Document:

Stock Purchase Agreement dated as of October 22, 2003

 Exhibit 4.7 
  

NU SKIN ENTERPRISES, INC. 
  
 STOCK PURCHASE AGREEMENT 
  
 This Stock Purchase Agreement (this “Agreement”) is made as of October 22, 2003 by and among the stockholders of Nu Skin Enterprises,
Inc., a Delaware corporation (the “Company”) listed on Schedule I attached hereto (each a “Selling Stockholder” and together the “Selling Stockholders”), and the purchasers listed on Schedule II
attached hereto (each a “Purchaser” and together the “Purchasers”). 
  
 In consideration of the mutual covenants and agreements contained herein and or other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Purchase and Sale of Common Stock. 
  
 1.1 Sale and Issuance of Common Stock. Subject to the terms and conditions of this Agreement, each of the Purchasers agrees, severally and not jointly, to purchase that number of shares of Class A Common Stock, par value
$0.001, of the Company (the “Class A Common Stock”), listed opposite such Purchaser’s name on Schedule II and each of the Selling Stockholders, severally and not jointly, agrees to sell that number of Class A Common Stock
listed opposite such Selling Stockholder’s name on Schedule I. The shares of Class A Common Stock sold to the Purchasers pursuant to this Agreement are hereinafter referred to as the “Stock.” The per share purchase price of the
Stock to be paid by the Purchasers under this Agreement shall be $12.95 (the “Per Share Purchase Price”), such Per Share Purchase Price represents the total consideration to be paid for each share of Stock purchased hereunder.

  
 1.2 Closing; Delivery. 
  
 (a) The purchase and sale of the Stock (the “Closing”)
shall take place at the offices of Wilson Sonsini Goodrich & Rosati, Professional Corporation, 2795 East Cottonwood Parkway, Suite 300, Salt Lake City, Utah 84121 (or such other location mutually agreeable to the parties hereto) no later than
one (1) business days after the satisfaction or (subject to applicable law) waiver of the conditions set forth in Sections 4 and 5 (excluding conditions that, by their terms, cannot be satisfied until the Closing). 
  
 (b) Upon execution of this Agreement, each Selling Stockholder shall deliver
to American Stock Transfer & Trust Company, as custodian (the “Custodian”), a certificate or certificates for the number of shares of the Stock to be sold by such Selling Stockholder pursuant to this Agreement. 
  
 (c) Prior to Closing, each Purchaser shall deliver to Bank One, N.A. (the
“Escrow Agent”) pursuant to an escrow agreement between the Purchasers and the Escrow Agent (the “Escrow Agreement”) (a form of which is attached hereto as Exhibit A) the dollar value determined by multiplying the
Per Share Purchase Price by the number of shares of Stock listed opposite such Purchaser’s name on Schedule II. 

 2. Representations and Warranties of the Selling Stockholders. Each Selling Stockholder
severally and not jointly represents and warrants to each Purchaser as of the date hereof and as of the Closing as follows: 
  
 2.1 Authorization of Agreements. Such Selling Stockholder has the full right, power and authority to enter into this Agreement and the Power
of Attorney and Custody Agreement referred to in Section 2.3 below and to sell, transfer and deliver the Stock to be sold by such Selling Stockholder hereunder. The execution and delivery of this Agreement, the Power of Attorney and Custody
Agreement and the sale and delivery of the Stock to be sold by such Selling Stockholder and the consummation of the transactions contemplated herein and therein and compliance by such Selling Stockholder with its obligations hereunder and
thereunder, have been duly authorized by such Selling Stockholder and do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach of, or default under, or result in the creation
or imposition of any tax, lien, charge or encumbrance upon the Stock to be sold by such Selling Stockholder or any property or assets of such Selling Stockholder pursuant to, or create any obligation to such Selling Stockholder or Purchaser under,
any contract, indenture, mortgage, deed of trust, loan or credit agreement, note, license, lease or other agreement or instrument to which such Selling Stockholder is a party or by which such Selling Stockholder may be bound, or to which any of the
property or assets of such Selling Stockholder is subject, nor will such action result in any violation of the provisions of the charter or by-laws or other organizational instrument of such Selling Stockholder, if applicable, or any applicable
treaty, law, statute, rule, regulation, judgment, order, writ or decree of any government, government instrumentality or court, domestic or foreign, having jurisdiction over such Selling Stockholder or any of its properties. 
  
 2.2 Valid Title. Such Selling Stockholder has and will at the
Closing have valid title to, or a valid “security entitlement” within the meaning of Section 8-501 of the New York Uniform Commercial Code in respect of, the Stock to be sold by such Selling Stockholder hereunder, free and clear of any
security interest, mortgage, pledge, lien, charge, claim, equity or encumbrance of any kind, including without limitation any restrictions under any lock-up agreement, stockholder agreement or any other agreement, other than pursuant to this
Agreement; and upon delivery of such Stock and payment of the purchase price therefor as herein contemplated, assuming each such Purchaser has no notice of any adverse claim, each of the Purchasers will receive valid title to the Stock purchased by
it from such Selling Stockholder, free and clear of any security interest, mortgage, pledge, lien, charge, claim, equity or encumbrance of any kind, including without limitation any restrictions under any lock-up agreement, stockholder agreement or
any other agreement. 
  
 2.3 Due Execution of
Power-of-Attorney, Custody Agreement and Form W-9 . Such Selling Stockholder has duly executed and delivered, in the form heretofore furnished to the Purchasers, the Power of Attorney (the “Power-of-Attorney”) (the form of
which is attached hereto as Exhibit B) with Blake M. Roney and Brooke B. Roney as attorneys-in-fact (each an “Attorney-in-Fact”) and the Custody Agreement (the “Custody Agreement”) (the form of which is attached
hereto as Exhibit C) with the Custodian and such Purchaser has completed an Internal Revenue Service W-9; the Custodian is authorized to deliver the Stock to be sold by such Selling Stockholder hereunder and to accept payment therefor; and each

  

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Attorney-in-Fact is authorized to execute and deliver this Agreement on behalf of such Selling Stockholder, to sell, assign and transfer to the Purchasers
the Stock to be sold by such Selling Stockholder hereunder, to authorize the delivery of the Stock to be sold by such Selling Stockholder hereunder, to accept payment therefor, and otherwise to act on behalf of such Selling Stockholder in connection
with this Agreement. 
  
 2.4 Absence of
Manipulation. Such Selling Stockholder has not taken, and will not take prior to the Closing, directly or indirectly, any action which is designed to or which has constituted or which might reasonably be expected to cause or result in
stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Stock. 
  
 2.5 Absence of Further Requirements. No filing with, or consent, approval, authorization, order, registration, qualification or decree of,
any court or governmental authority or agency, domestic or foreign, or any third party (including but not limited to the Company) requirements, is necessary or required for the performance by each Selling Stockholder of its obligations under this
Agreement or under the Custody Agreement, or in connection with the sale and delivery of the Stock or the consummation of the transactions contemplated by this Agreement except such as may have previously been made or obtained or as may be required
under the Securities Act of 1933, as amended (the “Securities Act”), or state securities laws. 
  
 2.6 Certificates Suitable for Transfer. Certificates for all of the Stock to be sold by such Selling Stockholder pursuant to this Agreement
in suitable form for transfer by delivery or accompanied by duly executed instruments of transfer or assignment in blank with signatures guaranteed, have been placed in custody with the Custodian with irrevocable conditional instructions to deliver
such Stock to the Purchasers pursuant to this Agreement. 
  
 2.7
Tax Advisors. Such Selling Stockholder has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement. Such Selling Stockholder understands and
agrees that it (and not the Purchasers) shall be responsible for its own tax liability that may arise as a result of the transactions contemplated by this Agreement. 
  
 3. Representations and Warranties of the Purchasers. Each Purchaser severally and not jointly represents and
warrants to each Selling Stockholder as of the date hereof and as of the Closing as follows: 
  
 3.1 Authorization of Agreements. Such Purchaser has the full right, power and authority to enter into and deliver this Agreement and the Escrow Agreement, and this Agreement and the Escrow Agreement,
when executed and delivered by such Purchaser, will each constitute a valid and legally binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, and other laws of general application affecting enforcement of creditors’ rights generally, as limited by laws relating to the availability of specific performance, injunctive relief, or other
equitable remedies. By way of elaboration, but not limitation, if this Agreement and the Escrow Agreement are executed 
  

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and delivered on behalf of a partnership, corporation, trust or estate: (i) such partnership, corporation, trust or estate has the full legal right and power
and all authority and approval required (a) to execute and deliver, or authorize execution and delivery of, this Agreement, the Escrow Agreement and all other instruments executed and delivered by or on behalf of such partnership, corporation, trust
or estate, in connection with the purchase of the Stock to be purchased by such Purchaser hereunder, (b) to delegate authority pursuant to a power of attorney and (c) to purchase and hold such Stock; (ii) the signature of the party signing on behalf
of such partnership, corporation, trust or estate is binding on such partnership, corporation, trust or estate; and (iii) such partnership, corporation or trust has not been formed for the specific purpose of acquiring such Stock. 
  
 3.2 Compliance with Other Instruments. The execution, delivery
and performance of this Agreement and the Escrow Agreement by such Purchaser and the consummation of the transactions contemplated hereby and thereby will not result in any violation or be in conflict with or constitute, with or without the passage
of time and giving of notice, either a default under any provision of the governing documents of such Purchaser or any instrument, judgment, order, writ, decree or contract to which such Purchaser or any of its subsidiaries is a party or by which it
is bound, or any provision of any federal or state statute, rule or regulation applicable to such Purchaser or any of its subsidiaries. 
  
 3.3 Due Execution of Escrow Agreement. Such Purchaser has duly executed and delivered the Escrow Agreement. 
  
 3.4 Purchase Entirely for Own Account. This Agreement is made
with such Purchaser in reliance upon such Purchaser’s representation to the Selling Stockholders, which by such Purchaser’s execution of this Agreement, such Purchaser hereby confirms, that the Stock to be acquired by such Purchaser will
be acquired for investment for such Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or public distribution of any part thereof in violation of any requirements of the Securities Act or applicable state
securities laws. Other than as permitted by applicable law, such Purchaser has no present intention of selling, granting any participation in, or otherwise distributing any Stock purchased hereunder, including, without limitation, entering into any
arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Stock, whether any such transaction is to be settled by delivery of Class A Common Stock or other securities, in cash or otherwise. By
executing this Agreement, such Purchaser further represents that such Purchaser does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to such person or to any third
person, with respect to any of the Stock. 
  
 3.5 Disclosure
of Information. Such Purchaser has been given the opportunity to ask questions of, and has received answers from, the Company with respect to the terms and conditions of this offering and the publicly available information relating to the
business or financial condition of the Company. Such Purchaser has also had access to and has reviewed the Company’s publicly available filings with the Securities and Exchange Commission including, but not limited to, the Risk Factors set
forth in the Company’s Registration Statement on Form S-3, filed with the Securities and Exchange Commission on 
  

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October 20, 2003 as well as the financial and business information contained in the Company’s most recent filings on Forms 10-Q and 10-K under the
Securities Exchange Act of 1934, as amended. In addition, the Company has provided, on a confidential basis, to such Purchaser the information set forth on Schedule III hereto. In evaluating the suitability of an investment in the Stock, such
Purchaser has not been furnished with nor relied upon any representations or other information (whether oral or written) relating to the business or financial condition of the Company from the Selling Stockholders, the Company or their respective
representatives or agents other than as set forth in these publicly available documents. 
  
 3.6 No General Solicitation. Such Purchaser is not purchasing the Stock as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio or presented at any seminar or meeting open to the general public. 
  
 3.7 Restricted Securities. Such Purchaser understands that the Stock has not been registered under the Securities Act, by reason of a
specific exemption from the registration provisions of the Securities Act that depends upon, among other things, the bona fide nature of the investment intent and the accuracy of such Purchaser’s representations as expressed herein. Such
Purchaser understands that the shares of Stock are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, such Purchaser must hold the shares of Stock indefinitely unless they are
registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Such Purchaser further acknowledges that if an exemption from registration or qualification is available,
it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Stock, and on requirements relating to the Company that are outside of such Purchaser’s control, and that the
Company is under no obligation, and may not be able, to satisfy. 
  
 3.8 Legends. Such Purchaser understands that the Stock, and any securities issued in respect thereof, may bear one or all of the following legends: 
  
 (a) “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (“ACT”), OR ANY OTHER SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT.” 
  
 (b) Any legend required by the “Blue Sky” laws of any state to the extent such laws are applicable to the shares
represented by the certificate so legended. 
  

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 3.9 Accredited Investor. Such Purchaser is an accredited investor as defined in Rule 501(a)
of Regulation D promulgated under the Securities Act. 
  
 3.10
Ontario Purchaser. Such Ontario Purchaser severally represents and warrants to each Selling Stockholder as of the date hereof and as of the Closing: 
  
 (a) Such Purchaser is an “accredited investor” as defined in Ontario Securities Commission Rule 45-501, is not an
individual and is purchasing the Stock as principal for its own account, or is deemed to be purchasing the Stock for its own account in accordance with Ontario securities laws. 
  
 (b) Such Purchaser acknowledges and agrees that the Stock purchased by it pursuant to this Agreement is subject to resale
restrictions under securities laws in Canada. 
  
 3.11
Absence of Manipulation. Such Purchaser has not taken, and will not take prior to the Closing, directly or indirectly, any action which is designed to or which has constituted or which might reasonably be expected to cause or result in
stabilization or manipulation of the price of any security of the Company. 
  
 4. Conditions of the Purchasers’ Obligations at Closing. The obligations of the Purchasers to the Selling Stockholders under this Agreement are subject to the fulfillment, on or before the Closing,
of each of the following conditions, unless otherwise waived by each Purchaser: 
  
 4.1 Representations and Warranties. The representations and warranties of each of the Selling Stockholders shall be true and correct in all material respects on and as of the date of the Closing with the
same effect as though such representations and warranties had been made on and as of the date of the Closing. 
  
 4.2 Performance. The Selling Stockholders shall have performed and complied with all covenants, agreements, obligations and conditions
contained in this Agreement and the Custody Agreement that are required to be performed or complied with by them on or before the Closing and the Selling Stockholders shall have obtained any and all consents, permits and waivers necessary or
appropriate for consummation of the transactions contemplated by the Agreement and the Custody Agreement. 
  
 4.3 Compliance Certificate. Each of the Selling Stockholders shall deliver to the Purchasers at the Closing a certificate certifying that
the conditions specified in Sections 4.1 and 4.2 have been fulfilled. 
  
 4.4 Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful sale of the Stock
pursuant to this Agreement shall be obtained and effective as of the Closing. 
  
 4.5 Registration Rights Agreement. The Company shall have executed and delivered to the Purchasers at the Closing a Registration Rights Agreement (the “Registration Rights Agreement”)
between the Company and the Purchasers in substantially the form attached hereto as Exhibit D. 
  

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 4.6 Stock Repurchase Agreement; Lock-Up Agreements. The transactions contemplated by the
Stock Repurchase Agreement by and among the Company and the Selling Stockholders party thereto (the “Stock Repurchase Agreement”) (a form of which is attached hereto as Exhibit E) shall have been consummated in accordance with the
terms of such Stock Repurchase Agreement and each such Selling Stockholder shall have executed and delivered to the Company a Lock-Up Agreement (the “Lock-Up Agreement”) in the form attached hereto as Exhibit F. 
  
 4.7 Conversion of Class B Common Stock into Class A Common
Stock. All Shares of Class B Common Stock held by the Selling Stockholders that are not repurchased by the Company pursuant to the Stock Repurchase Agreement shall have been converted into shares of Class A Common Stock in the manner
described in the Custody Agreement. 
  
 5. Conditions of the
Selling Stockholders’ Obligations at Closing. The obligations of the Selling Stockholders to the Purchasers under this Agreement are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless
otherwise waived by each Selling Stockholder: 
  
 5.1
Representations and Warranties. The representations and warranties of the Purchasers contained in Section 3 shall be true and correct in all material respects on and as of the date of the Closing with the same effect as though such
representations and warranties had been made on and as of the date of the Closing. 
  
 5.2 Performance. The Purchasers shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement and the Escrow Agreement that are required to be
performed or complied with by them on or before the Closing and the Purchasers shall have obtained any and all consents, permits and waivers necessary or appropriate for consummation of the transactions contemplated by the Agreement and the Escrow
Agreement. 
  
 5.3 Compliance Certificate. A senior
executive officer, trustee or person holding similar authority with each of the Purchasers shall deliver to the Selling Stockholders at the Closing a certificate certifying that the conditions specified in Sections 5.1 and 5.2 have been fulfilled.

  
 5.4 Qualifications. All authorizations,
approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful sale of the Stock pursuant to this Agreement shall be obtained and effective as of
the Closing. 
  
 5.5 Stock Repurchase Agreement. The
transactions contemplated by the Stock Repurchase Agreement shall have been consummated in accordance with the terms of such Stock Repurchase Agreement. 
  

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 6. Miscellaneous. 
  
 6.1 Survival. The representations and warranties of the Selling Stockholders and the Purchasers contained
herein shall terminate on the first anniversary of the Closing. 
  
 6.2 Transfer; No Third Party Beneficiaries. This Agreement and each party’s rights and obligations hereunder shall not be assigned without the prior written consent of the other party; provided, that a Purchaser
may transfer its rights hereunder to an affiliate, so long as such affiliate agrees in writing to be bound by all obligations under this Agreement and confirms in writing the representations and warranties set forth in Section 3 as if made by such
affiliate. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement. 
  
 6.3 Governing Law. This Agreement and
all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to principles of conflicts of laws.

  
 6.4 Counterparts. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 
  
 6.5 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. 
  
 6.6
Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by overnight courier or sent by telegram or fax, or forty-eight (48) hours after
being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, addressed to the party to be notified at such party’s address as set forth on the signature page hereto, or as subsequently modified by written notice, and
if to any of the Selling Stockholders with a copy to P. Christian Anderson, Snell & Wilmer L.L.P., Gateway Tower West, 15 W. South Temple, Suite 1200, Salt Lake City, Utah 84101, Fax: (801) 257-1800. 
  
 6.7 Finder’s Fee. Each party represents that it neither is
nor will be obligated for any finder’s fee or commission, except for such fees payable to Avondale Partners LLC as set forth in the Escrow Agreement, in connection with this transaction. Each Purchaser agrees to indemnify and to hold harmless
each Selling Stockholder from any liability for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted liability) for which such Purchaser or any of its
officers, employees, or representatives is responsible. Each Selling Stockholder agrees to indemnify and hold harmless each Purchaser from any liability for any commission or compensation in the nature of a finder’s fee (and the costs and
expenses of defending against such liability or asserted liability) for which such Selling Stockholder or any of its officers, employees or representatives is responsible. 
  

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 6.8 Fees and Expenses. Each of the Selling Stockholders and the Purchasers shall pay their
respective fees and other expenses in connection with the negotiation, execution, delivery and performance of this Agreement. 
  
 6.9 Attorney’s Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any of
the Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 6.10 Amendments and Waivers. Any term of this Agreement may be
amended or waived only with the written consent of each of the Selling Stockholders and each of the Purchasers. Any amendment or waiver effected in accordance with this Section 6.10 shall be binding upon each Purchaser and each transferee of the
Stock, each future holder of all such Stock, and the Selling Stockholders. 
  
 6.11 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the
parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and
(c) the balance of the Agreement shall be enforceable in accordance with its terms. 
  
 6.12 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall
impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or
default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 
  
 6.13 Entire Agreement. This Agreement, and the documents referred to herein, constitute the entire agreement between the parties hereto
pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled. 
  
 6.14 Independent Nature of Purchaser’s Obligations and Rights. The obligations of each Purchaser
hereunder is several and not joint with the obligations of any other Purchaser hereunder, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser hereunder. Nothing contained herein or

  

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in any other agreement or document delivered at any closing, and no action taken by any Purchaser pursuant hereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create any presumption that the Purchasers are in any way acting in concert or as a “group” as defined in Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended, with respect to such obligations or the transaction contemplated by this Agreement. 
  
 6.15 No Superior Rights. No Selling Stockholder has entered into any side letter or similar agreement with any Purchaser in connection with
the purchase of Stock by such Purchaser pursuant to this Stock Purchase Agreement (a “Side Letter”) on or prior to the date hereof. No Selling Stockholder shall enter into a Side Letter with any Purchaser after the date hereof that
has the effect of establishing rights or otherwise benefiting such Purchaser in a manner more favorable in any material respect to such Purchaser than the rights and benefits established in favor of the Purchaser pursuant to this Stock Purchase
Agreement. 
  
 6.16 Termination. This Agreement may
be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing: 
  
 (i) at any time by mutual written consent of each of the Selling Stockholders and each of the Purchasers; or 
  
 (ii) by any party hereto if the Closing does not occur on or
prior to on or prior to the fifth (5th) business day after the date of this Agreement. 
  
 Upon any such termination, this Agreement shall become void and of no further effect, except for Sections 6.3, 6.7, 6.8, 6.9 and this Section 6.16 which shall survive such termination. 
  

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 IN WITNESS WHEREOF, this Stock Purchase Agreement has been executed as of the date first written above.

  

	 SELLING STOCKHOLDERS:

	
	Blake M. Roney, as Attorney-In-Fact acting on behalf of each of the Selling Stockholders listed on Schedule I to this Stock Purchase Agreement.
	
	             /s/ Blake M.
Roney

	 Blake M. Roney, Attorney-In-Fact

 IN WITNESS WHEREOF, this Stock Purchase Agreement has been executed as of the date first written above.

  

	 PURCHASER:

	  

	 By:

	 Name:

	 Title:

	 Address:

	  

	  

	 Phone:

	 Facsimile:

 SCHEDULE I 
  

	 Selling Stockholder

	  	Selling Stockholder
Commitment

	 BMR NS-Holdings, LLC
	  	1,963,833
		
	 Nedra D. Roney
	  	2,000,200
		
	 The Nedra D. Roney Fixed Charitable Trust
	  	77,686
		
	 SJL NS-Holdings, LLC
	  	156,743
		
	 The S and K Lund Trust
	  	6,910
		
	 BBR NS-Holdings, LLC
	  	160,520
		
	 The B and D Roney Trust
	  	1,642
		
	 The Sandra N. Tillotson Family Trust
	  	658,248
		
	 The Sandra N. Tillotson Fixed Charitable Trust
	  	69,098
		
	 RCB NS-Holdings, LLC
	  	363,673
		
	 Kirk V. Roney
	  	15,954
		
	 Melanie K. Roney Trust
	  	230,028
		
	 Corporation of the President of the Church of Jesus Christ of Latter-Day Saints
	  	474,265
		
	 Total
	  	6,178,800

  

 SCHEDULE II 
  

	 Purchaser

	  	Purchase Commitment

		
	Alpha Capital AG	  	50,000
		
	Apogee Fund, L.P.	  	125,000
		
	Blue Coast Partners, L.P.	  	25,647
		
	Blue Coast Partners II, L.P.	  	49,330
		
	Blum Strategic Partners II GmbH & Co. KG	  	30,303
		
	Blum Strategic Partners II, L.P.	  	1,469,697
		
	Chichester duPont Foundation, Inc.	  	5,100
		
	Children’s Medical Center	  	26,400
		
	Columbus Capital Offshore Fund, Ltd	  	114,000
		
	Columbus Capital Partners, L.P.	  	186,000
		
	Comerica Bank, Trustee for Lone Star Steel P&M Employees Pension Plan	  	6,500
		
	Coverdale Partners	  	2,400
		
	Elaina Norden	  	1,500
		
	Elan Polo, Inc. Profit Sharing Plan	  	6,200
		
	Eliot Horowitz Trust 11/1/89	  	6,600
		
	Elwyn Evans, Jr.	  	1,100
		
	Emory University	  	37,700
		
	Franklin Small Cap Growth Fund – Canada	  	15,000
		
	Franklin Templeton Variable Insurance Products Trust – Small Cap Fund	  	170,000
		
	Gamma Opportunity Capital Partners, LP	  	50,000

		
	Gardner Lewis Fund LP	  	94,800
		
	Gardner Lewis Growth Fund, L.P.	  	4,600
		
	Gardner Lewis Market Neutral Fund, L.P.	  	18,900
		
	Gardner Lewis Offshore Fund, LTD	  	9,600
		
	Gluskin Sheff + Associates Inc. A/C #1	  	193,200
		
	Gluskin Sheff + Associates Inc. A/C #58	  	17,200
		
	Gluskin Sheff + Associates Inc. A/C #68	  	26,000
		
	Gluskin Sheff + Associates Inc. A/C #77	  	108,600
		
	Goldsmith Family Foundation	  	7,400
		
	Goldsmith Family Investments, LLC	  	5,600
		
	Green Coast Offshore, Ltd.	  	51,970
		
	Leonard Weinglass	  	6,000
		
	Longview International Equity Fund, L.P.	  	900,000
		
	Mainfield Enterprises Inc.	  	325,000
		
	Manufacturers Investment Trust – Emerging Small Company Trust	  	75,000
		
	Minnesota Life Small Cap Growth Portfolio	  	15,000
		
	N/O Wilmington Trust Co. Ttee U/A Dtd 2/25/83 restated 10/25/99 w/Ashley Gates Jansen for self	  	4,400
		
	N/O Wilmington Trust Co. Ttee U/A Dtd 4/23/84 restated 3/7/96 w/John D Gates Jr. for self	  	3,900
		
	N/O Wilmington Trust Co. U/A Dtd 6/8/79 w/Carroll M Carpenter Ttee of the 1995 du Pont Revocable Trust	  	5,700

		
	OurFam, LP	  	3,400
		
	Pequot Navigator Offshore Fund Inc.	  	165,900
		
	Pequot Navigator Onshore Fund L.P.	  	35,000
		
	Pequot Scout Fund, L.P.	  	199,100
		
	Petros Fund, LP	  	75,000
		
	Portside Growth and Opportunity Fund	  	200,000
		
	Prism Partners I, L.P.	  	300,000
		
	Prism Partners II Offshore Fund	  	300,000
		
	Retirement Trust for Employees Harbison-Fischer Manufacturing Co. & Its Affiliates	  	5,600
		
	Smithfield Fiduciary LLC	  	200,000
		
	Southern California Edison Retirement Plan	  	82,000
		
	Strategic Fund, L.P.	  	3,800
		
	Teleion Fund I, LP	  	25,000
		
	The 1995 Michael J. Egan Rev. Trust 3/29/95	  	1,700
		
	University of Nebraska Foundation	  	35,900
		
	University of Nebraska Foundation – Account #2	  	8,200
		
	Univest Equity Long/Short Fund II Ltd.	  	8,053
		
	Verizon Master Trust	  	270,000
		
	Wilmington Trust Co. Custodian U/A Dated 9/28/01 with Randalea, LLC – A Delaware Limited Liability Company – Gardner Lewis Managed Equities	  	8,800
		
	Total	  	6,178,800Warrant Agreement (Including form of Warrant to Purchase Common Stock)

 EXHIBIT 4.3 
  

WARRANT AGREEMENT 
  
 between 
  
 Path 1 Network Technologies Inc. 
  
 and 
  
 Registrar
and Transfer Company 
  
 Dated as of July 30, 2003

 WARRANT AGREEMENT 
  
 This Agreement, dated as of July 30, 2003, is between Path 1 Network Technologies, Inc., a Delaware corporation (the
“Company”) and Registrar and Transfer Company, a New Jersey corporation, (the “Warrant Agent”). 
  
 The Company, at or about the time that it is entering into this Agreement, proposes to issue and sell to public investors up to 1,250,000 Units
(together with the additional units issuable as provided herein, the “Units”). Each Unit consists of three shares of common stock, $0.001 par value, of the Company and two warrants (collectively, the “Warrants”).
Each Warrant is exercisable to purchase one share of Common Stock upon the terms and conditions and subject to adjustment in certain circumstances, all as set forth in this Agreement. 
  
 The Company proposes to issue to the Representative of the Underwriters in the public offering of Units referred to above
warrants to purchase up to 187,500 additional Units. 
  
 The Company wishes to retain the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the issuance, transfer, exchange and replacement of the certificates evidencing the Warrants to
be issued under this Agreement (the “Warrant Certificates”) and the exercise of the Warrants; 
  
 The Company and the Warrant Agent wish to enter into this Agreement to set forth the terms and conditions of the Warrants and the rights of the holders
thereof (“Warrantholders”) and to set forth the respective rights and obligations of the Company and the Warrant Agent. Each Warrantholder is an intended beneficiary of this Agreement with respect to the rights of Warrantholders
herein. 
  
 NOW, THEREFORE, in consideration of the premises and
the mutual agreements herein set forth, the parties hereto agree as follows: 
  
 1.    Appointment of Warrant Agent.    The Company appoints the Warrant Agent to act as agent for the Company in accordance with the instructions in this Agreement and
the Warrant Agent accepts such appointment. 
  
 2.    Date, Denomination and Execution of Warrant Certificates. 
  
 (a)    The Warrant Certificates (and the Form of Election to Purchase and the Form of Assignment to be printed on the
reverse thereof) shall be in registered form only and shall be substantially of the tenor and purport recited in Exhibit A hereto, and may have such letters, numbers or other marks of identification or designation and such legends, summaries
or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law, or with any rule or regulation made
pursuant thereto, or with any rule or regulation of any stock exchange on which the Common Stock or the Warrants may be listed or any automated quotation system, or to conform to usage. Each Warrant Certificate shall entitle the registered holder
thereof, subject to the provisions of this Agreement and of the Warrant Certificate, to purchase, on or after July 31, 2003 and on or before the close of business on July 30, 2008 (the “Expiration Date”), one fully
paid and non-assessable share of 
  

 1 

 Common Stock for each Warrant evidenced by such Warrant Certificate for $5.40. The exercise price
of the Warrants (the “Exercise Price”) is subject to adjustments as provided in Section 6 hereof. Each Warrant Certificate issued as a part of a Unit offered to the public as described in the recitals, above, shall be dated
July 30, 2003; each other Warrant Certificate shall be dated the date on which the Warrant Agent receives valid issuance instructions from the Company or a transferring holder of a Warrant Certificate or, if such instructions specify another
date, such other date. 
  
 (b)    For purposes of this Agreement, the term “close of business” on any given date shall mean 5:00 p.m., Eastern time, on such date; provided, however, that if such date is not a business day, it
shall mean 5:00 p.m., Eastern time, on the next succeeding business day. For purposes of this Agreement, the term “business day” shall mean any day other than a Saturday, Sunday, or a day on which banking institutions in New York,
New York or in the State in which the Warrant Agent maintains the principal office in which it conducts business related to the Warrants are authorized or obligated by law to be closed. If the Expiration Date is extended, the Company shall notify
the American Stock Exchange not less than 20 days prior to the date the extension is effected. 
  
 (c)    Each Warrant Certificate shall be executed on behalf of the Company by the Chairman of the Board or its
President or a Vice President, either manually or by facsimile signature printed thereon, which shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. Each Warrant Certificate shall be
manually countersigned by the Warrant Agent and shall not be valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed any Warrant Certificate shall cease to be such officer of the Company before
countersignature by the Warrant Agent and issue and delivery thereof by the Company, such Warrant Certificate, nevertheless, may be countersigned by the Warrant Agent, issued and delivered with the same force and effect as though the person who
signed such Warrant Certificate had not ceased to be such officer of the Company. 
  
 3.    Subsequent Issue of Warrant Certificates.    Subsequent to their original issuance, no Warrant Certificates shall be reissued except (i) Warrant Certificates issued
upon transfer thereof in accordance with Section 4 hereof, (ii) Warrant Certificates issued upon any combination, split-up or exchange of Warrant Certificates pursuant to Section 4 hereof, (iii) Warrant Certificates issued in replacement of
mutilated, destroyed, lost or stolen Warrant Certificates pursuant to Section 5 hereof, (iv) Warrant Certificates issued upon the partial exercise of Warrant Certificates pursuant to Section 7 hereof, and (v) Warrant Certificates issued to reflect
any adjustment or change in the Exercise Price or the number or kind of shares purchasable thereunder pursuant to Section 22 hereof. The Warrant Agent is hereby irrevocably authorized to countersign and deliver, in accordance with the provisions of
said Sections 4, 5, 7 and 22, the new Warrant Certificates required for purposes thereof, and the Company, whenever required by the Warrant Agent, will supply the Warrant Agent with Warrant Certificates duly executed on behalf of the Company for
such purposes. 
  
 4.    Transfers and
Exchanges of Warrant Certificates. 
  

 2 

 (a)    The Warrant Agent will keep or cause to be kept books for
registration of ownership and transfer of the Warrant Certificates issued hereunder. Such registers shall show the names and addresses of the respective holders of the Warrant Certificates and the kind and number of Warrants evidenced by each such
Warrant Certificate. 
  
 (b)    The Warrant Agent shall, from time to time, register the transfer of any outstanding Warrants upon the books to be maintained by the Warrant Agent for that purpose, upon surrender of the Warrant Certificate
evidencing such Warrants, with the Form of Assignment duly filled in and executed with such signature guaranteed by a banking institution or NASD member and such supporting documentation as the Warrant Agent or the Company may reasonably require, to
the Warrant Agent at its stock transfer office in Cranford, New Jersey at any time on or before the Expiration Date of such Warrant, and upon payment to the Warrant Agent for the account of the Company of an amount equal to any applicable transfer
tax. Payment of the amount of such tax may be made in cash, or by certified or official bank check, payable in lawful money of the United States of America to the order of the Company. 
  
 (c)    Upon receipt of a Warrant Certificate, with the Form of Assignment duly filled in
and executed, accompanied by payment of an amount equal to any applicable transfer tax, the Warrant Agent shall promptly cancel the surrendered Warrant Certificate and countersign and deliver to the transferee a new Warrant Certificate for the
number of full Warrants transferred to such transferee; provided, however, that in case the registered holder of any Warrant Certificate shall elect to transfer fewer than all of the Warrants evidenced by such Warrant Certificate, the Warrant Agent
in addition shall promptly countersign and deliver to such registered holder a new Warrant Certificate or Certificates for the number of full Warrants not so transferred. 
  
 (d)    Any Warrant Certificate or Certificates may be exchanged at the option of the
holder thereof for another Warrant Certificate or Certificates of different denominations, of like tenor and representing in the aggregate the same kind and number of Warrants, upon surrender of such Warrant Certificate or Certificates, with the
Form of Assignment duly filled in and executed, to the Warrant Agent, at any time or from time to time after the close of business on the date hereof and prior to the close of business on the Expiration Date relating to such Warrant. The Warrant
Agent shall promptly cancel the surrendered Warrant Certificate and deliver the new Warrant Certificate pursuant to the provisions of this Section. 
  
 5.    Mutilated, Destroyed, Lost or Stolen Warrant Certificates.    Upon receipt by the Company and the
Warrant Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of any Warrant Certificate, and in the case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and
reimbursement to them of all reasonable expenses incidental thereto, and, in the case of mutilation, upon surrender and cancellation of the Warrant Certificate, the Warrant Agent shall countersign and deliver a new Warrant Certificate of like tenor
for the same kind and number of Warrants. 
  
 6.    Adjustments of Number and Kind of Shares Purchasable and Exercise Price.    The number and kind of securities or other property purchasable upon exercise of a Warrant shall be subject to
adjustment from time to time upon the occurrence, after the date hereof, of any of the following events: 
  

 3 

 (a)    In case the Company shall (1) pay a dividend in, or make a
distribution of, shares of capital stock on its outstanding Common Stock, (2) subdivide its outstanding shares of Common Stock into a greater number of such shares or (3) combine its outstanding shares of Common Stock into a smaller number of such
shares, the total number of shares of Common Stock purchasable upon the exercise of each Warrant outstanding immediately prior thereto shall be adjusted so that the holder of any Warrant Certificate thereafter surrendered for exercise shall be
entitled to receive at the same aggregate Exercise Price the number of shares of capital stock (of one or more classes) which such holder would have owned or have been entitled to receive immediately following the happening of any of the events
described above had such Warrant been exercised in full immediately prior to the record date with respect to such event. Any adjustment made pursuant to this Subsection shall, in the case of a stock dividend or distribution, become effective as of
the record date therefor and, in the case of a subdivision or combination, be made as of the effective date thereof. If, as a result of an adjustment made pursuant to this Subsection, the holder of any Warrant Certificate thereafter surrendered for
exercise shall become entitled to receive shares of two or more classes of capital stock of the Company, the Board of Directors of the Company (whose determination shall be conclusive and shall be evidenced by a Board resolution filed with the
Warrant Agent) shall determine the allocation of the adjusted Exercise Price between or among shares of such classes of capital stock. 
  
 (b)    In the event of a capital reorganization or a reclassification of the Common Stock (except as provided in
Subsection (a) above or Subsection (d) below), any Warrantholder, upon exercise of Warrants, shall be entitled to receive, in substitution for the Common Stock to which he would have become entitled upon exercise immediately prior to such
reorganization or reclassification, the shares (of any class or classes) or other securities or property of the Company (or cash) that he would have been entitled to receive at the same aggregate Exercise Price upon such reorganization or
reclassification if such Warrants had been exercised immediately prior to the record date with respect to such event; and in any such case, appropriate provision (as determined by the Board of Directors of the Company, whose determination shall be
conclusive and shall be evidenced by a certified Board resolution filed with the Warrant Agent) shall be made for the application of this Section 6 with respect to the rights and interests thereafter of the Warrantholders (including but not limited
to the allocation of the Exercise Price between or among shares of classes of capital stock), to the end that this Section 6 (including the adjustments of the number of shares of Common Stock or other securities purchasable and the Exercise Price
thereof) shall thereafter be reflected, as nearly as reasonably practicable, in all subsequent exercises of the Warrants for any shares or securities or other property (or cash) thereafter deliverable upon the exercise of the Warrants. 

 
 (c)    Whenever the number of shares
of Common Stock or other securities purchasable upon exercise of a Warrant is adjusted as provided in this Section 6, the Company will promptly file with the Warrant Agent a certificate signed by a Chairman or co-Chairman of the Board or the
President or a Vice President of the Company and by the Treasurer or Chief Financial Officer or an Assistant Treasurer or the Secretary or an Assistant Secretary of the Company setting forth the number and kind of securities or other property
purchasable upon exercise of a Warrant, as so adjusted, stating that such adjustments in the number or kind of shares or other securities or property conform to the requirements of this Section 6, and setting forth a brief statement of the facts
accounting for such adjustments. Promptly after receipt of such certificate, the Company, or the Warrant Agent at the Company’s request, will deliver, by 
  

 4 

 first-class, postage prepaid mail, a brief summary thereof (to be supplied by the Company) to the
registered holders of the outstanding Warrant Certificates; provided, however, that failure to file or to give any notice required under this Subsection, or any defect therein, shall not affect the legality or validity of any such adjustments under
this Section 6; and provided, further, that, where appropriate, such notice may be given in advance and included as part of the notice required to be given pursuant to Section 12 hereof. 
  
 (d)    In case of any consolidation of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result in any reclassification or change of the outstanding Common Stock), or in case of any sale or conveyance to another corporation of the property of the Company as an
entirety or substantially as an entirety, the corporation formed by such consolidation or merger or the corporation which shall have acquired such assets, as the case may be, shall execute and deliver to the Warrant Agent a supplemental warrant
agreement providing that the holder of each Warrant then outstanding shall have the right thereafter (until the expiration of such Warrant) to receive, upon exercise of such Warrant, solely the kind and amount of shares of stock and other securities
and property (or cash) receivable upon such consolidation, merger, sale or transfer by a holder of the number of shares of Common Stock of the Company for which such Warrant might have been exercised immediately prior to such consolidation, merger,
sale or transfer. Such supplemental warrant agreement shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided in this Section. The above provision of this Subsection shall similarly apply
to successive consolidations, mergers, sales or transfers. 
  
 The
Warrant Agent shall not be under any responsibility to determine the correctness of any provision contained in any such supplemental warrant agreement relating to either the kind or amount of shares of stock or securities or property (or cash)
purchasable by holders of Warrant Certificates upon the exercise of their Warrants after any such consolidation, merger, sale or transfer or of any adjustment to be made with respect thereto, but subject to the provisions of Section 20 hereof, may
accept as conclusive evidence of the correctness of any such provisions, and shall be protected in relying upon, a certificate of a firm of independent certified public accountants (who may be the accountants regularly employed by the Company) with
respect thereto. 
  
 (e)    Irrespective of any adjustments in the number or kind of shares issuable upon exercise of Warrants, Warrant Certificates theretofore or thereafter issued may continue to express the same price and number and kind
of shares as are stated in the similar Warrant Certificates initially issuable pursuant to this Warrant Agreement. 
  
 (f)    The Company may retain a firm of independent public accountants of recognized standing, which may be the firm
regularly retained by the Company, selected by the Board of Directors of the Company or the Executive Committee of said Board, and not disapproved by the Warrant Agent, to make any computation required under this Section, and a certificate signed by
such firm shall, in the absence of fraud or gross negligence, be conclusive evidence of the correctness of any computation made under this Section. 
  
 (g)    For the purpose of this Section, the term “Common Stock” shall mean (i) the Common Stock or
(ii) any other class of stock resulting from successive changes or 
  

 5 

 reclassifications of such Common Stock consisting solely of changes in par value, or from par value to no
par value, or from no par value to par value. In the event that at any time as a result of an adjustment made pursuant to this Section, the holder of any Warrant thereafter surrendered for exercise shall become entitled to receive any shares of
capital stock of the Company other than shares of Common Stock, thereafter the number of such other shares so receivable upon exercise of any Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Common Stock contained in this Section, and all other provisions of this Agreement, with respect to the Common Stock, shall apply on like terms to any such other shares. 
  
 (h)    The Company may, from time to
time and to the extent permitted by law, reduce the Exercise Price of the Warrants by any amount for a period of not less than 20 days. If the Company so reduces the Exercise Price of such Warrants, it will give not less than 15 days’ notice of
such decrease, which notice may be in the form of a press release, and shall take such other steps as may be required under applicable law in connection with any offers or sales of securities at the reduced price. 
  
 7.    Exercise and Redemption of
Warrants.    Unless the Warrants have been redeemed as provided in this Section 7, the registered holder of any Warrant Certificate may exercise the Warrants evidenced thereby, in whole at any time or in part from time to
time at or prior to the close of business on the Expiration Date relating to such Warrant, subject to the provisions of Section 8, at which time the Warrant Certificates shall be and become wholly void and of no value. Warrants may be exercised by
their holders or redeemed by the Company as follows: 
  
 (a)    Exercise of Warrants shall be accomplished upon surrender of the Warrant Certificate evidencing such Warrants, with the Form of Election to Purchase on the reverse side thereof duly filled in and executed, to the
Warrant Agent at its stock transfer office in Cranford, New Jersey, together with payment to the Company of the Exercise Price (as of the date of such surrender) of the Warrants then being exercised and an amount equal to any applicable transfer tax
and, if requested by the Company, any other taxes or governmental charges which the Company may be required by law to collect in respect of such exercise. Payment of the Exercise Price and other amounts may be made by wire transfer of good funds, or
by certified or bank cashier’s check, payable in lawful money of the United States of America to the order of the Company. No adjustment shall be made for any cash dividends, whether paid or declared, on any securities issuable upon exercise of
a Warrant. 
  
 (b)    Upon
receipt of a Warrant Certificate, with the Form of Election to Purchase duly filled in and executed, accompanied by payment of the Exercise Price of the Warrants being exercised (and of an amount equal to any applicable taxes or government charges
as aforesaid), the Warrant Agent shall promptly request from the Transfer Agent with respect to the securities to be issued and deliver to or upon the order of the registered holder of such Warrant Certificate, in such name or names as such
registered holder may designate, a certificate or certificates for the number of full shares of the securities to be purchased, together with cash made available by the Company pursuant to Section 8 hereof in respect of any fraction of a share of
such securities otherwise issuable upon such exercise. If the Warrant is then exercisable to purchase property other than securities, the Warrant Agent shall take appropriate steps to cause such property to be delivered to or upon the order of the
registered holder of such Warrant 
  

 6 

 Certificate. In addition, if it is required by law and upon instruction by the Company, the Warrant Agent
will deliver to each Warrantholder a prospectus which complies with the provisions of Section 9 of the Securities Act of 1933 and the Company agrees to supply Warrant Agent with sufficient number of prospectuses to effectuate that purpose.

  
 (c)    In case the
registered holder of any Warrant Certificate shall exercise fewer than all of the Warrants evidenced by such Warrant Certificate, the Warrant Agent shall promptly countersign and deliver to the registered holder of such Warrant Certificate, or to
his duly authorized assigns, a new Warrant Certificate or Certificates evidencing the number of Warrants that were not so exercised. 
  
 (d)    Each person in whose name any certificate for securities is issued upon the exercise of Warrants shall for all
purposes be deemed to have become the holder of record of the securities represented thereby as of, and such certificate shall be dated, the date upon which the Warrant Certificate was duly surrendered in proper form and payment of the Exercise
Price (and of any applicable taxes or other governmental charges) was made; provided, however, that if the date of such surrender and payment is a date on which the stock transfer books of the Company are closed, such person shall be deemed to have
become the record holder of such shares as of, and the certificate for such shares shall be dated, the next succeeding business day on which the stock transfer books of the Company are open (whether before, on or after the Expiration Date relating
to such Warrant) and the Warrant Agent shall be under no duty to deliver the certificate for such shares until such date. The Company covenants and agrees that it shall not cause its stock transfer books to be closed for a period of more than 20
consecutive business days except upon consolidation, merger, sale of all or substantially all of its assets, dissolution or liquidation or as otherwise provided by law. 
  
 (e)    The Warrants outstanding at the time of a redemption may be redeemed at the
option of the Company, in whole or in part on a pro-rata basis, by giving not less than 30 days prior notice as provided in Section 7(f) below, which notice may not be given before, but may be given at any time after, the last reported sale price of
the Common Stock on the principal exchange on which it is then traded has equaled or exceeded $7.20 per share (subject to appropriate adjustments as provided herein) on each of five consecutive trading days that occur subsequent to the date of this
Warrant Agreement. The price at which Warrants may be redeemed (the “Redemption Price”) is $0.25 per Warrant (subject to appropriate adjustments as provided herein). On and after the redemption date the holders of record of redeemed
Warrants shall be entitled to payment of the Redemption Price upon surrender of such redeemed Warrants to the Company at the office of the Warrant Agent designated for that purpose. 
  
 (f)    Notice of redemption of Warrants shall be given at least 30 days prior to the
redemption date by mailing, by registered or certified mail, return receipt requested, a copy of such notice to the Warrant Agent and to all of the holders of record of Warrants at their respective addresses appearing on the books or transfer
records of the Company or such other address designated in writing by the holder of record to the Warrant Agent not less than 40 days prior to the redemption date. 
  
 (g)    From and after the redemption date, all rights of the Warrantholders (except the
right to receive the Redemption Price) shall terminate, but only if (i) no later than one 
  

 7 

 day prior to the redemption date the Company shall have irrevocably deposited with the Warrant Agent as
paying agent a sufficient amount to pay on the redemption date the Redemption Price for all Warrants called for redemption and (ii) the notice of redemption shall have stated the name and address of the Warrant Agent and the intention of the Company
to deposit such amount with the Warrant Agent no later than one day prior to the redemption date. 
  
 (h)    On the Redemption Date, the Warrant Agent shall pay to the holders of record of redeemed Warrants all monies
received by the Warrant Agent for the redemption of Warrants to which the holders of record of such redeemed Warrants who shall have surrendered their Warrants are entitled. The Warrant Agent shall have no obligation to pay for the redemption of the
warrants except to the extent that funds for such payment have been provided to it by the Company. 
  
 (i)    Any amounts deposited with the Warrant Agent that are not required for redemption of Warrants may be withdrawn
by the Company. Any amounts deposited with the Warrant Agent that shall be unclaimed after six months after the redemption date shall be redelivered back to the Company, and thereafter the holders of the Warrants called for redemption for which such
funds were deposited shall look solely to the Company for payment. The Company shall be entitled to the interest, if any, on funds deposited with the Warrant Agent and the holders of redeemed Warrants shall have no right to any such interest. At the
instruction of the Company, the Warrant agent shall deposit or invest any and all funds deposited with it by the Company in connection with any redemption in federally insured, interest bearing accounts with the financial institution or institutions
typically used by the Warrant Agent for such purpose, and the Warrant Agent shall have no liability with respect to the performance of any such investments other than, in the case of funds deposited in accounts maintained by the Warrant Agent, the
liability of the Warrant Agent to its depositors in such accounts, generally. 
  
 (j)    If the Company fails to make a sufficient deposit with the Warrant Agent as provided above, the holder of any Warrants called for redemption may at the option of the holder (i) by notice to
the Company declare the notice of redemption a nullity as to such holder, or (ii) maintain an action against the Company for the Redemption Price. If the holder brings such an action, the Company will pay reasonable attorneys’ fees of the
holder. If the holder fails to bring an action against the Company for the Redemption Price within 60 days after the redemption date, the holder shall be deemed to have elected to declare the notice of redemption to be a nullity as to such holder
and such notice shall be without any force or effect as to such holder. Except as otherwise specifically provided in this Section 7(j), a notice of redemption, once mailed by the Company as provided in Section 7(f) shall be irrevocable. 

 
 8.    Fractional
Interests.    The Company shall not be required to issue any Warrant Certificate evidencing a fraction of a Warrant or to issue fractions of shares of securities on the exercise of the Warrants. If any fraction (calculated to
the nearest one-hundredth) of a Warrant or a share of securities would, except for the provisions of this Section, be issuable on the exercise of any Warrant, the Company shall, at its option, either purchase such fraction for an amount in cash
equal to the current value of such fraction computed on the basis of the closing market price (as quoted on the American Stock Exchange) on the trading day immediately preceding the day upon which such Warrant Certificate was surrendered for
exercise in accordance with Section 7 hereof or issue the required fractional Warrant or share. By accepting 
  

 8 

 a Warrant Certificate, the holder thereof expressly waives any right to receive a Warrant Certificate evidencing any
fraction of a Warrant or to receive any fractional share of securities upon exercise of a Warrant, except as expressly provided in this Section 8. 
  
 9.    Reservation of Equity Securities.    The Company covenants that it will at all times reserve and keep
available, free from any pre-emptive rights, out of its authorized and unissued equity securities, solely for the purpose of issue upon exercise of the Warrants, such number of shares of equity securities of the Company as shall then be issuable
upon the exercise of all outstanding Warrants (“Equity Securities”). The Company covenants that all Equity Securities which shall be so issuable shall, upon such issue, be duly authorized, validly issued, fully paid and
non-assessable. 
  
 The Company covenants that if any equity
securities, required to be reserved for the purpose of issue upon exercise of the Warrants hereunder, require registration with or approval of any governmental authority under any federal or state law before such shares may be issued upon exercise
of Warrants, the Company will use all commercially reasonable efforts to cause such securities to be duly registered, or approved, as the case may be, and, to the extent practicable, take all such action in anticipation of and prior to the exercise
of the Warrants, including, without limitation, filing or maintaining an appropriate registration statement, necessary to permit a public offering of the securities underlying the Warrants at any and all times during the term of this Agreement,
provided, however, that in no event shall such securities be issued, and the Company is authorized to refuse to honor the exercise of any Warrant, if such exercise would result in the opinion of the Company’s Board of Directors, upon advice of
counsel, in the violation of any law; and provided further that, in the case of a Warrant exercisable solely for securities listed on a securities exchange or for which there are at least three independent market makers, in lieu of obtaining such
registration or approval, the Company may elect to redeem Warrants submitted to the Warrant Agent for exercise for a price equal to the difference between the aggregate low asked price, or closing price, as the case may be, of the securities for
which such Warrant is exercisable on the date of such submission and the Exercise Price of such Warrants; in the event of such redemption, the Company will pay to the holder of such Warrants the above-described redemption price in cash within 10
business days after receipt of notice from the Warrant Agent that such Warrants have been submitted for exercise. 
  
 10.    Reduction of Conversion Price Below Par Value.    Before taking any action that would cause an
adjustment pursuant to Section 6 hereof reducing the portion of the Exercise Price required to purchase one share of capital stock below the then par value (if any) of a share of such capital stock, the Company will use its best efforts to take any
corporate action which, in the opinion of its counsel, may be necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such capital stock. 
  
 11.    Payment of Taxes.    The Company covenants and agrees that it will pay
when due and payable any and all federal and state documentary stamp and other original issue taxes which may be payable in respect of the original issuance of the Warrant Certificates, or any shares of Common Stock or other securities upon the
exercise of Warrants. The Company shall not, however, be required (a) to pay any tax which may be payable in respect of any transfer involved in the transfer and delivery of Warrant Certificates or the issuance or delivery of certificates for

  

 9 

 Common Stock or other securities in a name other than that of the registered holder of the Warrant Certificate
surrendered for purchase or (b) to issue or deliver any certificate for shares of Common Stock or other securities upon the exercise of any Warrant Certificate until any such tax shall have been paid, all such tax being payable by the holder of such
Warrant Certificate at the time of surrender. 
  
 12.    Notice of Certain Corporate Action.    In case the Company after the date hereof shall propose (a) to offer to the holders of Common Stock, generally, rights to subscribe to or purchase
any additional shares of any class of its capital stock, any evidences of its indebtedness or assets, or any other rights or options or (b) to effect any reclassification of Common Stock (other than a reclassification involving merely the
subdivision or combination of outstanding shares of Common Stock) or any capital reorganization, or any consolidation or merger to which the Company is a party and for which approval of any stockholders of the Company is required, or any sale,
transfer or other disposition of its property and assets substantially as an entirety, or the liquidation, voluntary or involuntary dissolution or winding-up of the Company, then, in each such case, the Company shall file with the Warrant Agent and
the Company, or the Warrant Agent on its behalf, shall mail (by first-class, postage prepaid mail) to all registered holders of the Warrant Certificates notice of such proposed action, which notice shall specify the date on which the books of the
Company shall close or a record be taken for such offer of rights or options, or the date on which such reclassification, reorganization, consolidation, merger, sale, transfer, other disposition, liquidation, voluntary or involuntary dissolution or
winding-up shall take place or commence, as the case may be, and which shall also specify any record date for determination of holders of Common Stock entitled to vote thereon or participate therein and shall set forth such facts with respect
thereto as shall be reasonably necessary to indicate any adjustments in the Exercise Price and the number or kind of shares or other securities purchasable upon exercise of Warrants which will be required as a result of such action. Such notice
shall be filed and mailed in the case of any action covered by clause (a) above, at least ten days prior to the record date for determining holders of the Common Stock for purposes of such action or, if a record is not to be taken, the date as of
which the holders of shares of Common Stock of record are to be entitled to such offering; and, in the case of any action covered by clause (b) above, at least 20 days prior to the earlier of the date on which such reclassification, reorganization,
consolidation, merger, sale, transfer, other disposition, liquidation, voluntary or involuntary dissolution or winding-up is expected to become effective and the date on which it is expected that holders of shares of Common Stock of record on such
date shall be entitled to exchange their shares for securities or other property deliverable upon such reclassification, reorganization, consolidation, merger, sale, transfer, other disposition, liquidation, voluntary or involuntary dissolution or
winding-up. 
  
 Failure to give any such notice or any defect
therein shall not affect the legality or validity of any transaction listed in this Section 12. 
  
 13.    Disposition of Proceeds on Exercise of Warrant Certificates, etc.    The Warrant Agent shall account
promptly to the Company with respect to Warrants exercised and concurrently pay to the Company all moneys received by the Warrant Agent for the purchase of securities or other property through the exercise of such Warrants. 
  
 The Warrant Agent shall keep copies of this Agreement available for
inspection by 
  

 10 

 Warrantholders during normal business hours at its stock transfer office. Copies of this Agreement may be obtained upon
written request addressed to the Warrant Agent at its stock transfer office in Cranford, New Jersey. 
  
 14.    Warrantholder Not Deemed a Stockholder.    No Warrantholder, as such, shall be entitled to vote,
receive dividends or be deemed the holder of Common Stock or any other securities of the Company which may at any time be issuable on the exercise of the Warrants represented thereby for any purpose whatever, nor shall anything contained herein or
in any Warrant Certificate be construed to confer upon any Warrantholder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value or change of stock to no par value, consolidation, merger, conveyance or
otherwise), or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 12 hereof), or to receive dividend or subscription rights, or otherwise, until such Warrant Certificate shall have been exercised in
accordance with the provisions hereof and the receipt of the Exercise Price and any other amounts payable upon such exercise by the Warrant Agent. 
  
 15.    Right of Action.    All rights of action in respect to this Agreement are vested in the respective
registered holders of the Warrant Certificates; and any registered holder of any Warrant Certificate, without the consent of the Warrant Agent or of any other holder of a Warrant Certificate, may, in his own behalf for his own benefit, enforce, and
may institute and maintain any suit, action or proceeding against the Company suitable to enforce, or otherwise in respect of, his right to exercise the Warrants evidenced by such Warrant Certificate, for the purchase of shares of the Common Stock
in the manner provided in the Warrant Certificate and in this Agreement. 
  
 16.    Agreement of Holders of Warrant Certificates.    Every holder of a Warrant Certificate by accepting the same consents and agrees with the Company, the Warrant
Agent and with every other holder of a Warrant Certificate that: 
  
 (a)    the Warrant Certificates are transferable on the registry books of the Warrant Agent only upon the terms and conditions set forth in this Agreement; and 
  
 (b)    the Company and the Warrant Agent
may deem and treat the person in whose name the Warrant Certificate is registered as the absolute owner of the Warrant (notwithstanding any notation of ownership or other writing thereon made by anyone other than the Company or the Warrant Agent)
for all purposes whatever and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. 
  
 17.    Cancellation of Warrant Certificates.    In the event that the Company shall purchase or otherwise
acquire any Warrant Certificate or Certificates after the issuance thereof, such Warrant Certificate or Certificates shall thereupon be delivered to the Warrant Agent and be canceled by it and retired. The Warrant Agent shall also cancel any Warrant
Certificate delivered to it for exercise, in whole or in part, or delivered to it for transfer, split-up, combination or exchange. Warrant Certificates so canceled shall be delivered by the Warrant 
  

 11 

 Agent to the Company from time to time, or disposed of in accordance with the instructions of the Company. 
  
 18.    Concerning the Warrant
Agent.    The Company agrees to pay to the Warrant Agent from time to time, on demand of the Warrant Agent, reasonable compensation for all services rendered by it hereunder and also its reasonable expenses, including counsel
fees, and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Warrant Agent for, and to hold it harmless against, any
loss, liability or expense (including the reasonable fees and expenses of a single counsel to the Warrant Agent), incurred without gross negligence, bad faith or willful misconduct on the part of the Warrant Agent, arising out of or in connection
with the acceptance and administration of this Agreement. 
  
 19.    Merger or Consolidation or Change of Name of Warrant Agent.    Any corporation into which the Warrant Agent may be merged or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Warrant Agent shall be a party, or any corporation succeeding to the corporate trust business of the Warrant Agent, shall be the successor to the Warrant Agent hereunder without the execution
or filing of any paper or any further act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor warrant agent under the provisions of Section 21 hereof. In case at the time such
successor to the Warrant Agent shall succeed to the agency created by this Agreement, any of the Warrant Certificates shall have been countersigned but not delivered, any such successor to the Warrant Agent may adopt the countersignature of the
original Warrant Agent and deliver such Warrant Certificates so countersigned; and in case at that time any of the Warrant Certificates shall not have been countersigned, any successor to the Warrant Agent may countersign such Warrant Certificates
either in the name of the predecessor Warrant Agent or in the name of the successor Warrant Agent; and in all such cases such Warrant Certificates shall have the full force provided in the Warrant Certificates and in this Agreement. 
  
 In case at any time the name of the Warrant Agent shall be changed and at
such time any of the Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent may adopt the countersignature under its prior name and deliver Warrant Certificates so countersigned; and in case at that time any of the
Warrant Certificates shall not have been countersigned, the Warrant Agent may countersign such Warrant Certificates either in its prior name or in its changed name; and in all such cases such Warrant Certificates shall have the full force provided
in the Warrant Certificates and in this Agreement. 
  
 20.    Duties of Warrant Agent.    The Warrant Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company and the
holders of Warrant Certificates, by their acceptance thereof, shall be bound: 
  
 (a)    The Warrant Agent may consult with counsel satisfactory to it (who may be counsel for the Company), and the opinion of such counsel shall be full and complete authorization and protection to
the Warrant Agent as to any action taken, suffered or omitted by it in good faith and in accordance with such opinion; provided, however, that the Warrant Agent 
  

 12 

 shall have exercised reasonable care in the selection of such counsel. Fees and expenses of such counsel,
to the extent reasonable, shall be paid by the Company. 
  
 (b)    Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary or desirable that any fact or matter be proved or established by the Company prior
to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by a Chairman or
co-Chairman of the Board or the President or a Vice President or the Secretary of the Company and delivered to the Warrant Agent; and such certificate shall be full authorization to the Warrant Agent for any action taken or suffered in good faith by
it under the provisions of this Agreement in reliance upon such certificate. 
  
 (c)    The Warrant Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct. 
  
 (d)    The Warrant Agent shall not be liable for or by reason of any of the statements
of fact or recitals contained in this Agreement or in the Warrant Certificates (except its countersignature on the Warrant Certificates and such statements or recitals as describe the Warrant Agent or action taken or to be taken by it) or be
required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 
  
 (e)    The Warrant Agent shall not be under any responsibility in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution hereof by the Warrant Agent) or in respect of the validity or execution of any Warrant Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Agreement or in any Warrant Certificate; nor shall it be responsible for the making of any change in the number of shares of Common Stock for which a Warrant is exercisable required under the
provisions of Section 6 or responsible for the manner, method or amount of any such change or the ascertaining of the existence of facts that would require any such adjustment or change (except with respect to the exercise of Warrant Certificates
after actual notice of any adjustment of the Exercise Price); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock to be issued pursuant to this
Agreement or any Warrant Certificate or as to whether any shares of Common Stock will, when issued, be validly issued, fully paid and non-assessable. 
  
 (f)    The Warrant Agent shall be under no obligation to institute any action, suit or legal proceeding or take any
other action likely to involve expense unless the Company or one or more registered holders of Warrant Certificates shall furnish the Warrant Agent with reasonable security and indemnity for any costs and expenses which may be incurred. All rights
of action under this Agreement or under any of the Warrants may be enforced by the Warrant Agent without the possession of any of the Warrants or the production thereof at any trial or other proceeding relative thereto, and any such action, suit or
proceeding instituted by the Warrant Agent shall be brought in its name as Warrant Agent, and any recovery of judgment shall be for the ratable benefit of the registered holders of the Warrant Certificates, as their respective rights or interests
may appear. 
  

 13 

 (g)    The Warrant Agent and any stockholder, director, officer or
employee of the Warrant Agent may buy, sell or deal in any of the Warrants or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to or otherwise
act as fully and freely as though it were not Warrant Agent under this Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity. 
  
 (h)    The Warrant Agent is hereby
authorized and directed to accept instructions with respect to the performance of its duties hereunder from a Chairman or co-Chairman of the Board or President or a Vice President or the Secretary of the Company, and to apply to such officers for
advice or instructions in connection with the Warrant Agent’s duties, and it shall not be liable for any action taken or suffered or omitted by it in good faith in accordance with instructions of any such officer. 
  
 (i)    The Warrant Agent will not be
responsible for any failure of the Company to comply with any of the covenants contained in this Agreement or in the Warrant Certificates to be complied with by the Company. 
  
 (j)    The Warrant Agent may execute and exercise any of the rights or powers hereby
vested in it or perform any duty hereunder either itself or by or through its attorneys, agents or employees and the Warrant Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys, agents or
employees or for any loss to the Company resulting from such neglect or misconduct; provided, however, that reasonable care shall have been exercised in the selection and continued employment of such attorneys, agents and employees. 
  
 (k)    The Warrant Agent will not incur
any liability or responsibility to the Company or to any holder of any Warrant Certificate for any action taken, or any failure to take action, in reliance on any notice, resolution, waiver, consent, order, certificate, or other paper, document or
instrument reasonably believed by the Warrant Agent to be genuine and to have been signed, sent or presented by the proper party or parties. 
  
 (l)    The Warrant Agent will act hereunder solely as agent of the Company in a ministerial capacity, and its duties
will be determined solely by the provisions hereof. The Warrant Agent will not be liable for anything which it may do or refrain from doing in connection with this Agreement except for its own gross negligence, bad faith or willful conduct.

  
 21.    Change of Warrant
Agent.    The Warrant Agent may resign and be discharged from its duties under this Agreement upon 30 days’ prior notice in writing mailed, by registered or certified mail, to the Company. The Company may remove the
Warrant Agent or any successor warrant agent upon 30 days’ prior notice in writing, mailed to the Warrant Agent or successor warrant agent, as the case may be, by registered or certified mail. If the Warrant Agent shall resign or be removed or
shall otherwise become incapable of acting, the Company shall appoint a successor to the Warrant Agent and shall, within 15 days following such appointment, give notice thereof in writing to each registered holder of the Warrant Certificates. If the
Company shall fail to make such appointment within a period of 15 days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the 
  

 14 

 resigning or incapacitated Warrant Agent, then the Company agrees to perform the duties of the Warrant Agent hereunder
until a successor Warrant Agent is appointed. After appointment and execution of a copy of this Agreement in effect at that time, the successor Warrant Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been
originally named as Warrant Agent without further act or deed; but the former Warrant Agent shall deliver and transfer to the successor Warrant Agent, within a reasonable time, any property at the time held by it hereunder, and execute and deliver
any further assurance, conveyance, act or deed necessary for the purpose. Failure to give any notice provided for in this Section, however, or any defect therein shall not affect the legality or validity of the resignation or removal of the Warrant
Agent or the appointment of the successor warrant agent, as the case may be. 
  
 22.    Issuance of New Warrant Certificates.    Notwithstanding any of the provisions of this Agreement or the several Warrant Certificates to the contrary, the Company
may, at its option, issue new Warrant Certificates in such form as may be approved by its Board of Directors to reflect any adjustment or change in the Exercise Price or the number or kind of shares purchasable under the several Warrant Certificates
made in accordance with the provisions of this Agreement. 
  
 23.    Notices.    Notice or demand pursuant to this Agreement to be given or made on the Company by the Warrant Agent or by the registered holder of any Warrant Certificate shall be
sufficiently given or made if sent by first-class or registered mail, postage prepaid, addressed (until another address is filed in writing by the Company with the Warrant Agent) as follows: 
  
 Path 1 Network Technologies, Inc. 
 6215 Ferris Square, Suite 140 
 San Diego,
California 92121 
 Attention: Chief Financial Officer; 
  
 Subject to the provisions of Section 21, any notice pursuant to this Agreement to be given or made by the Company or by the
holder of any Warrant Certificate to or on the Warrant Agent shall be sufficiently given or made if sent by first-class or registered mail, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company)
as follows: 
  
 Registrar and Transfer Company 
 10 Commerce Drive 
 Cranford, New Jersey 07016

 Attention: Dan Flynn 
  
 Any notice or demand authorized to be given or made to the registered holder of any Warrant Certificate under this Agreement shall be sufficiently given
or made if sent by first-class or registered mail, postage prepaid, to the last address of such holder as it shall appear on the registers maintained by the Warrant Agent. 
  
 24.    Modification of Agreement.    The Warrant Agent may, without the
consent or concurrence of the Warrantholders, by supplemental agreement or otherwise, concur with the Company in making any changes or corrections in this Agreement that the Warrant Agent shall have been advised by counsel (who may be counsel for
the Company) are necessary or desirable 
  

 15 

 to cure any ambiguity or to correct any defective or inconsistent provision or clerical omission or mistake or manifest
error herein contained, or to make any other provisions in regard to matters or questions arising hereunder and which shall not be inconsistent with the provisions of the Warrant Certificates and which shall not adversely affect the interests of the
Warrantholders. As of the date hereof, this Agreement contains the entire and only agreement, understanding, representation, condition, warranty or covenant between the parties hereto with respect to the matters herein, supersedes any and all other
agreements between the parties hereto relating to such matters, and may be modified or amended only by a written agreement signed by both parties hereto pursuant to the authority granted by the first sentence of this Section. 
  
 25.    Successors.    All the
covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective successors and assigns hereunder. 
  
 26.    Delaware
Contract.    This Agreement and each Warrant Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be construed in accordance with the laws of
said State. 
  
 27.    Termination.    This Agreement shall terminate as of the close of business on the Expiration Date, or such earlier date upon which all Warrants shall have been exercised or redeemed,
except that the Warrant Agent shall account to the Company as to all Warrants outstanding and all cash held by it as of the close of business on the Expiration Date. 
  
 28.    Benefits of this Agreement.    Nothing in this Agreement or in the
Warrant Certificates shall be construed to give to any person or corporation other than the Company, the Warrant Agent, and their respective successors and assigns hereunder and the registered holders of the Warrant Certificates any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Warrant Agent, their respective successors and assigns hereunder and the registered holders of the Warrant
Certificates. 
  
 29.    Descriptive
Headings.    The descriptive headings of the several Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 
  
 30.    Counterparts.    This
Agreement may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute one and the same instrument. 
  
  
 (Remainder of page intentionally left blank;
signature page follows) 
  

 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, all as of the day
and year first above written. 
  

	PATH 1 NETWORK TECHNOLOGIES, INC.
		
	 By:
	 	 /s/    FREDRICK A. CARY

	 	 	 Name: Fredrick A. Cary
 Title:
President

  
  

	[WARRANT AGENT]
		
	 By:
	 	 /s/    WILLIAM P. TATLER

	 	 	 Name: William P. Tatler
 Title:
Vice President

  

 17 

 Exhibit A 
  

VOID AFTER 5 P.M. PACIFIC TIME ON
                    , 2008 
  
 WARRANTS TO PURCHASE COMMON STOCK 
  
 W                                
             Warrants 
  
  
 Path 1 Network Technologies, Inc. 
  
 CUSIP
                     
  
 THIS CERTIFIES THAT 
  
  
 or registered assigns, is the registered holder of the number of Warrants (“Warrants”) set forth above. Each Warrant,
unless and until redeemed by the Company as provided in the Warrant Agreement, hereinafter more fully described (the “Warrant Agreement”) entitles the holder thereof to purchase from Path 1 Network Technologies, Inc., a corporation
incorporated under the laws of the State of Delaware the (“Company”), subject to the terms and conditions set forth hereinafter and in the Warrant Agreement, at any time on or after
                    , 2003 and before the close of business on
                    , 2008 (“Expiration Date”), one fully paid and non-assessable share of Common Stock, $0.001 par value, of
the Company (“Common Stock”) upon presentation and surrender of this Warrant Certificate, with the instructions for the registration and delivery of Common Stock filled in, at the stock transfer office in
                    , of
                    , Warrant Agent of the Company (“Warrant Agent”) or of its successor warrant agent or, if there be no
successor warrant agent, at the corporate offices of the Company, and upon payment of the Exercise Price (as defined in the Warrant Agreement) and any applicable taxes paid either in cash, or by certified or official bank check, payable in lawful
money of the United States of America to the order of the Company. Each Warrant initially entitles the holder to purchase one share of Common Stock for $             (subject to
appropriate adjustments as provided in the Warrant Agreement). The number and kind of securities or other property for which the Warrants are exercisable are subject to adjustment in certain events, such as mergers, splits, stock dividends, splits
and the like, to prevent dilution. The Company may redeem any or all outstanding and unexercised warrants by giving not less than 30 days prior notice at any time after the last reported sale price of the Common Stock on the principal exchange on
which it is traded has equaled or exceeded $             per share (subject to appropriate adjustments as provided in the Warrant Agreement) on each of five consecutive trading days
subsequent to                     , 2003. The Redemption Price is $0.25 (subject to appropriate adjustments as 

 provided in the Warrant Agreement) per Warrant. All Warrants not theretofore exercised will expire on the Expiration
Date. 
  
 This Warrant Certificate is subject to all of the terms,
provisions and conditions of the Warrant Agreement, dated as of                     , 2003, between the Company and the Warrant Agent, to all
of which terms, provisions and conditions the registered holder of this Warrant Certificate consents by acceptance hereof. The Warrant Agreement is incorporated herein by reference and made a part hereof and reference is made to the Warrant
Agreement for a full description of the rights, limitations of rights, obligations, duties and immunities of the Warrant Agent, the Company and the holders of the Warrant Certificates. Copies of the Warrant Agreement are available for inspection at
the stock transfer office of the Warrant Agent or may be obtained upon written request addressed to the Company at Path 1 Network Technologies, Inc., 6215 Ferris Square, Suite 140, San Diego, California 92121, Attention: Chief Financial Officer.

  
 The Company shall not be required upon the exercise of the
Warrants evidenced by this Warrant Certificate to issue fractions of Warrants, Common Stock or other securities, but shall make adjustment therefor in cash on the basis of the current market value of any fractional interest as provided in the
Warrant Agreement. 
  
 In certain cases, the sale of securities by
the Company upon exercise of Warrants would violate the securities laws of the United States, certain states thereof or other jurisdictions. The Company has agreed to use all commercially reasonable efforts to cause a registration statement to
continue to be effective during the term of the Warrants with respect to such sales under the Securities Act of 1933, and to take such action under the laws of various states as may be required to cause the sale of securities upon exercise to be
lawful. However, the Company will not be required to honor the exercise of Warrants if, in the opinion of the Board of Directors, upon advice of counsel, the sale of securities upon such exercise would be unlawful. In certain cases, the Company may,
but is not required to, purchase Warrants submitted for exercise for a cash price equal to the difference between the market price of the securities obtainable upon such exercise and the exercise price of such Warrants. 
  
 This Warrant Certificate, with or without other Certificates, upon surrender
to the Warrant Agent, any successor warrant agent or, in the absence of any successor warrant agent, at the corporate offices of the Company, may be exchanged for another Warrant Certificate or Certificates evidencing in the aggregate the same
number of Warrants as the Warrant Certificate or Certificates so surrendered. If the Warrants evidenced by this Warrant Certificate shall be exercised in part, the holder hereof shall be entitled to receive upon surrender hereof another Warrant
Certificate or Certificates evidencing the number of Warrants not so exercised. 
  
 No holder of this Warrant Certificate, as such, shall be entitled to vote, receive dividends or be deemed the holder of Common Stock or any other securities of the Company which may at any time be issuable on the
exercise hereof for any purpose whatever, nor shall anything contained in the Warrant Agreement or herein be construed to confer upon the holder of this Warrant Certificate, as such, any of the rights of a stockholder of the Company or any right to
vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof or give or withhold consent to any corporate action (whether upon any matter submitted 
  

 2 

 to stockholders at any meeting thereof, or give or withhold consent to any merger, recapitalization, issuance of stock,
reclassification of stock, change of par value or change of stock to no par value, consolidation, conveyance or otherwise) or to receive notice of meetings or other actions affecting stockholders (except as provided in the Warrant Agreement) or to
receive dividends or subscription rights or otherwise until the Warrants evidenced by this Warrant Certificate shall have been exercised and the Common Stock purchasable upon the exercise thereof shall have become deliverable as provided in the
Warrant Agreement. 
  
 If this Warrant Certificate shall be
surrendered for exercise within any period during which the transfer books for the Company’s Common Stock or other class of stock purchasable upon the exercise of the Warrants evidenced by this Warrant Certificate are closed for any purpose,
the Company shall not be required to make delivery of certificates for shares purchasable upon such transfer until the date of the reopening of said transfer books. 
  
 Every holder of this Warrant Certificate by accepting the same consents and agrees with the Company, the Warrant Agent, and
with every other holder of a Warrant Certificate that: 
  
 (a)    this Warrant Certificate is transferable on the registry books of the Warrant Agent only upon the terms and conditions set forth in the Warrant Agreement, and 
  
 (b)    the Company and the Warrant Agent may deem and
treat the person in whose name this Warrant Certificate is registered as the absolute owner hereof (notwithstanding any notation of ownership or other writing thereon made by anyone other than the Company or the Warrant Agent) for all purposes
whatever and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary. The Company shall not be required to issue or deliver any certificate for shares of Common Stock or other securities upon the exercise of
Warrants evidenced by this Warrant Certificate until any tax which may be payable in respect thereof by the holder of this Warrant Certificate pursuant to the Warrant Agreement shall have been paid, such tax being payable by the holder of this
Warrant Certificate at the time of surrender. 
  
 This Warrant
Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Warrant Agent. 
  
 (Remainder of page intentionally left blank; signature page follows) 
  

 3 

 WITNESS the facsimile signatures of the proper officers of the Company and its corporate seal.

  
 Dated:
                     
  

	PATH 1 NETWORK TECHNOLOGIES, INC.
		
	 By:
	 	  

	 	 	 Name: Fredrick A. Cary
 Title:
President

  

		
	 Attest:
	 	  

	 	 	Secretary

  

	
	Countersigned:
		
	 By:
	 	  

	 	 	Authorized Officer

  

 4 

 [TO BE PRINTED ON BACK OF CERTIFICATE] 
  
 FORM OF ELECTION TO PURCHASE 
  

The undersigned holder hereby exercises the right to purchase
                         of the shares of common stock (the “Warrant Shares”) of PATH 1 NETWORK
TECHNOLOGIES INC., a Delaware corporation (the “Company”), evidenced by the attached Warrant (the “Warrant”). Capitalized terms used herein and not otherwise defined have the respective meanings set forth in the
Warrant. 
  
 1.    Payment of Warrant
Exercise Price.    The holder has paid in connection with this exercise the sum of
$                             to the Company in accordance with the terms of the Warrant. 

 
 2. Delivery of Warrant Shares. The Company shall deliver to the
holder                      Warrant Shares in accordance with the terms of the Warrant. 
  
 Dated:
                        ,          
  

	
	

	(Name of Registered Holder)

  

		
	 By:
	 	  

	 	 	 Name:
 Title:

  
 FORM OF
ASSIGNMENT 
  
 FOR VALUE RECEIVED, the undersigned does hereby assign and
transfer to                     , Federal Identification No.
                , a warrant to purchase
                         shares of the common stock of PATH 1 NETWORK TECHNOLOGIES INC, a Delaware corporation,
represented by warrant certificate no.         , standing in the name of the undersigned on the books of said corporation. The undersigned does hereby irrevocably constitute and appoint
                        , attorney to transfer the warrants of said corporation, with full power of substitution in the
premises. 
  
 Dated:
                        ,          
  

	
	

	(Name of Registered Holder)

  

		
	 By:
	 	  

	 	 	 Name:
 Title:

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