Document:

Unassociated Document

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (“Agreement”)
      is
      entered into as of October
      16, 2006,
      by and
      among INNOVATIVE SOFTWARE TECHNOLOGIES, INC., a California corporation with
      offices at 3998 FAU Blvd., Bldg. 1-210, Boca Raton, Florida (the “Company”),
      and
      each of the parties identified as “Purchasers” on the signature pages hereto
      (collectively and individually, the “Purchaser”).

     

    WITNESSETH:

    

    WHEREAS,
      the
      Company has issued to the Purchasers one or more Convertible Promissory Notes
      on
      the dates and in the amounts set forth on each Purchaser’s respective signature
      page hereto (the “Notes”).

     

    WHEREAS,
      in
      connection with the issuance of the Notes, the Purchasers have acquired from
      the
      Company warrants to purchase shares of common stock, par value $.001 per share,
      of the Company (“Common
      Stock”)
      in the
      amounts and on the dates set forth on each Purchaser’s respective signature page
      hereto (the “Warrants”).

     

    WHEREAS,
      the
      Notes
      are convertible into shares of Common Stock under the circumstances and pursuant
      to the terms and conditions set forth in the Notes (the “Conversion
      Shares”),
      and
      the Warrants contemplate that the Warrants will be exercisable into shares
      of
      Common Stock pursuant to the terms and conditions set forth in the Warrants
      (the
“Warrant
      Shares”).

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises, representations, warranties, covenants
      and
      conditions set forth in this Agreement, the Company and the Purchaser agree
      as
      follows:

     

    1. Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the following respective
      meanings:

     

    “Commission”
or
      “SEC”
shall
      mean the Securities and Exchange Commission or any other federal agency at
      the
      time administering the Securities Act.

     

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

     

    “Holder”
and
      “Holders”
shall
      mean the Purchaser and any permitted transferee or transferees of Registrable
      Securities (as defined below), Notes, or Warrants that have not been sold to
      the
      public and to whom the registration rights conferred by this Agreement have
      been
      transferred in compliance with this Agreement; provided that neither such person
      nor any affiliate of such person is registered as a broker or dealer under
      Section 15(a) of the Securities Exchange Act of 1934, as amended, or a member
      of
      the National Association of Securities Dealers, Inc.

     

    The
      terms
“register,”
      “registered”
and
      “registration”
shall
      refer to a registration effected by preparing and filing a registration
      statement in compliance with the Securities Act and applicable rules and
      regulations thereunder, and the declaration or ordering of the effectiveness
      of
      such registration statement.

     

    
      
         

      

      
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    “Registrable
      Securities”
shall
      mean (i) the Conversion Shares and Warrant Shares and (ii) other shares of
      Common Stock issued or issuable to each Holder or its permitted transferee
      or
      designee (a) upon any exchange of or any replacement of the Notes or Warrants,
      or (b) upon any conversion, exercise or exchange of any securities issued
      in connection with any such exchange or replacement; provided that all such
      shares shall cease to be Registrable Securities at such time as they have been
      sold under a registration statement or pursuant to Rule 144 under the Securities
      Act or otherwise or at such time as they are eligible to be sold pursuant to
      Rule 144(k). 

     

    “Registration
      Expenses”
shall
      mean all expenses to be incurred by the Company in connection with each Holder’s
      registration rights under this Agreement, including, without limitation, all
      registration and filing fees, printing expenses, fees and disbursements of
      counsel for the Company, blue sky fees and expenses, and the expense of any
      special audits incident to or required by any such registration.

     

    “Regulation
      D”
shall
      mean Regulation D as promulgated pursuant to the Securities Act, and as
      subsequently amended.

     

    “Securities
      Act”
or
      “Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “Selling
      Expenses”
shall
      mean all underwriting discounts and selling commissions applicable to the sale
      of Registrable Securities, including all fees and disbursements of counsel
      for a
      Holder in connection with the exercise of Holder’s rights
      hereunder.

     

    2. Piggyback
      Registration

     

    (a) If
      (but
      without any obligation to do so) the Company proposes to register (including
      for
      this purpose a registration effected by the Company for persons or entities
      other than the Holders) any Common Stock in connection with the public offering
      of such Common Stock (other than a registration relating solely to the sale
      of
      securities of participants in a Company stock plan, a registration relating
      to a
      corporate reorganization or transaction under Rule 145 of the Act, a
      registration on any form that does not include substantially the same
      information as would be required to be included in a registration statement
      covering the sale of the Registrable Securities, or a registration in which
      the
      only Common Stock being registered is Common Stock issuable upon conversion
      of
      debt securities that are also being registered), the Company shall, at such
      time, promptly give each Holder written notice of such registration. Upon the
      written request of each Holder given within ten (10) days after mailing of
      such
      notice by the Company in accordance with Section 15(c), the Company shall,
      subject to the provisions of Section 2(c), use reasonable commercial
      efforts to cause to be registered under the Act all of the Registrable
      Securities that each such Holder requests to be registered.

     

    (b) The
      Company shall have the right to terminate or withdraw any registration initiated
      by it under this Section 2 prior to the effectiveness of such registration
      whether or not any Holder has elected to include securities in such
      registration. 

     

    
      
         

      

      
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    (c) In
      connection with any offering involving an underwriting of shares of the
      Company’s Common Stock, the Company shall not be required under this
      Section 2 to include any of the Holders’ securities in such underwriting
      unless they accept the terms of the underwriting as agreed upon between the
      Company and the underwriters selected by the Company (or by other persons
      entitled to select the underwriters) and enter into an underwriting agreement
      in
      customary form with such underwriters, and then only in such quantity as the
      underwriters determine in their sole discretion will not jeopardize the success
      of the offering by the Company. If the total amount of Registrable Securities
      requested to be included in such offering exceeds the amount of Registrable
      Securities that the underwriters determine in their sole discretion is
      compatible with the success of the offering (after taking into account the
      maximum number of shares to be sold by the Company and the other selling
      stockholders, if any, in the offering), then the Company shall be required
      to
      include in the offering only that number of Registrable Securities that the
      underwriters determine in their sole discretion will not jeopardize the success
      of the offering. In the event that the underwriters determine that less than
      all
      of the Registrable Securities requested to be registered can be included in
      such
      offering, then the Registrable Securities that are included in such offering
      shall be apportioned pro rata among the selling Holders based on the number
      of
      Registrable Securities held by all selling Holders or in such other proportions
      as shall mutually be agreed to by all such selling Holders. 

     

    3. [intentionally
      left blank]

     

    4. Obligations
      of the Company

     

    5. .
      Whenever required under Section 2 of this Agreement to effect the
      registration of any Registrable Securities, the Company shall, as expeditiously
      as reasonably possible:

     

    (a) prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use reasonable commercial efforts
      to cause such registration statement to become effective and keep such
      registration statement effective for a period of up to one hundred twenty (120)
      days or, if earlier, until the distribution contemplated in the registration
      statement has been completed or the Conversion Shares and Warrant Shares can
      be
      sold pursuant to Rule 144 under the Act;

     

    (b) prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Act with respect to
      the
      disposition of all securities covered by such registration
      statement;

     

    (c) furnish
      to the Holders such number of copies of a prospectus, including a preliminary
      prospectus, in conformity with the requirements of the Act, and such other
      documents as they may reasonably request in order to facilitate the disposition
      of Registrable Securities owned by them;

     

    (d) notify
      the Holders promptly and, if requested, confirm such advice in writing (i)
      when
      a registration statement has become effective and when any post-effective
      amendments and supplements thereto become effective, and (ii) of the issuance
      by
      the SEC or any state securities commission of any stop order suspending the
      effectiveness of a registration statement; and

     

    
      
         

      

      
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    (e) use
      best
      efforts to register and qualify the securities covered by such registration
      statement under such other securities or Blue Sky laws of such jurisdictions
      as
      shall be reasonably requested by the Holders.

     

    Notwithstanding
      the provisions of this Section 4, the Company shall be entitled to postpone
      or
      suspend, for a reasonable period of time and upon written notice to the Holders
      (a “Suspension Notice”), the filing, effectiveness or use of, or trading under,
      any registration statement if the Company shall determine that any such filing
      or the sale of any securities pursuant to such registration statement would
      in
      the good faith judgment of the Board of Directors of the Company:

     

    (A) materially
      impede, delay or interfere with any material pending or proposed financing,
      acquisition, corporate reorganization or other similar transaction involving
      the
      Company for which the Board of Directors of the Company has authorized
      negotiations;

     

    (B) materially
      adversely impair the consummation of any pending or proposed material offering
      or sale of any class of securities by the Company; or

     

    (C) require
      disclosure of material nonpublic information that, if disclosed at such time,
      would be materially harmful to the interests of the Company and its
      stockholders; provided,
      however,
      that
      during any such period all executive officers and directors of the Company
      are
      also prohibited from selling securities of the Company (or any security of
      any
      of the Company’s subsidiaries or affiliates).

     

    In
      the
      event of the suspension of effectiveness of any registration statement pursuant
      to this Section 4, the applicable time period during which such registration
      statement is to remain effective shall be extended by that number of days equal
      to the number of days the effectiveness of such registration statement was
      suspended.

     

    5.
      [Intentionally left blank]

     

    6. Expenses
      of Registration. All
      Registration Expenses in connection with any registration, qualification or
      compliance with registration pursuant to this Agreement shall be borne by the
      Company, and all Selling Expenses of a Holder shall be borne by such
      Holder.

     

    7. Indemnification.
      

     

    
      
         

      

      
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    (a) Company
      Indemnity.
      The
      Company will indemnify each Holder, each of its officers, directors, agents
      and
      partners, and each person controlling each of the foregoing, within the meaning
      of Section 15 of the Securities Act and the rules and regulations thereunder
      with respect to which registration, qualification or compliance has been
      effected pursuant to this Agreement, and each underwriter, if any, and each
      person who controls, within the meaning of Section 15 of the Securities Act
      and
      the rules and regulations thereunder, any underwriter, against all claims,
      losses, damages and liabilities (or actions in respect thereof) arising out
      of
      or based on any untrue statement (or alleged untrue statement) of a material
      fact contained in any final prospectus (as amended or supplemented if the
      Company files any amendment or supplement thereto with the SEC), registration
      statement filed pursuant to this Agreement or any post-effective amendment
      thereof or based on any omission (or alleged omission) to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading in light of the circumstances under which they were
      made,
      or any violation by the Company of the Securities Act or any state securities
      law or in either case, any rule or regulation thereunder applicable to the
      Company and relating to action or inaction required of the Company in connection
      with any such registration, qualification or compliance, and will reimburse
      each
      Holder, each of its officers, directors, agents and partners, and each person
      controlling each of the foregoing, for any reasonable legal fees of a single
      counsel and any other expenses reasonably incurred in connection with
      investigating and defending any such claim, loss, damage, liability or action,
      provided that the Company will not be liable in any such case to a Holder to
      the
      extent that any such claim, loss, damage, liability or expense arises out of
      or
      is based on (i) any untrue statement or omission based upon written information
      furnished to the Company by such Holder or underwriter (if any) therefor and
      stated to be specifically for use therein, (ii) any failure by any Holder to
      comply with prospectus delivery requirements or the Securities Act or Exchange
      Act or any other law or legal requirement applicable to them or any covenant
      or
      agreement contained in this Agreement or (iii) an offer of sale of Conversion
      Shares or Warrant Shares occurring during a period in which sales under the
      registration statement are suspended as permitted by this Agreement. The
      indemnity agreement contained in this Section 7(a) shall not apply to amounts
      paid in settlement of any such loss, claim, damage, liability or action if
      such
      settlement is effected without the consent of the Company (which consent will
      not be unreasonably withheld).

     

    (b) Holder
      Indemnity.
      Each
      Holder will, severally but not jointly, if Registrable Securities held by it
      are
      included in the securities as to which such registration, qualification or
      compliance is being effected, indemnify the Company, each of its directors,
      officers, agents and partners, and any other stockholder selling securities
      pursuant to the registration statement and any of its directors, officers,
      agents, partners, and any person who controls such stockholder within the
      meaning of the Securities Act or Exchange Act and each underwriter, if any,
      of
      the Company’s securities covered by such a registration statement, each person
      who controls the Company or such underwriter within the meaning of Section
      15 of
      the Securities Act and the rules and regulations thereunder, each other Holder
      (if any), and each of their officers, directors and partners, and each person
      controlling such other Holder(s) against all claims, losses, damages and
      liabilities (or actions in respect thereof) arising out of or based on (i)
      any
      untrue statement (or alleged untrue statement) of a material fact contained
      in
      any such final prospectus (as amended or supplemented if the Company files
      any
      amendment or supplement thereto with the SEC), registration statement filed
      pursuant to this Agreement or any post-effective amendment thereof or based
      on
      any omission (or alleged omission) to state therein a material fact required
      to
      be stated therein or necessary to make the statement therein not misleading
      in
      light of the circumstances under which they were made or (ii) failure by any
      Holder to comply with prospectus delivery requirements or the Securities Act,
      Exchange Act or any other law or legal requirement applicable to them or any
      covenant or agreement contained in this Agreement, and will reimburse the
      Company and such other Holder(s) and their directors, officers and partners,
      underwriters or control persons for any reasonable legal fees or any other
      expenses reasonably incurred in connection with investigating and defending
      any
      such claim, loss, damage, liability or action, in each case to the extent,
      but
      only to the extent, that such untrue statement (or alleged untrue statement)
      or
      omission (or alleged omission) is made in such final prospectus (as amended
      or
      supplemented if the Company files any amendment or supplement thereto with
      the
      SEC), registration statement filed pursuant to this Agreement or any
      post-effective amendment thereof in reliance upon and in conformity with written
      information furnished to the Company by such Holder and stated to be
      specifically for use therein, and provided that the maximum amount for which
      such Holder shall be liable under this indemnity shall not exceed the net
      proceeds received by the Holders from the sale of the Registrable Securities
      pursuant to the registration statement in question. The indemnity agreement
      contained in this Section 7(b) shall not apply to amounts paid in settlement
      of
      any such claims, losses, damages or liabilities if such settlement is effected
      without the consent of such Holder (which consent shall not be unreasonably
      withheld).

     

    
      
         

      

      
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    (c) Procedure.
      Each
      party entitled to indemnification under this Section 7 (the “Indemnified
      Party”)
      shall
      give notice to the party required to provide indemnification (the “Indemnifying
      Party”)
      promptly after such Indemnified Party has actual knowledge of any claim as
      to
      which indemnity may be sought, and shall permit the Indemnifying Party to assume
      the defense of any such claim in any litigation resulting therefrom, provided
      that counsel for the Indemnifying Party, who shall conduct the defense of such
      claim or any litigation resulting therefrom, shall be approved by the
      Indemnified Party (whose approval shall not be unreasonably withheld), and
      the
      Indemnified Party may participate in such defense at its own expense, and
      provided further that the failure of any Indemnified Party to give notice as
      provided herein shall not relieve the Indemnifying Party of its obligations
      under this Section 7 except to the extent that the Indemnifying Party is
      materially and adversely affected by such failure to provide notice. No
      Indemnifying Party, in the defense of any such claim or litigation, shall,
      except with the consent of each Indemnified Party, consent to entry of any
      judgment or enter into any settlement which does not include as an unconditional
      term thereof the giving by the claimant or plaintiff to such Indemnified Party
      of a release from all liability in respect to such claim or litigation. Each
      Indemnified Party shall furnish such non-privileged information regarding itself
      or the claim in question as an Indemnifying Party may reasonably request in
      writing and as shall be reasonably required in connection with the defense
      of
      such claim and litigation resulting therefrom.

     

    8. Contribution.
      If the
      indemnification provided for in Section 7 herein is unavailable to the
      Indemnified Parties in respect of any losses, claims, damages or liabilities
      referred to herein (other than by reason of the exceptions provided therein),
      then each such Indemnifying Party, in lieu of indemnifying such Indemnified
      Party, shall contribute to the amount paid or payable by such Indemnified Party
      as a result of such losses, claims, damages or liabilities as between the
      Company on the one hand and any Holder(s) on the other, in such proportion
      as is
      appropriate to reflect the relative fault of the Company and of such Holder(s)
      in connection with the statements or omissions which resulted in such losses,
      claims, damages or liabilities, as well as any other relevant equitable
      considerations. The relative fault of the Company on the one hand and of any
      Holder(s) on the other shall be determined by reference to, among other things,
      whether the untrue or alleged untrue statement of a material fact or omission
      or
      alleged omission to state a material fact relates to information supplied by
      the
      Company or by such Holder(s).

     

    In
      no
      event shall the obligation of any Indemnifying Party to contribute under this
      Section 8 exceeds the amount that such Indemnifying Party would have been
      obligated to pay by way of indemnification if the indemnification provided
      for
      under Section 7(a) or 7(b) hereof had been available under the
      circumstances.

     

    
      
         

      

      
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    The
      Company and the Holders agree that it would not be just and equitable if
      contribution pursuant to this Section 8 were determined by pro rata allocation
      (even if the Holders were treated as one entity for such purpose) or by any
      other method of allocation which does not take account of the equitable
      considerations referred to in the immediately preceding paragraphs. The amount
      paid or payable by an Indemnified Party as a result of the losses, claims,
      damages and liabilities referred to in the immediately preceding paragraphs
      shall be deemed to include, subject to the limitations set forth above, any
      legal or other expenses reasonably incurred by such Indemnified Party in
      connection with investigating or defending any such action or claim.
      Notwithstanding the provisions of this Section, no Holder shall be required
      to
      contribute any amount in excess of the amount equal to the net proceeds received
      by such Holder from the sale of Registrable Securities pursuant to the
      registration statement in question. No person guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Securities Act)
      shall be entitled to contribution from any person who was not guilty of such
      fraudulent misrepresentation.

     

    9. Survival.
      The
      indemnity and contribution agreements contained in Sections 7 and 8 shall remain
      operative and in full force and effect regardless of (i) any termination of
      this
      Agreement, and (ii) the consummation of the sale or successive resales of the
      Registrable Securities.

     

    10. Information
      by Holders.
      As a
      condition to the obligations of the Company to complete any registration
      pursuant to this Agreement with respect to the Registrable Securities of each
      Holder, such Holder will furnish to the Company such information regarding
      itself, the Registrable Securities held by it and the intended methods of
      disposition of the Registrable Securities held by it as is reasonably required
      by the Company to effect the registration of the Registrable Securities. At
      least ten business days prior to the first anticipated filing date of a
      registration statement for any registration under this Agreement, the Company
      will notify each Holder of the information the Company requires from that Holder
      whether or not such Holder has elected to have any of its Registrable Securities
      included in the registration statement. If the Company has not received the
      requested information from a Holder by the business day prior to the anticipated
      filing date, then the Company may file the registration statement without
      including Registrable Securities of that Holder.

     

    11. Further
      Assurances.
      Each
      Holder will cooperate with the Company, as reasonably requested by the Company,
      in connection with the preparation and filing of any registration statement
      hereunder, unless such Holder has notified the Company in writing of such
      Holder’s irrevocable election to exclude all of such Holder’s Registrable
      Securities from such registration statement.

     

    12. Suspension
      of Sales.
      Upon
      receipt of any Suspension Notice from the Company, each Holder will immediately
      discontinue disposition of Registrable Securities pursuant to the registration
      statement covering such Registrable Securities until (i) it receives copies
      of a
      supplemented or amended prospectus or (ii) the Company advises the Holder that
      a
      suspension of sales under Section 4 has terminated. If so directed by the
      Company, each Holder will deliver to the Company (at the expense of the Company)
      or destroy all copies in the Holder’ s possession (other than a limited number
      of file copies) of the prospectus covering such Registrable Securities that
      is
      current at the time of receipt of such notice.

     

    
      
         

      

      
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    13. Replacement
      Certificates.
      The
      certificate(s) representing the Conversion Shares or Warrant Shares held by
      the
      Purchaser (or then Holder) may be exchanged by the Purchaser (or such Holder)
      at
      any time and from time to time for certificates with different denominations
      representing an equal aggregate number of shares of Common Stock, as reasonably
      requested by such Purchaser (or such Holder) upon surrendering the same. No
      service charge will be made for such registration or transfer or exchange.
      

     

    14. Transfer
      or Assignment.
      Except
      as otherwise provided herein, this Agreement shall be binding upon and inure
      to
      the benefit of the parties and their successors and permitted assigns. The
      rights granted to the Purchaser by the Company under this Agreement to cause
      the
      Company to register Registrable Securities may be transferred or assigned (in
      whole or in part) to a transferee or assignee of the Notes or Warrants, and
      all
      other rights granted to the Purchaser by the Company hereunder may be
      transferred or assigned to any transferee or assignee of the Notes, Warrants,
      or
      Registrable Securities; provided in each case that (i) the Company is given
      written notice by the Purchaser at the time of or within a reasonable time
      after
      such transfer or assignment, stating the name and address of said transferee
      or
      assignee and identifying the securities with respect to which such registration
      rights are being transferred or assigned; and provided further that the
      transferee or assignee of such rights agrees in writing to be bound by the
      registration provisions of this Agreement, (ii) such transfer or assignment
      is
      made in accordance with applicable law and is not made under the registration
      statement or Rule 144, (iii) such transfer is made according to the applicable
      requirements of the Note or Warrant, as the case may be, and (iv) the transferee
      has provided to the Company an investor questionnaire (or equivalent document)
      evidencing that the transferee is a “qualified institutional buyer” or an
“accredited investor” defined in Rule 501(a)(1),(2),(3), or (7) of Regulation
      D.

     

    15. Miscellaneous.

     

    (a) Remedies.
      The
      Company and the Purchaser acknowledge and agree that irreparable damage would
      occur in the event that any of the provisions of this Agreement were not
      performed in accordance with their specific terms or were otherwise breached.
      It
      is accordingly agreed that the parties shall be entitled to an injunction or
      injunctions to prevent or cure breaches of the provisions of this Agreement
      and
      to enforce specifically the terms and provisions hereof, this being in addition
      to any other remedy to which any of them may be entitled by law or
      equity.

     

    (b) Jurisdiction.
      Each of
      the Company and the Purchaser (i) hereby irrevocably submit to the exclusive
      jurisdiction of the state and federal courts sitting in Broward and Hillsborough
      County, Florida for the purposes of any suit, action or proceeding arising
      out
      of or relating to this Agreement and (ii) hereby waives, and agrees not to
      assert in any such suit action or proceeding, any claim that it is not
      personally subject to the jurisdiction of such court, that the suit, action
      or
      proceeding is brought in an inconvenient forum or that the venue of the suit,
      action or proceeding is improper. The Company and the Purchaser consent to
      process being served in any such suit, action or proceeding by mailing a copy
      thereof to such party at the address in effect for notices to it under this
      Agreement and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing in this paragraph shall affect
      or
      limit any right to serve process in any other manner permitted by
      law.

     

    
      
         

      

      
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    (c) Notices.
      Any
      notice or other communication required or permitted to be given hereunder shall
      be in writing by facsimile, mail or personal delivery and shall be effective
      upon actual receipt of such notice. The addresses for such communications shall
      be:

     

    If
      to the
      Company:

     

    Innovative
      Software Technologies, Inc.

    3998
      FAU
      Boulevard, Suite 210

    Boca
      Raton, FL 33431

    Fax:
      (561) 417 - 7253

    Attention:
      Christopher J. Floyd, Chief Financial Officer

    

    If
      to the
      Purchasers, to the addresses set forth on their respective signature pages
      hereto:

     

    

    Any
      party
      hereto may from time to time change its address for notices by giving at least
      five days’ written notice of such changed address to the other parties hereto.

     

    (d) Waivers.
      No
      waiver by any party of any default with respect to any provision, condition
      or
      requirement of this Agreement shall be deemed to be a continuing waiver in
      the
      future or a waiver of any other provision, condition or requirement hereof,
      nor
      shall any delay or omission of any party to exercise any right hereunder in
      any
      manner impair the exercise of any such right accruing to it thereafter. The
      representations and warranties and the agreements and covenants of the Company
      and each Purchaser contained herein shall survive the closing of the transaction
      contemplated by this Agreement. 

     

    (e) Execution
      in Counterpart.
      This
      Agreement may be executed in two or more counterparts, all of which shall be
      considered one and the same agreement, it being understood that all parties
      need
      not sign the same counterpart.

     

    (f) Signatures.
      Facsimile signatures shall be valid and binding on each party submitting the
      same.

     

    (g) Entire
      Agreement; Amendment.
      This
      Agreement, together with the Notes and Warrants and the other agreements and
      documents contemplated hereby and thereby, contains the entire understanding
      and
      agreement of the parties, and may not be amended, modified or terminated except
      by a written agreement signed by the Company and the Holder of the Registrable
      Securities seeking registration of such securities.

     

    (h) Governing
      Law.
      This
      Agreement and the validity and performance of the terms hereof shall be governed
      by and construed in accordance with the laws of the State of Florida applicable
      to contracts executed and to be performed entirely within such state, except
      to
      the extent that the law of the State of California regulates the Company’s
      issuance of securities.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    (i) Jury
      Trial.
      EACH
      PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY.   

     

    (j) Force
      Majeure.
      The
      Company shall not be deemed in breach of its commitments under this Agreement
      shall be required if the Company is unable to fulfill its obligations hereunder
      in a timely fashion if the SEC or the Nasdaq National Market are closed or
      operating on a limited basis as a result of the occurrence of a Force Majeure.
      As used herein, “Force
      Majeure”
means
      war or armed hostilities or other national or international calamity, or one
      or
      more acts of terrorism, which are having a material adverse effect on the
      financial markets in the United States. 

     

    (k) Titles.
      The
      titles used in this Agreement are used for convenience only and are not to
      be
      considered in construing or interpreting this Agreement.

     

    (l) No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rule of strict construction
      will
      be applied against any party.

     

    [signatures
      to follow]

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    In
      Witness Whereof,
      the
      parties hereto have caused this Agreement to be duly executed as of the date
      first above written.

     

    

    
      	 	 
	 	
              COMPANY:

            
	 	 
	 	
              INNOVATIVE
                SOFTWARE TECHNOLOGIES, INC.

            
	 	 
	 	 
	 	 
	 	
              By:__________________________________

            
	 	
              Christopher
                J. Floyd

            
	 	
              Chief
                Financial Officer

            
	 	 
	 	 
	 	 
	 	 
	 	 

    

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

        
          

        

      

    

    PURCHASER
      COUNTERPART SIGNATURE PAGE

    TO
      REGISTRATION RIGHTS AGREEMENT,

    DATED
      October 16, 2006,

    AMONG
      INNOVATIVE SOFTWARE TECHNOLOGIES, INC. AND

    THE
      “PURCHASERS” IDENTIFIED THEREIN

    

    The
      undersigned hereby executes and delivers the Registration Rights Agreement
      to
      which this Signature Page is attached, which, together with all counterparts
      of
      the Registration Rights Agreement and Signature Pages of the Company and other
      “Purchasers” under the Registration Rights Agreement, shall constitute one and
      the same document in accordance with the terms of the Registration Rights
      Agreement.

    

    

    PURCHASER: Crescent
      International Ltd.  

    

    

    By:__________________________________________        

    

    Name:________________________________________        

    

    Title:_________________________________________        

    

    Date:_________________________________________        

    

    Address:                84
      av.
      Louis-Casaï  

    CH
      1216 COINTRIN , Geneva 

    Switzerland   

    

    

    Date
      of
      Note:   October
      16, 2006

    

    Principal
      Amount of Note:     $300,000
      USD

    

    

    

    Date
      of
      Warrant:                     
October
      16, 2006

    

    Number
      of
      Shares Covered by Warrant: 1,200,000Unassociated Document

    Exhibit
      4.1

     

    NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

    

    FORM
      OF COMMON STOCK PURCHASE WARRANT

    

    FOLDERA,
      INC.

     

    
      	
              Warrant
                Shares: _______

            	
              Initial
                Exercise Date: October 19, 2006

            

    

     

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, _____________ (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date hereof (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on [the last day of the calendar month in
      which occurs the 5 year anniversary of the Initial Exercise Date]1 
      [the
      180th
      calendar
      day following the Initial Exercise Date]2 
      (the
“Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Foldera, Inc., a Nevada
      corporation (the “Company”),
      up to
      ______ shares (the “Warrant
      Shares”)
      of
      common stock, par value $0.001 per share (the “Common
      Stock”),
      of
      the Company. The purchase price of one share of Common Stock under this Warrant
      shall be equal to the Exercise Price, as defined in Section 2(b). 

     

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      October 19, 2006, among the Company and the purchasers signatory
      thereto.

     

    
      

    

    1
      Section
      2.2(a)(iv) Warrant and Section 2.2(a)(vi) Warrant only.

    2 Section
      2.2(a)(v) Warrant only.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

     

    Section
      2. Exercise.

     

    a) Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of such Holder appearing on the books of the
      Company); and, within 3 Trading Days of the date said Notice of Exercise is
      delivered to the Company, the Company shall have received payment of the
      aggregate Exercise Price of the shares thereby purchased by wire transfer or
      cashier’s check drawn on a United States bank. Notwithstanding anything herein
      to the contrary, the Holder shall not be required to physically surrender this
      Warrant to the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full, in which case,
      the Holder shall surrender this Warrant to the Company for cancellation within
      3
      Trading Days of the date the final Notice of Exercise is delivered to the
      Company. Partial exercises of this Warrant resulting in purchases of a portion
      of the total number of Warrant Shares available hereunder shall have the effect
      of lowering the outstanding number of Warrant Shares purchasable hereunder
      in an
      amount equal to the applicable number of Warrant Shares purchased. The Holder
      and the Company shall maintain records showing the number of Warrant Shares
      purchased and the date of such purchases. The Company shall deliver any
      objection to any Notice of Exercise Form within 2 Business Days of receipt
      of
      such notice. In the event of any dispute or discrepancy, the records of the
      Holder shall be controlling and determinative in the absence of manifest error.
      The Holder and any assignee, by acceptance of this Warrant, acknowledge and
      agree that, by reason of the provisions of this paragraph, following the
      purchase of a portion of the Warrant Shares hereunder, the number of Warrant
      Shares available for purchase hereunder at any given time may be less than
      the
      amount stated on the face hereof.

     

    b) Exercise
      Price.
      The
      exercise price per share of the Common Stock under this Warrant shall be
      [$1.75]3 
      [$1.25]4 
      [$2.00]5 ,
      subject
      to adjustment hereunder (the “Exercise
      Price”).

     

    c) Cashless
      Exercise.
      If, [at
      any time after one year from the date of issuance of this Warrant]6 
      [at any
      time during the 30 calendar days immediately preceding the Termination
      Date]7 ,
      there
      is no effective Registration Statement registering, or no current prospectus
      available for, the resale of the Warrant Shares by the Holder, then this Warrant
      may also be exercised at such time by means of a “cashless exercise” in which
      the Holder shall be entitled to receive a certificate for the number of Warrant
      Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
      where:

     

    (A)
      = the
      VWAP on the Trading Day immediately preceding the date of such
      election;

    

    (B)
      = the
      Exercise Price of this Warrant, as adjusted; and 

    
      
 3 Section
      2.2(a)(iv) Warrant
      only.

    4 Section
      2.2(a)(v) Warrant only.

    5 Section
      2.2(a)(vi) Warrant only.

    6 Section
      2.2(a)(iv) Warrant and Section 2.2(a)(vi) Warrant only.

    7 Section
      2.2(a)(v) Warrant only.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    
      	
            	(X)
              = 	
              the
                number of Warrant Shares issuable upon exercise of this Warrant in
                accordance with the terms of this Warrant by means of a cash exercise
                rather than a cashless exercise.

            

    

    

    [Notwithstanding
      anything herein to the contrary, on the Termination Date, this Warrant shall
      be
      automatically exercised via cashless exercise pursuant to this Section
      2(c).]8 

    

    d) Exercise
      Limitations.
      The
      Company shall not effect any exercise of this Warrant, and a Holder shall not
      have the right to exercise any portion of this Warrant, pursuant to Section
      2(c)
      or otherwise, to the extent that after giving effect to such issuance after
      exercise as set forth on the applicable Notice of Exercise, such Holder
      (together with such Holder’s Affiliates, and any other person or entity acting
      as a group together with such Holder or any of such Holder’s Affiliates), as set
      forth on the applicable Notice of Exercise, would beneficially own in excess
      of
      the Beneficial Ownership Limitation (as defined below).  For purposes of
      the foregoing sentence, the number of shares of Common Stock beneficially owned
      by such Holder and its Affiliates shall include the number of shares of Common
      Stock issuable upon exercise of this Warrant with respect to which such
      determination is being made, but shall exclude the number of shares of Common
      Stock which would be issuable upon (A) exercise of the remaining, nonexercised
      portion of this Warrant beneficially owned by such Holder or any Affiliates
      and
      (B) exercise or conversion of the unexercised or nonconverted portion of any
      other securities of the Company (including, without limitation, any other
      Warrants) subject to a limitation on conversion or exercise analogous to the
      limitation contained herein beneficially owned by such Holder or any of its
      affiliates.  Except as set forth in the preceding sentence, for purposes of
      this Section 2(d), beneficial ownership shall be calculated in accordance with
      Section 13(d) of the Exchange Act and the rules and regulations promulgated
      thereunder, it being acknowledged by a Holder that the Company is not
      representing to such Holder that such calculation is in compliance with Section
      13(d) of the Exchange Act and such Holder is solely responsible for any
      schedules required to be filed in accordance therewith. To the extent that
      the
      limitation contained in this Section 2(d) applies, the determination of whether
      this Warrant is exercisable (in relation to other securities owned by such
      Holder together with any Affiliates) and of which a portion of this Warrant
      is
      exercisable shall be in the sole discretion of a Holder, and the submission
      of a
      Notice of Exercise shall be deemed to be each Holder’s determination of whether
      this Warrant is exercisable (in relation to other securities owned by such
      Holder together with any Affiliates) and of which portion of this Warrant is
      exercisable, in each case subject to such aggregate percentage limitation,
      and
      the Company shall have no obligation to verify or confirm the accuracy of such
      determination. In addition, a determination as to any group status as
      contemplated above shall be determined in accordance with Section 13(d) of
      the
      Exchange Act and the rules and regulations promulgated thereunder. For purposes
      of this Section 2(d), in determining the number of outstanding shares of Common
      Stock, a Holder may rely on the number of outstanding shares of Common Stock
      as
      reflected in (x) the Company’s most recent Form 10-QSB or Form 10-KSB, as the
      case may be, (y) a more recent public announcement by the Company or (z) any
      other notice by the Company or the Company’s Transfer Agent setting forth the
      number of shares of Common Stock outstanding.  Upon the written or oral
      request of a Holder, the Company shall within two Trading Days confirm orally
      and in writing to such Holder the number of shares of Common Stock then
      outstanding.  In any case, the number of outstanding shares of Common Stock
      shall be determined after giving effect to the conversion or exercise of
      securities of the Company, including this Warrant, by such Holder or its
      Affiliates since the date as of which such number of outstanding shares of
      Common Stock was reported. The “Beneficial
      Ownership Limitation”
shall
      be 4.99% of the number of shares of the Common Stock outstanding immediately
      after giving effect to the issuance of shares of Common Stock issuable upon
      exercise of this Warrant. The Beneficial Ownership Limitation provisions of
      this
      Section 2(d) may be waived by such Holder, at the election of such Holder,
      upon
      not less than 61 days’ prior notice to the Company to change the Beneficial
      Ownership Limitation to 9.99% of the number of shares of the Common Stock
      outstanding immediately after giving effect to the issuance of shares of Common
      Stock upon exercise of this Warrant, and the provisions of this Section 2(d)
      shall continue to apply. Upon such a change by a Holder of the Beneficial
      Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the
      Beneficial Ownership Limitation may not be further waived by such Holder. The
      provisions of this paragraph shall be construed and implemented in a manner
      otherwise than in strict conformity with the terms of this Section 2(d) to
      correct this paragraph (or any portion hereof) which may be defective or
      inconsistent with the intended Beneficial Ownership Limitation herein contained
      or to make changes or supplements necessary or desirable to properly give effect
      to such limitation. The limitations contained in this paragraph shall apply
      to a
      successor holder of this Warrant.

     

    
      

    

    8 Section
      2.2(a)(iv) Warrant and Section 2.2(a)(vi) Warrant only.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    e) Mechanics
      of Exercise.
      

     

    i. Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges created
      by the Company in respect of the issue thereof (other than taxes in respect
      of
      any transfer occurring contemporaneously with such issue). 

     

    ii. Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant (if required) and payment of the aggregate Exercise
      Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price (or by cashless exercise, if permitted) and all taxes required to be
      paid
      by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance
      of
      such shares, have been paid. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    iii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

     

    iv. Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(iv) by the second Trading Day following the Warrant Share Delivery
      Date, then the Holder will have the right to rescind such exercise.

     

    v. Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise on or before the second
      Trading Day following the Warrant Share Delivery Date, and if after such date
      the Holder is required by its broker to purchase (in an open market transaction
      or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of
      Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant
      Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) at the option of the Holder, either reinstate the portion
      of
      the Warrant and equivalent number of Warrant Shares for which such exercise
      was
      not honored or deliver to the Holder the number of shares of Common Stock that
      would have been issued had the Company timely complied with its exercise and
      delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In and, upon request of
      the
      Company, evidence of the amount of such loss. Nothing herein shall limit a
      Holder’s right to pursue any other remedies available to it hereunder, at law or
      in equity including, without limitation, a decree of specific performance and/or
      injunctive relief with respect to the Company’s failure to timely deliver
      certificates representing shares of Common Stock upon exercise of the Warrant
      as
      required pursuant to the terms hereof.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

    vi. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall at
      its
      election, either pay a cash adjustment in respect of such final fraction in
      an
      amount equal to such fraction multiplied by the Exercise Price or round up
      to
      the next whole share.

     

    vii. Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

     

    viii. Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    f) Call
      Provision.
      Subject
      to the provisions of Section 2(d) and this Section 2(f), if, after the Effective
      Date (i) the VWAP for each of 20 consecutive Trading Days (the “Measurement
      Period,”
which
      20 consecutive Trading Day period shall not have commenced until after the
      Effective Date) exceeds 250% of the then Exercise Price (subject to adjustment
      for forward and reverse stock splits, recapitalizations, stock dividends and
      the
      like after the Initial Exercise Date) and (ii) the Holder is not in possession
      of any information that constitutes, or might constitute, material non-public
      information provided to it by the Company, then the Company may, within one
      Trading Day of the end of such Measurement Period, call for cancellation of
      all
      or any portion of this Warrant for which a Notice of Exercise has not yet been
      delivered (such right, a “Call”).
      To
      exercise this right, the Company must deliver to the Holder an irrevocable
      written notice (a “Call
      Notice”),
      indicating therein the portion of unexercised portion of this Warrant to which
      such notice applies. If the conditions set forth below for such Call are
      satisfied from the period from the date of the Call Notice through and including
      the Call Date (as defined below), then any portion of this Warrant subject
      to
      such Call Notice for which a Notice of Exercise shall not have been received
      by
      the Call Date will be cancelled at 6:30 p.m. (New York City time) on the tenth
      Trading Day after the date the Call Notice is received by the Holder (such
      date
      and time, the “Call
      Date”).
      Any
      unexercised portion of this Warrant to which the Call Notice does not pertain
      will be unaffected by such Call Notice. In furtherance thereof, the Company
      covenants and agrees that it will honor all Notices of Exercise with respect
      to
      Warrant Shares subject to a Call Notice that are tendered through 6:30 p.m.
      (New
      York City time) on the Call Date. The parties agree that any Notice of Exercise
      delivered following a Call Notice which calls less than all the Warrants shall
      first reduce to zero the number of Warrant Shares subject to such Call Notice
      prior to reducing the remaining Warrant Shares available for purchase under
      this
      Warrant. For example, if (x) this Warrant then permits the Holder to acquire
      100
      Warrant Shares, (y) a Call Notice pertains to 75 Warrant Shares, and (z) prior
      to 6:30 p.m. (New York City time) on the Call Date the Holder tenders a Notice
      of Exercise in respect of 50 Warrant Shares, then (1) on the Call Date the
      right
      under this Warrant to acquire 25 Warrant Shares will be automatically cancelled,
      (2) the Company, in the time and manner required under this Warrant, will have
      issued and delivered to the Holder 50 Warrant Shares in respect of the exercises
      following receipt of the Call Notice, and (3) the Holder may, until the
      Termination Date, exercise this Warrant for 25 Warrant Shares (subject to
      adjustment as herein provided and subject to subsequent Call Notices). Subject
      again to the provisions of this Section 2(f), the Company may deliver subsequent
      Call Notices for any portion of this Warrant for which the Holder shall not
      have
      delivered a Notice of Exercise. Notwithstanding anything to the contrary set
      forth in this Warrant, the Company may not deliver a Call Notice or require
      the
      cancellation of this Warrant (and any such Call Notice will be void), unless,
      from the beginning of the Measurement Period through the Call Date, (i) the
      Company shall have honored in accordance with the terms of this Warrant all
      Notices of Exercise delivered by 6:30 p.m. (New York City time) on the Call
      Date, and (ii) the Registration Statement shall be effective as to all Warrant
      Shares and the prospectus thereunder available for use by the Holder for the
      resale of all such Warrant Shares, and (iii) the Common Stock shall be listed
      or
      quoted for trading on the Trading Market, and (iv) there is a sufficient number
      of authorized shares of Common Stock for issuance of all Securities under the
      Transaction Documents, and (v) the issuance of the shares shall not cause a
      breach of any provision of 2(d) herein. The Company’s right to call the Warrants
      under this Section 2(f) shall be exercised ratably among the Holders based
      on
      each Holder’s initial purchase of Warrants.

     

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Section
      3. Certain
      Adjustments.

     

    a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding, (A) pays a stock
      dividend or otherwise make a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company upon exercise of this Warrant),
      (B)
      subdivides outstanding shares of Common Stock into a larger number of shares,
      (C) combines (including by way of reverse stock split) outstanding shares of
      Common Stock into a smaller number of shares, or (D) issues by reclassification
      of shares of the Common Stock any shares of capital stock of the Company, then
      in each case the Exercise Price shall be multiplied by a fraction of which
      the
      numerator shall be the number of shares of Common Stock (excluding treasury
      shares, if any) outstanding immediately before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding
      immediately after such event and the number of shares issuable upon exercise
      of
      this Warrant shall be proportionately adjusted. Any adjustment made pursuant
      to
      this Section 3(a) shall become effective immediately after the record date
      for
      the determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or re-classification.

     

    b) Subsequent
      Equity Sales.
      If the
      Company or any Subsidiary thereof, as applicable, at any time while this Warrant
      is outstanding, shall sell or grant any option to purchase or sell or grant
      any
      right to reprice its securities, or otherwise dispose of or issue (or announce
      any offer, sale, grant or any option to purchase or other disposition) any
      Common Stock or Common Stock Equivalents entitling any Person to acquire shares
      of Common Stock, at an effective price per share less than the then Exercise
      Price (such lower price, the “Base
      Share Price”
and
      such issuances collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or Common Stock Equivalents so issued shall
      at
      any time, whether by operation of purchase price adjustments, reset provisions,
      floating conversion, exercise or exchange prices or otherwise, or due to
      warrants, options or rights per share which are issued in connection with such
      issuance, be entitled to receive shares of Common Stock at an effective price
      per share which is less than the Exercise Price, such issuance shall be deemed
      to have occurred for less than the Exercise Price on such date of the Dilutive
      Issuance), then the Exercise Price shall be reduced and only reduced to equal
      the Base Share Price and the number of Warrant Shares issuable hereunder shall
      be increased such that the aggregate Exercise Price payable hereunder, after
      taking into account the decrease in the Exercise Price, shall be equal to the
      aggregate Exercise Price prior to such adjustment. Such adjustment shall be
      made
      whenever such Common Stock or Common Stock Equivalents are issued.
      Notwithstanding the foregoing, no adjustments shall be made, paid or issued
      under this Section 3(b) in respect of an Exempt Issuance. The Company shall
      notify the Holder in writing, no later than the Trading Day following the
      issuance of any Common Stock or Common Stock Equivalents subject to this
      section, indicating therein the applicable issuance price, or applicable reset
      price, exchange price, conversion price and other pricing terms (such notice
      the
“Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Company provides a Dilutive
      Issuance Notice pursuant to this Section 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance the Holder is
      entitled to receive a number of Warrant Shares based upon the Base Share Price
      regardless of whether the Holder accurately refers to the Base Share Price
      in
      the Notice of Exercise.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

     

    c) Subsequent
      Rights Offerings.
      If the
      Company, at any time while the Warrant is outstanding, shall issue rights,
      options or warrants to all holders of Common Stock (and not to Holders)
      entitling them to subscribe for or purchase shares of Common Stock at a price
      per share less than the VWAP at the record date mentioned below, then the
      Exercise Price shall be multiplied by a fraction, of which the denominator
      shall
      be the number of shares of the Common Stock outstanding on the date of issuance
      of such rights or warrants plus the number of additional shares of Common Stock
      offered for subscription or purchase, and of which the numerator shall be the
      number of shares of the Common Stock outstanding on the date of issuance of
      such
      rights or warrants plus the number of shares which the aggregate offering price
      of the total number of shares so offered (assuming receipt by the Company in
      full of all consideration payable upon exercise of such rights, options or
      warrants) would purchase at such VWAP. Such adjustment shall be made whenever
      such rights or warrants are issued, and shall become effective immediately
      after
      the record date for the determination of stockholders entitled to receive such
      rights, options or warrants. 

     

    d) Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the VWAP
      determined as of the record date mentioned above, and of which the numerator
      shall be such VWAP on such record date less the then per share fair market
      value
      at such record date of the portion of such assets or evidence of indebtedness
      so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    e) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      Common Stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event or (b) cash equal to the value of this Warrant as determined in accordance
      with the Black-Scholes option pricing formula. For purposes of any such
      exercise, the determination of the Exercise Price shall be appropriately
      adjusted to apply to such Alternate Consideration based on the amount of
      Alternate Consideration issuable in respect of one share of Common Stock in
      such
      Fundamental Transaction, and the Company shall apportion the Exercise Price
      among the Alternate Consideration in a reasonable manner reflecting the relative
      value of any different components of the Alternate Consideration. If holders
      of
      Common Stock are given any choice as to the securities, cash or property to
      be
      received in a Fundamental Transaction, then the Holder shall be given the same
      choice as to the Alternate Consideration it receives upon any exercise of this
      Warrant following such Fundamental Transaction. To the extent necessary to
      effectuate the foregoing provisions, any successor to the Company or surviving
      entity in such Fundamental Transaction shall issue to the Holder a new warrant
      consistent with the foregoing provisions and evidencing the Holder’s right to
      exercise such warrant into Alternate Consideration. The terms of any agreement
      pursuant to which a Fundamental Transaction is effected shall include terms
      requiring any such successor or surviving entity to comply with the provisions
      of this Section 3(e) and insuring that this Warrant (or any such replacement
      security) will be similarly adjusted upon any subsequent transaction analogous
      to a Fundamental Transaction.

     

    f) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    g) Voluntary
      Adjustment By Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company.

     

    h) Notice
      to Holder.
      

     

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to any provision of this
      Section 3, the Company shall promptly mail to the Holder a notice setting forth
      the Exercise Price after such adjustment and setting forth a brief statement
      of
      the facts requiring such adjustment. If the Company issues a variable rate
      security, despite the prohibition thereon in the Purchase Agreement, the Company
      shall be deemed to have issued Common Stock or Common Stock Equivalents at
      the
      lowest possible conversion or exercise price at which such securities may be
      converted or exercised in the case of a Variable Rate Transaction (as defined
      in
      the Purchase Agreement).

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock; (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock; (C) the Company shall
      authorize the granting to all holders of the Common Stock rights or warrants
      to
      subscribe for or purchase any shares of capital stock of any class or of any
      rights; (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property;
      (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company; then, in each case,
      the
      Company shall cause to be mailed to the Holder at its last address as it shall
      appear upon the Warrant Register of the Company, at least 20 calendar days
      prior
      to the applicable record or effective date hereinafter specified, a notice
      stating (x) the date on which a record is to be taken for the purpose of such
      dividend, distribution, redemption, rights or warrants, or if a record is not
      to
      be taken, the date as of which the holders of the Common Stock of record to
      be
      entitled to such dividend, distributions, redemption, rights or warrants are
      to
      be determined or (y) the date on which such reclassification, consolidation,
      merger, sale, transfer or share exchange is expected to become effective or
      close, and the date as of which it is expected that holders of the Common Stock
      of record shall be entitled to exchange their shares of the Common Stock for
      securities, cash or other property deliverable upon such reclassification,
      consolidation, merger, sale, transfer or share exchange; provided that the
      failure to mail such notice or any defect therein or in the mailing thereof
      shall not affect the validity of the corporate action required to be specified
      in such notice. The Holder is entitled to exercise this Warrant during the
      20-day period commencing on the date of such notice to the effective date of
      the
      event triggering such notice.

     

    Section
      4. Transfer
      of Warrant.

     

    a) Transferability.
      [Subject to compliance with any applicable securities laws and the conditions
      set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the
      Purchase Agreement, this Warrant and all rights hereunder (including, without
      limitation, any registration rights) are transferable, in whole or in part,
      upon
      surrender of this Warrant at the principal office of the Company or its
      designated agent, together with a written assignment of this Warrant
      substantially in the form attached hereto duly executed by the Holder or its
      agent or attorney and funds sufficient to pay any transfer taxes payable upon
      the making of such transfer. Upon such surrender and, if required, such payment,
      the Company shall execute and deliver a new Warrant or Warrants in the name
      of
      the assignee or assignees and in the denomination or denominations specified
      in
      such instrument of assignment, and shall issue to the assignor a new Warrant
      evidencing the portion of this Warrant not so assigned, and this Warrant shall
      promptly be cancelled. A Warrant, if properly assigned, may be exercised by
      a
      new holder for the purchase of Warrant Shares without having a new Warrant
      issued.]9 
      [This
      Warrant and all rights hereunder (including, without limitation, any
      registration rights) are not transferable, in whole or part, at any time without
      the prior written consent of the Company.]10 

     

    
      

    

    
      9 Section
        2.2(a)(iv) Warrant and Section 2.2(a)(vi) Warrant only.

      10
        Section
        2.2(a)(v) Warrant only.

        
          
             

          

          
            11

            
              

            

          

          
             

          

        

    

    

     

    b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

    c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    d) [Transfer
      Restrictions.
      If,
      at the
time
      of
      the surrender of this Warrant in connection with any transfer of this Warrant,
      the transfer of this Warrant shall not be registered pursuant to an effective
      registration
      statement under the Securities Act
      and
under
      applicable state securities or blue sky laws, the Company may require, as a
      condition of allowing such transfer, that (i) the Holder or transferee of this
      Warrant, as the case may be, furnish to the Company a written opinion of counsel
      (which opinion shall be in form, substance and scope customary for opinions
      of
      counsel in comparable transactions) to the effect that such transfer may be
      made
      without
      registration under
      the
      Securities Act and under applicable state securities or blue sky laws, and
      (ii)
      the Holder or transferee execute and deliver to the Company an investment letter
      in form and substance acceptable to the Company, and (iii) the transferee be
      an
“accredited
      investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
      promulgated under the Securities Act or a “qualified institutional buyer” as
      defined in Rule 144A(a) promulgated under the Securities Act.]11 

     

    Section
      5. Miscellaneous.

     

    a) No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof as set forth in Section
      2(e)(ii). 

     

     

      
        
          

        

        11
          Section
          2.2(a)(iv) Warrant and Section 2.2(a)(vi) Warrant
          only.

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

     

    b) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

    c) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    d) Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    e) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

     

    f) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    g) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

     

    h) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    i) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant to purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    j) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive and not to assert the
      defense in any action for specific performance that a remedy at law would be
      adequate.

     

    k) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

     

    l) Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder[; provided,
      however,
      that
      the prohibition on transfer set forth in Section 4(a) herein shall not be
      amended or waived]12 .

     

    m) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

    n) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

    ********************

     

     

    
      
        

      

      12
        Section
        2.2(a)(v) Warrant only.

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized as of the date first above
      indicated.

     

    

     

    
      	 	
               FOLDERA,
                INC.

               

               

            
	 	By: 	
              /s/
                Reid Dabney 

            
	 	 	
              Reid
                Dabney

              Senior
                Vice President and Chief Financial
                Officer

            

    

    

    

      
        
          
          

           

        

        
          16

          
            

          

        

        
           

          
          

        

      

     

    NOTICE
      OF EXERCISE

    

    TO: FOLDERA,
      INC.

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2) Payment
      shall take the form of (check applicable box):

     

    [
      ] in
      lawful money of the United States; or

     

    [
      ] [if
      permitted] the cancellation of such number of Warrant Shares as is necessary,
      in
      accordance with the formula set forth in subsection 2(c), to exercise this
      Warrant with respect to the maximum number of Warrant Shares purchasable
      pursuant to the cashless exercise procedure set forth in subsection
      2(c).

     

    (3) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    
      	 	
              _______________________________

            	 

    

    

    The
      Warrant Shares shall be delivered to the following DWAC Account Number or by
      physical delivery of a certificate to:

    

    
      	 	
              _______________________________

            	 
	 	 	 
	 	
              _______________________________

            	 
	 	 	 
	 	
              _______________________________

            	 

    

    

    (4)
      Accredited
      Investor.
      The
      undersigned is an “accredited investor” as defined in Regulation D promulgated
      under the Securities Act of 1933, as amended.

    

    [SIGNATURE
      OF HOLDER]

     

    Name
      of
      Investing Entity:
      ________________________________________________________________________

    Signature
      of Authorized Signatory of Investing Entity:
      _________________________________________________

    Name
      of
      Authorized Signatory:
      ___________________________________________________________________

    Title
      of
      Authorized Signatory:
      ____________________________________________________________________

    Date:
      ________________________________________________________________________________________

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    

    

    FOR
      VALUE
      RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
      rights evidenced thereby are hereby assigned to

     

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    
      	 	
              Holder’s
                Signature:

            	
              _____________________________

            
	 	 	 
	 	
              Holder’s
                Address:

            	
              _____________________________

            
	 	 	 
	 	 	
              _____________________________

            

    

    

    

    

    Signature
      Guaranteed: ___________________________________________

    

    

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.

    NY
      238200935v1 10/19/2006

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