursuant to this Agreement, including all registration,
qualification and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, the reasonable fees and disbursements (subject to documentation thereof) of one counsel for all Investors
that offer securities being sold, and expenses of any regular or special audits incident to or required by any Registration, but shall not include Selling Expenses and fees and disbursements of counsel for each Investor (but excluding the
compensation of regular employees of the Company, which shall be paid in any event by the Company). 
  
 “Securities Laws” means the Act, the Securities Exchange Act of 1934, as amended, all rules and regulations thereunder, and all applicable state
securities or “blue sky” laws and the rules and regulations thereunder, each as they may be amended from time to time. 
  
 “Selling Expenses” means all underwriting discounts and selling commissions applicable to the sale of Registrable Securities and all fees and
disbursements of counsel for each Investor (other than the fees and expenses of counsel included in Registration Expenses). 
  
 “Shares” means, collectively, the Common Stock and the Preferred Stock. 
  
 Section 1.2. Case and Gender. For all purposes of this Agreement, words in the singular number include the plural,
and in the plural include the singular, unless the context requires otherwise, and words of the masculine gender include the feminine and the neuter. When the context requires, words of the neuter gender include any gender. 
  
 Article 2. Registration. 
  
 Section 2.1. Effective Registration. Within one hundred fifty (150)
days from the date hereof, the Company shall file a registration statement covering the Registrable Securities and shall cause the Registration Statement to be declared effective under the Act. In the event that the Company fails to cause the
Registration Statement to be declared effective within the one hundred fifty (150) day period and, once declared effective, fails to maintain the effectiveness of the Registration Statement, then the Company shall pay a monthly penalty to the
Investors equal to one percent (1%) of the purchase price paid by each Investor for the Registrable Securities for each calendar month, or part thereof, that the Registration Statement is not effective. Such penalty shall be paid by the twentieth
(20th ) day of each month following the month for which the penalty has accrued. 
  

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 Section 2.2. Additional Shares to be Included. The registration statement filed pursuant to
Section 2.1 above may, subject to the provisions of Sections 2.4 and 3.3 below, include (a) other securities of the Company (the “Additional Shares”) which are held by other Persons who, by virtue of agreements with the Company, are
entitled to include their securities in any such registration (the “Other Stockholders”), and (b) securities of the Company being sold for the account of the Company. 
  
 Section 2.3. Underwriting. 
  

(a) If the Investors intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the
Company as a part of their request made pursuant to this Article 2 and the Company shall include such information in a written notice to other Investors. The right of any Investor to registration pursuant to this Article 2 shall be conditioned upon
such Investor’s participation in such underwriting and the inclusion of such Investor’s Registrable Securities in the underwriting to the extent provided herein and subject to the limitations provided herein. An Investor may elect to
include in such underwriting all or a part of the Registrable Securities he holds. 
  
 (b) The Company shall (together with all Investors and Other Stockholders proposing to distribute their securities through such underwriting) negotiate and enter into an underwriting agreement in customary form with
the representative of the underwriter or underwriters selected for such underwriting by a majority in interest of the Investors, which underwriter(s) shall be reasonably acceptable to the Company. 
  
 Section 2.4. Limitations on Shares to be Included. Notwithstanding any
other provision of this Article 2, if the representative of the underwriters advises the Investors in writing that marketing factors require a limitation on the number of shares to be underwritten, first the Additional Shares and any securities
being sold for the account of the Company shall be excluded from such registration and, if a limitation on the number of shares is still required, the number of shares that may be included in the Registration and underwriting shall be allocated
among all Investors, including Investors, in proportion, as nearly practicable, to the respective amounts of Registrable Securities which they have requested to be included in such registration statement. If the Company or any Investor or Other
Stockholder who has requested inclusion in such registration as provided above disapproves of the terms of any such underwriting, such Person may elect to withdraw such Person’s Registrable Securities or Additional Shares therefrom by written
notice to the Company and the underwriter and the Investors. Any Registrable Securities or other securities excluded shall also be withdrawn from such registration. No Registrable Securities or Additional Shares excluded from such Registration by
reason of such underwriters’ marketing limitation shall be included in such registration. To facilitate the allocation of shares in accordance with this Section 2.4, the Company or underwriter or underwriters selected as provided above may
round the number of Registrable Securities of any Holder which may be included in such registration to the nearest 100 shares. 
  
 Section 2.5. Expenses of Registration. All Registration Expenses incurred in connection with any Registration, qualification or compliance pursuant
to Section 2.1 hereof shall be borne by the Company. All Selling Expenses relating to Securities so registered shall be borne by the 

  

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holders of the Securities pro rata on the basis of the number of shares of Securities so registered on their behalf. 
  
 Section 2.6. Registration Procedures. In the case of any Registration
by the Company pursuant to this Article 2 in which the Investor participates, the Company shall keep the Investor advised in writing as to the initiation of each Registration and the completion thereof. The Company, at its expense, shall use
commercially reasonable efforts to: 
  
 (a) Keep
the Registration effective for a period of one hundred twenty (120) days or until the Investor has completed the distribution described in the registration statement relating thereto, whichever first occurs; provided, however, that (i) the one
hundred twenty (120) day period shall be extended for a period of time equal to the period the Investor refrains from selling any Securities included in the Registration at the request of an underwriter of Common Stock (or other Securities) of the
Company; and (ii) in the case of any Registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis, the one hundred twenty (120) day period shall be extended, if necessary, to keep the
registration statement effective until all the Registrable Securities are sold; 
  
 (b) Prepare and file with the Commission any and all amendments and supplements to the registration statement and the prospectus used in
connection with the registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all Securities by the registration statement; 
  
 (c) Furnish the number of prospectuses and other documents incident thereto, including any amendment of or
supplement to the prospectus, as the Investor from time to time may reasonably request; 
  
 (d) Notify each seller of Registrable Securities covered by the registration statement at any time when a prospectus relating thereto is
required to be delivered under the Act of the happening of any event as a result of which the prospectus included in the registration statement, as then in effect, includes any untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing, and, at the request of any seller, prepare and furnish to such seller a reasonable number of copies
of a supplement to or an amendment of the prospectus as may be necessary so that, as thereafter delivered to the purchasers of the Securities, the prospectus shall not include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing; 
  
 (e) Cause all of the Registrable Securities registered pursuant thereunder to be listed on each securities exchange, if any, on which
Securities issued by the Company and of the same class are then listed; 
  
 (f) Provide a transfer agent and registrar for all Registrable Securities registered pursuant to the registration statement and a CUSIP number for all of the Registrable Securities, in each case not later than the
effective date of the Registration; 
  
 (g)
Comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement 

  

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covering the period of at least twelve (12) months, but not more than eighteen (18) months, beginning with the first month after the effective date of the
registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Act; 
  
 (h) Enter into an underwriting agreement in customary form and substance in order to effect the offer and sale of Common Stock, provided
that the underwriting agreement is in connection with any underwritten offering pursuant to a registration statement filed pursuant to Section 2.1 hereof; and 
  

(i) Furnish to each selling Investor upon request a signed counterpart, addressed to each such selling Investor, of (i) an opinion of
counsel for the Company, dated the effective date of the registration statement in form reasonably acceptable to the Company and such counsel, and (ii) “comfort” letters signed by the Company’s independent registered accountants who
have examined and reported on the Company’s financial statements included in the registration statement, covering such matters as are customarily covered in opinions of issuer’s counsel and accountants’ “comfort” letters
delivered to underwriters in underwritten public offerings of securities. 
  
 Section 2.7. Indemnification. 
  
 (a) The Company shall indemnify each Investor, each of the officers, directors, employees, partners, legal counsel and accountants of the Investor and each Person controlling the Investor within the meaning of Section
15 of the Act, with respect to which Registration, qualification or compliance has been effected pursuant to this Article 2, and each underwriter, if any, and each Person who controls, within the meaning of Section 15 of the Act, any underwriter,
against all expenses, claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based upon any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus,
offering circular or other document (including any related registration statement, notification or the like) incident to any Registration, qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the provisions of the Act that are applicable to the Company and relating to any action or inaction required of the Company
in connection with any Registration, qualification or compliance, and will reimburse each Investor, each of its officers, directors, partners, legal counsel and accountants and each Person controlling the Investor, each underwriter, and each Person
who controls any underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any claim, loss, damage, liability or action; provided, however, that the Company will not be liable in
any case to the extent that any claim, loss, damage, liability or expense arises out of or is based upon any untrue statement or omission based upon written information furnished to the Company by any Investor or underwriter and stated to be
specifically for use therein. The indemnity agreement contained in this Section 2.4(a) shall not apply to amounts paid in settlement of any loss, claim, damage, liability or action if any settlement is effected without the prior written consent of
the Company (which consent has not been unreasonably withheld or delayed). 
  
 (b) Each Investor shall, if Registrable Securities held by it are included in the Securities as to which Registration, qualification or compliance is being effected, indemnify the Company, each of its directors,
officers, employees, partners, legal counsel and accountants and 

  

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each underwriter, if any, of the Company’s Securities covered by the registration statement and each Person who controls the Company or the underwriter
within the meaning of Section 15 of the Act, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based upon any untrue statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus, offering circular or other document, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will
reimburse the Company and the directors, officers, partners, legal counsel and accountants, Persons, underwriters or control Persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any claim,
loss, damage, liability or action, in each case to the extent, but only to the extent that the untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in reliance upon and in conformity with written information
furnished to the Company by such Investor and stated to be specifically for use therein; provided, however, that the obligations of the Investor hereunder shall not apply to amounts paid in settlement of any claims, losses, damages or liabilities
(or actions in respect thereof) if the settlement is effected without the consent of the Investor (which shall not be unreasonably withheld or delayed). 
  
 (c) Each Person entitled to indemnification under this Section 2.4 (the “Indemnified Party”) shall give notice to the Party
required to provide indemnification (the “Indemnifying Party”) promptly after the Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any
claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of the claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not be
unreasonably withheld or delayed), and the Indemnified Party may participate in the defense at the Indemnified Party’s expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve
the Indemnifying Party of its obligations under this Article 2, to the extent that such failure is not prejudicial. No Indemnifying Party, in the defense of any claim or litigation, shall, except with the consent of each Indemnified Party, consent
to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to the Indemnified Party of a release from all liability in respect to the claim or litigation. Each
Indemnified Party shall furnish the information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with defense of the claim and litigation resulting
therefrom. 
  
 (d) If the indemnification
provided for in this Section 2.4 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage or expense referred to therein, then the Indemnifying Party, in lieu of
indemnifying the Indemnified Party hereunder, shall contribute to the amount paid or payable by the Indemnified Party as a result of the loss, liability, claim, damage or expense in the proportion as is appropriate to reflect the relative fault of
the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions that resulted in the loss, liability, claim, damage or expense, as well as any other relevant equitable considerations.
The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to
information supplied by the Indemnifying Party or by the Indemnified Party and the parties* relative intent, knowledge, access to information and opportunity to correct or prevent the statement or omission. 
  

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 (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification
and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control and govern.

  
 Section 2.8. Information by Investors. It shall be a
condition precedent to the obligations of the Company to take any action pursuant to this Agreement that each Investor proposing to register Registrable Securities shall furnish to the Company all information regarding such Investor as the Company
may reasonably request in writing and as shall be required by Article 2. 
  
 Section 2.9. Limitations on Registration of Issues of Securities. From and after the date of this Agreement, the Company shall not, without the prior written consent of Investors holding at least 80% of the
Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or prospective holder any registration rights, the terms of which are more favorable than the registration
rights granted to the Investors hereunder. 
  
 Section 2.10.
Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the Commission that may permit the sale of Registrable Securities to the public without registration, the Company shall use commercially
reasonable efforts to: 
  
 (a) Make and keep
public information regarding the Company available as provided in paragraph (c) of Rule 144, at all times from and after ninety (90) days following the effective date of the first Registration effected by the Company for an offering of its
Securities to the general public; 
  
 (b) File
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Laws at any time after it has become subject to the reporting requirements; and 
  
 (c) Furnish to the Investors forthwith upon written request
a written statement by the Company as to its compliance with the provisions of paragraph (c) of Rule 144 (at any time from and after ninety (90) days following the effective date of the first Registration effected by the Company for an offering of
its Securities to the general public), and of the Securities Laws (at any time after it has become subject to the reporting requirements), a copy of the most recent annual or quarterly report of the Company and any other reports and documents so
filed as an Investor may reasonably request in order to avail itself of any rule or regulation of the Commission allowing the Investor to sell any securities without registration. 
  
 Section 2.11. Transfer of Registration Rights. If an Investor transfers Shares, the Investor may also transfer to the
transferee of the Shares its rights under this Article 2, subject to its obligations under and the conditions and limitations set forth in this Article 2. A transfer of rights under this Article 2 may only be made in a written instrument that refers
to this Agreement, states the name and address of the transferee, that the Investor’s rights under this Article 2 are being transferred, the transferee assumes the Investor’s obligations and is subject to the conditions and limitations set
forth herein, identifies the Securities transferred therewith, is signed by the Investor and the transferee, with a copy delivered to the Company, and complies in all respects with applicable Securities Laws. Upon the delivery of a copy to the
Company, the 

  

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transferee named therein shall be deemed to be an Investor for the purposes of this Article 2; provided, however, that if there is more than one holder of
Registrable Securities, the following rules shall apply: 
  
 (a) If the Company makes a determination to register any of its Securities under Section 2.1 above, the Company shall notify each transferee promptly that it has made such determination and shall include in the
Registration any Registrable Securities that the transferee requests to be included within twenty (20) days after receipt of the notice from the Company; 
  
 (b) Wherever the provisions of this Article 2 require the consent of the Investors, any consent shall be made by the consent of the
majority in interest of the holders of Registrable Securities; and 
  
 (c) The right of any transferee to registration under Section 2.1 above shall be conditioned upon the transferee’s participation in the underwriting and the inclusion of the transferee’s Registrable
Securities in the underwriting to the extent provided herein. 
  
 Section 2.12. “Market Stand-Off” Agreement. If requested by the Company and the underwriter of Common Stock (or other Securities) of the Company, the Investor shall not sell or otherwise transfer or dispose of any Common
Stock (or other Securities) of the Company held by the Investor (other than those included in the Registration) during a period of up to one hundred eighty (180) days following the effective date of a registration statement of the Company filed
under the Act or other period as determined by the underwriter and the Company, provided that (a) the agreement shall only apply to the first registration statement of the Company, including Securities to be sold on its behalf to the public in an
underwritten offering; and (b) all Persons having contractual registration rights and all officers and directors of the Company enter into similar agreements. The obligations described in this Section 2.9 shall not apply to a Registration relating
solely to employee benefit plans, Rule 145 transactions or exchange offers. The Company may impose stop-transfer instructions with respect to the Securities subject to the foregoing restriction until the end of the applicable period. 
  
 Section 2.13. Allocation of Registration Opportunities. In any
circumstance in which all of the Registrable Securities and all of the shares of Common Stock of the Company, the holders of which have contractual registration rights (the “Other Shares”), request to be included in a Registration and
their request cannot be satisfied as a result of limitations of the aggregate number of shares held by selling shareholders that may be so included, the number of shares of Registrable Securities and Other Shares that may be so included shall be
allocated among the Investors and the holders of Other Shares requesting inclusion of shares, pro rata on the basis of the number of shares of Registrable Securities and Other Shares that would be held by selling shareholders, assuming conversion of
the Preferred Stock and exercise of any warrants for Shares. If any holder of Registrable Securities or Other Shares does not request inclusion of the maximum number of shares of Registrable Securities or Other Shares allocated to the selling
shareholder pursuant to the above-described procedure, the remaining portion of the selling shareholder’s allocation shall be reallocated among those holders requesting inclusion of Registrable Securities or Other Shares whose allocation did
not satisfy their original requests. This procedure shall be repeated until all of the shares of Registrable Securities and Other Shares, which may be included in the Registration, have been so allocated. The Company shall not limit the number of
Registrable Securities to be included in a Registration pursuant to this Agreement 

  

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in order to include shares held by Persons who do not have contractual registration rights or in order to include in the Registration securities registered
for the Company’s own account. 
  
 Section 2.14.
Termination of Registration Rights. The right of an Investor to inclusion in any Registration pursuant to Section 2.1 above shall terminate when (a) all Registrable Securities held by the Investor may be sold by it under Rule 144(k), (b) the
Common Stock (including all Registrable Securities) is listed on the New York or American Stock Exchange or the National Association of Securities Dealers National Market System, or (c) all transfer restrictions on the Registrable Securities held by
the Investor and any legends concerning any restrictions on certificates representing the Registrable Securities have been removed. 
  
 Article 3. Miscellaneous. 
  
 Section 3.1. This Agreement. This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof and it
supersedes and discharges all prior agreements (written or oral) and negotiations and all contemporaneous oral agreements concerning the subject matter. There are no oral conditions precedent to the effectiveness of this Agreement. 
  
 Section 3.2. Successors and Assigns. Except as otherwise provided
herein, the terms of this Agreement shall inure to the benefit of and be binding upon the parties* respective heirs, successors, assigns and legal representatives. 
  
 Section 3.3. Non-Waiver. Neither the failure of nor any delay by any party to this Agreement to enforce any right
hereunder or to demand compliance with its terms is a waiver of any right hereunder. No action taken pursuant to this Agreement on one or more occasions is a waiver of any right hereunder or constitutes a course of dealing that modifies this
Agreement. 
  
 Section 3.4. Waivers. No waiver of any right
or remedy under this Agreement shall be binding on any party unless it is in writing and is signed by the party against whom enforcement of such waiver is sought. No waiver of any right or remedy under any terms of this Agreement shall in any event
be deemed to apply to any subsequent default under the same or any other term contained herein. 
  
 Section 3.5. Amendments. No amendment, modification or termination of this Agreement shall be binding on any party hereto unless it is in writing
and is signed by the party against whom enforcement of such amendment, modification or termination is sought. 
  
 Section 3.6. Severability. The terms of this Agreement are severable and the invalidity of all or any part of any terms of this Agreement shall not
render invalid the remainder of this Agreement or the remainder of the term. If any term of this Agreement is so broad as to be unenforceable, the terms shall be interpreted to be only so broad as is enforceable. 
  
 Section 3.7. Attorneys’ Fees. If any action at law or in
equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which the party may be entitled.

  

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 Section 3.8. Third Parties. Nothing herein expressed or implied is intended or shall be construed
to give any Person other than the parties any rights or remedies under this Agreement. 
  
 Section 3.9. Business Days. Where this Agreement authorizes or requires any performance on a Saturday, Sunday or public holiday, performance shall be deemed to be timely if made on the next succeeding business
day. 
  
 Section 3.10. Joint Preparation. This Agreement
shall be deemed to have been prepared jointly by the parties hereto. Any ambiguity herein shall not be interpreted against any party hereto and shall be interpreted as if each of the parties hereto had prepared this Agreement. 
  
 Section 3.11. Notices. Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and deemed to have been properly given when delivered in Person, or when sent by telecopy or other electronic means and confirmation of receipt is received, or four (4) days
after being sent by certified or registered United States mail, return receipt requested, postage prepaid, addressed to the party at the address set forth under the party’s signature hereto and with the copies delivered, transmitted or mailed
to the Persons as are specified therein. Any party may change his address for notices in the manner set forth above. 
  
 Section 3.12. Counterparts. This Agreement may be executed in any number of counterparts, including the execution by each Investor of a counterpart
signature page, all of which shall constitute one and the same instrument, and any party may execute this Agreement by signing one or more counterparts. 
  
 Section 3.13. Consent. Unless otherwise noted herein, any consent of the Investors shall mean approval (by vote or written consent, as provided by
law), of the holders of at least a majority of the voting power of all then outstanding shares of the Preferred Stock. 
  
 Section 3.14. Governing Law. The validity, terms, performance and enforcement of this Agreement shall be governed by the laws of the State of
Delaware that are applicable to agreements negotiated, executed, delivered and performed solely in the State of Delaware. 
  

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 In witness whereof, the parties have executed this Agreement on or as of the date first above written.

  

	
	 Knobias, Inc.

	
	 
	 E. Key Ramsey, President

  

	
	 Address for notices:

	
	 
	
	 
	
	 

  
 The signatures
and addresses of the Investors are contained in the signature pages attached to this Agreement as Exhibit A. 
  

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 Exhibit A 

Signature Page 
 to 

Registration Rights Agreement 
  
 The undersigned, by execution of this Signature Page to Registration Rights Agreement, does hereby execute, become party to and agree to be bound by that
certain Registration Rights Agreement dated on or as of November , 2004, by and among Knobias, Inc., a Delaware corporation (the “Corporation”), and certain investors in the Corporation. 
  
 Date:
                     
  

			
	 INVESTOR:

	
	 
	 Name and Title:
	 	 
	
	 Address for Notices:

	
	 
	
	 
	
	 

  

 Page 180 of 347Securities Purchase Agreement

  
 Exhibit 4.7 

 
 SECURITIES PURCHASE AGREEMENT 
  
 This Securities Purchase Agreement (this “Agreement”) is
dated as of November 15, 2004 among Knobias, Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and
collectively the “Purchasers”). 
  
 WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”) and Rule 506 promulgated thereunder, the Company desires to issue and sell
to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement. 
  
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable
consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agrees as follows: 
  
 ARTICLE I. 
 DEFINITIONS

  
 1.1 Definitions. In addition to the terms defined
elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Notes (as defined herein), and (b) the following terms have the meanings indicated in this Section 1.1: 

 
 “Action” shall have the meaning ascribed
to such term in Section 3.1(j). 
  
 “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144
under the Securities Act. With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 

 
 “Closing” means the closing of the
purchase and sale of the Securities pursuant to Section 2.1. 
  
 “Closing Date” means the Trading Day when all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’
obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Securities have been satisfied or waived. 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “Common Stock” means the common stock of the Company, no par value, and any securities into
which such common stock shall hereinafter have been reclassified into. 
  

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 “Common Stock Equivalents” means any securities of the Company or the
Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for,
or otherwise entitles the holder thereof to receive, Common Stock. 
  
 “Company Counsel” means Watkins & Eager PLLC and Ritchie, Duncan & Goodwin, LLC. 
  
 “Conversion Price” shall have the meaning ascribed to such term in the Notes. 
  
 “Disclosure Schedules” shall have the
meaning ascribed to such term in Section 3.1 hereof. 
  
 “Effective Date” means the date that the initial Registration Statement filed by the Company pursuant to the Registration Rights Agreement is first declared effective by the Commission. 
  
 “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
  
 “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to the Company’s 2004 Stock Incentive Plan or any stock or option plan duly
adopted by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose, (b) securities upon the exercise of or conversion of any
securities issued hereunder, convertible securities, options or warrants issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such
securities, (c) securities issued pursuant to acquisitions or strategic transactions, provided any such issuance shall only be to a Person which is, itself or through its subsidiaries, an operating company in a business synergistic with the business
of the Company and in which the Company receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose
primary business is investing in securities, (d) securities issued pursuant to an equity offering of up to $5,000,000 at a price per share equal to or greater than the Conversion Price (as defined in the Note), which issuance shall occur prior to
the one month anniversary of the date hereof and (e) options and warrants issued by the Company to replace those previously issued by Knobias Holdings, Inc., and assumed by the Company pursuant to the Merger. 
  
 “GAAP” shall have the meaning ascribed to
such term in Section 3.1(h) hereof. 
  
 “KW” means Keith Wellner, attorney for DCOFI Master LDC, with offices at 830 Third Avenue, New York, New York 10022. 
  
 “Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other
restriction. 
  

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 “Material Adverse Effect” shall have the meaning assigned to such term
in Section 3.1(b) hereof. 
  
 “Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m). 
  
 “Merger” shall mean the merger of Knobias Holdings, Inc., a Delaware corporation, into KHI Acquisition, Inc., a Delaware
corporation, pursuant to that certain Agreement and Plan of Reorganization Among Knobias Holdings, Inc., Consolidated Travel Systems, Inc., and KHI Acquisition, Inc., dated June 30, 2004. 
  
 “Notes” means, the 8% Secured Convertible
Notes due, subject to the terms therein, two years from their date of issuance, issued by the Company to the Purchasers hereunder, in the form of Exhibit A. 
  
 “Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
  
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened. 
  
 “Registration Rights Agreement” means the Registration Rights Agreement, dated the date hereof, among the Company and the
Purchasers, in the form of Exhibit B attached hereto. 
  
 “Registration Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and covering the resale of the Underlying Shares by each Purchaser as
provided for in the Registration Rights Agreement. 
  
 “Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e). 
  
 “Required Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or
potentially issuable in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon exercise or conversion in full of all Warrants and Notes (including Underlying Shares issuable as payment of interest), ignoring
any conversion or exercise limits set forth therein, and assuming that the Conversion Price is at all times on and after the date of determination 75% of the then Conversion Price on the Trading Day immediately prior to the date of determination.

  
 “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
  
 “SEC Reports” shall have the meaning
ascribed to such term in Section 3.1(h) hereof. 
  

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 “Securities” means the Notes, the Warrants, the Warrant Shares and the
Underlying Shares. 
  
 “Securities
Act” means the Securities Act of 1933, as amended. 
  
 “Security Agreement” means the Security Agreement, dated the date hereof, among the Company and the Purchasers, in the form of Exhibit F attached hereto. 
  
 “Security Documents” means the Security
Agreement, the Subsidiary Guarantee and any other documents and filing required thereunder in order to grant the Purchasers a perfected security interest in all of the assets of the Company, including all UCC-1 filing receipts. 
  
 “Standby Equity Agreement” means that
certain Standby Equity Distribution Agreement between Cornell Capital Partners, LP, and the Company, effective as of the Merger, and the transaction documents related thereto. 
  
 “Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for
Notes and Warrants purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount”, in United States Dollars and in immediately available funds.

  
 “Subsequent Financing” shall
have the meaning ascribed to such term in Section 4.13. 
  
 “Subsidiary” means any subsidiary of the Company as set forth on Schedule 3.1(a). 
  
 “Subsidiary Guarantee” means the Subsidiary Guarantee, dated the date hereof, among each of the Subsidiaries and the
Purchasers, in the form of Exhibit G attached hereto. 
  
 “Trading Day” means a day on which the Common Stock is traded on a Trading Market. 
  
 “Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the Nasdaq SmallCap Market, the American Stock Exchange, the New York Stock Exchange, the Nasdaq National Market or the OTC Bulletin Board. 
  
 “Transaction Documents” means this Agreement, the Notes, the Warrants, the Security
Agreement, the Subsidiary Guarantee, the Registration Rights Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder. 
  
 “Underlying Shares” means the shares of Common Stock issuable upon conversion of the Notes
and upon exercise of the Warrants and issued and issuable in lieu of the cash payment of interest on the Notes. 
  

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 “VWAP” means, for any date, the price determined by the first of the
following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the primary Trading Market on which
the Common Stock is then listed or quoted as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. EST to 4:02 p.m. Eastern Time) using the VAP function; (b) if the Common Stock is not then listed or quoted on the Trading
Market and if prices for the Common Stock are then reported in the “Pink Sheets” published by the Pink Sheets, LLC (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share
of the Common Stock so reported; or (c) in all other cases, the fair market value of a share of Common Stock as determined by a nationally recognized-independent appraiser selected in good faith by Purchasers holding a majority of the principal
amount of Notes then outstanding. 
  
 “Warrants” means collectively the Common Stock purchase warrants, in the form of Exhibit C delivered to the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable
immediately and have a term of exercise equal to five years. 
  
 “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants. 
  
 ARTICLE II. 
 PURCHASE AND SALE

  
 2.1 Closing. On the Closing Date, upon the terms
and subject to the conditions set forth herein, concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and each Purchaser agrees to purchase in the aggregate, severally and not jointly, up to
$250,000 principal amount of the Notes. Each Purchaser shall deliver to the Company via wire transfer or a certified check immediately available funds equal to their Subscription Amount and the Company shall deliver to each Purchaser their
respective Note and Warrants as determined pursuant to Section 2.2(a) and the other items set forth in Section 2.2 issuable at the Closing. Upon satisfaction of the conditions set forth in Section 2.2, the Closing shall occur at the offices of the
Company, or such other location as the parties shall mutually agree 
  
 2.2 Deliveries 
  

	 	a)	On the Closing Date, the Company shall deliver to the counsel for such Purchasers with respect to each Purchaser the following: 

  

	 	(i)	this Agreement duly executed by the Company; 

  

	 	(ii)	a Note with a principal amount equal to such Purchaser’s Subscription Amount, registered in the name of such Purchaser; 

  

	 	(iii)	 a Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 180% of such 

  

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Purchaser’s Subscription Amount divided by the Conversion Price (as defined in the Note) immediately prior to the date hereof, with an exercise price
equal to $0.01; 

  

	 	(iv)	the Registration Rights Agreement duly executed by the Company; 

  

	 	(v)	the Security Agreement, duly executed by the Company, along with all the Security Documents; 

  

	 	(vi)	a legal opinion of Company Counsel, in the form of Exhibit D attached hereto. 

  

	 	b)	On the Closing Date, each Purchaser shall deliver or cause to be delivered to Company Counsel the following: 

  

	 	(i)	this Agreement duly executed by such Purchaser; 

  

	 	(ii)	such Purchaser’s Subscription Amount by wire transfer to the account of the Company; 

  

	 	(iii)	the Security Agreement, duly executed by such Purchaser; and 

  

	 	(iv)	the Registration Rights Agreement duly executed by such Purchaser. 

  
 2.3 Closing Conditions. 
  

	 	a)	The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met: 

  

	 	(i)	the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchasers contained herein; 

  

	 	(ii)	all obligations, covenants and agreements of the Purchasers required to be performed at or prior to the Closing Date shall have been performed; and 

  

	 	(iii)	the delivery by the Purchasers of the items set forth in Section 2.2(b) of this Agreement. 

  

	 	b)	The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met: 

  

	 	(i)	the accuracy in all material respects on the Closing Date of the representations and warranties of the Company contained herein; 

  

	 	(ii)	all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; 

  

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	 	(iii)	the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement; 

  

	 	(iv)	there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and 

  

	 	(v)	from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission (except for any suspension of trading of limited duration
agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg Financial Markets shall not have been suspended or limited, or
minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall
there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable
judgment of each Purchaser, makes it impracticable or inadvisable to purchase the Notes at the Closing. 

  
 ARTICLE III. 
 REPRESENTATIONS AND
WARRANTIES 
  
 3.1 Representations and Warranties of the
Company. Except as set forth in the draft Form 8-K delivered to the Purchasers concurrently herewith as Schedule 3.1 (the “Disclosure Schedule”) which Disclosure Schedule shall be deemed a part hereof, the Company hereby makes
the representations and warranties set forth below to each Purchaser. 
  
 (a) Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth in the first paragraph of Item 2.01 of the Disclosure Schedule under the caption “The Reverse Merger
Transaction.” The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all the issued and outstanding shares of capital stock of each Subsidiary are validly
issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, then references in the Transaction Documents to the Subsidiaries will be disregarded.

  

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 (b) Organization and Qualification. Each of the Company and the Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and
assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or
charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned
by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or
enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or financial condition of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on
the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any
such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification. 
  
 (c) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the
transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company in connection therewith other than in connection with the Required Approvals. Each Transaction
Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief or other equitable remedies. 
  
 (d) No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the other transactions contemplated thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise)
or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other restriction of any 

  

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court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which
any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect. 
  
 (e) Filings, Consents and Approvals. The Company is
not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the
execution, delivery and performance by the Company of the Transaction Documents, other than (i) filings required pursuant to Section 4.6, (ii) the filing with the Commission of the Registration Statement, (iii) the notice and/or application(s) to
each applicable Trading Market for the issuance and sale of the Notes and Warrants and the listing of the Underlying Shares for trading thereon in the time and manner required thereby and (iv) the filing of Form D with the Commission and such
filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”). 
  
 (f) Issuance of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable
Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Underlying Shares, when
issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock a number of
shares of Common Stock for issuance of the Underlying Shares at least equal to the Required Minimum on the date hereof. The Company has not, and to the knowledge of the Company, no Affiliate of the Company has sold, offered for sale or solicited
offers to buy or otherwise negotiated in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities
Act of the sale of the Securities to the Purchasers, or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market. 
  
 (g) Capitalization. The capitalization of the Company is as set forth in Item 2.01, the Description
of Securities section of the Disclosure Schedule and the Company’s Amended and Restated Certificate of Incorporation attached as Exhibit 3.3 of the Disclosure Schedule. The Company has not issued any capital stock since the Merger other than
pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plan and pursuant to the conversion or
exercise of outstanding Common Stock Equivalents. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as set
forth in Item 2.01 and the Description of Securities section of the Disclosure Schedule, as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for, or giving any 

  

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Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or
any Subsidiary is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable into shares of Common Stock. The issuance and sale of the Securities will not obligate the Company to issue shares
of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. All of the
outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any
preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and sale of the Securities. There are
no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

  
 (h) SEC Reports; Financial Statements.
The Company has filed all reports required to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was
required by law to file such material) (the foregoing materials, including the exhibits thereto, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules
and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during
the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present
in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal, immaterial, year-end audit adjustments. 
  
 (i) Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had
or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or 

  

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required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared
or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any
officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information. 
  
 (j) Litigation. Other than as set forth in the
Disclosure Schedule under the caption “Legal Proceedings,” there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any
Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i)
adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse
Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued
any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 
  
 (k) Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is
imminent with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. 
  
 (l) Compliance. Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that
has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in
violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of
any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its
business except in each case as could not have a Material Adverse Effect. 
  
 (m) Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to
conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not have or reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither
the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 
  

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 (n) Title to Assets. The Company and the Subsidiaries have good and marketable
title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned by them that is material to the business of the Company and the
Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the
Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them
under valid, subsisting and enforceable leases of which the Company and the Subsidiaries are in compliance. 
  
 (o) Patents and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so
have could have a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the Company or any
Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights
of others. 
  
 (p) Insurance. The Company
and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. To the best of Company’s knowledge, such insurance contracts and policies are accurate and complete. Neither the Company nor any
Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a
significant increase in cost. 
  
 (q)
Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any
transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an
officer, director, trustee or partner, in each case in excess of $50,000 other than (i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) for other employee
benefits, including stock option agreements under any stock option plan of the Company. 
  

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 (r) Sarbanes-Oxley; Internal Accounting Controls. The Company is in material
compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and
procedures to ensure that material information relating to the Company, including its Subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s most recently
filed periodic report under the Exchange Act, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of the date prior to the filing date of the
most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about
the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in
Item 307(b) of Regulation S-K under the Exchange Act) or, to the Company’s knowledge, in other factors that could significantly affect the Company’s internal controls. 
  
 (s) Certain Fees. Except as set forth in the Disclosure Schedule under the caption “Recent Sales
of Unregistered Securities; Use of Proceeds from Registered Securities,” no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by this Agreement. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type
contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement. 
  
 (t) Private Placement. Assuming the accuracy of the Purchasers representations and warranties set forth in Section 3.2, no
registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of
the Trading Market. 
  
 (u) Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act. 
  

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 (v) Registration Rights. With the exception of the holders of the Company’s
Series A Preferred Stock and the Investor under the Standby Equity Agreement, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 
  
 (w) Listing and Maintenance Requirements. The
Company’s Common Stock is registered pursuant to Section 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on
which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with all such listing and maintenance requirements. 
  
 (x) Application of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order
to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Certificate of Incorporation (or similar
charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents,
including without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 
  
 (y) Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers
or their agents or counsel with any information that constitutes or might constitute material, nonpublic information. The Company understands and confirms that the Purchasers will rely on the foregoing representations and covenants in effecting
transactions in securities of the Company. All disclosure provided to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, furnished by or on behalf of the
Company with respect to the representations and warranties made herein are true and correct with respect to such representations and warranties and do not contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof. 
  
 (z) No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this
offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act or any applicable shareholder 

  

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approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the
securities of the Company are listed or designated. 
  
 (aa) Solvency. Based on the financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the Company’s fair saleable
value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they mature; (ii) the Company’s assets do not
constitute unreasonably small capital to carry on its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted
by the Company, and projected capital requirements and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into
account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature
(taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the
bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. The SEC Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the
Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the
ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto),
except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $50,000 due under leases required to be
capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness. 
  
 (bb) Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency
which has been asserted or threatened against the Company or any Subsidiary. 
  

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 (cc) No General Solicitation. Neither the Company nor any person acting on behalf
of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers and certain other “accredited investors” within the
meaning of Rule 501 under the Securities Act. 
  
 (dd) Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any corrupt funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns
from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision
of the Foreign Corrupt Practices Act of 1977, as amended 
  
 (ee) Accountants. The Company’s accountants are Horne CPA Group. To the Company’s knowledge, such accountants, who the Company expects will express their opinion with respect to the financial
statements to be included in the Company’s Annual Report on Form 10-KSB for the year ending December 31, 2004, are a registered public accounting firm as required by the Securities Act. 
  
 (ff) Seniority. As of the Closing Date, no
indebtedness or other equity of the Company is senior to, pari passu with, or subordinated to the Notes in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured by
purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations (which is senior only as to the property covered thereby). 
  
 (gg) No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently
existing, or reasonably anticipated by the Company to arise, between the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers. By making this
representation the Company does not, in any manner, waive the attorney/client privilege or the confidentiality of the communications between the Company and its lawyers. 
  
 (hh) Acknowledgment Regarding Purchasers’ Purchase of Securities. The Company acknowledges and
agrees that each of the Purchasers is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby. The Company further acknowledges that no Purchaser is acting as
a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any advice given by any Purchaser or any of their respective representatives or agents in
connection with this Agreement and the transactions contemplated hereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to each Purchaser that the Company’s decision to enter into this
Agreement has been based solely on the independent evaluation of the transactions contemplated hereby by the Company 

  

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and its representatives. The Company further acknowledges that in addition to purchasing Securities, the Purchasers or their affiliates may directly or
indirectly own Common Stock and Preferred Stock in the Company and that such parties, exercising their rights hereunder may adversely impact their other holdings as well as the other equity holders in the Company. 
  
 3.2 Representations and Warranties of the Purchasers. Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the date hereof and as of the Closing Date to the Company as follows: 
  
 (a) Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder. The execution,
delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or similar action on the part of such Purchaser. Each Transaction Document to which it is a party has
been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except
(i) as limited by general equitable principles and 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) insofar as indemnification and contribution provisions may be limited by applicable law. 
  
 (b) Purchaser Representation. Such Purchaser understands that the Securities are “restricted securities”
and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part
thereof, has no present intention of distributing any of such Securities and has no arrangement or understanding with any other persons regarding the distribution of such Securities (this representation and warranty not limiting such
Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its
business. Such Purchaser does not have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. 
  
 (c) Purchaser Status. At the time such Purchaser was offered the Securities, it was, and at the date hereof it is, and on each date on which it
exercises any Warrants or converts any Notes it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as
defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. 
  

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 (d) Experience of Such Purchaser. Such Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of
such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 
  
 (e) General Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article,
notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 
  
 (f) Short Sales. Each Purchaser represents that prior to 8:30 a.m. ET
on the Trading Day immediately following the date of this Agreement, neither it nor any Person over which the Purchaser has direct control, have made any purchases or sales of, or granted any option for the purchase of or entered into any hedging or
similar transaction with the same economic effect as a short sale, of the Common Stock. 
  
 The Company acknowledges and agrees that each Purchaser does not make or has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in
this Section 3.2. 
  
 ARTICLE IV. 
 OTHER AGREEMENTS OF THE PARTIES 
  
 4.1 Transfer Restrictions. 
  
 (a) The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than
pursuant to an effective registration statement or Rule 144, to the Company or to an affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company
an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of
such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this Agreement and the
Registration Rights Agreement. 
  
 (b) The Purchasers agree to the
imprinting, so long as is required by this Section 4.1(b), of a legend on any of the Securities in the following form: 
  
 [NEITHER] THESE SECURITIES [NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [EXERCISABLE] [CONVERTIBLE]] HAVE BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER 

  

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THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON
EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES. 
  
 The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a
registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the
provisions of this Agreement and the Registration Rights Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would
not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate
Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities, including, if the Securities
are subject to registration pursuant to the Registration Rights Agreement, the preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable provision of the Securities Act to
appropriately amend the list of Selling Stockholders thereunder. 
  
 (c) Certificates evidencing the Underlying Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement (including the Registration Statement) covering the resale of such
security is effective under the Securities Act, or (ii) following any sale of such Underlying Shares pursuant to Rule 144, or (iii) if such Underlying Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not required under
applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Company’s transfer agent promptly
after the Effective Date if required by the Company’s transfer agent to effect the removal of the legend hereunder. If all or any portion of a Note or Warrant is converted or exercised (as applicable) at a time when there is an effective
registration statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under Rule 144(k) or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial
interpretations thereof) then such Underlying Shares shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than
three Trading Days following the delivery by a Purchaser to the Company or the Company’s transfer agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend (such third Trading Day, the
“Legend Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company may not make any notation on 

  

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its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. 
  
 (d) In addition to such Purchaser’s other available remedies, the
Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Underlying Shares (based on the VWAP of the Common Stock on the date such Securities are submitted to the Company’s transfer
agent) delivered for removal of the restrictive legend and subject to this Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day 5 Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal
Date until such certificate is delivered without a legend. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Company’s failure to deliver certificates representing any Securities as required by the
Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. 
  
 (e) Each Purchaser, severally and not jointly with the other Purchasers,
agrees that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance that the Purchaser will sell any Securities pursuant to either the
registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom. 
  
 (f) Until the date that each Purchaser holds less than 20% of the Notes initially purchased hereunder by such Purchaser, the Company shall not undertake a
reverse or forward stock split or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in principal amount outstanding of the Notes. 
  
 4.2 Acknowledgment of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution
of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under the Transaction Documents, including without limitation its obligation to issue
the Underlying Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have
against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company. 
  
 4.3 Furnishing of Information. As long as any Purchaser owns Securities, the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as any Purchaser owns Securities, if the Company is not required to file reports
pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144. The Company further
covenants that it will take such further action as any holder of Securities may reasonably request, all to the extent required from time to time to enable such Person to sell such Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144. 
  
 4.4
Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that 

  

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would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the
Securities to the Purchasers or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market. 
  
 4.5 Conversion and Exercise Procedures. The form of Notice of Exercise included in the Warrants and the form of
Notice of Conversion included in the Notes set forth the totality of the procedures required of the Purchasers in order to exercise the Warrants or convert the Notes. No additional legal opinion or other information or instructions shall be required
of the Purchasers to exercise their Warrants or convert their Notes. The Company shall honor exercises of the Warrants and conversions of the Notes and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set
forth in the Transaction Documents. 
  
 4.6 Securities Laws
Disclosure; Publicity. The Company shall, by 5:00 p.m. Eastern time on the fourth Trading Day following the date hereof, issue a Current Report on Form 8-K disclosing the material terms of the Merger and containing provisions, reasonably
acceptable to each Purchaser disclosing the material terms of the transactions contemplated hereby, and shall attach the Transaction Documents thereto. The Company and each Purchaser shall consult with each other in issuing any other press releases
with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press
release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld, except if such disclosure is required by law, in which case the disclosing
party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any
filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law in connection with the registration statement contemplated by the
Registration Rights Agreement and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under subclause (i) or (ii).

  
 4.7 Shareholder Rights Plan. No claim will be made or
enforced by the Company or, to the knowledge of the Company, any other Person that any Purchaser is an “Acquiring Person” under any shareholder rights plan or similar plan or arrangement in effect or hereafter adopted by the Company, or
that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers. The Company shall
conduct its business in a manner so that it will not become subject to the Investment Company Act. 
  
 4.8 Non-Public Information. The Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Purchaser
or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions in securities of the Company. 
  

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 4.9 Use of Proceeds. The Company shall use the net proceeds from the sale of the Securities
hereunder for working capital and general corporate purposes. 
  
 4.10 Reimbursement. If any Purchaser becomes involved in any capacity in any Proceeding by or against any Person who is a stockholder of the Company (except as a result of sales, pledges, margin sales and similar transactions by such
Purchaser to or with any current stockholder), solely as a result of such Purchaser’s acquisition of the Securities under this 
  
 Agreement, the Company will reimburse such Purchaser for its reasonable legal and other expenses (including the cost of any investigation preparation and
travel in connection therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations of the Company under this paragraph shall be in addition to any liability which the Company may otherwise have, shall
extend upon the same terms and conditions to any Affiliates of the Purchasers who are actually named in such action, proceeding or investigation, and partners, directors, agents, employees and controlling persons (if any), as the case may be, of the
Purchasers and any such Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the Purchasers and any such Affiliate and any such Person. The Company also agrees
that neither the Purchasers nor any such Affiliates, partners, directors, agents, employees or controlling persons shall have any liability to the Company or any Person asserting claims on behalf of or in right of the Company solely as a result of
acquiring the Securities under this Agreement. 
  
 4.11
Indemnification of Purchasers. Subject to the provisions of this Section 4.11, the Company will indemnify and hold the Purchasers and their directors, officers, shareholders, partners, employees and agents (each, a “Purchaser
Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction
Documents or (b) any action instituted against a Purchaser, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the
Transaction Documents (unless such action is based upon a breach of such Purchaser’s representation, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with any such stockholder
or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in
respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing. Any
Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the
employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of
such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party. The Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement by a
Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is 

  

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attributable to any Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by the Purchasers in this Agreement
or in the other Transaction Documents. 
  
 4.12 Reservation and
Listing of Securities. 
  
 (a) The Company shall maintain a
reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations in full under the Transaction Documents. 
  
 (b) If, on any date, the number of authorized but unissued (and otherwise
unreserved) shares of Common Stock is less than the Required Minimum on such date, then the Board of Directors of the Company shall use commercially reasonable efforts to amend the Company’s certificate or articles of incorporation to increase
the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time, as soon as possible and in any event not later than the 75th day after such date. 
  
 (c) The Company shall, if applicable: (i) in the time and manner required by
the Trading Market, prepare and file with such Trading Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum on the date of such application, (ii) take all steps necessary
to cause such shares of Common Stock to be approved for listing on the Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing, and (iv) maintain the listing of such Common Stock on any date at least
equal to the Required Minimum on such date on such Trading Market or another Trading Market. 
  
 4.13 Subsequent Equity Sales. In addition to the limitations set forth herein, from the date hereof until such time as no Purchaser holds any of the Securities, the Company shall be prohibited from effecting or
entering into an agreement to effect any Subsequent Financing involving a “Variable Rate Transaction” or an “MFN Transaction” (each as defined below) other than the transactions required or allowed by the Standby
Equity Agreement. The term “Variable Rate Transaction” shall mean a transaction in which the Company issues or sells (i) any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right
to receive additional shares of Common Stock either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after the initial
issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or
contingent events directly or indirectly related to the business of the Company or the market for the Common Stock. The term “MFN Transaction” shall mean a transaction in which the Company issues or sells any securities in a capital
raising transaction or series of related transactions which grants to an investor the right to receive additional shares based upon future transactions of the Company on terms more favorable than those granted to such investor in such offering. Any
Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages. Notwithstanding the foregoing, this Section 4.13 shall not apply in respect
of an Exempt Issuance, except that no Variable Rate Transaction or MFN Transaction shall be an Exempt Issuance. 
  

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 4.14 Equal Treatment of Purchasers. No consideration shall be offered or paid to any person to
amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. Further, the Company shall not make any payment of
principal or interest on the Notes in amounts which are disproportionate to the respective principal amounts outstanding on the Notes at any applicable time. For clarification purposes, this provision constitutes a separate right granted to each
Purchaser by the Company and negotiated separately by each Purchaser, and is intended to treat for the Company the Note holders as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the
purchase, disposition or voting of Securities or otherwise. 
  
 4.15 Most Favored Nation Provision. Any time the Company effects a Subsequent Financing, each Purchaser may elect, in its sole discretion, to exchange all or some of its Notes and Warrants (treated for this purpose only as a unit)
then held by it for the securities issued in a Subsequent Financing based on the then outstanding principal amount of the Note plus accrued but unpaid interest and any other fees then owed by the Company to the Purchaser, and the effective price at
which such securities are sold in such Subsequent Financing. 
  
 ARTICLE V. 
 MISCELLANEOUS 
  
 5.1 Termination. This Agreement may be terminated by any Purchaser, by written notice to the other parties, if the Closing has not been consummated
on or before November 30, 2004; provided that no such termination will affect the right of any party to sue for any breach by the other party (or parties). 
  
 5.2 Legal Fees. At the Closing, the Company has agreed to (i) reimburse DC Asset Management LLC (“DCAM”) $25,000, for its legal
fees and expenses and (ii) pay DCAM $50,000 as a structuring fee. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any,
and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection
with the issuance of any Securities. 
  
 5.3 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 
  
 5.4 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall
be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second Trading Day following the 

  

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date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to
be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. 
  
 5.5 Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and each Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner
impair the exercise of any such right. 
  
 5.6
Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 
  
 5.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser. Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such
Purchaser assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions hereof that apply to the “Purchasers”. 
  
 5.8 No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.11. 
  
 5.9 Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement
of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall 

  

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constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or
proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
  
 5.10 Survival. The representations and warranties contained herein
shall survive the Closing and the delivery, exercise and/or conversion of the Securities, as applicable for the applicable statue of limitations. 
  
 5.11 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

  
 5.12 Severability. If any provision of this Agreement
is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 
  
 5.13 Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the
Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may
rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights; provided, however, in the
case of a rescission of a conversion of a Note or exercise of a Warrant, the Purchaser shall be required to return any shares of Common Stock subject to any such rescinded conversion or exercise notice. 
  
 5.14 Replacement of Securities. If any certificate or instrument
evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities. 
  
 5.15 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the
Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in
the foregoing sentence and hereby agrees to waive in any 

  

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action for specific performance of any such obligation the defense that a remedy at law would be adequate. 
  
 5.16 Payment Set Aside. To the extent that the Company makes a payment
or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without
limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full
force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
  
 5.17 Usury. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will
resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in order to
enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction
Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”), and, without limiting the foregoing, in no event shall any rate of interest or default
interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest
allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate
applicable to the Transaction Documents from the effective date forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to any Purchaser
with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at
such Purchaser’s election. 
  
 5.18 Independent Nature of
Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership,
an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Document.
Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. For 

  

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reasons of administrative convenience only, Purchasers and their respective counsel have chosen to communicate with the Company through KW. KW does not
represent all of the Purchasers but only DCOFI Master LDC. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by
the Purchasers. 
  
 5.19 Liquidated Damages. The
Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts
have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled. 
  
 (Signature Pages Follow) 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above. 
  

					
	KNOBIAS, INC.	 	 	 	 Address for Notice:

			
	  	 	 	 	 Building 2, Suite 500
 875 Northpark
Drive

	 E. Key Ramsey
	 	 	 	Ridgeland, Mississippi 39157
	 President
	 	 	 	 
	 	 	 	 	Telephone:
	 	 	 	 	 (601) 978-3399

	 	 	 	 	Facsimile:
	 	 	 	 	 (601) 978-3675

  

					
	 With a copy to (which shall not constitute notice):
	 	 	 	Watkins & Eager PLLC
	 	 	 	 	400 East Capitol Street, Suite 300
	 	 	 	 	Jackson, Mississippi 39201
	 	 	 	 	Telephone:
	 	 	 	 	 (601) 948-6470

	 	 	 	 	Facsimile:
	 	 	 	 	 (601) 354-3623

			
	 	 	 	 	Attention:
	 	 	 	 	 James A. Lowe, III

			
	 	 	 	 	Ritchie, Duncan & Goodwin, LLC
	 	 	 	 	312 North 23rd Street
	 	 	 	 	Birmingham, Alabama 35203
	 	 	 	 	Telephone:
	 	 	 	 	 (205) 251-1288

	 	 	 	 	Facsimile:
	 	 	 	 	 (205) 324-7832

			
	 	 	 	 	Attention:
	 	 	 	 	 W. Clark Goodwin

  

 Page 208 of 347 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGE FOR PURCHASER FOLLOWS] 
  

 Page 209 of 347 

 [PURCHASER SIGNATURE PAGES TO KNOBIAS SECURITIES PURCHASE AGREEMENT] 
  
 IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly
executed by their respective authorized signatories as of the date first indicated above. 
  
 Name of Investing Entity:
                                        
                                        
                                        
                         
 Signature of Authorized Signatory of Investing Entity:
                                        
                                        
             
 Name of Authorized Signatory:
                                        
                                        
                                        
                
 Title of Authorized Signatory:
                                        
                                        
                                        
                  
 Email Address of Authorized Entity:
                                        
                                        
                                        
       
  
 Address for Notice of Investing
Entity: 
  
 Address for Delivery of Securities for Investing Entity (if not same
as above): 
  
 Subscription Amount: 
 Warrant Shares: 
 EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

  

 Page 210 of 347

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