Document:

crwgex101.htm

    
      
        

      

      
        

      

       

      Exhibit
10.1

      SUBSCRIPTION
AGREEMENT

      

      CrowdGather,
Inc.

      20300
Ventura Blvd. Suite 330

      Woodland
Hills, CA 91364

      

      Gentlemen:

      

      1. Subscription. On the
terms and subject to the conditions of this Subscription Agreement
(“Subscription Agreement”), ___________ (“Investor”) hereby subscribes for two
hundred fifty thousand (250,000) shares of $.001 par value common stock
(“Shares”) of CrowdGather, Inc., a Nevada corporation (“Company”), at a purchase
price of Three Hundred Thousand Dollars ($300,000), or $1.20 per share (“Per
Share Price”). In connection with the Shares being issued pursuant to the
Subscription Agreement, the Investor shall receive one hundred twenty five
thousand (125,000) warrants which will provide to the Investor the right to
purchase one hundred twenty five thousand (125,000) shares of the Company’s
common stock at a purchase price of $1.68 per share and which warrant shall
expire three years from the date that the Company accepts the subscription
contemplated by the provisions of this Subscription Agreement. The Warrant
Agreement attached hereto as Exhibit A. The Per Price Share is subject to the
anti-dilution provisions of Section 3 of this Subscription
Agreement.

      

      The
Investor shall send:  (1) an executed copy of this Subscription
Agreement; and (2) a wire transfer in immediately available U.S. funds for the
full amount of the purchase price of the Shares for which the Investor is
subscribing plus all
wire transfer fees to:

      

      Bank
Name                                _________________

      ABA Routing
No.:                   _________________

      Account
Name:                        _________________

      Account
No.:                            _________________

      Reference:                                 _________________

       

       

      
 

      
        
          
          

        

        
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      2.           Representations and
Warranties.  In order to induce the Company to accept this
subscription, the Investor hereby represents and warrants to, and covenants
with, the Company as follows:

      
 

      (a)           The
Investor has received and carefully reviewed such information and documentation
relating to the Company that the Investor has requested, including without
limitation, the Company’s filings with the U.S. Securities and Exchange
Commission;

      

      (b)           The
Investor has had a reasonable opportunity to ask questions of and receive
answers from the Company concerning the Company and terms and conditions of his
or her proposed investment in the Company, and all such questions, if any, have
been answered to the full satisfaction of the Investor;

      

      (c)           The
Investor has such knowledge and expertise in financial and business matters that
the Investor is capable of evaluating the merits and risks involved in an
investment in the Shares;

      

      (d)           The
Investor understands that the Company has determined that the exemption from the
registration provisions of the Securities Act of 1933, as amended (the
“Securities Act”), provided by Regulation S with respect to non U.S. purchasers
is applicable to the offer and sale of the Shares, based, in part, upon the
representations, warranties and agreements made by the Investor
herein;

      

      (e)           Except
as set forth herein, no representations or warranties have been made to the
Investor by the Company or any agent, employee or affiliate of the Company and
in entering into this transaction the Investor is not relying upon any
information, other than the results of independent investigation by the
Investor;

      

      (f)           The
Investor acknowledges that it has been called to his or her attention by those
persons with whom the Investor has dealt in connection with his or her proposed
investment in the Company, that the Company has a limited operating history with
limited revenues and the Company may never have any significant revenues or
earnings, and that the Investor’s proposed investment in the Company involves
significant risks which may result in the loss of that investment, or a portion
thereof;

      

      (g)           The
Investor has full power and authority to execute and deliver this Subscription
Agreement and to perform the obligations of the Investor hereunder and this
Subscription Agreement is a legally binding obligation of the Investor in
accordance with its terms; and

      

      (h)           Regulation
S.

      

      (i)           The
Investor understands and acknowledges that (A) the Shares acquired pursuant to
this Subscription Agreement have not been registered under the Securities Act
and are being sold in reliance upon an exemption from registration afforded by
Regulation S; and that such Shares have not been registered with any state
securities commission or authority; (B)  pursuant to the requirements
of Regulation S, the Shares may not be transferred, sold or otherwise exchanged
unless in compliance with the provisions of Regulation S and/or pursuant to
registration under the Securities Act, or pursuant to an available exemption
thereunder; and (C) other than as set forth in this Subscription Agreement
between the Company and the Investor, the Company is under no obligation to
register the Shares under the Securities Act or any state securities law, or to
take any action to make any exemption from any such registration provisions
available.

      

      (ii)           (A)
The Investor is not a U.S. person and is not acquiring the Shares for the
account of any U.S. person; (B) if a corporation, it is not organized or
incorporated under the laws of the United States; (C) if a corporation, no
director or executive officer is a national or citizen of the United States; and
(D) it is not otherwise deemed to be a “U.S. Person” within the meaning of
Regulation S.

      

      (iii)           The
Investor, if not an individual, was not formed specifically for the purpose of
acquiring the Shares purchased pursuant to this Subscription
Agreement.

      

      (iv)           The
Investor is purchasing the Shares for its own account and risk and not for the
account or benefit of a U.S. Person as defined in Regulation S and no other
person has any interest in or participation in the Shares or any right, option,
security interest, pledge or other interest in or to the Shares. The Investor
understands, acknowledges and agrees that it must bear the economic risk of its
investment in the Shares for an indefinite period of time and that prior to any
such offer or sale, the Company may require, as a condition to effecting a
transfer of the Shares, an opinion of counsel, acceptable to the Company, as to
the registration or exemption therefrom under the Securities Act and any state
securities acts, if applicable.

      

      (v)           The
Investor will, after the expiration of the restricted period, as set forth under
Rule 903 of Regulation S, offer, sell, pledge or otherwise transfer the Shares
only in accordance with Regulation S, or pursuant to an available exemption
under the Securities Act and, in any case, in accordance with applicable state
securities laws.  The transactions contemplated by this Subscription
Agreement have neither been pre-arranged with a purchaser who is in the United
States or who is a U.S. Person, nor are they part of a plan or scheme to evade
the registration provisions of the United States federal securities
laws.

      

      (vi)           The
offer leading to the sale evidenced hereby was made in an “offshore
transaction.”  For purposes of Regulation S, the Investor understands
that an “offshore transaction” as defined under Regulation S is any offer or
sale not made to a person in the United States and either (A) at the time the
buy order is originated, the purchaser is outside the United States, or the
seller or any person acting on his behalf reasonably believes that the purchaser
is outside the United States; or (B) for purposes of (1) Rule 903 of Regulation
S, the transaction is executed in, or on or through a physical trading floor of
an established foreign exchange that is located outside the United States or (2)
Rule 904 of Regulation S, the transaction is executed in, on or through the
facilities of a designated offshore securities market, and neither the seller
nor any person acting on its behalf knows that the transaction has been
prearranged with a buyer in the United States.

      

      (vii)           Neither
the Investor nor any affiliate of the Investor or any person acting on its
behalf, has made or is aware of any “directed selling efforts” in the United
States, which is defined in Regulation S to be any activity undertaken for the
purpose of, or that could reasonably be expected to have the effect of,
conditioning the market in the United States for any of the Shares being
purchased hereby.

      

      (viii)           The
Investor understands that the Company is the seller of the Shares which are the
subject of this Subscription Agreement, and that, for purpose of Regulation S, a
“distributor” is any underwriter, dealer or other person who participates,
pursuant to a contractual arrangement, in the distribution of securities offered
or sold in reliance on Regulation S and that an “affiliate” is any partner,
officer, director or any person directly or indirectly controlling, controlled
by or under common control with any person in question.  The Investor
agrees that it will not, during the restricted period set forth under Rule 903
of Regulation S, act as a distributor, either directly or though any affiliate,
nor shall it sell, transfer, hypothecate or otherwise convey the Shares other
than to a non-U.S. Person.

      

      (ix)           The
Investor acknowledges that the Shares will bear a legend in substantially the
following form:

      

      THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN
“OFFSHORE TRANSACTION” IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE
SECURITIES AND EXCHANGE COMMISSION. ACCORDINGLY, THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
“SECURITIES ACT”) AND MAY NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH
REGULATION S, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM REGISTRA­TION UNDER THE SECURITIES ACT, THE
AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE
COMPANY.  THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE
SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN
COMPLIANCE WITH THE SECURITIES ACT.

      

      
        
          
          

        

        
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      3. Anti-Dilution
Provisions.

      

      (a)
Anti-Dilution Adjustment for Sale of Discounted Common Stock.

      

      (i) Subject to Section 3(a)(iii), if
the Company shall, following the date of this Subscription Agreement, sell
shares of its common stock for a consideration per share less than the Per Share
Price, then the Per Share Price shall be adjusted immediately thereafter so that
it shall equal the price per share of the common stock in such offering.
Whenever any adjustment is made pursuant to this Section 3(a)(i), the number of
shares of common stock issuable pursuant to this Subscription Agreement shall be
adjusted pursuant to Section 3(c) hereof, and such additional shares shall be
delivered to the Investor pursuant to Section 3(e) hereof.

      

      (ii)
Adjustments to the Per Share Price pursuant to this Section 3(a) shall be made
successively whenever an issuance of shares triggering such an adjustment is
made, subject to Section 3(f) hereof.

      

      (iii)
Notwithstanding anything to the contrary in this Section 3(a), no adjustment to
the Per Share Price shall be made pursuant to this Section 3(a) in the case of
shares issued: (i) in connection with any dividend or distribution on, or
subdivision, reclassification or combination of, the outstanding shares of
Common Stock of the Company; (ii) upon the exercise of options granted to the
Company's officers, directors, employees and consultants under a plan or plans
adopted by the Company's Board of Directors and approved by its stockholders, if
such shares would otherwise be included in this Section 3(a); (iii) upon the
exercise of stock options, warrants, convertible securities and convertible
debentures outstanding as of the date hereof; (iv) to shareholders of any
corporation which merges into the Company in proportion to their stock holdings
of such corporation immediately prior to such merger, upon such merger; (v)
pursuant to any other anti-dilution provision affecting the Company securities;
or (vi) in connection with acquisitions.

      

      (b)
Anti-Dilution Adjustment for Sale of Discounted Convertible Stock.

      

      (i)
Subject to Section 3(b)(iii), if the Company shall, following the date of this
Subscription Agreement, issue any equity or debt securities convertible or
exercisable into or exchangeable for its common stock (a “Convertible Stock
Issuance”) for a consideration per share of common stock initially deliverable
upon conversion or exchange of such securities (as determined as provided in
Section 3(d) below, the “Convertible Stock Per Share Price”) less than the Per
Share Price, then the Per Share Price shall be adjusted immediately thereafter
so that it shall equal the Convertible Stock Per Share Price. Whenever any
adjustment is made pursuant to this Section 3(b)(i), the number of shares of
common stock issuable pursuant to this Subscription Agreement shall be adjusted
pursuant to Section 3(c) hereof, and such additional shares shall be delivered
to the Investor pursuant to Section 3(e) hereof.

      

      (ii)
Adjustments to the Per Share Price pursuant to this Section 3(b) shall be made
successively whenever an issuance of shares triggering such an adjustment is
made, subject to Section 3(f) hereof.

      

      (iii)
Notwithstanding anything to the contrary in this Section 3(b), no adjustment to
the Per Share Price shall be made pursuant to this Section 3(b) in the case of
securities issued: (i) in transactions where the Company has fixed a record date
for the issuance of rights or warrants to all holders of its common stock
entitling them to subscribe for or purchase shares of common stock (or
securities convertible into common stock) at a price (or having a conversion
price per share) less than the Per Share Price on such record dates; or (iii)
any of the transactions described in Section 3(a)(iii) hereof (with any
reference in Section 3(a)(iii) to price or quantity of shares issued being
understood, for purposes of this Section 3(b)(iii), to refer to the aggregate
price or quantity, as applicable, of the shares of common stock into which such
securities are convertible or exchangeable).

      

      (c)
Adjustment of Securities. Whenever the Per Share Price is adjusted pursuant to
Sections 6(a) and 6(b) above, the number of shares of common stock issuable
pursuant to this Subscription Agreement shall simultaneously be adjusted by
multiplying the number of shares of common stock issuable hereunder by the Per
Share Price and dividing the product so obtained by the Per Share Price, as
adjusted.

      

      (d)
Computation of Certain Consideration. For purposes of any computation with
respect to the consideration received pursuant to Sections 6(a) and 6(b) above,
the following shall apply:

      (i) in
the case of the issuance of shares of common stock for cash, the consideration
shall be the amount of such cash, provided that in no case shall any deduction
be made for any commissions, 
discounts
or other expenses incurred by the Company for any underwriting of the issue or
otherwise in connection therewith;

      

      (ii) in
the case of the issuance of shares of Common Stock for a consideration in whole
or in part other than cash, the consideration other than cash shall be deemed to
be the fair market value thereof as determined in good faith by the Board of
Directors of the Company (irrespective of the accounting treatment thereof),
whose determination shall be conclusive; and

      

      (iii) in
the case of a Convertible Stock Issuance, the aggregate consideration received
therefor shall be deemed to be the consideration received by the Company for the
issuance of such securities plus the additional minimum consideration, if any,
to be received by the Company upon the conversion or exchange thereof (the
consideration in each case to be determined in the same manner as provided in
clauses (i) and (ii) of this Section 3(d)).

      

      (e)
Notice of Adjustment. Whenever the Per Share Price is adjusted as herein
provided, the Company shall promptly, but no later than 10 days after any
request for such an adjustment by the Investor, cause a notice setting forth the
adjusted Per Share Price and adjusted number of shares of common stock issuable
hereunder, and, if requested, information describing the transactions giving
rise to such adjustments, to be mailed to the Investor at its address set forth
below, and shall cause a certified copy thereof to be mailed to its transfer
agent, if any. The Company may retain a firm of independent certified public
accountants selected by its Board of Directors (who may be the regular
accountants employed by the Company) to make any computation required by this
Section 3, and a certificate signed by such firm shall be conclusive evidence of
the correctness of such adjustment. The Company shall, within fifteen (15) days
of any anti-dilution adjustment pursuant to this Section 3, issue and deliver to
the Investor a certificate evidencing the shares of common stock to be issued
pursuant to this Section 3.

      

      (f)
Termination of Anti-Dilution Provisions. The provisions of Sections 6(a) through
6(e) shall terminate and be of no further force or effect on February 3,
2011.

      

      
        
          
          

        

        
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      4. The
Investor understands that this subscription is not binding upon the Company
until the Company accepts it, which acceptance is at the sole discretion of the
Company and is to be evidenced by the Company’s execution of this Subscription
Agreement where indicated.  This Subscription Agreement shall be null
and void if the Company does not accept it as aforesaid.  The Investor
further understands that all the offering proceeds will be placed directly in
the Company’s bank account.  In the event the Company does not accept
the offering proceeds, the offering will not be completed and all offering
proceeds will thereafter be promptly returned to investors without interest or
deduction.

      

      5. The
Investor has no right to require that the Shares be registered pursuant to the
provisions of the Securities Act, or otherwise.  The Investor further
acknowledges and agrees that the Company has no obligation to assist the
Investor in obtaining any exemption from any registration requirements imposed
by applicable law. The Investor also acknowledges and agrees that he or she
shall be responsible for compliance with all conditions on transfer imposed by a
securities administrator or similar person of any state, province or
territory.

      

      6. The
Investor understands that the Company may, in its sole discretion, reject this
subscription, in whole or in part, and/or reduce this subscription in any amount
and to any extent, whether or not pro rata reductions are made of any other
investor’s subscription.

      

      7. The
Investor agrees to indemnify the Company and hold it harmless from and against
any and all losses, damages, liabilities, costs and expenses which it may
sustain or incur in connection with the breach by the Investor of any
representation, warranty or covenant made by the Investor.

      

      8. Neither
this Subscription Agreement nor any of the rights of the Investor hereunder may
be transferred or assigned by the Investor.

      

      9. Except as
otherwise provided herein, this Subscription Agreement (i) may only be modified
by a written instrument executed by the Investor and the Company; (ii) sets
forth the entire agreement of the Investor and the Company with respect to the
subject matter hereof; (iii) shall be governed by the laws of the State of
Nevada applicable to contracts made and to be wholly performed therein; and (iv)
shall inure to the benefit of, and be binding upon the Company and the Investor
and their respective heirs, legal representatives, successors and permitted
assigns.

      

      10. Unless
the context otherwise requires, all personal pronouns used in this Subscription
Agreement, whether in the masculine, feminine or neuter gender, shall include
all other genders.

      

      11. All
notices or other communications hereunder shall be in writing and shall be
deemed to have been duly given if delivered personally or mailed by certified or
registered mail, return receipt requested, postage prepaid, as
follows:  if to the Investor, to the address set forth on the
signature page hereto; and if to the Company, to 20300 Ventura Blvd. Suite 330,
Woodland Hills, CA 91364, Attention: President or to such other address as the
Company or the Investor shall have designated to the other by like
notice.

      
        
           

        

        
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      SIGNATURE
PAGE

      

      IN
WITNESS WHEREOF, the Investor has executed this Subscription Agreement this 3rd
day of February 2010.

      

      Number of
Shares Subscribed for                     250,000                       

      

      Subscription
Amount:                     
$300,000                 

      

      Organization
Signature:                                                                                                 Individual
Signature:

      

      _________________                                                                                                                 ____________________________________

      
        	
                 

                 

                
                  By:
      ____________________________                                                                             

                  Name:                                                                                                                                           

                  Title:

                

              	
                Signature

                 

                ______________________________________

                Print Name

                 

              

      

       

      
        	
                 
      

              	
                ______________________________________

                Additional
      Signature of Joint Owner

                 

                ______________________________________

                Print Name

              

      

      

                                           

      

      (All
Subscribers should please print information below exactly

      as
you wish it to appear in the records of the Company)

       

      
 

      ___________________________________                                                            ___________________________________                                                       

      
        	
                Name

              	
                Social
      Security Number of Individual

                or other Taxpayer I.D.
  Number

              

      

       

      Address:                                                                                                                               Address for notices
if different:

      

      ___________________________________                                                              _____________________________________

      Number
and
Street                                                                                                               Number and
Street

       

      ___________________________________                                                             _____________________________________

      City                                 Country   Postal
Code                                                              
City                                    Country   Postal
Code

       

      

      Please
check the box to indicate form of ownership (if applicable):

      
        	
                 

                tenants-in-common
      ÿ

                (Both
      Parties must sign above)

              	
                 

                joint
      tenants with right of survivorship ÿ

                (Both
      Parties must sign above)

              	
                 

                community
      property ÿ

                (Both
      Parties must sign above)

              

      

      
        
           

        

        
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        ACCEPTANCE
OF SUBSCRIPTION

        

        

      

      
        

      

      
        The
foregoing subscription is hereby accepted by CrowdGather, Inc. this _________
day of February 2010.

      

      
        

        

                                     CrowdGather, Inc.

      

      
        

      

      
                                     By:
_____________________________

      

      
                                     Name: Sanjay Sabnani

                                     Title:
President

      

    6crwgex102.htm

    
      

      

    

    Exhibit 10.2

    
 

     

     

    THIS
WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY
APPLICABLE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND QUALIFICATION UNDER SUCH STATE SECURITIES
LAWS OR AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.

     

    CROWDGATHER,
INC.

     

    WARRANT
AGREEMENT

    

    February
3, 2010

    

    THIS CERTIFIES THAT, for value
received, ______________ (the “Investor”), or
Investor’s assigns (Investor and Investor’s assigns being the “Holder”), is entitled
to subscribe for and purchase at any time during the Exercise Period from
CrowdGather, Inc., a Nevada corporation, with an office located at 20300 Ventura
Blvd., Suite 330, Woodland Hills, CA 91364 (the “Company”), a number
of shares of Common Stock equal to the Share Number at a per share price equal
to the Exercise Price in effect at such time. This Warrant is issued in
conjunction with the shares of the Company’s Common Stock issued pursuant to the
Subscription Agreement dated as of February 3, 2010, by and between the Company
and the Investor.

     

    1. Definitions. As used herein, the
following terms shall have the following respective meanings:

     

    (a)
 “Aggregate Warrant Price” shall mean the dollar value obtained by
multiplying $1.68 by 125,000.

     

    (b)  “Common
Stock” shall mean the common stock of the Company.

     

    (c)  “Exercise
Period” shall mean the period commencing on February 3, 2010, and ending on
February 3, 2013.

     

    (d)  “Exercise
Price” shall mean $1.68 per share of Common Stock.

     

    (e)  “Exercise
Shares” shall mean any Common Stock acquired upon exercise of this
Warrant.

     

    (f)  “Share
Number”, at any time, shall mean (i) the Aggregate Warrant Price minus the
aggregate exercise price previously paid upon exercise of this Warrant, divided
by (ii) the Exercise Price then in effect.

     

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

    2. Exercise
of Warrant.

     

    2.1  General; Exercise of Warrant
.

     

    (a)  The
rights represented by this Warrant may be exercised as a whole or in part at any
time during the Exercise Period, by delivery of the following to the Company at
its address set forth above (or at such other address as it may designate by
notice in writing to the Holder):

     

    (i)           An
executed Notice of Exercise in the form attached hereto;

     

    (ii)           Payment
of the Exercise Price either in cash or by check; and

     

    (iii)           This
Warrant.

     

    (b)  Upon
the exercise of the rights represented by this Warrant, a certificate or
certificates for the Exercise Shares so purchased, registered in the name of the
Holder or persons affiliated with the Holder, if the Holder so designates (and
such designation is in compliance with applicable securities laws and any
stockholders, investor rights or similar agreement), shall be issued and
delivered to the Holder as promptly as practicable after the rights represented
by this Warrant shall have been so exercised.

     

    (c)  The
person in whose name any certificate or certificates for Exercise Shares are to
be issued upon exercise of this Warrant shall be deemed to have become the
holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Exercise Price was made, irrespective of the date
of delivery of such certificate or certificates, except that, if the date of
such surrender and payment is a date when the stock transfer books of the
Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on which the
stock transfer books are open.

     

    2.2  Net Issue Exercise
.

     

    (a)  In
lieu of paying the Exercise Price in cash or by check as provided in Section
2.1, the Holder may elect a “Net Issue Exercise” pursuant to which the Holder
will receive Exercise Shares equal to the value (as determined below) of this
Warrant (or the portion thereof being exercised) by surrender of this Warrant at
the principal office of the Company together with an executed Notice of Exercise
in the form attached hereto in which event the Company shall issue to the Holder
a number of Exercise Shares computed using the following formula:

     

    X = Y (A-B)

    A

    Where:

     

    X = the
number of Exercise Shares to be issued to the Holder;

     

    Y = the
number of Exercise Shares purchasable under the Warrant or, if only a portion of
the Warrant is being exercised, the portion of the Warrant being exercised (at
the date of such exercise);

     

    A = the
Fair Market Value of one share of the Company’s Common Stock (at the date of
such exercise); and

     

    B = the
Exercise Price (as adjusted to the date of such exercise).

     

    (b)  For
purposes of the above calculation, “Fair Market Value” shall be determined as
follows:

     

    (i)  If
the Common Stock is listed on any established stock exchange or a national
market system, including, without limitation, The Nasdaq Stock Market’s Global
Select or Global Market, the Fair Market Value of a share of Common Stock will
be the average closing sales price for such stock (or the closing bid, if no
sales are reported) as quoted on that system or exchange (or the system or
exchange with the greatest volume of trading in Common Stock), over the five (5)
trading day period ending on the trading day immediately preceding the day the
Warrant is being exercised, as reported in the Wall Street Journal or any other
source the Company considers reliable.

     

    (ii)  If
the Common Stock is quoted on The Nasdaq Stock Market ( but not on The Nasdaq
Stock Market’s Global Select or Global Market) or is regularly quoted elsewhere
by recognized securities dealers but selling prices are not reported, the Fair
Market Value of a share of Common Stock will be the average mean between the
high bid and low asked prices for the Common Stock over the five (5) trading day
period ending on the trading day immediately preceding the day the Warrant is
being exercised, as reported in the Wall Street Journal or any other source the
Company considers reliable.

     

    (iii)  If
the Common Stock is not traded as set forth above, the Fair Market Value will be
determined in good faith by the Board of Directors of the Company.

     

    (c)  If
this Warrant is not exercised in full by a Net Issue Exercise, then, the “Share
Number” in effect immediately after such partial exercise shall be appropriately
adjusted to take into account the effect of the Net Issue Exercise.

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    3. Covenants
of the Company.

     

    3.1  Covenants as to Exercise
Shares . The Company covenants and agrees that all Exercise Shares that
may be issued upon the exercise of the rights represented by this Warrant will,
upon issuance, be validly issued and outstanding, fully paid and nonassessable,
and free from all taxes, liens and charges with respect to the issuance thereof.
The Company further covenants and agrees that the Company will at all times
during the Exercise Period have authorized and reserved, free from preemptive
rights, a sufficient number of shares of its Common Stock to provide for the
exercise of the rights represented by this Warrant. If at any time during the
Exercise Period the number of authorized but unissued shares of Common Stock
shall not be sufficient to permit exercise of this Warrant, the Company will
take such corporate action as may, in the opinion of its counsel, be necessary
to increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purposes.

     

    3.2  No Impairment .
Except and to the extent as waived or consented to by the Holder, the Company
will not, by amendment of its Articles 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 to be observed or performed
hereunder by the Company, but will at all times in good faith assist in the
carrying out of all the provisions of this Warrant and in the taking of all such
action as may be necessary or appropriate in order to protect the exercise
rights of the Holder against impairment.

     

    3.3  Notices of Record Date
. In the event of any taking by the Company of a record of the holders of
any class of securities for the purpose of determining the holders thereof who
are entitled to receive any dividend (other than a cash dividend which is the
same as cash dividends paid in previous quarters) or other distribution, the
Company shall mail to the Holder, at least ten (10) days prior to the date
specified herein, a notice specifying the date on which any such record is to be
taken for the purpose of such dividend or distribution.

     

    4. Representations
of Holder.

     

    4.1  Acquisition of Warrant for
Personal Account . The Holder represents and warrants that it is
acquiring the Warrant and any shares of capital stock issued or issuable upon
exercise or conversion of the Warrant for investment purposes only and not with
a view to or for resale in connection with any distribution or public offering
thereof within the meaning of the Act (as defined below). The Holder also
represents that the entire legal and beneficial interests of the Warrant and
Exercise Shares the Holder is acquiring is being acquired for, and will be held
for, the account of the Holder only.

     

    4.2  Accredited Investor;
Off-Shore Transaction; Not a U.S. Person . The Holder represents and
warrants that, unless not a “U.S. Person” as defined below, the Holder it is an
“accredited investor” as such term is defined in Rule 501 under the Securities
Act of 1933, as amended (the “ Act ”). The Holder
shall provide the Company with such additional information as the Company may
reasonably request with respect to the Holder’s status as an “accredited
investor.” The exercise of this Warrant and the transactions contemplated herein
may constitute an “off-shore transaction,” as that term is defined in Rule
902(h) of Regulations S promulgated under the Securities Act. If the Holder is
not an accredited investor, then the Holder is not a “U.S. Person,” as that term
is defined in Rule 902(k) of Regulation S promulgated under the Securities
Act.

     

    4.3  Securities Are Not
Registered .

     

    (a)  The
Holder understands that the Warrant and the Exercise Shares have not been
registered under the Act, on the basis that no distribution or public offering
of the stock of the Company is to be effected, or registered or qualified under
any applicable state securities laws. The Holder realizes that the basis for the
exemption may not be present if, notwithstanding its representations, the Holder
has a present intention of acquiring the securities for a fixed or determinable
period and, in the future, selling (in connection with a distribution or
otherwise), granting any participation in, or otherwise distributing the
securities. The Holder has no such present intention.

     

    (b)  The
Holder recognizes that the Warrant and the Exercise Shares must be held
indefinitely unless they are subsequently registered under the Act or an
exemption from such registration is available. The Company has no obligation to
register the Warrant or the Exercise Shares of the Company, or to comply with
any exemption from such registration.

     

    (c)  The
Holder is aware that neither the Warrant nor the Exercise Shares may be sold
pursuant to Rule 144 adopted under the Act unless certain conditions are met,
including, among other things, the existence of a public market for the shares,
the availability of certain current public information about the Company, the
resale following the required holding period under Rule 144 and the number of
shares being sold during any three (3) month period not exceeding specified
limitations. For so long as the Warrants are outstanding and for the two-year
period thereafter, the Company will use its best efforts to satisfy these
conditions.

     

    (d)  The
Holder is aware of the Company’s business affairs and financial condition and
has acquired sufficient information about the Company to reach an informed and
knowledgeable decision regarding its investment in the Company. The Holder is
experienced in making investments of this type and has such knowledge and
background in financial and business matters that the Holder is capable of
evaluating the merits and risks of this investment and protecting its own
interests. The Holder has had an opportunity to ask questions of, and receive
answers from, the Company and its officers and employees regarding the business,
financial affairs and other aspects of the Company, and has further had the
opportunity to obtain information (to the extent the Company possesses or can
acquire such information without unreasonable effort or expense) which the
Holder deems necessary to evaluate an investment in the Company and to verify
the accuracy of information otherwise provided to the Holder.

     

    4.4  Disposition of Warrant and
Exercise Shares .

     

    (a)  Except
for transfers by the Holder to its affiliates in compliance with all applicable
securities laws, the Holder further agrees not to make any disposition of all or
any part of the Warrant or Exercise Shares in any event unless and
until:

     

    (i)  The
Company shall have received a letter secured by the Holder from the Securities
and Exchange Commission stating that no action will be recommended to the
Commission with respect to the proposed disposition; or

     

    (ii)  There
is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with said registration
statement; or

     

    (iii)  The
Holder shall have shall have furnished the Company with an opinion of counsel,
reasonably satisfactory to the Company, for the Holder to the effect that such
disposition will not require registration of such Warrant or Exercise Shares
under the Act or any applicable state securities laws.

     

    (b)  The
Holder understands and agrees that all certificates evidencing the Exercise
Shares to be issued to the Holder may bear the following legend (in addition to
any legend required under applicable state securities laws, the Company’s
Bylaws, or as provided elsewhere in this Warrant):

     

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY APPLICABLE SECURITIES LAWS. THEY
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR TRANSFERRED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
QUALIFICATION UNDER SUCH STATE SECURITIES LAWS OR AN OPINION OF COUNSEL OR OTHER
EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND/OR QUALIFICATION
IS NOT REQUIRED.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

     

    5. Adjustments
and Notices. The
Exercise Price and the number of Exercise Shares issuable upon exercise of this
Warrant shall be subject to adjustment from time to time in accordance with this
Section 5.

     

    5.1  Subdivision, Stock Dividends
or Combinations . In case the Company shall at any time after the
commencement of the Exercise Period subdivide the outstanding Common Stock or
shall issue a stock dividend with respect to the Common Stock, the Exercise
Price in effect immediately prior to such subdivision or the issuance of such
dividend shall be proportionately decreased, and in case the Company shall at
any time after the commencement of the Exercise Period combine the outstanding
shares of Common Stock, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased, in each case effective at the
close of business on the date of such subdivision, dividend, or combination, as
the case may be.

     

    5.2  Reclassification, Exchange,
Substitution, In-Kind Distribution . Upon any reclassification, exchange,
substitution or other event after the commencement of the Exercise Period that
results in a change of the number and/or class of the securities issuable upon
exercise or conversion of this Warrant or upon the payment after the
commencement of the Exercise Period of a dividend in securities or property
other than shares of Common Stock, the Holder shall be entitled to receive, upon
exercise or conversion of this Warrant, the number and kind of securities and
property that Holder would have received if this Warrant had been exercised or
converted immediately before the record date for such reclassification,
exchange, substitution, or other event or immediately prior to the record date
for such dividend. The Company or its successor shall promptly issue to Holder a
new warrant for such new securities or other property. The new warrant shall
provide for adjustments, which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Section 5, including,
without limitation, adjustments to the Warrant Price and to the number of
securities or property issuable upon exercise or conversion of the new warrant.
The provisions of this Section 5.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other events and successive
dividends.

    
 

    5.3  Consolidation, Merger, Sale
and the Like . In case of any (i) merger or consolidation of the Company
into or with another corporation where the Company is not the surviving
corporation (but including a merger for the purpose of reincorporating in a new
domicile) (ii) sale, transfer or lease (but not including a transfer or lease by
pledge or mortgage to a bona fide lender) of all or substantially all of the
assets of the Company or (iii) sale by the Company’s stockholders of 50% or
more of the Company’s outstanding securities in one or more related
transactions, the Company, or such successor or purchasing corporation, as the
case may be, shall duly execute and deliver to the Holder hereof a new warrant
so that the Holder shall have the right to receive upon exercise or conversion
of the unexercised or unconverted portion of this Warrant, at a total purchase
price not to exceed that payable upon the exercise or conversion of the
unexercised or unconverted portion of this Warrant, and in lieu of shares of
Common Stock theretofore issuable upon exercise or conversion of this Warrant,
the kind and amount of shares of stock, or other securities, money and other
property in lieu of such shares of stock, receivable upon or as a result of such
reorganization, merger, or sale by a holder of the number of shares of Common
Stock for which this Warrant is exercisable or convertible immediately prior to
such event. Such new warrant shall provide for adjustments that shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Section 5. The provisions of this Section 5.3 shall similarly apply to
successive reorganizations, mergers, and sales.

     

    5.4  In
each case of an adjustment or readjustment of the Exercise Price pursuant to
this Section 5, the Company, at its expense, shall compute such adjustment or
readjustment in accordance with the provisions hereof and prepare a certificate
showing such adjustment or readjustment, and shall mail such certificate, by
first class mail, postage prepaid, to the Holder at the Holder’s address as
shown in the Company’s books. The certificate shall set forth such adjustment or
readjustment, showing in reasonable detail the facts upon which such adjustment
or readjustment is based, including a statement of, if applicable, the type and
amount, if any, of other property which at the time would be received upon
exercise of this Warrant.

     

    6. Fractional
Shares. No
fractional shares shall be issued upon the exercise of this Warrant as a
consequence of any adjustment pursuant hereto. All Exercise Shares (including
fractions) issuable upon exercise of this Warrant may be aggregated for purposes
of determining whether the exercise would result in the issuance of any
fractional share. No payments shall be made by the Company in respect of any
fractional shares otherwise issuable pursuant to this Warrant.

     

    7. No
Stockholder Rights. This Warrant in and of
itself shall not entitle the Holder to any voting rights or other rights as a
stockholder of the Company.

     

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    8. Transfer
of Warrant. Subject to applicable laws, the restriction on transfer set
forth on the first page of this Warrant and in Section 4.4 and the terms of any
applicable stockholders, investor rights, or similar agreements, this Warrant
and all rights hereunder are transferable, by the Holder in person or by duly
authorized attorney, upon delivery of this Warrant and the form of assignment
attached hereto to any transferee designated by Holder, provided that the
transferee shall have signed an investment letter in form and substance
satisfactory to the Company and agreed to be bound by the provisions of this
Warrant. Notwithstanding anything to the contrary, no partial transfer of this
Warrant shall be permitted.

     

    9. Lost,
Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated, or destroyed, the Company may, on such terms as to indemnity
or otherwise as it may reasonably impose (which shall, in the case of a
mutilated Warrant, include the surrender thereof), issue a new Warrant of like
denomination and tenor as the Warrant so lost, stolen, mutilated, or destroyed.
Any such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated, or destroyed
Warrant shall be at any time enforceable by anyone.

     
 

    10.  Notices,
Etc. All notices
and other communications required or permitted hereunder shall be in writing and
shall be sent by express mail or other form of rapid communications, if
possible, and if not then such notice or communication shall be mailed by
first-class mail, postage prepaid, addressed in each case to the party entitled
thereto at the following addresses: (a) if to the Company, to CrowdGather, Inc.,
Attention: President, 20300 Ventura Blvd. Suite 330, Woodland Hills, CA 91364,
and (b) if to the Holder, to such address as originally furnished to the Company
by the Holder, or at such other address as one party may furnish to the other in
writing. Notice shall be deemed effective on the date dispatched if by personal
delivery, two days after mailing if by express mail, or three days after mailing
if by first-class mail.

     

    11.  Amendment. This Warrant may be amended
or otherwise modified only by a writing signed by the Company and the
Holder.

     

    12. Acceptance.
Receipt of this Warrant by the Holder shall constitute acceptance of and
agreement to all of the terms and conditions contained herein.

     

    13.  Governing
Law; Forum. This
Warrant and all rights, obligations, and liabilities hereunder shall be governed
by the internal laws of the State of Nevada and any actions related hereto shall
be brought in a court of competent jurisdiction located in the County of Clark,
State of Nevada.

     

    [NEXT
PAGE IS SIGNATURE PAGE]

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

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

     

     

    
      	 
      	
              CROWDGATHER,
      INC.

            
	 
      	
              a
      Nevada corporation

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:_________________________________________

            
	 
      	
              Name:
      Sanjay Sabnani

            
	 
      	
              Title:
      President

            

    

     

    

     

    
      	
              Name of
      Holder: 

            	________________________________ 
	
              Address:   

            	
               

              ________________________________

              ________________________________

            
	
               

              Telephone:   

            	
               

              ________________________________ 

            
	Facsimile:  	________________________________ 

    

     

                    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    NOTICE
OF EXERCISE

     

    To:           CrowdGather,
Inc.

     

    1.  The
undersigned hereby elects to purchase ________ shares of the Common Stock of
CrowdGather, Inc. (the “Company”) pursuant to
the terms of the attached Warrant, and tenders herewith payment of the exercise
price in full pursuant to the terms of Section 2.1 of the attached Warrant, or
by net issue exercise pursuant to the terms of Section 2.2 of the attached
Warrant, together with all applicable transfer taxes, if any.

     

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

     

    
      	 
      	
              ________________________

            
	 
      	
              (Name)

            
	 
      	
              ________________________

            
	 
      	
              (Address)

            

    

     

    3.  The
undersigned represents that (i) the aforesaid shares of Common Stock are being
acquired for the account of the undersigned for investment purposes only and not
with a view to, or for resale in connection with, the distribution thereof and
that the undersigned has no present intention of distributing or reselling such
shares; (ii) the undersigned is aware of the Company’s business affairs and
financial condition and has acquired sufficient information about the Company to
reach an informed and knowledgeable decision regarding its investment in the
Company; (iii) the undersigned is experienced in making investments of this type
and has such knowledge and background in financial and business matters that the
undersigned is capable of evaluating the merits and risks of this investment and
protecting the undersigned’s own interests; (iv) the undersigned is an
“accredited investor” as defined in Rule 501 under the Securities Act of 1933,
as amended (the “ Securities Act ”);
(v) the undersigned understands that the shares of Common Stock issuable upon
exercise of this Warrant have not been registered under the Securities Act by
reason of a specific exemption from the registration provisions of the
Securities Act, which exemption depends upon, among other things, the bona fide
nature of the investment intent as expressed herein, and, because such
securities have not been registered under the Securities Act, they must be held
indefinitely unless subsequently registered under the Securities Act or an
exemption from such registration is available; (vi) the undersigned is aware
that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144
adopted under the Securities Act unless certain conditions are met and until the
undersigned has held the shares for the number of years prescribed by Rule 144;
and (vii) the undersigned agrees not to make any disposition of all or any part
of the aforesaid shares of Common Stock unless and until there is then in effect
a registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with said registration
statement, or the undersigned has provided the Company with an opinion of
counsel satisfactory to the Company, stating that such registration is not
required.

    

    
      	
              ________________________

            	
              ________________________

            
	
              (Date)

            	
              (Signature)

            
	 
      	 
      
	 
      	
              ________________________

            
	 
      	
              (Print
      name)

            

    

     

    
 

    7

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