Document:

exv10w2

 

EXHIBIT 10.2

2006 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

     1. PURPOSE

     The purpose of this 1997 Director Stock Option Plan (the “Plan”), adopted by the Board of
Directors of Wireless Ronin Technologies, Inc. on March 30, 2006, is to attract and retain the best
available individuals to serve as Directors of the Company, to provide additional incentive to the
Outside Directors of the Company to serve as Directors and to encourage continued service by such
persons on the Board. The Company intends that the options granted hereunder shall not constitute
incentive stock options within the meaning of Section 422 of the Code, as amended.

     2. DEFINITIONS

     As used herein, the following definitions shall apply:

     (a) “Act” means the Securities Act of 1933, as amended.

     (b) “Board” means the Board of Directors of the Company.

     (c) “Code” means the Internal Revenue Code of 1986, as amended, and the rules
and regulations promulgated thereunder.

     (d) “Committee” means the Committee of the Board appointed by the Board to
administer the Plan pursuant to Section 6.

     (e) “Common Stock” means the Common Stock, $.01 par value per share, of the
Company.

     (f) “Company” means Wireless Ronin Technologies, Inc., a Minnesota corporation.

     (g) “Continuous Service as a Director” means the absence of any interruption or
termination of service as a Director. Continuous Service as a Director shall not be
considered interrupted in the case of sick leave, military leave or any other leave of
absence approved by the Board or Committee.

     (h) “Director” means a member of the Board who is not an employee of the
Company or any of its subsidiaries.

     (i) “Employee” means any person, including officers and Directors, employed by
the Company or any Parent or Subsidiary of the Company. The payment of fees to a Director
shall not be sufficient in and of itself to constitute “employment” by the Company.

     (j) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

 

     (k) “Option” means a stock option granted pursuant to the Plan.

     (l) “Optioned Stock” means the Common Stock subject to an Option.

     (m) “Optionee” means an Outside Director who receives an option.

     (n) “Outside Director” means a Director who is not an Employee, including an
officer who is not employed on a full-time basis by the Company.

     (o) “Parent” means a “parent corporation,” whether now or hereafter existing,
as defined in Section 424(e) of the Code.

     (p) “Plan” means this 2006 Non-Employee Director Stock Option Plan.

     (q) “Share” means a share of Common Stock, as adjusted in accordance with
Section 12 of the Plan.

     (r) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter
existing, as defined in Section 424(f) of the Internal Revenue Code of 1986, as amended.

     3. SHARES SUBJECT TO THE PLAN

     Subject to the provisions of Section 12 of the Plan, the maximum aggregate number of
Shares which may be optioned and sold under the Plan is 510,000 shares of Common Stock. The Shares
may be authorized, but unissued, or reacquired Common Stock.

     If an Option expires or becomes unexercisable for any reason without having been exercised in
full, the unexercised Shares which were subject thereto shall, unless the Plan has been terminated,
become available for future grant under the Plan. If Shares which were acquired upon exercise of
an Option are subsequently repurchased by the Company, such Shares shall not become available for
future grant under the Plan.

     4. AUTOMATIC GRANTS OF OPTIONS

     All grants of Options hereunder shall be automatic and non-discretionary and shall be
made strictly in accordance with the following provisions:

     (a) Except as otherwise provided in Section 4(d), each person who is an Outside
Director, including a person who was an Outside Director on February 27, 2006 or who
subsequently becomes an Outside Director whether by election by the shareholders or election
by the Board to fill a vacancy on the Board, shall be entitled to a one time grant of an
option to purchase 60,000 shares of common stock.

     (b) Subject to Section 4(d), the Option shall be exercisable as to 15,000 shares on the
date of grant, provided that the Plan is approved by the shareholders of the Company not
later than April 14, 2007, and shall be exercisable as to an additional 15,000 shares, if
Optionee is then a director, on each subsequent date of reelection to the Board of Directors
by the shareholders of the Company.

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     (c) This Option shall not be deemed effective or exercisable unless and until the Plan
is approved by action of the shareholders of the Company not later than April 14, 2007. If
the Plan is not so approved, any Option granted under the Plan shall be null and void.

     (d) Notwithstanding the provisions of Sections 4(b), (c) and (d) hereof, in the event
that a grant would cause the number of Shares subject to outstanding Options to Outside
Directors plus Shares previously purchased upon exercise of Options by Outside Directors to
exceed 510,000 Shares, then each such automatic grant shall be for that number of Shares
determined by dividing the total number of Shares remaining available for grant by the
number of Outside Directors on the automatic grant date. Any further grants shall then be
deferred until such time, if any, as additional Shares become available for grant under the
Plan through action of the Company’s shareholders to increase the number of Shares which may
be issued under the Plan or through cancellation or expiration of Options previously granted
hereunder.

     5. OPTION TERMS AND CONDITIONS

     The terms and conditions of an Option granted hereunder shall be as follows:

     (a) The term of each Option shall be five (5) years, subject to Sections 12, 13 and 14
hereof.

     (b) If an Optionee ceases to serve as an Outside Director, the remainder of an Option
not then exercisable shall lapse and be forfeited.

     (c) The Option shall be exercisable only while the Outside Director serves as an
Outside Director of the Company, and for a period of twelve (12) months after ceasing to be
an Outside Director pursuant to Section 10(b) hereof.

     (d) The exercise price per Share shall be 100% of the fair market value per Share on
the date of grant of the Option, as determined in accordance with Section 9(a) hereof.

     (e) The effectiveness of any Options granted hereunder is conditioned upon shareholder
approval of the Plan in accordance with Rule 16b-3 promulgated under the Exchange Act.

     6. ADMINISTRATION

     (a) Administration. Except as otherwise required herein, the Plan shall
be administered by the Board or a Committee of the Board.

     (b) Powers of the Board or Committee. Subject to the provisions and
restrictions of the Plan, the Board or Committee shall have the authority, in its
discretion: (i) to determine, upon review of relevant information and in accordance with
Section 9(a) hereof, the fair market value of the Common Stock; (ii) to interpret the Plan;
(iii) to prescribe, amend and rescind rules and regulations relating to the Plan; (iv) to
authorize

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any person to execute on behalf of the Company any instrument required to effectuate
the grant of an Option hereunder; and (v) to make all other determinations deemed necessary
or advisable for the administration of the Plan. On a case-by-case basis, the Board or
Committee, in its sole discretion, may: (i) accelerate the schedule of the time or times
when an Option granted under the Plan may be exercised; and (ii) extend the duration of any
Option granted under the Plan.

     (c) Effect of Board or Committee Decision. All decisions, determinations and
interpretations of the Board or Committee shall be final and binding on all Optionees and
any other holders of any Options granted under the Plan.

     (d) Suspension or Termination of Option. If the Board or Committee reasonably
believes that an Optionee has committed an act of misconduct, it may suspend the Optionee’s
right to exercise any Option pending a determination by the Board or Committee (excluding
the Outside Director accused of such misconduct). If the Board or Committee (excluding the
Outside Director accused of such misconduct) determines that an Optionee has committed an
act of embezzlement, fraud, dishonesty, nonpayment of an obligation owed to the Company,
breach of fiduciary duty or deliberate disregard of the Company’s rules resulting in loss,
damage or injury to the Company, or if an Optionee makes an unauthorized disclosure of any
Company trade secret or confidential information, engages in any conduct constituting unfair
competition with respect to the Company, or induces any party to breach a contract with the
Company, neither the Optionee nor the Optionee’s estate shall be entitled to exercise any
Option whatsoever. In making such determination, the Board or Committee (excluding the
Outside Director accused of such misconduct) shall act fairly and shall give the Optionee an
opportunity to appear and present evidence on the Optionee’s behalf at a hearing before the
Board or Committee.

     (e) Date of Grant of Options. The date of grant of an Option shall, for all
purposes, be the date determined in accordance with Section 4 hereof, notwithstanding the
fact that an Optionee may not have entered into an option agreement with the Company on such
date. Notice of the grant of an Option shall be given to the Optionee within a reasonable
time after the date of such grant.

     7. ELIGIBLE PARTICIPANTS

     Options may be granted only to Outside Directors. All options shall be automatically
granted in accordance with the terms set forth in Section 4 hereof. The Plan shall not confer upon
any Optionee any right with respect to continuation of service as a Director or nomination to serve
as a Director, nor shall it interfere in any way with any rights which a Director or the Company
may have to terminate such Director’s directorship at any time.

     8. TERMINATION OF PLAN

     This Plan has been adopted by the Board effective April 15, 2006 but shall not be deemed
effective unless approved by the shareholders of the Company on or before April 14, 2007. If
approved by the shareholders, the Plan shall continue in effect until April 14, 2016.

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     9. FAIR MARKET VALUE AND FORM OF CONSIDERATION

     (a) Fair Market Value. The fair market value per share shall be
determined as follows:

     (i) if the Common Stock of the Company is listed or admitted to unlisted
trading privileges on a national securities exchange, the fair market value on any
given day shall be the closing sale price for the Common Stock, or if no sale is
made on such day, the closing bid price for such day on such exchange;

     (ii) if the Common Stock is not listed or admitted to unlisted trading
privileges on a national securities exchange, the fair market value on any given day
shall be the closing sale price for the Common Stock as reported on the Nasdaq Stock
Market on such day, or if no sale is made on such day, the closing bid price for
such day as entered by a market maker for the Common Stock;

     (iii) if the Common Stock is not listed on a national securities exchange, is
not admitted to unlisted trading privileges on any such exchange, and is not
eligible for inclusion on the Nasdaq Stock Market, the fair market value on any
given day shall be the average of the closing representative bid and ask prices as
reported by the National Quotation Bureau, Inc. or, if the Common Stock is not
quoted on the National Association of Securities Dealers Automated Quotations
System, then as reported in any publicly available compilation of the bid and asked
prices of the Common Stock in any over-the-counter market on which the Common Stock
is traded; or

     (iv) if there exists no public trading market for the Common Stock, the fair
market value on any given day shall be an amount determined in good faith by the
Board in such manner as it may reasonably determine in its discretion, provided that
such amount shall not be less than the book value per share as reasonably determined
by the Board as of the date of determination nor less than the par value of the
Common Stock.

     (b) Form of Consideration. The consideration to be paid for the Shares to be
issued upon exercise of an Option shall consist entirely of cash or such other form of
consideration as the Board or Committee may determine, in its sole discretion, to be
appropriate for payment, including but not limited to other shares of Common Stock having a
fair market value on the date of surrender equal to the aggregate exercise price of the
Shares as to which the Option is exercised, or any combination of such methods of payment.

     10. EXERCISE OF OPTIONS

     (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted
hereunder shall be exercisable at such times as are set forth in Section 5 hereof. An
Option may not be exercised for a fraction of a Share.

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     An Option shall be deemed to be exercised when written notice of such exercise has been
given to the Company in accordance with the terms of the Option by the person entitled to
exercise the Option and full payment for the Shares with respect to which the Option may be
exercised has been received by the Company. Full payment may consist of any consideration
and method of payment allowable under Section 9(b) hereof. Until the issuance (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company) of the stock certificate evidencing such Shares, no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to the Optioned
Stock, notwithstanding the exercise of the Option. A certificate for the number of Shares
so acquired shall be issued to the Optionee as soon as practicable after exercise of the
Option. No adjustment will be made for a dividend or other right for which the record date
is prior to the date the certificate is issued, except as provided in Section 12 hereof.

     Exercise of an Option in any manner shall result in a decrease in the number of Shares
which thereafter may be available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option was exercised.

     (b) Termination of Status as a Director. If an Optionee ceases to serve as a
Director, the Optionee may, but only within twelve (12) months after the date the Optionee
ceases to be an Outside Director of the Company, exercise his or her Option to the extent
the Optionee was entitled to exercise it at the date of such termination. To the extent
that the Optionee was not entitled to exercise an Option at the date of such termination, or
if the Optionee does not exercise such Option within the time specified herein, the Option
shall terminate.

     (c) Death of Optionee. In the event of the death of an Optionee occurring:

     (i) during the term of the Option, and provided that the Optionee was at the
time of death a Director of the Company and had been in Continuous Service as a
Director since the date of grant of the Option, the Option may be exercised, at any
time within twelve (12) months following the date of death, by the Optionee’s estate
or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent of the right to exercise that would have accrued
had the Optionee continued living and remained in Continuous Service a Director for
twelve (12) months after the date of death; or

     (ii) within thirty (30) days after the termination of Continuous Service as a
Director, the Option may be exercised, at any time within six (6) months following
the date of death, by the Optionee’s estate or by a person who acquired the right to
exercise the Option by bequest or inheritance, but only to the extent of the right
to exercise that had accrued at the date of termination of Continuous Service as a
Director.

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     11. TRANSFERABILITY OF OPTIONS

     The Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of
in any manner other than by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order and may be exercised, during the lifetime of the Optionee, only
by the Optionee.

     12. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     The number of Shares of Common Stock covered by each outstanding Option, and the number
of Shares of Common Stock which have been authorized for issuance under the Plan but as to which
Options have not yet been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per Share of Common Stock covered by each such
outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of
issued and outstanding Shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt of consideration
by the Company; provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall
be made by the Board, whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, or options or rights to purchase shares
of stock of any class shall affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of shares of Common Stock subject to an Option.

     13. CHANGE IN CONTROL PROVISIONS

     (a) Notwithstanding any other provision of the Plan to the contrary, in the event
of a Change in Control, any Options outstanding as of the date such Change in Control is
determined to have occurred and not then exercisable and vested shall become fully
exercisable and vested in the fullest extent of the original grant.

     (b) For purposes of the Plan, a “Change in Control” means the happening of any of the
following events:

     (i) An acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
50% or more of either (1) the then outstanding shares of common stock of the Company
(the “Outstanding Company Common Stock”) or (2) the combined voting power of the
then outstanding voting securities of the company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); excluding,
however, the following: (i) any acquisition directly from the Company, other than an
acquisition by virtue of the exercise of a conversion privilege unless the security
being so converted was itself acquired directly from the Company, (ii) any
acquisition by the Company, (iii) any acquisition by any employee benefit plan (or
related trust) sponsored or

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maintained by the Company or any entity controlled by the Company, or (iv) any
acquisition pursuant to a transaction which complies with clauses (i), (ii) and
(iii) of this Section 13(b); or

     (ii) A change in the composition of the Board such that the individuals who, as
of the Effective Date, constitute the Board (such Board shall be hereinafter
referred to as the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, for purposes of this Section 13(b), that
any individual who becomes a member of the Board subsequent to the Effective Date,
whose election, or nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of those individuals who were members of
the Board and who were also members of the Incumbent Board (or became such pursuant
to this proviso) shall be considered as though such individual were a member of the
Incumbent Board; but, provided, further, that any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest
with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board
shall not be so considered as a member of the Incumbent Board; or

     (iii) Consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Company
(“Corporate Transaction”); excluding, however, such a Corporate Transaction
pursuant to which (i) all or substantially all of the individuals and entities who
are the beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Voting Securities immediately prior to such Corporate Transaction will
beneficially own, directly or indirectly, more than 50% of, respectively, the
outstanding shares of common stock, and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Corporate
Transaction (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Corporation Transaction,
of the Outstanding Company Common Stock and Outstanding Company Voting Securities,
as the case may be, (ii) no Person (other than the Company, any employee benefit
plan (or related trust) of the Company or such corporation resulting from such
Corporate Transaction) will beneficially own, directly or indirectly, 50% or more
of, respectively, the outstanding shares of common stock of the corporation
resulting from such Corporate Transaction or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in the
election of directors except to the extent that such ownership existed prior to the
Corporate Transaction, and (iii) individuals who were members of the Incumbent Board
will constitute at least a majority of the members of the board of directors of the
corporation resulting from such Corporate Transaction; or

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     (iv) The approval by the shareholders of the Company of a complete liquidation
or dissolution of the Company.

     (c) If a Change in Control of the Company occurs, then the Committee, if approved by
the Committee in its sole discretion either in an Option issued at the time of the grant or
at any time after the grant of an Option, and without the consent of any Optionee affected
thereby, may determine that:

     (i) some or all Optionees holding outstanding Options will receive, with
respect to some or all of the shares of Company Stock subject to such Options, as of
the effective date of any such Change in Control of the Company, cash in an amount
equal to the excess of the Fair Market Value of such shares immediately prior to the
effective date of such Change in Control of the Company over the exercise price per
share of such Options; and

     (ii) with respect to any granted and outstanding Option, the Fair Market Value
of the shares of Company Stock underlying such Option is less than or equal to the
exercise price per share of such Option as of the effective date of the applicable
Change in Control and the Option, therefore, shall terminate as of the effective
date of the applicable Change in Control.

     If the Committee makes a determination as set forth in subparagraph (i) of this subsection
(c), then as of the effective date of any such Change in Control of the Company such Options will
terminate as to such shares and the Optionees formerly holding such Options will only have the
right to receive such cash payment(s). If the Committee makes a determination as set forth in
subparagraph (ii) of this subsection (2), then as of the effective date of any such Change in
Control of the Company such Options will terminate, become void and expire as to all unexercised
shares of Common Stock subject to such Options on such date, and the Optionees formerly holding
such Options will have no further rights with respect to such Options.

     14. AMENDMENT AND TERMINATION OF THE PLAN

     (a) The Board may suspend or terminate the Plan or any portion thereof at any
time, and may amend the Plan from time to time in such respects as the Board may deem
advisable in order that any awards under the Plan will conform to any change in applicable
laws or regulations or in any other respect the Board may deem to be in the best interests
of the Company; provided, however, that no amendments to the Plan will be effective without
approval of the stockholders of the Company if stockholder approval of the amendment is then
required pursuant to the rules of any stock exchange or Nasdaq or similar regulatory body to
which the Company is then subject at the time of the amendment and the Board determines that
continued satisfaction of such requirements is necessary or desirable. No termination,
suspension or amendment of the Plan may adversely affect any outstanding award without the
consent of the affected Optionee; provided, however, that this sentence will not impair the
right of the Committee to take whatever action it deems appropriate under Sections 6(b), 12
and 13 of the Plan.

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     (b) If any amendment to the Plan requires approval by the shareholders of the Company
for continued applicability of Rule 16b-3 promulgated under the Exchange Act, or for initial
or continued listing of the Common Stock or other securities of the Company upon any stock
exchange or NASDAQ, then such amendment shall be approved by the holders of a majority of
the Company’s outstanding capital stock entitled to vote.

     15. CONDITIONS UPON ISSUANCE OF SHARES

     (a) Shares shall not be issued pursuant to the exercise of an Option unless the
exercise of such Option and the issuance and delivery of such Shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, the Act, the
Exchange Act, the rules and regulations promulgated thereunder, state securities laws, and
the requirements of the NASD or any stock exchange upon which the Shares may then be listed,
and shall be further subject to the approval of counsel for the Company with respect to such
compliance.

     (b) Notwithstanding any other provision of the Plan or any agreements entered into
pursuant to the Plan, the Company will not be required to issue any shares of Common Stock
under this Plan, and a Optionee may not sell, assign, transfer or otherwise dispose of shares of Common Stock issued pursuant to awards granted under the Plan, unless (a) there is
in effect with respect to such shares a registration statement under the Securities Act and
any applicable state or foreign securities laws or an exemption from such registration under
the Securities Act and applicable state or foreign securities laws; and (b) there has been
obtained any other consent, approval or permit from any other regulatory body which the
Board or Committee, in its sole discretion, deems necessary or advisable. The Company may
condition such issuance, sale or transfer upon the receipt of any representations or
agreements from the parties involved, and the placement of any legends on certificates
representing shares of Common Stock, as may be deemed necessary or advisable by the Company
in order to comply with such securities law or other restrictions.

     Inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to
issue or sell such Shares as to which such requisite authority shall not have been obtained.

     16. RESERVATION OF SHARES

     The Company, during the term of this Plan, will at all times reserve and keep available
such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

     17. OPTION AGREEMENT

     Options shall be evidenced by written option agreements in such form as the Board or
Committee shall approve.

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     18. INFORMATION TO OPTIONEES

     The Company shall provide to each Optionee, during the period for which such Optionee has
one or more Options outstanding, copies of all annual reports and other information which are
provided to all shareholders of the Company.

11exv10w3

 

EXHIBIT 10.3

WIRELESS RONIN TECHNOLOGIES, INC.

LOAN AND SUBSCRIPTION AGREEMENT

This Loan and Subscription Agreement (the “Agreement”) is dated as of
                                        , 2006, by and between Wireless Ronin Technologies, Inc., a Minnesota corporation
(the “Company”), and
                                                             (the “Investor”).

WITNESSETH:

     WHEREAS, the Company is offering in a private placement (the “Offering”) 12% convertible
promissory notes in an aggregate principal amount of up to $2,000,000 (collectively, the “Notes”),
each such Note to be issued together with warrants to shares of the Company’s common stock, par
value $.01 per share (the “Common Stock”), as set forth below (collectively, the “Warrants”); and

     WHEREAS, the terms of the Offering are summarized in that certain Confidential Private
Placement Memorandum dated February 28, 2006 (together with all amendments, supplements, exhibits
and appendices thereto, the “Memorandum”); and

     WHEREAS, the Offering is contingent upon the Company receiving gross proceeds of at least Five
Hundred Thousand Dollars ($500,000) (the “Minimum Offering Amount”); and

     WHEREAS, the Investor desires to subscribe for and participate in the Offering as set forth
herein and the Company desires to accept such subscription.

     NOW, THEREFORE, in consideration of the foregoing facts and premises hereby made a part of
this Agreement, the mutual promises hereinafter set forth and for other good and valuable
consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

1. Subscription

     1.1 Subscription for Note and Warrant. On the terms and conditions set forth herein,
the Investor hereby agrees to lend to the Company the amount of
                                                             
and no/100 Dollars ($                    ) (the “Loan Amount”), in lawful money of the United States, and the
Company hereby agrees to deliver to the Investor a 12 percent convertible promissory notes, in the
form attached as Exhibit A to the Memorandum (the “Note”), in an original principal amount
equal to the Loan Amount to evidence the Investor’s loan to the Company. Investor should deliver a
completed and signed Agreement, along with a check made payable to “Private Bank Minnesota -
Wireless Ronin Technologies, Inc. Escrow Account” (* or wire funds) in an amount equal to the Loan
Amount, to the following address:

Feltl & Company

225 South Sixth Street, Suite 4200

Minneapolis, Minnesota

 

 

	 	 	 	 	 	 	 
	 	 	Attn: Mr. Joseph Sullivan
	 
	 	 	 	 	 	 
	 	 	* if wiring funds, please wire to:
	 

	 	Bank:
	 	Private Bank Minnesota

	 

	 	ABA Number:
	 	091005836	 
	 

	 	Account Name:
	 	Wireless Ronin Technologies, Inc. Escrow Account

	 

	 	Account Number:
	 	3026812	 
	 

	 	Reference:
	 	[Name of Investor]

The original principal amount of the Note, plus interest accrued thereon to the date of conversion,
may be converted, at the option of the holder, into shares of the Common Stock (the “Conversion
Shares”) under the terms and conditions set forth in the Note. The Investor understands and
acknowledges that the Investor’s subscription hereunder is contingent upon the Company obtaining
subscriptions in the Offering that result in aggregate gross proceeds in an amount equal to or
greater than the Minimum Offering Amount.

     1.2 Warrants. In consideration of the loan evidenced by this Agreement and the Note,
the Company shall issue to the Investor a warrant, in the form attached as Exhibit A to the
Memorandum (the “Warrant”), which Warrant shall entitle the investor to purchase one share of
Common Stock for each five dollars of the Loan Amount. The shares of Common Stock issuable upon
exercise of the Warrant are referred to herein as the “Warrant Shares.”

     1.3 Closing. Provided that the Company has obtained subscriptions in the Offering
that result in aggregate gross proceeds in an amount equal to or greater than the Minimum Offering
Amount, the closing of the transactions contemplated hereby (the “Closing”) shall take place by the
Company’s and Investor’s release of Closing documents to the other, either by facsimile
transmission followed by original documentation delivered by overnight courier, or in such other
manner agreed upon by the parties. The date of the Closing is referred to herein as the “Closing
Date.” At the Closing, the Company will issue, sell and deliver to the Investor the Note and the
Warrant, against payment of the Loan Amount.

2. Company Representations and Warranties.

The representations and warranties of the Company set forth on Exhibit A hereto are
incorporated by reference into this Agreement and shall survive the Closing.

3. Representations and Warranties of the Investor

     The Investor represents and warrants to the Company that the Investor:

     3.1 If other than an individual, has duly authorized the this Agreement, the Note and the
Warrant (together, the “Transaction Documents”) by all necessary action on the part of the
Investor, has duly executed the Transaction Documents by its authorized officer or representative,
and is a legal, valid and binding obligation of the Investor enforceable in accordance with its
terms;

     3.2 Has received, carefully reviewed and is familiar with the Memorandum, including all
exhibits thereto;

2

 

     3.3 Is in a financial position to hold the Note, the Warrant, the Conversion Shares and the
Warrants Shares (collectively, the “Securities”) for an indefinite period of time and is able to
bear the economic risk and withstand a complete loss of the Investor’s investment in the
Securities;

     3.4 Has substantial experience in evaluating and investing in private placement transactions
of securities similar to the Offering and in companies similar to the Company so that the Investor
is capable of reading and interpreting the Memorandum and evaluating the merits and risks of his,
her or its investment in the Company and the offering, and he, she or it has the capacity to
protect his, her or its own interests;

     3.5 Believes that the Investor, either alone or with the assistance of the Investor’s own
professional advisor, has such knowledge and experience in financial and business matters that the
Investor is capable of reading and interpreting the Memorandum and evaluating the merits and risks
of the prospective investment in the Securities;

     3.6 Has obtained, to the extent the Investor deems necessary, the Investor’s own personal
professional advice with respect to the risks inherent in the investment in the Securities and the
suitability of an investment in the Securities in light of the Investor’s financial condition and
investment needs;

     3.7 Believes that the Investor’s investment in the Securities is suitable for the Investor
based upon the Investor’s investment objectives and financial needs, after taking into account all
other investments by the Investor, including the Investor’s existing investments in the Company (if
any), and the Investor has adequate means for providing for the Investor’s current financial needs
and personal contingencies and has no need for liquidity of investment with respect to the
Securities;

     3.8 Has been given access to full and complete information regarding the Company and has used
such access to the Investor’s satisfaction for the purpose of obtaining information in addition to,
or verifying information included in, the Memorandum, and the Investor has either met with or been
given reasonable opportunity to meet with officers, directors and other representatives of the
Company for the purpose of asking questions of, and receiving answers from, such officers,
directors and other representatives concerning the Company and the terms and conditions of the
Offering and the current and proposed business and operations of the Company and to obtain any
additional information, to the extent reasonably available;

     3.9 Recognizes that an investment in the Securities is highly speculative and involves a high
degree of risk including, but not limited to, the risk of economic losses from operations of the
Company, the risk of the total loss of the Investor’s investment in the Company, and the risks
described in the Memorandum under the heading “Risk Factors”;

     3.10 Realizes that (i) the purchase of the Securities is a long-term investment; (ii) the
Investor must bear the economic risk of investment in the Securities for an indefinite period of
time because the Securities have not been registered under the Securities Act of 1933, as amended
(the “Securities Act”) or under the securities laws of any state and, therefore, none of such
securities can be sold unless they are subsequently registered under said laws or exemptions

3

 

from such registrations are available; (iii) the Investor may not be able to liquidate the
Investor’s investment in the event of an emergency or pledge any of such securities as collateral
for loans; (iv) the transferability of such securities is restricted and requires the written
consent of the Company; and (v) legends will be placed on the Note, the Warrant and the stock
certificates evidencing the Conversion Shares and the Warrant Shares referring to the applicable
restrictions on transferability;

     3.11 Recognizes that no public market now exists for any of the Securities issued by the
Company, and that the Company makes no assurances that an initial public offering of its securities
(an “IPO”) will be completed or that a public market will ever exist for any of the Company’s
Securities.

     3.12 Recognizes that any financial projections, forecasts, assumptions or estimates included
in or referred to in the Memorandum or otherwise delivered or communicated to the Investor are not
statements of fact and that no representation or warranties are made by the Company or any officer,
director, shareholder, employee or representative thereof with respect to the accuracy of such
projections, forecasts, assumptions or estimates or with respect to the future operations or the
amount of any future income or loss of the Company;

     3.13 Recognizes that (i) any predictions, forecasts, estimates and projections included in or
referred to in the Memorandum or otherwise delivered or communicated to the Investor are for
illustrative purposes only and are based upon certain assumptions and events over which the Company
has only partial or no control; (ii) variations in such assumptions including, but not limited to,
sales, costs, selling expenses, general and administrative expenses, development expenses, customer
acceptance and competitive developments could significantly affect such predictions, projections,
estimates and forecasts; (iii) to the extent that assumed events do not materialize, the outcome
will vary substantially from that projected or forecasted; and (iv) there are a number of other
factors and risks which could cause actual results to be substantially and adversely different that
projected;

     3.14 Certifies, under penalties of perjury, that the Investor is not subject to the backup
withholding provisions1 of Section 3406(a)(i)(C) of the Internal Revenue Code of 1986,
as amended;

     3.15 If an individual, represents that he or she is a bona fide resident of, is domiciled in,
and received the offer and made the decision to invest in the Securities, in the State set forth on
the signature page of this Agreement; if an entity, represents that its executive offices are
located in the State set forth on the signature page of this Agreement; and represents that the
Securities are being purchased by the Investor in the Investor’s name solely for the Investor’s

 

			
	1	 	(Note: You are subject to backup withholding if
(i) you fail to furnish your Social Security number or taxpayer identification
number herein; (ii) the Internal Revenue Service notifies the Company that you
furnished an incorrect Social Security number or taxpayer identification
number; (iii) you are notified that you are subject to backup withholding; or
(iv) you fail to certify that you are not subject to backup withholding or you
fail to certify your Social Security number or taxpayer identification number.)

4

 

own beneficial interest and not as nominee for, or on behalf of, or for the beneficial
interest of, or with the intention to transfer to, any other person, trust or organization; and

     3.16 Represents that if an entity, the Investor was not formed for the purpose of investing in
the Securities.

4. Investment Intent; Restrictions on Transfer

     The Investor has been advised that the offering sale of the Note and Warrant are not being
registered under the Securities Act or applicable state securities laws but are being offered and
sold pursuant to exemptions from such laws and that the Company’s reliance upon such exemptions is
predicated in part on the Investor’s representations as contained herein. The Investor represents
and warrants to the Company that the Securities are being purchased for the Investor’s own account
and for investment and without the intention of reselling or redistributing the same (except
pursuant to the Resale Registration Statement or exemptions from registration under the Securities
Act and applicable state securities laws); that the Investor has made no agreement with others
regarding the Securities; and that the Investor’s financial condition is such that it is not likely
that it will be necessary for the Investor to dispose of the Securities in the foreseeable future.
The undersigned is aware that, in the view of the Securities and Exchange Commission (the “SEC”), a
purchase of securities with an intent to resell any of the same by reason of any foreseeable
specific contingency or anticipated change in market value, or any change in the condition of the
Company, or in connection with a contemplated liquidation or settlement of any loan obtained
through the acquisition of the Note and Warrant and for which the Note and Warrant or any
components thereof were pledged as security, would represent an intent inconsistent with the
representations set forth above. The Investor further represents and agrees that if, contrary to
the Investor’s foregoing intentions, the Investor should later desire to dispose of or transfer any
of the Securities in any manner, the Investor shall not do so without first obtaining (a) an
opinion of counsel reasonably acceptable to the Company that such proposed disposition or transfer
lawfully may be made without the registration of such securities under the Securities Act and
applicable state securities laws or (b) such registration.

5. Registration Rights

     5.1 Resale Registration.

     (a) If the Company shall determine to proceed with the preparation and filing of a
registration statement in connection with an IPO (the “IPO Registration Statement”), and if
the IPO Registration Statement is declared effective on or before the maturity date set
forth in the Notes issued in the Offering, the Company will cause to be included in another
registration statement (the “Resale Registration Statement”) to be filed with the SEC within
sixty (60) days after the closing date of the IPO registering the issuance, if necessary,
and resale of the Conversion Shares and Warrant Shares (together with the shares of Common
Stock issuable upon conversion of the other Notes and exercise of the other Warrants issued
in the Offering, which shall collectively with the Conversion Shares and Warrant Shares be
referred to herein as the “Resale Shares”), and to register or qualify the Resale Shares for
resale in the states in which the Resale Shares are to be sold. In that regard, the Company
will use its best efforts to:

5

 

     (i) promptly prepare and file with the SEC such amendments to the Resale Registration
Statement and supplements to the prospectus contained therein as may be necessary to keep
the Resale Registration Statement all of the Resale Shares are either (A) sold pursuant to
the Resale Registration or pursuant to exemptions from registration, or (B) are eligible to
be sold by the holders thereof without registration and without volume restriction pursuant
to Rule 144(k) promulgated under the Securities Act, or other similar exception; and

     (ii) promptly prepare and file with the SEC and promptly notify the Investor of the
filing of such amendment or supplement to such Resale Registration Statement or prospectus
that is part of the Resale Registration Statement as may be necessary to correct any
statements or omissions if, at the time when a prospectus relating to such securities is
required to be delivered under the Securities Act, any event shall have occurred as a result
of which any such prospectus or any other prospectus as then in effect would include an
untrue statement of A material fact or omit to state any material fact necessary to make the
statements therein, in the light of circumstances in which they were made, not misleading.

     (b) In connection with the Resale Registration Statement, the Company shall bear all
registration and filing fees, printing expenses, fees and disbursements of counsel and
accountants for the Company, all internal Company expense and all legal fees and
disbursements and other expenses in complying with state securities or Blue Sky laws of any
jurisdictions in which the securities are offered are to be registered, qualified or exempt
from registration. Fees and disbursements of counsel and accountants for the Investor,
underwriting discounts and commissions and transfer taxes for the Investor and any other
expenses incurred by the Investor not expressly described in the foregoing sentence shall be
borne by the Investor. The Company shall indemnify the Investor, its officers and directors
(if any) and each person (if any) who controls the Investor within the meaning of Section 15
of the Securities Act against all losses, claims, damages and liabilities caused by any
untrue statement of alleged untrue statement of a material fact contained in the Resale
Registration Statement or prospectus (and as amended or supplemented) included in the Resale
Registration Statement, or caused by any omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which they are made, unless such statement or
omission was made in reliance upon and in conformity with information furnished in writing
to the Company expressly for use therein by the Investor.

     (c) The Investor hereby represents that, notwithstanding a conversion of the Note or
exercise of the Warrant, pursuant to the Resale Registration Statement, the Investor will
not offer for sale, sell, distribute or otherwise dispose of any of the Resale Shares or any
other shares of Common Stock of the Company for a period of one hundred eighty (180) days
after the effective date of the IPO Registration Statement, except (i) with the consent of
the managing underwriter or underwriters of the IPO, (ii) pursuant to will or the laws of
descent and distribution, in which case the shares of Common Stock will be subject to this
restriction, or (iii) by gift pursuant to which each donee agrees in writing to be bound by
the same restriction on transferability. The Investor hereby agrees

6

 

that, if the Investor is so requested, the Investor will sign a separate letter
agreement containing the provisions of this Section 5(c) and such other provisions as the
Company shall reasonably request.

6. General Provisions

     6.1 Entire Agreement. The Transaction Documents and the other documents delivered
pursuant hereto constitute the full and entire understanding and agreement between the parties with
regard to the subjects hereof and no party shall be liable or bound to any other in any manner by
any representations, warranties, covenants and agreements except as specifically set forth herein
and therein.

     6.2 Governing Law; Venue. This Agreement shall be governed by the laws of the State
of Minnesota without regard to its conflicts-of-law principles.

     6.3 Survival. The representations, warranties, covenants and agreements made herein
shall survive the Closing.

     6.4 Successors and Assigns. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors and administrators of the parties hereto and shall inure to the benefit of and be
enforceable by each person who shall be a holder of the Securities from time to time.

     6.5 Severability. In case any provision of the Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     6.6 Notices. All notices, requests, consents, and other communications hereunder
shall be in writing and shall be deemed effectively given and received when delivered in person or
by national overnight courier service or by certified or registered mail, return-receipt requested,
or by facsimile, addressed as follows:

     (a)      if to the Company, at

               Wireless Ronin Technology, Inc.

               14700 Martin Drive

               Eden Prairie, Minnesota 55344

               Attention: John A. Witham

               Facsimile: (952) 974-7887

     (b)      if to the Investor, at the address set forth on the signature page hereto or such
other address Investor shall have provided to the Company in writing.

     6.7 Counterparts. This Agreement may be executed in any number of counterparts, all
of which taken together shall constitute one agreement binding on the parties. Facsimile and
electronically transmitted signatures shall be valid and binding to the same extent as original
signatures. Each party shall become bound by this Agreement immediately upon signing and
delivering any counterpart, independently of the signature of any other party. Nevertheless, in

7

 

making proof of this Agreement, it will be necessary to produce only one copy signed by the
party to be charged.

     6.8 Further Assurances. Each party hereby agrees to execute and deliver such
additional documents and instruments and to perform such additional acts as may be necessary or
appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of
this Agreement and the transactions contemplated hereby.

Subscription Pages Follow

8

 

The Investor agrees to furnish any additional information which the Company
deems necessary in order to verify the answers set forth below.

THE INVESTOR MUST REVIEW AND PROVIDE INFORMATION IN RESPONSE TO SECTION 7
BELOW.

	7.	 	Investor Qualifications

     The Investor understands that the representations contained below are made for the purpose of
qualifying the Investor as an “accredited investor,” as that term is defined in Rule 501 of
Regulation D under the Securities Act and for the purpose of inducing a sale of the Note and
Warrant to the Investor. The Investor hereby represents that the statement or statements
initialed below are true and correct in all respects. The Investor understands that a
false representation may constitute a violation of law, and that any person who suffers damage as a
result of a false representation may have a claim against the Investor for damages.

     The Investor represents and warrants to the Company as follows (answer Part a or b, as
applicable). Please initial all applicable items:

     7.1 Accredited Investor – Individuals. The Investor is an INDIVIDUAL and:

          Investor Initials

	 	 	 	 	 
	 

	 	                     (i)
	 	The Investor hereby certifies that he or she is an accredited
Investor because the Investor has an individual net worth, or joint net worth
with his or her spouse, exceeding $1,000,000. For purposes of this Agreement,
“individual net worth” means the excess of total assets valued at fair market
value, including home and personal property, over total liabilities.
	 

	 	 	 	 
	 

	 	                     (ii)
	 	The Investor hereby certifies that he or she is an accredited Investor
because the Investor has an individual income (exclusive of any income
attributable to his or her spouse) of more than $200,000 in each of the two
most recent years or joint income with his or her spouse of more than $300,000
in each of those years and that the Investor reasonably expects to reach the
same income level in the current year.
	 

	 	 	 	 
	 

	 	                     (iii)
	 	The Investor certifies that he or she is an accredited Investor because
he or she is a director or executive officer of the Company.

     7.2 Accredited Investor – Entities. The Investor is an ENTITY (such as a partnership,
corporation, trust, pension plan or limited liability company) and:

          Investor Initials

	 	 	 	 	 
	 

	 	                     (i)
	 	The Investor hereby certifies that all of the beneficial equity
owners of the Investor qualify as accredited individual Investors under items
(a)(1) or (a)(2) above. (Investors attempting to qualify

9

 

	 	 	 	 	 
	 

	 	 	 	under this item must complete the Certificate of Signatory to this
Agreement and each equity owner must complete a separate copy of this
Agreement). (Note: the Investor cannot qualify for this
category of accredited Investor if the Investor is an irrevocable
trust.)
	 

	 	 	 	 
	 

	 	                     (ii)
	 	The Investor is a bank or savings and loan association as defined in
Sections 3(a)(2) and 3(a)(5)(A), respectively, of the Securities Act acting
either in its individual or fiduciary capacity.
	 

	 	 	 	 
	 

	 	                     (iii)
	 	The Investor is an insurance company as defined in Section 2(13) of the
Securities Act.
	 

	 	 	 	 
	 

	 	                     (iv)
	 	The Investor is an investment company registered under the Investment
Company Act of 1940 or a business development company as defined therein, in
Section 2(a)(48).
	 

	 	 	 	 
	 

	 	                     (v)
	 	The Investor is a Small Business Investment Company licensed by the U.S.
Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958.
	 

	 	 	 	 
	 

	 	                     (vi)
	 	The Investor is an employee benefit plan within the meaning of Title I
of the Employee Retirement Income Security Act of 1974 and one or more
of the following is true (check one or more, as applicable):

	 	 	 	 	 
	 

	 	                     (A)
	 	the investment decision is
made by a plan fiduciary, as defined therein, in Section 3(21),
which is either a bank, savings and loan association, insurance
company, or registered investment adviser; or
	 

	 	 	 	 
	 

	 	                     (B)
	 	the employee benefit plan
has total assets in excess of $5,000,000; or
	 

	 	 	 	 
	 

	 	                     (C)
	 	the plan is a self-directed
plan with investment decisions made solely by persons who are
“accredited Investors” as defined therein.

	 	 	 	 	 
	 

	 	                     (vii)
	 	The Investor is a private business development company as defined in
Section 202(a)(22) of the Investment Advisers Act of 1940.
	 

	 	 	 	 
	 

	 	                     (viii)
	 	The Investor has total assets in excess of $5,000,000, was not formed
for the specific purpose of acquiring the Securities and is one or more
of the following (check one or more, as applicable):

	 	 	 	 	 
	 

	 	                     (A)
	 	an organization described in
Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended; or

10

 

	 	 	 	 	 
	 

	 	                     (B)
	 	a corporation; or
	 

	 	 	 	 
	 

	 	                     (C)
	 	a Massachusetts or similar business trust; or
	 

	 	 	 	 
	 

	 	                     (D)
	 	a partnership.

	 	 	 	 	 
	 

	 	                     (ix)
	 	The Investor is a trust with total assets exceeding $5,000,000 which was
not formed for the specific purpose of acquiring the Securities and whose
purchase is directed by a person who has such knowledge and experience in
financial and business matters that he or she is capable of evaluating the
merits and risks of the investment in the Securities.

     7.3 Manner In Which Securities Are to Be Held. The Investor hereby represents to the
Company that the Investor will own the Securities in the following manner (initial one):

	 	 	 
	 

	 	                     Individual Ownership
	 

	 	 
	 

	 	                     Community Property
	 

	 	 
	 

	 	                     Joint Tenant with Right of Survivorship (both parties must sign). Briefly describe
relationship between the parties (e.g., married):                                         

	 

	 	 
	 

	 	                     Tenants in Common (both parties must sign). Briefly describe relationship between the
parties (e.g., married):                                         

	 

	 	 
	 

	 	                     Qualified Retirement Account (i.e. IRA) (See note * below)
	 

	 	 
	 

	 	                     Community Property
	 

	 	 
	 

	 	                     Partnership
	 

	 	 
	 

	 	                     Corporation
	 

	 	 
	 

	 	Trust or Estate (Describe and enclose evidence of authorization):
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	Other (Describe):                                                                                                                         

11

 

*******

*FOR PURCHASES IN A RETIREMENT ACCOUNT

(please initial in the blank space provided)

                     Purchasing in a Retirement Account. An investment in a private placement of
securities is a HIGHLY SPECULATIVE in nature. Accordingly, such an investment may not be
appropriate for Individual Retirement Accounts or other retirement-type accounts that carry
conservative investment objectives. If this investment is in fact purchased in a retirement-type
account, the Investor hereby represents and affirms that he/she/it understands the risks of the
investment and has decided that such risks are consistent with the Investor’s investment objectives
for this account.

12

 

********

AFFILIATIONS

Please note that if you are a corporation the following three questions should also be answered
with respect to your officers, directors and holders of 5% or more of your equity securities; if
you are a partnership such questions should also be answered with respect to your general partners.

	a.	 	Are you, or is a member of your immediate family1 or any of your affiliates, as
applicable, affiliated or associated, directly or indirectly, with a Member2 of the
NASD or with a Person Associated with a Member3 of the NASD? 4
	 
	 	 	          Yes                           No                    
	 
	 	 	If the answer is “Yes,” please identify below such Member of the NASD or Person Associated
with a Member of the NASD and provide the name, address, and telephone number of the Member
or Members and a detailed description of the association or affiliation.

	 	 	 	 	 
	 

	 	Answer:	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

	b.	 	State whether you own, directly or indirectly, stock or other securities of any NASD Member.
If so, name the NASD Member and describe the securities.
	 
	 	 	          Yes                           No                    
	 
	 	 	If the answer is “Yes,” please identify below such Member of the NASD or Person Associated
with a Member of the NASD and provide the name, address, and telephone number of the Member
or Members and a detailed description of the securities owned.

	 	 	 	 	 
	 

	 	Answer:	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

	c.	 	State whether you have made any outstanding loans to any NASD member. If so, name the NASD
member and give a brief description of the loan, including the face value of any debt
securities of the NASD member held by you and the date on which they were acquired.
	 
	 	 	          Yes                           No                    
	 
	 	 	If the answer is “Yes,” please identify below such Member of the NASD or Person Associated
with a Member of the NASD and provide the name, address, and telephone number of the Member
or Members and a detailed description of the loan.

	 	 	 	 	 
	 

	 	Answer:	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

13

 

	d.	 	Do you have any oral or written agreements with any NASD Member or associated persons of
such NASD Member concerning the disposition of securities of the Company?
	 
	 	 	          Yes                           No                    
	 
	 	 	If the answer is “Yes,” please identify below such Member of the NASD or Person
Associated with a Member of the NASD and provide the name, address, and telephone number of
the Member or Members and a detailed description of the agreement.

	 	 	 	 	 
	 

	 	Answer:	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

	e.	 	Have you, or has a member of your immediate family or any of your affiliates, as
applicable, provided any consulting or other services to the Company?
	 
	 	 	          Yes                           No                    
	 
	 	 	          If the answer is “Yes,” please provide a detailed description of the services
provided.

	 	 	 	 	 
	 

	 	Answer:	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 

By signing below, you hereby acknowledge that the above information continues to be complete
and accurate.

	 	 	 
	Dated:                                        , 2006
	 	 
	 

	 	 
	 

	 	(Print Name of Investor)
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	(Signature of Respondent or Authorized Person)

 

			
	1	 	A “member of Investor’s immediate family” includes a spouse, father, mother,
father-in-law, mother-in-law, or any brother, sister, brother-in-law, sister-in-law or children,
and any relative which the Investor supports.
	 
	2	 	The term “Member of the NASD” means either any broker or dealer admitted to membership
in the NASD, any officer or partner of such a member or the executive representative (or the
substitute of such representative) of such member to the NASD.
	 
	3	 	The term “person associated with a member” of the NASD means every sole proprietor,
partner, officer, director or branch manager of any member, or any natural person occupying a
similar status or performing similar functions, or any natural person engaged in the investment
banking or securities business who is directly or indirectly controlling or controlled by such
member (for example, any employee), whether or not such person is registered or exempt from
registration with the NASD pursuant to its by-laws. The term also includes a natural person who is
registered or has applied for registration under the rules of the NASD.
	 
	4	 	The term “affiliate” includes a company which controls, is controlled by or is under
common control with a member of the NASD. A company will be presumed to control a member of the
NASD if the company beneficially owns 10% or more of the outstanding voting securities of a member
of the NASD which is a corporation, or beneficially owns a partnership interest in 10% or more of
the distributable profits or losses of a member of the NASD which is a partnership. A member of the
NASD will be

14

 

			
	 	 	presumed to control a company if the member of the NASD and the persons associated with the member
of the NASD beneficially own 10% or more of the outstanding voting securities of a company which is
a corporation, or beneficially own a partnership interest in 10% or more of the distributable
profits or losses of a company which is a partnership. A company will be presumed to be under
common control with a member of the NASD if (i) the same natural person or company controls both a
member of the NASD and a company by beneficially owning 10% or more of the outstanding voting
securities of a member of the NASD or a company which is a corporation, or by beneficially owning a
partnership interest in 10% or more of the distributable profits or losses of a member of the NASD
or a company which is a partnership or (ii) a person having the power to direct or cause the
direction of the management or policies of a member of the NASD or a company also has the power to
direct or cause the direction of the management or policies of the other entity in question.

15

 

Dated:                                         , 2006.

Subscription. The Investor hereby agrees to lend the Company the Loan Amount set forth
below in exchange for a Note in an original principal amount equal to such Loan Amount and a
Warrant to purchase the number of Warrant Shares set forth below:

	 	 	 	 	 
	 
	 	 	 	 
	Loan Amount
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Number of Warrant Shares:
	 	 	 	 
	 
	 	 	 	 

INDIVIDUAL INVESTOR(S):

	 	 	 
	X

	 	X
	 

	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Name (Typed or Printed)

	 	Name (Typed or Printed)
	 
	 	 
	 
	 	 
	 

	 	 
	Address to Which Correspondence

	 	Address to Which Correspondence
	Should be Directed:

	 	Should be Directed:
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	City, State and Zip Code

	 	City, State and Zip Code
	 
	 	 
	 
	 	 
	 

	 	 
	Social Security or Tax Identification No.

	 	Social Security or Tax Identification No.
	 
	 	 
	 
	 	 
	 

	 	 
	Telephone Number

	 	Telephone Number

16

 

Dated:                                         .

Subscription. The Investor hereby agrees to lend the Company the Loan Amount set forth
below in exchange for a Note in an original principal amount equal to such Loan Amount and a
Warrant to purchase the number of Warrant Shares set forth below:

	 	 	 	 	 
	 
	 	 	 	 
	Loan Amount
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Number of Warrant Shares:
	 	 	 	 
	 
	 	 	 	 

	 	 	 	 	 
	ENTITY INVESTOR(S):	 	 
	 
	 	 	 	 
	 
	 	 	 
	Name of Entity (Typed or Printed)	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

     *Signature of Authorized Person
	 	 
	 
	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 

     Title
	 	 
	 
	 	 	 	 
	 	 	 
	Name of Signatory (Typed or Printed)	 	 
	 
	 	 	 	 
	Address to Which Correspondence	 	 
	Should be Directed:	 	 
	 
	 
	 	 	 	 
	 	 	 
	 
	 
	 	 	 	 
	 	 	 
	City, State and Zip Code	 	 
	 
	 
	 	 	 	 
	 	 	 
	Entity’s Tax Identification or Social Security No.	 	 
	 
	 
	 	 	 	 
	 	 	 
	Telephone Number	 	 

 
 

*If Units are being subscribed for by an entity, the Certificate of Signatory on
the next page must also be completed.

17

 

CERTIFICATE OF SIGNATORY

(To be completed if Securities are

being subscribed for by an entity)

     I,                                         , am the                                          of
                                                             (the “Entity”).

I certify that I am empowered and duly authorized by the Entity to execute and carry out the terms
of the Loan and Subscription Agreement and to purchase and hold the Securities, and certify further
that the Loan and Subscription Agreement has been duly and validly executed on behalf of the Entity
and constitutes a legal and binding obligation of the Entity.

IN WITNESS
WHEREOF, I have set my hand this
                     day of                                         , 2006.

	 	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	(Signature)

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ACCEPTANCE

This Company hereby accepts the foregoing Loan and Subscription Agreement as of the date indicated.

	 	 	 	 	 
	 	 	WIRELESS RONIN TECHNOLOGIES, INC.
	 
	 	 	 	 
	Date:                     , 2006

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Signature
	 
	 	 	 	 
	 
	 	 	 
	 	 	Name (Typed or Printed)
	 
	 	 	 	 
	 
	 	 	 
	 	 	Title (Typed or Printed)

19

 

Exhibit A

Company Representations and Warranties

The Company hereby makes the following representations and warranties to the Investor as of the
Closing Date.

     1. Organization, Good Standing and Qualification. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Minnesota. The
Company has all requisite corporate power and authority to own and operate its properties and
assets, to execute and deliver the Transaction Documents, to issue and sell the Conversion Shares
and the Warrant Shares, to carry out the provisions of the Transaction Documents, and to carry on
its business as presently conducted and as presently proposed to be conducted. The Company is duly
qualified and is authorized to do business and is in good standing in each jurisdiction in which
the nature of its activities makes such qualification necessary, except to the extent that the
failure to be so qualified or in good standing would not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on the business, operations, conditions
(financial or otherwise), assets or results of operations of the Company (a “Material Adverse
Effect”).

     2. Capitalization. The authorized, issued and outstanding capital stock of the
Company is as set forth in the Memorandum and all issued and outstanding shares of capital stock of
the Company are duly authorized, validly issued, fully paid and nonassessable. Except as set forth
in the Memorandum, there are no outstanding options, warrants, agreements, convertible securities,
preemptive rights or other rights to subscribe for or to purchase any shares of capital stock of
the Company. Except as set forth in the Memorandum and as otherwise required by law, there are no
restrictions upon voting or transfer of the shares of the capital stock of the Company pursuant to
the Company’s Articles of Incorporation, Bylaws or other governing documents or any agreement or
other instruments to which the Company is a party or by which the Company is bound. When issued in
compliance with the provisions of the Note and the Warrant, as applicable (and upon payment as
provided for in the Warrant), the Conversion Shares and Warrant Shares will be duly authorized,
validly issued, fully paid and nonassessable, and will be free of any liens or encumbrances;
provided, however, that the Conversion Shares and Warrant Shares may be subject to restrictions on
transfer under state and/or federal securities laws as set forth herein or as otherwise required by
such laws at the time a transfer is proposed. The issuance of the Securities contemplated hereby
will not give rise to any preemptive rights or rights of first refusal on behalf of any person
which have not been waived in connection with the Offering.

     3. Authorization; Binding Obligations. The Company has all corporate right, power and
authority to enter into the Transaction Documents and to consummate the transactions contemplated
hereby and thereby. All corporate action on the part of the Company, its officers, directors and
shareholders necessary for the authorization of the Transaction Documents and the performance of
all obligations of the Company hereunder and thereunder, including the authorization, sale,
issuance and delivery of the Conversion Shares and Warrant Shares upon conversion of the Note and
exercise of the Warrant, respectively, has been taken. The Transaction Documents, when executed
and delivered, will be valid and binding obligations of

20

 

the Company enforceable in accordance with their respective terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting
enforcement of creditors’ rights and according to general principles of equity that restrict the
availability of equitable remedies.

     4. No Conflict; Governmental Consents.

     (a) The Company’s execution and delivery of the Transaction Documents, the issuance of
the Securities, and the consummation by the Company of the other transactions contemplated
hereby and thereby, do not, and compliance with the provisions of the Transaction Documents
will not, conflict with, or result in any violation of any law, statute, rule, regulation,
order, writ, injunction, judgment or decree of any court or other governmental authority to
or by which the Company is bound, or any provision of the Articles of Incorporation or
Bylaws, and will not conflict with, or result in a breach or violation of, any of the terms
or provisions of, or constitute (with or without notice or lapse of time, or both) a default
under, any lease, loan agreement, mortgage, security agreement, trust indenture or other
agreement or instrument to which the Company is a party or by which it is bound or to which
any of its properties or assets is subject, nor result in the creation or imposition of any
lien upon any of the properties or assets of the Company.

     (b) No consent, approval, authorization or any other order of any governmental
authority or other third party is required to be obtained by the Company in connection with
the authorization, execution and delivery of this Agreement or with the authorization, issue
and sale of the Securities, except such filings as may be required to be made with the SEC
and with any state or foreign blue sky or securities regulatory authority relating to an
exemption from registration thereunder.

     5. Licenses. Except as otherwise set forth in the Memorandum or as would not
reasonably be expected to have a Material Adverse Effect, the Company has all necessary licenses,
permits and other governmental authorizations currently required for the conduct of its business or
ownership of properties and is in all material respects complying therewith.

     6. Litigation. The Company knows of no pending or threatened legal or governmental
proceedings against the Company which (i) adversely questions the validity of the Transaction
Documents or any other agreements contemplated hereby or thereby or the right of the Company to
enter into the Transaction Documents or any of such agreements, or to consummate the transactions
contemplated hereby or thereby or (ii) could, if there were an unfavorable decision, have a
Material Adverse Effect. There is no action, suit, proceeding or investigation by the Company
currently pending in any court or before any arbitrator or that the Company intends to initiate.

     7. Financial Statements. The financial statements of the Company included in the
Memorandum (the “Financial Statements”) fairly present in all material respects the financial
condition and position of the Company at the dates and for the periods indicated; and have been
prepared in conformity with generally accepted accounting principles in the United States

21

 

(“GAAP”) consistently applied throughout the periods covered thereby, 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 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. Since the date of the most recent
balance sheet included as part of the Financial Statements, there has not been to the Company’s
knowledge: (i) any change in the assets, liabilities, financial condition or operations of the
Company from that reflected in the Financial Statements, other than changes in the ordinary course
of business, none of which individually or in the aggregate would reasonably be expected to have a
Material Adverse Effect; or (ii) any other event or condition of any character that, either
individually or cumulatively, would reasonably be expected to have a Material Adverse Effect,
except for the expenses incurred in connection with the transactions contemplated by this
Agreement.

     8. Intellectual Property. Except as not reasonably would be expected to have a
Material Adverse Effect: (a) to the best of its knowledge, the Company owns or possesses sufficient
legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets,
licenses, information and other proprietary rights and processes necessary for its business as now
conducted and as presently proposed to be conducted, without any known infringement of the rights
of others; (b) except as disclosed in the Memorandum, there are no outstanding options, licenses or
agreements of any kind relating to the foregoing proprietary rights, nor is the Company bound by or
a party to any options, licenses or agreements of any kind with respect to the patents, trademarks,
service marks, trade names, copyrights, trade secrets, licenses, information and other proprietary
rights and processes of any other person or entity other than such licenses or agreements arising
from the purchase of “off the shelf” or standard products; and (c) the Company has not received any
written communications alleging that the Company has violated or, by conducting its business as
presently proposed to be conducted, would violate any of the patents, trademarks, service marks,
trade names, copyrights or trade secrets or other proprietary rights of any other person or entity.

     9. Title to Properties and Assets; Liens, Etc. The Company has good and marketable
title to its properties and assets, including the properties and assets reflected in the most
recent balance sheet included in the Financial Statements, and good title to its leasehold estates,
in each case subject to no mortgage, pledge, lien, lease, encumbrance or charge, other than (a)
those resulting from taxes which have not yet become delinquent; (b) liens and encumbrances which
do not materially detract from the value of the property subject thereto or materially impair the
operations of the Company; (c) those that have otherwise arisen in the ordinary course of business;
and (d) those that would not reasonably be expected to have a Material Adverse Effect. The Company
is in compliance with all material terms of each lease to which it is a party or is otherwise
bound.

     10. Obligations to Related Parties. Except as disclosed in the Memorandum or as would
not reasonably be expected to have a Material Adverse Effect, there are no obligations of the
Company to officers, directors, stockholders, or employees of the Company other than (a) for
payment of salary or other compensation for services rendered, (b) reimbursement for reasonable
expenses incurred on behalf of the Company and (c) for other standard employee benefits made

22

 

generally available to all employees (including stock option agreements outstanding under any
stock option plan approved by the Board of Directors of the Company). Except as may be disclosed
in the Financial Statements, the Company is not a guarantor or indemnitor of any indebtedness of
any other person, firm or corporation.

     11. Employee Relations; Employee Benefit Plans. The Company is not a party to any
collective bargaining agreement or employs any member of a union. The Company believes that its
relations with its employees are good. No executive officer of the Company (as defined in Rule
501(f) of the Securities Act) has notified the Company that such officer intends to leave the
Company or otherwise terminate such officer’s employment with the Company. No executive officer of
the Company, to the knowledge of the Company, is, or is now expected to be, in violation of any
material term of any employment contract, confidentiality, disclosure or proprietary information
agreement, non-competition agreement, or any other contract or agreement or any restrictive
covenant, and the continued employment of each such executive officer does not subject the Company
to any liability with respect to any of the foregoing matters. The Company is in compliance with
all federal, state, local and foreign laws and regulations respecting employment and employment
practices, terms and conditions of employment and wages and hours, except where failure to be in
compliance would not, either individually or in the aggregate, reasonably be expected to result in
a Material Adverse Effect. Except as disclosed in the Memorandum, the Company does not maintain
any compensation or benefit plan, agreement, arrangement or commitment (including, but not limited
to, “employee benefit plans”, as defined in Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”) for any present or former employees, officers or directors of the
Company or with respect to which the Company has liability or makes or has an obligation to make
contributions.

     12. Environmental Laws. The Company (i) is in compliance with any and all
Environmental Laws (as hereinafter defined), (ii) has received all permits, licenses or other
approvals required of it under applicable Environmental Laws to conduct its business and (iii) are
in compliance with all terms and conditions of any such permit, license or approval where, in each
of the foregoing clauses (i), (ii) and (iii), the failure to so comply would reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect. The term “Environmental
Laws” means all federal, state, local or foreign laws relating to pollution or protection of human
health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, laws relating to emissions,
discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees,
demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders,
permits, plans or regulations issued, entered, promulgated or approved thereunder.

     13. Tax Status. The Company (i) has made or filed all federal and state income and
all other tax returns, reports and declarations required by any jurisdiction to which it is
subject, (ii) has paid all taxes and other governmental assessments and charges that are material
in

23

 

amount, shown or determined to be due on such returns, reports and declarations, except those
being contested in good faith and (iii) has set aside on its books provision reasonably adequate
for the payment of all taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such
claim.

     14. Investment Company. The Company is not an “investment company” within the meaning
of such term under the Investment Company Act of 1940, as amended, and the rules and regulations of
the SEC thereunder.

     15. No General Solicitation. Neither the Company, nor any of its affiliates, nor any
person acting on its or their own behalf, has engaged in any form of general solicitation or
general advertising (within the meaning of Regulation D of the Securities Act in connection with
the offer and sale of the Notes and Warrants.

     16. Exemption from Registration. Assuming that the representations and warranties of
the Investors provided for in this Agreement are otherwise true and correct, the offer, sale and
issuance of the Note and Warrant constitutes a transaction exempt from registration provisions of
the Securities Act and under any applicable state securities laws.

     17. Disclosure. The information set forth in the Memorandum as of the Closing Date
contains no untrue statement of a material fact nor omits to state a material fact necessary in
order to make the statements contained therein, in light of the circumstances under which they were
made, not misleading.

24

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