Document:

Unassociated Document

    GSV,
      INC.

    

    AMENDED
      AND RESTATED CONVERTIBLE PROMISSORY NOTE

     

    THE
      SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON CONVERSION HEREOF
      OR IN RESPECT OF INTEREST PAYMENTS HEREUNDER HAVE NOT BEEN REGISTERED UNDER
      THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS
      AND MAY NOT BE SOLD OR OTHERWISE DISTRIBUTED WITHOUT AN EFFECTIVE REGISTRATION
      STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
      THE
      ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SUCH ACT AND
      LAWS.

     

     

    
      
        	$200,000	As of May 10,
                2008

      
 

     

    FOR
      VALUE
      RECEIVED, GSV, INC., a Delaware corporation (“Company"), with its principal
      office at 191 West Post Road, Westport, Connecticut 06880, hereby promises
      to
      pay to the order of D. EMERALD INVESTMENTS LTD., an Israeli corporation
      ("Holder"), with its principal office at 85 Medinat Ha-Yehudim Street,
      Herzeliya, Israel (the "Holder's Office"), or its assigns, on July 10, 2009
      (the
      "Maturity Date"), the principal amount of TWO HUNDRED THOUSAND DOLLARS
      ($200,000) (the “Principal Amount”), in such coin or currency of the United
      States of America as at the time of payment shall be legal tender for the
      payment of public or private debts, together with interest on the unpaid balance
      of said Principal Amount from time to time outstanding at the rate of eight
      percent (8%) per annum ("Contract Interest"). Accrued Contract Interest shall
      be
      payable quarterly in arrears on the last day of each calendar quarter commencing
      on May 31, 2008, and on the Maturity Date (the “Interest Payment Dates”). Unless
      the Note has been converted by the Holder prior to the Maturity Date pursuant
      to
      the terms of this Note, the unpaid Principal Amount, together with the then
      accrued unpaid Contract Interest and all other amounts owed hereunder, shall
      be
      due and payable on the Maturity Date. At the Holder’s option, Contract Interest
      shall be payable either in cash or in shares of common stock, $.001 par value
      per share, of the Company (“Common Stock”) (the number of shares to be
      calculated as set forth below). If the Holder elects to receive any Contract
      Interest payment in the form of shares of the Company’s Common Stock, the Holder
      shall given the Company notice of such election at least fifteen (15) business
      days prior to the applicable interest Payment Date. The number of shares of
      Common Stock to be issued to the Holder shall be calculated by dividing the
      amount of Contract Interest payable for the applicable period by the Conversion
      Price (as defined below). Payment of the Principal Amount and Contract Interest
      hereunder shall be made by wire transfer of immediately available good funds,
      to
      such bank account as the Holder may designate by notice to the Company prior
      to
      any such payment, or, with respect to Contract Interest that the Holder has
      elected to receive in shares of Common Stock, by delivery of share certificates
      of Common Stock to the Holder at the Holder's Office, or at such other place
      as
      the Holder , by notice to the Company, may designate from time to time for
      that
      purpose.

     

    In
      the
      event that the outstanding Principal Amount and all accrued and unpaid Contract
      Interest are not paid in full on or before the Maturity Date, then the
      outstanding Principal Amount and all accrued and unpaid Contract Interest
      thereon shall thereafter bear a default interest ("Default Interest") at a
      rate
      per annum equal to twelve percent (12%)
      until the outstanding Principal Amount and all accrued and unpaid Contract
      Interest and Default Interest thereon shall have been paid in full by the
      Company to the Holder.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    This
      Note
      is subject to prepayment in whole or in part at any time and from time to time
      without penalty or premium, but with Contract Interest on the amount prepaid
      to
      the date of prepayment. All prepayments will first be applied to the repayment
      of accrued fees and expenses, then to Default Interest accrued on this Note
      through the date of such prepayment until all then outstanding accrued Default
      Interest has been paid, then to Contract Interest accrued on this Note through
      the date of such prepayment until all then outstanding accrued Contract Interest
      has been paid, and then shall be applied to the repayment of the Principal
      Amount.

     

    1.    Default.

     

    1.1.   Events
      of Default.
      Upon
      the occurrence of any of the following events (herein "Events of
      Default"):

     

    (i)    The
      Company shall fail to pay the Principal Amount on the Maturity Date or any
      Contract Interest payment on the due date thereof;

     

    (ii)    (A) The
      Company shall commence any proceeding or other action relating to it in
      bankruptcy or seek reorganization, arrangement, readjustment of its debts,
      receivership, dissolution, liquidation, winding-up, composition or any other
      relief under any bankruptcy law, or under any other insolvency, reorganization,
      liquidation, dissolution, arrangement, composition, readjustment of debt or
      any
      other similar act or law, of any jurisdiction, domestic or foreign, now or
      hereafter existing; or (B) the
      Company shall admit the material allegations of any petition or pleading in
      connection with any such proceeding; or (C) the
      Company shall apply for, or consent or acquiesce to, the appointment of a
      receiver, conservator, trustee or similar officer for it or for all or a
      substantial part of its property or admit generally an inability to pay its
      debts as they become due; or (D) the
      Company shall make a general assignment for the benefit of
      creditors;

     

    (iii)    (A) The
      commencement of any proceedings or the taking of any other action against the
      Company in bankruptcy or seeking reorganization, arrangement, readjustment
      of
      its debts, liquidation, dissolution, arrangement, composition, or any other
      relief under any bankruptcy law or any other similar act or law of any
      jurisdiction, domestic or foreign, now or hereafter existing and the continuance
      of any of such event for thirty (30) days undismissed, unbonded or undischarged;
      or (B) the
      appointment of a receiver, conservator, trustee or similar officer for the
      Company for any of its property and the continuance of any of such event for
      thirty (30) days undismissed, unbonded or undischarged; or (C) the
      issuance of a warrant of attachment, execution or similar process against any
      of
      the property of the Company and the continuance of such event for thirty (30)
      days undismissed, unbonded and undischarged;

     

    (iv)    Any
      of
      the Company’s representations or warranties contained herein or in the Purchase
      Agreement (the “Purchase Agreement”) between the Company and the Holder or the
      Warrant to Purchase Stock (the “Warrant”) issued to the Holder, each such
      agreement dated the date hereof, is determined by a court of competent
      jurisdiction as false or misleading in any material respect; 

     

    (v)    The
      Company shall breach or fail to perform or observe any obligation, covenant,
      term, condition, provision or agreement of the Company contained in this Note,
      the Purchase Agreement or the Warrant, after giving effect to any applicable
      notice provisions and cure periods; provided, however, that with respect to
      a
      failure to comply with any of the provisions of Sections 2.2(a) and (c) of
      this
      Note, such failure is not remedied within twenty (20) days after the Company's
      receipt of written notice of same; or

     

    
      
         

      

      
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    (vi)    Failure
      of the Company to ensure that any conversion of this Note or any Contract
      Interest hereon properly requested by the Holder is effected by the
      Company;

     

    then,
      and
      in any such event, the Holder, at its option and without written notice to
      the
      Company, may declare the entire Principal Amount of this Note then outstanding
      together with any accrued unpaid Contract Interest thereon (payable either
      in
      cash or shares of Common Stock) and Default Interest (if applicable) immediately
      due and payable, and the same shall forthwith become immediately due and payable
      without presentment, demand, protest, or other notice of any kind, all of which
      are expressly waived, and exercise any and all other legal or equitable rights
      resulting therefrom. The Events of Default listed herein are solely for the
      purpose of protecting the interests of the Holder of this Note.

     

    1.2.    Non-Waiver
      and Other Remedies.
      No
      course of dealing, delay or omission on the part of the Holder of this Note
      in
      exercising any right hereunder shall operate as a waiver or otherwise prejudice
      the right of the Holder of this Note. Holder shall not be deemed to have waived
      any of its rights under this Note unless such waiver is in writing and signed
      by
      Holder. A waiver in writing by Holder on one occasion shall not be construed
      as
      a consent to or a waiver of any right or remedy on any future occasion. No
      remedy conferred hereby shall be exclusive of any other remedy referred to
      herein or now or hereafter available at law, in equity, by statute or
      otherwise.

     

    1.3.    Collection
      Costs; Attorney’s Fees.
      In the
      event this Note is turned over to an attorney for collection or the Holder
      otherwise seeks advice of an attorney in connection with the exercise of its
      rights hereunder upon the occurrence of an Event of Default, the Company agrees
      to pay all actual costs of collection, including reasonable attorney's fees
      and
      expenses and all out of pocket expenses incurred in connection with such
      collection efforts, which amounts may, at the Holder's option, be added to
      the
      Principal Amount hereof.

     

    2.    Obligation
      to Pay Principal and Interest; Covenants.
      No
      provision of this Note shall alter or impair the obligation of the Company,
      which is absolute and unconditional, to pay the Principal Amount of, Contract
      Interest and Default Interest, if applicable, on this Note at the place, at
      the
      respective times, at the rates, and in the currency or securities herein
      prescribed.

     

    2.1.    In
      no
      event shall the amount or rate of interest due and payable under this Note
      exceed the maximum amount or rate of interest allowed by applicable law and,
      in
      the event any such excess payment is made by Company or received by Holder,
      such
      excess sum shall be credited as a payment of Principal Amount (or if no
      Principal Amount remains outstanding, shall be refunded to the Company). It
      is
      the express intent hereof that the Company shall not pay and Holder not receive,
      directly or indirectly or in any other manner, interest in excess of that which
      may be lawfully paid under applicable law. All interest (including all charges,
      fees or other amounts deemed to be interest) which is paid or charged under
      this
      Note shall, to the maximum extent permitted by applicable law, be amortized,
      allocated and spread on a pro rata
      basis
      throughout the actual term of this Note.

     

    2.2.    Covenants.
      The
      Company covenants and agrees that, while this Note is outstanding, it
      shall:

     

    
      
         

      

      
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    (a)  Pay
      and
      discharge all taxes, assessments and governmental charges or levies imposed
      upon
      it or upon its income and profits, or upon any properties belonging to it before
      the same shall be in default; provided, however, that the Company shall not
      be
      required to pay any such tax, assessment, charge or levy that is being contested
      in good faith by proper proceedings and adequate reserves for the accrual of
      same are maintained if required by generally accepted accounting principles;
      

     

    (b)  Preserve
      its corporate existence and continue to engage in business of the same general
      type as conducted as of the date hereof;

     

    (c)  Comply
      in
      all respects with all statutes, laws, ordinances, orders, judgments, decrees,
      injunctions, rules, regulations, permits, licenses, authorizations and
      requirements ("Requirement(s)") of all governmental bodies, departments,
      commissions, boards, companies or associations insuring the premises, courts,
      authorities, officials, or officers, that are applicable to the Company; except
      when the failure to comply would not have a material adverse effect on the
      Company; provided that nothing contained herein shall prevent the Company from
      contesting in good faith the validity or the application of any
      Requirements.

     

    3.    Conversion.

     

    3.1.    Right
      to Convert.
      At any
      time prior to May 10, 2009, the Holder may, at its option, by written notice
      to
      the Company ("Conversion Notice"), elect to convert this Note and all accrued
      and unpaid Contract Interest thereon, in whole but not in part, into Common
      Stock at the price of $.70 per share of Common Stock (the "Conversion Price"),
      as adjusted to reflect stock dividends, stock splits, recapitalizations and
      the
      like pursuant to Section 3.3 below. 

     

    3.2.    Conversion
      Process.
      The
      Holder shall deliver to the Company the Conversion Notice in the form attached
      hereto as Exhibit A. Promptly after the receipt of such Conversion Notice,
      the
      Company shall issue and deliver to the Holder a certificate, registered in
      the
      name of the Holder, representing the number of shares of Common Stock to which
      the Holder is entitled upon such conversion.

     

    3.3.    Adjustments.

     

    (a)    Stock
      Dividends, Splits, Etc.
      If the
      outstanding shares of the Company's Common Stock shall be subdivided or split
      into a greater number of shares or a dividend in Common Stock shall be paid
      in
      respect of the outstanding Common Stock, the Conversion Price in effect
      immediately prior to such subdivision or at the record date of such dividend
      shall, simultaneously with the effectiveness of such subdivision or split or
      immediately after the record date of such dividend (as the case may be), be
      proportionately decreased. If the outstanding shares of Common Stock shall
      be
      combined or reverse-split into a smaller number of shares, the Conversion Price
      in effect immediately prior to such combination or reverse split shall,
      simultaneously with the effectiveness of such combination or reverse split,
      be
      proportionately increased. 

     

    (b)    Reclassification,
      Exchange or Substitution.
      Upon
      any reclassification, recapitalization, exchange, substitution, reorganization
      or other event that results in a change of the number and/or class of the Common
      Stock, lawful provision shall be made so that Holder shall be entitled
      thereafter to receive, upon conversion of this Note and/or any accrued Contract
      Interest hereon, the number and kind of securities and property that Holder
      would have been entitled to receive if the Principal Amount of and/or accrued
      Contract Interest, as the case may be, as to which conversion is requested,
      and
      as of the date conversion is requested, had been converted immediately before
      such reclassification, recapitalization, exchange, substitution, reorganization
      or other event. In any such case, appropriate adjustment (as reasonably
      determined by the Board of Directors of the Company) shall be made in the
      application of the provisions set forth herein with respect to the rights and
      interests thereafter of Holder such that the provisions set forth in this
      Section 3 (including provisions with respect to the Conversion Price) shall
      thereafter be applicable, as nearly as is reasonably practicable, in relation
      to
      any shares of stock or other securities or property thereafter deliverable
      upon
      the conversion of this Note and/or any accrued interest hereon. The provisions
      of this Section 3.3(b) shall similarly apply to successive reclassifications,
      recapitalizations, exchanges, substitutions, reorganizations or other
      events.

     

    
      
         

      

      
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    (c)    Adjustments
      for Diluting Issuances.
      If the
      Company shall issue, after the date of this Note, any Equity Securities (as
      defined below) at a price per share or conversion price or exercise price lower
      than the Conversion Price in effect immediately before such Equity Securities
      are issued, in all such cases the Conversion Price shall be adjusted to equal
      the price per share or the conversion price or the exercise price of such Equity
      Securities, as applicable. The foregoing shall not apply to issuance of common
      stock
      or
      preferred stock the
      proceeds
of
      which
      will be payable to the Company in immediately available funds upon issuance
      thereof.

     

    For
      purposes of this Note, the term “Equity Securities” shall mean any securities
      evidencing an ownership interest in the Company, or any securities having voting
      rights in the election of the Board of Directors of the Company not contingent
      upon default, or any securities convertible into or exercisable for any class
      of
      shares of the Company, or any agreement or commitment to issue any of the
      foregoing.

     

    (d)    Fractional
      Shares.
      No
      fractional shares shall be issuable upon conversion of this Note and/or any
      accrued Contract Interest hereon and the number of shares to be issued shall
      be
      rounded up to the nearest whole share.

     

    (e)    Certificate
      as to Adjustments.
      Upon
      each adjustment of the Conversion Price or number of shares, the Company at
      its
      expense, shall promptly compute such adjustment, and furnish the Holder with
      a
      certificate of its Chief Financial Officer setting forth such adjustment and
      the
      facts upon which such adjustment is based. The Company shall, upon written
      request, furnish the Holder with a certificate setting forth the new Conversion
      Price and/or number of shares of Common Stock or other securities and the series
      of adjustments leading thereto. 

     

    (f)    Price
      Adjustment.
      No
      adjustment in the Conversion Price shall be required unless such adjustment
      would require an increase or decrease in the Conversion Price of at least $0.01;
      provided, however, that any adjustments that by reason of this subsection are
      not required to be made shall be carried forward and taken into account in
      any
      subsequent adjustment. All calculations under this Section 3 shall be made
      to
      the nearest cent or to the nearest 1/100th of a share, as the case may
      be.

     

    3.4.    No
      Impairment.
      The
      Company shall not, by amendment of its Certificate of Incorporation, as amended,
      or through a reorganization, transfer of assets, consolidation, merger,
      dissolution, issue, or sale of securities or any other voluntary action, avoid
      or seek to avoid the observance or performance of any of the terms to be
      observed or performed under this Note by the Company, but shall at all times
      in
      good faith assist in carrying out of all the provisions of this Section 3 and
      in
      taking all such action as may be necessary or appropriate to protect the
      Holder’s rights under this Article against impairment.

     

    
      
         

      

      
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    4.    Miscellaneous.

     

    4.1.    Required
      Consent.
      The
      Company may not modify any of the terms of this Note without the prior written
      consent of the Holder.

     

    4.2.    Lost
      Documents.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction or mutilation of this Note or any Note exchanged for it, and (in
      the
      case of loss, theft or destruction) of indemnity satisfactory to it, and upon
      surrender and cancellation of such Note, if mutilated, the Company will make
      and
      deliver in lieu of such Note a new Note of like tenor and unpaid principal
      amount and dated as of the original date of the Note.

     

    4.3.    Legends.
      This
      Note and any Common Stock or other securities issued upon conversion of this
      Note and/or conversion of any accrued interest hereon shall be imprinted with
      a
      legend in substantially the following form:

     

    THIS
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER STATE SECURITIES LAWS AND
      MAY
      NOT BE SOLD OR OTHERWISE DISTRIBUTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
      RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE ISSUER
      THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SUCH ACT AND LAWS.

     

    4.4.    Benefit.
      This
      Note shall be binding upon and inure to the benefit of the parties hereto and
      their legal representatives, successors and assigns.

     

    4.5.    Notices
      and Addresses.
      All
      notices, offers, acceptances and any other acts under this Note (except payment)
      shall be in writing, and shall be sufficiently given if delivered to the
      addressee in person, by overnight courier service or similar receipted delivery,
      or, if mailed, postage prepaid, by certified mail, return receipt requested,
      as
      follows:

     

    
      	
              To
                the Holder:

            	
              To
                the Holder’s address on page 1 of this Note,

              Attn.: Roy
                Harel, Manager

            
	 	 
	
              With
                a copy to:

            	
              Kantor,
                Elhanani, Tal & Co. Law Offices

              74
                -76 Rothschild Blvd. 

              Tel-Aviv,
                Israel 65785

              Attn: Dana
                Yagur, Adv.

            
	 	 
	
              To
                the Company:

            	
              To
                the Company’s address on page 1 of this Note,

            
	 	 
	 	
              Attn: Gilad
                Gat, Chief Executive Office 

                
                and President

            
	 	 
	
              With
                a copy to:

            	
              Davis
                & Gilbert LLP

              1740
                Broadway

              New
                York, New York 10019

              Attn: Ralph
                W. Norton, Esq.

            

    

    

    
      
         

      

      
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    or
      to
      such other address as any party, by notice to the other parties, may designate
      from time to time. Time shall be counted to, or from, as the case may be, the
      delivery in person or five business days after mailing. 

     

    4.6.    Governing
      Law and Jurisdiction.
      This
      Note will be deemed to have been made and delivered in New York City and will
      be
      governed as to validity, interpretation, construction, effect and in all other
      respects by the internal laws of the State of New York. Each of the Company
      and
      the Holder hereby (i) agrees that any legal suit, action or proceeding arising
      out of or relating to this Agreement will be instituted exclusively in New
      York
      State Supreme Court, County of New York or in the United States District Court
      for the Southern District of New York, (ii) waives any objection to the venue
      of
      any such suit, action or proceeding and the right to assert that such forum
      is
      not a convenient forum for such suit, action or proceeding, (iii) irrevocably
      consents to the jurisdiction of the New York State Supreme Court, County of
      New
      York and the United States District Court for the Southern District of New
      York
      in any such suit, action or proceeding, (iv) agrees to accept and acknowledge
      service of any and all process that may be served in any such suit, action
      or
      proceeding in New York State Supreme Court, County of New York or in the United
      States District Court for the Southern District of New York and (v) agrees
      that
      service of process upon it mailed by certified mail to its address set forth
      in
      Section 4.4 above will be deemed in every respect effective service of process
      upon it in any suit, action or proceeding. 

     

    4.7.    Section
      Headings.
      Section
      headings herein have been inserted for reference only and shall not be deemed
      to
      limit or otherwise affect, in any matter, or be deemed to interpret in whole
      or
      in part any of the terms or provisions of this Note.

     

    4.8.    Interpretation.
      Whenever possible, each provision of this Note shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Note shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective only to the extent of such prohibition or
      invalidity, without invalidating the remainder of such provision or the
      remaining provisions of this Note.

     

    4.9.    Assignment.
      All
      rights of Holder under this Note may be assigned by Holder to any third party
      and all rights of Holder hereunder shall inure to the benefit of its
      transferees, successors and assigns.

     

    4.10.    No
      Rights as Stockholder.
      Until
      the conversion of this Note or conversion of any accrued interest hereon, the
      Holder of this Note shall not have or exercise any rights by virtue hereof
      as a
      stockholder of the Company.

     

    4.11.    Restatement.
      This
      Note is an amendment and restatement of the Convertible Promissory Note dated
      as
      of May 10, 2005, issued by the Company to the Holder and shall in all respects
      substitute for such note. As of May 10, 2008 the accrued and unpaid interest
      on
      this Note is $64,000.

     

    ******

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, this Note has been executed and delivered on the date specified
      above by the duly authorized representatives of the Company and the
      Holder.

     

    
      	 	GSV,
              INC.
	 	 
	 	 
	 	By:	
              /s/
                Gilad Gat

            
	 	 	
              Gilad
                Gat

              Chief
                Executive Officer and President

            
	 	 	 
	 	 	 
	 	Accepted
              and Agreed:
	 	 	 
	 	D.
              EMERALD INVESTMENTS LTD.
	 	 
	 	 
	 	By:	
              /s/
                Roy Harel

            
	 	 	
              Roy
                Harel

              Manager

            

    

     

    
      
         

      

      
        8Unassociated Document

    THE
      SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
      HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
      AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOTE BE SOLD OR OTHERWISE
      DISTRIBUTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR
      AN
      OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION
      IS NOT REQUIRED UNDER SUCH ACT AND LAWS.

    

    

    AMENDED
      AND RESTATED

    WARRANT
      TO PURCHASE STOCK

    

    Issuer:
      GSV, Inc., a Delaware corporation

    Number
      of
      Shares: 1,142,857 subject to adjustment as set forth below

    Class
      of
      Stock: Common Stock, $.001 par value per share 

    Exercise
      Price: $.70, subject to adjustment as set forth below

    Original
      Issue Date: As of May 11, 2004

    Re-Issue
      Date: As of May 10, 2008

    Expiration
      Date: May 10, 2009

    

    THIS
      WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good
      and valuable consideration, this Warrant is issued to D. Emerald Investments
      Ltd., a corporation organized and existing under the laws of Israel (“Holder”)
      by GSV, Inc., a Delaware corporation (the “Company”).

    

    Subject
      to the terms of the Purchase Agreement dated as of May 11, 2004, by and between
      the Company and the Holder (the "Purchase Agreement") and subject to the terms
      and conditions hereinafter set forth below, the Holder is entitled upon
      surrender of this Warrant and the duly executed Notice of Exercise form annexed
      hereto as Appendix
      1,
      at the
      office of the Company, 191 Post Road West, Westport, Connecticut 06880, or
      such
      other office as the Company shall notify the Holder of in writing (the
“Principal Office”), to purchase from the Company One Million, One Hundred and
      Forty-Two Thousand and Eight Hundred and Fifty-Seven (1,142,857), duly
      authorized, validly issued, fully paid
      and
      non-assessable shares, free and clear of all liens, pledges, security interests,
      charges, and encumbrances (the “Shares”) of the Company’s common stock, $.001
      par value per share (“Common Stock”). The purchase price per Share shall be the
      Exercise Price, subject to adjustment as set forth in Article 2 below. This
      Warrant may be exercised in whole or in part at any time and from time to time
      until 5:00 PM, Eastern time, on May 10, 2009 (the “Expiration Date”). Until such
      time as this Warrant is exercised in full or expires, the Exercise Price and
      the
      number of Shares shall be subject to adjustment as hereinafter
      provided.

    

    

    ARTICLE
      1

    

    EXERCISE

    

    1.1    Method
      of Exercise.
      Holder
      may exercise this Warrant, in whole or in part, by delivering a duly executed
      Notice of Exercise in substantially the form attached as Appendix 1
      to the
      Principal Office of the Company. Holder shall also deliver to the Company a
      certified check for the aggregate Exercise Price for the Shares being purchased.
      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    1.2    Delivery
      of Certificate and New Warrant.
      Promptly after Holder exercises this Warrant, the Company shall issue to the
      Holder the Shares to which the Holder shall be entitled thereby, duly
      authorized, validly issued, fully paid, non assessable and free and clear of
      all
      liens, pledges, security interests, charges and encumbrances and shall deliver
      to Holder certificates for the Shares acquired and, if this Warrant has not
      been
      fully exercised and has not expired, a new Warrant representing the right to
      purchase the balance of the Shares not yet so acquired. Upon receipt by the
      Company of the Notice of Exercise and the aggregate Exercise Price, the Holder
      shall be deemed to be the holder of the Shares issuable upon such exercise,
      notwithstanding that the share transfer books of the Company shall then be
      closed and that certificates representing such shares shall not then be actually
      delivered to the Holder.

    

    1.3    Replacement
      of Warrants.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of loss, theft or
      destruction, on delivery of an indemnity agreement reasonably satisfactory
      in
      form and amount to the Company or, in the case of mutilation, on surrender
      and
      cancellation of this Warrant, the Company at its expense shall execute and
      deliver, in lieu of this Warrant, a new warrant of like tenor. The term
“Warrant” as used herein shall include this Warrant and any warrants
      subsequently delivered in substitution or exchange therefore as provided
      herein.

    

    1.4    Sale,
      Merger, or Consolidation of the Company.
      

    

    1.4.1    “Acquisition”.
      For the
      purpose of this Warrant, “Acquisition” means any sale, transfer, exclusive
      license, or other conveyance or disposition of all or substantially all of
      the
      assets or business of the Company, or any securities transaction,
      reorganization, consolidation or merger of the Company in which the holders
      of
      the Company’s outstanding voting equity securities immediately prior to the
      transaction beneficially own less than 50.1% of the outstanding voting equity
      securities of the surviving or successor entity immediately after the
      transaction.

    

    1.4.2    Assumption
      of Warrant.
      This
      Warrant shall automatically and immediately be binding upon any successor or
      surviving entity succeeding the Company as a result of an Acquisition (other
      than an Acquisition in which the consideration received by the Company or its
      stockholders, as the case may be, consists solely of cash). Upon the closing
      of
      any such Acquisition, this Warrant shall be exercisable for the same securities
      and property as would be payable for the Shares issuable upon exercise of the
      unexercised portion of this Warrant as if such Shares were outstanding on the
      record date for the Acquisition and subsequent closing. The Exercise Price
      shall
      be adjusted accordingly. 

    

    

    ARTICLE
      2

    

    ADJUSTMENTS

    

    2.1    Stock
      Dividends, Splits, Etc.
      If the
      outstanding shares of the Company's Common
      Stock at any time while this Warrant remains outstanding and unexpired shall
      be
      subdivided or split into a greater number of shares or a dividend in Common
      Stock shall be paid in respect of the outstanding Common Stock, the Exercise
      Price in effect immediately prior to such subdivision or at the record date
      of
      such dividend shall, simultaneously with the effectiveness of such subdivision
      or split or immediately after the record date of such dividend (as the case
      may
      be), be proportionately decreased. If the outstanding shares of Common Stock
      shall be combined or reverse-split into a smaller number of shares, the Exercise
      Price in effect immediately prior to such combination or reverse split shall,
      simultaneously with the effectiveness of such combination or reverse split,
      be
      proportionately increased. When any adjustment is required to be made in the
      Exercise Price, the number of Shares purchasable upon the exercise of this
      Warrant shall be changed to the number determined by dividing (i) an amount
      equal to the number of Shares issuable upon the exercise of this Warrant
      immediately prior to such adjustment, multiplied by the Exercise Price in effect
      immediately prior to such adjustment, by (ii) the Exercise Price in effect
      immediately after such adjustment.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    2.2    Reclassification,
      Exchange or Substitution.
      Upon
      any reclassification, recapitalization, exchange, substitution, reorganization
      or other event that results in a change of the number and/or class of the Common
      Stock, lawful provision shall be made so that Holder shall be entitled
      thereafter to receive, upon exercise of this Warrant, the number and kind of
      securities and property that Holder would have been entitled to receive if
      this
      Warrant had been exercised immediately before such reclassification, exchange,
      substitution, reorganization or other event. In any such case, appropriate
      adjustment (as reasonably determined by the Board of Directors of the Company)
      shall be made in the application of the provisions set forth herein with respect
      to the rights and interests thereafter of Holder such that the provisions set
      forth in this Section 2 (including provisions with respect to the Exercise
      Price) shall thereafter be applicable, as nearly as is reasonably practicable,
      in relation to any shares of stock or other securities or property thereafter
      deliverable upon the exercise of this Warrant. The provisions of this
      Section 2.2 shall similarly apply to successive reclassifications,
      exchanges, substitutions, reorganizations or other events.

    

    2.3    Price
      Adjustment.
      No
      adjustment in the per share Exercise Price shall be required unless such
      adjustment would require an increase or decrease in the Exercise Price of at
      least $0.01; provided, however, that any adjustments that by reason of this
      subsection are not required to be made shall be carried forward and taken into
      account in any subsequent adjustment. All calculations under this Section 2
      shall be made to the nearest cent or to the nearest 1/100th of a share, as
      the
      case may be.

    

    2.4    No
      Impairment.
      The
      Company shall not, by amendment of its Certificate of Incorporation, as amended,
      or through a reorganization, transfer of assets, consolidation, merger,
      dissolution, issue, or sale of securities or any other voluntary action, avoid
      or seek to avoid the observance or performance of any of the terms, covenants,
      stipulations or conditions to be observed or performed under this Warrant by
      the
      Company, but shall at all times in good faith assist in carrying out of all
      the
      provisions of this Article 2 and in taking all such action as may be necessary
      or appropriate to protect Holder’s rights under this Article against impairment.
      The Company further agrees that it will maintain and reserve at all times,
      free
      from pre-emptive rights, and after giving effect to all other options, warrants,
      convertible securities and other rights to acquire shares of the Company, such
      number of authorized but unissued Shares to permit the exercise of this Warrant
      for the full number of Shares herein and so that this Warrant, and any
      subsequent Warrants issued to the Holder, may be exercised without additional
      authorization. The Company further covenants that the Shares, when issued
      pursuant to the exercise of this Warrant, will be dully authorized, validly
      issued, fully paid and non-assessable shares, free and clear of all liens,
      pledges, security interests, charges, and encumbrances.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    2.5    Adjustments
      for Diluting Issuances.
      If the
      Company shall issue, after the Issue Date set forth on the face of this Warrant,
      any Equity Securities (as defined below) at a price per share or conversion
      price or exercise price lower than the Exercise Price in effect immediately
      before such Equity Securities are issued, (as
      such
      Exercise Price may have been previously adjusted pursuant to the provisions
      of
      this Article 2), the Exercise Price for the Shares of Common Stock issuable
      hereunder shall be adjusted to equal the price per share or the conversion
      price
      or the exercise price of such Equity Securities, as applicable. The foregoing
      shall not apply to issuance of common
      stock or preferred stock
      the
      proceeds of
      which
      will be payable to the Company in immediately available funds upon issuance
      thereof.

    

    For
      purposes of this Warrant, the term “Equity Securities” shall mean any securities
      evidencing an ownership interest in the Company, or any securities having voting
      rights in the election of the Board of Directors of the Company not contingent
      upon default, or any securities convertible into or exercisable for any class
      of
      shares of the Company, or any agreement or commitment to issue any of the
      foregoing.

    

    2.6    Fractional
      Shares.
      No
      fractional Shares shall be issuable upon exercise or conversion of the Warrant
      and the number of Shares to be issued shall be rounded up to the nearest whole
      Share.

    

    2.7    Certificate
      as to Adjustments.
      Upon
      the occurrence of each event that results in an adjustment of the Exercise
      Price
      or number of Shares, the Company, at its sole cost and expense, shall promptly
      compute such adjustment, and furnish Holder with a certificate of its Chief
      Financial Officer setting forth such adjustment and the facts upon which such
      adjustment is based. The Company shall, upon written request, furnish Holder
      a
      certificate setting forth the Exercise Price and the number of Shares resulting
      from such event and setting forth in reasonable detail the method of calculation
      and the facts upon which such calculation is based. 

    

    

    ARTICLE
      3

    

    COVENANTS
      OF THE COMPANY

    

    3.1    Notice
      of Certain Events.
      If the
      Company proposes at any time (a) to
      declare any dividend or distribution upon its Common Stock, whether in cash,
      property, stock, or other securities and whether or not a regular cash dividend;
      (b) to
      offer for subscription pro rata to the holders of its Common Stock any
      additional shares of stock of any class or series or other rights; (c) to
      effect any reclassification, recapitalization, exchange or substitution of
      any
      of its securities; or (d) to
      merge or consolidate with or into any other corporation, or sell, lease,
      license, or convey all or substantially all of its assets or business, or to
      liquidate, dissolve or wind up; then, in connection with each such event, the
      Company shall give Holder (1) at least 15 days’ prior written notice
      of the date on which a record will be taken for such dividend, distribution,
      or
      subscription rights (and specifying the date on which the holders of securities
      of the Company will be entitled to receive such dividend, distribution or
      subscription rights) or for determining rights to vote, if any, in respect
      of
      the matters referred to in (c) and (d) above; and (2) in the case of the
      matters referred to in (c) and (d) above at least 20 days’ prior written
      notice of the date when the same will take place (and specifying the date on
      which the holders of securities of the Company will be entitled to exchange
      their securities of the Company for securities or other property deliverable
      upon the occurrence of such event).

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    ARTICLE
      4

    

    MISCELLANEOUS

    

    

    4.1    Legends.
      This
      Warrant and the Shares shall be imprinted with a legend in substantially the
      following form:

    

    THIS
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER STATE SECURITIES LAWS AND
      MAY
      NOT BE SOLD OR OTHERWISE DISTRIBUTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
      RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE ISSUER
      THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SUCH ACT AND LAWS.

    

    4.2    Compliance
      with Securities Laws on Transfer.
      This
      Warrant and the Shares may not be transferred or assigned in whole or in part
      without compliance with applicable federal and state securities laws by the
      transferor and the transferee (including, without limitation, the delivery
      of
      investment representation letters and legal opinions reasonably satisfactory
      to
      the Company, as reasonably requested by the Company). The Company shall not
      require Holder to provide an opinion of counsel if the transfer is to an
      affiliate of Holder or if (i) there is no material question as to the
      availability of current information as referenced in Rule 144(c), (ii)
      Holder represents that it has complied with Rule 144(d) and (e) in
      reasonable detail, (iii) the selling broker represents that it has complied
      with
      Rule 144(f), and (iv) the Company is provided with a copy of Holder’s
      notice of proposed sale.

    

    4.3    Transfer
      Procedure.
      Subject
      to the provisions of Section 4.2, Holder may transfer all or part of this
      Warrant and/or the Shares issuable upon exercise of this Warrant at any time
      by
      giving the Company notice of the portion of the Warrant being transferred
      setting forth the name, address and taxpayer identification number of the
      transferee, if applicable and
      surrendering this Warrant to the Company for reissuance to the transferee(s)
      (and Holder if applicable in case of a partial transfer).

    

    4.4    No
      Rights as Stockholder.
      Until
      the exercise of this Warrant, the registered Holder of this Warrant shall not
      have or exercise any rights by virtue hereof as a stockholder of the Company.
      

    

    4.5    Successors.
      The
      rights and obligations of the parties to this Warrant will inure to the benefit
      of and be binding upon the parties hereto and their respective heirs,
      successors, assigns, pledgees, transferees and purchasers 

    

    4.6    Headings.
      The
      headings in this Warrant are for purposes of reference only and shall not limit
      or otherwise affect the meaning of any provision of this Warrant. 

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

       

    

    4.7    Governing
      Law and Jurisdiction.
      This
      Warrant will be deemed to have been made and delivered in New York City and
      will
      be governed as to validity, interpretation, construction, effect and in all
      other respects by the internal laws of the State of New York. Each of the
      Company and Holder hereby (i) agrees that any legal suit, action or proceeding
      arising out of or relating to this Agreement will be instituted exclusively
      in
      New York State Supreme Court, County of New York or in the United States
      District Court for the Southern District of New York, (ii) waives any objection
      to the venue of any such suit, action or proceeding and the right to assert
      that
      such forum is not a convenient forum for such suit, action or proceeding, (iii)
      irrevocably consents to the jurisdiction of the New York State Supreme Court,
      County of New York and the United States District Court for the Southern
      District of New York in any such suit, action or proceeding, (iv) agrees to
      accept and acknowledge service of any and all process that may be served in
      any
      such suit, action or proceeding in New York State Supreme Court, County of
      New
      York or in the United States District Court for the Southern District of New
      York and (v) agrees that service of process upon it mailed by certified mail
      to
      its address set forth in Section 4.6 below will be deemed in every respect
      effective service of process upon it in any suit, action or
      proceeding.

    

    4.8    Notices.
      Any
      notice or other communications required or permitted hereunder shall be
      sufficiently given if delivered in person or sent by facsimile or certified
      mail, postage prepaid, if to the Company, to it at GSV, Inc., 191 Post Road
      West, Westport, Connecticut 06880, Attention: President, with a copy to Davis
      & Gilbert LLP, 1740 Broadway, New York, New York 10019, Attention: Ralph W.
      Norton, Esq., and if to Holder, to D. Emerald Investments Ltd., 85 Medinat
      Ha-Yehudim, Herzelia, Israel, Attention: Roy Harel, Manager, with a copy to
      Kantor, Elhanani, Tal & Co., Mozes House, 74-76 Rothschild Blvd., Tel-Aviv
      Israel 65785, Attention: Adv. Dana Yagur.

    

    4.9    Waiver.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought.

    

    4.10    Attorneys’
      Fees.
      In the
      event of any dispute between the parties concerning the terms and provisions
      of
      this Warrant, the party prevailing in such dispute shall be entitled to collect
      from the other party all costs incurred in such dispute, including reasonable
      attorneys’ fees.

    

    4.11    Severability.
      In case
      any one or more of the provisions contained in this Warrant shall be invalid,
      illegal or unenforceable in any respect, the validity, legality and
      enforceability of the remaining provisions contained herein shall not in any
      way
      be affected or impaired thereby. The parties shall endeavor in good faith
      negotiations to replace the invalid, illegal or unenforceable provisions with
      valid provisions the economic effect of which comes as close as possible to
      that
      of the invalid, illegal or unenforceable provisions.

    

    4.12    Restatement.
      This
      Warrant is an amendment and restatement of the Warrant originally issued as
      of
      May 11, 2004, and reissued as of May 10, 2005, by the Company to the Holder
      (the
“Original Warrant”) and shall in all respects substitute for the Original
      Warrant.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	 	 	 
	 	GSV,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ Gilad
              Gat
	 	
              
Name: Gilad
              Gat
	 	
              Title: Chief
                Executive Officer and President

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    APPENDIX
      1

    

    NOTICE
      OF EXERCISE

    

    

    1.    The
      undersigned hereby elects to purchase  ____________
      shares
      of the ____________ stock of GSV, Inc. pursuant to Section 1.1 of the attached
      Warrant, and tenders herewith payment of the Exercise Price of such shares
      in
      full.

    

    2.    Please
      issue a certificate or certificates representing said shares in the name of
      the
      undersigned or in such other name as is specified below:

    

    

    ___________________________________________

    (Name)

    

    

    ___________________________________________

    

    ___________________________________________

    (Address)

    

    3.    The
      undersigned represents it is acquiring the shares solely for its own account
      and
      not as a nominee for any other party and not with a view toward the resale
      or
      distribution thereof except in compliance with applicable securities
      laws.

    

    

    
      	 	
              ____________________________________

                    (Signature)

            

    

    

    ____________________

    (Date)

     

    
      
         

      

      
        8

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