Document:

Subordination Agreement under the Loan Agreement

 EXECUTION COPY 
 Exhibit 10.6 
 SUBORDINATION AGREEMENT 
 THIS SUBORDINATION AGREEMENT is made this 30th day of June, 2006, among ACT TELECONFERENCING, INC., a corporation organized under the laws of the State of Colorado (the “Company”), DOLPHIN DIRECT EQUITY PARTNERS, LP (the “Subordinated Creditor”), and
SILICON VALLEY BANK, a national banking association (the “Lender”). 
 RECITALS 
 A. The Company, together with ACT Proximity, Inc., a Colorado corporation, ACT Teleconferencing Services, Inc., a Minnesota corporation, ACT Research,
Inc., a Colorado corporation and ACT Videoconferencing, Inc., a Minnesota corporation (collectively, the “Borrower”), has entered into a Loan and Security Agreement with the Lender dated November 12, 2004 (as amended, modified,
restated, substituted, extended and renewed through the date hereof, the “Financing Agreement”) pursuant to which the Lender has agreed to provide certain credit facilities to the Borrower (the “Loans”). 
 B. Under the terms of the Financing Agreement, the execution and delivery of this Agreement is a condition precedent to the Lender’s obligation to
continue to make the Loans (as defined in the Financing Agreement). 
 AGREEMENTS 
 NOW, THEREFORE, in consideration of the foregoing and to induce the Lender from time to time to make, extend or continue loans, credits or other
financial accommodations to the Borrower, the Subordinated Creditor and the Company severally represent and agree with the Lender as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1 Specific Definitions. 
 As used in this Agreement, the terms defined in
the preamble and Recitals hereto shall have the respective meanings specified therein, and the following terms shall have the following meanings: 
 “Bankruptcy Code” means Title 11 of the United States Code, as amended from time to time, and any successor statute and all rules and regulations promulgated thereunder. 
 “Blockage Notice” means a notice from the Lender to the Subordinated Creditor stating that an Event of Default (as defined in
the Financing Agreement) exists under the Senior Indebtedness and specifying whether such Event of Default is a default in the payment of principal or interest under the Senior Indebtedness or not, and, in either case, giving the details of such
Event of Default. 
 “Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks in the State are authorized or required to close. 

 “Financing Documents” means the collective reference to each and every note,
instrument, security agreement, pledge agreement, guaranty agreement, mortgage, deed of trust, indemnity deed of trust, loan agreement, hypothecation agreement, indemnity agreement, letter of credit application, assignment, or any other document
(whether similar or dissimilar to any of the foregoing) previously, simultaneously or hereafter executed and delivered by the Borrower or any other Person, singly or jointly with another Person or Persons, in connection with any of the Senior
Indebtedness, including, without limitation, the “Loan Documents” as defined in the Financing Agreement, all as amended, modified, restated, substituted, extended and renewed at any time and from time to time. 
 “Insolvency Proceeding” means any receivership, conservatorship, general meeting of creditors, insolvency or bankruptcy
proceeding, assignment for the benefit of creditors, or any proceeding or action by or against the Company for any relief under any bankruptcy or insolvency law or other laws relating to the relief of debtors, readjustment of indebtedness,
reorganizations, dissolution, liquidation, compositions or extensions, or the appointment of any receiver, intervenor or conservator of, or trustee, or similar officer for, the Company or any substantial part of its properties or assets, including,
without limitation, proceedings under the Bankruptcy Code, or under other similar federal, state or local statute, laws, rules and regulations, all whether now or hereafter in effect. 
 “Lien” means any mortgage, deed of trust, deed to secure debt, grant, pledge, security interest, assignment, encumbrance,
judgment, financing statement, lien or charge of any kind, whether perfected or unperfected, avoidable or unavoidable, consensual or non-consensual including, without limitation, any conditional sale or other title retention agreement, any lease in
the nature thereof, and the filing of or agreement to give any financing statement under the Uniform Commercial Code of any jurisdiction. 
 “Person” means an individual, a corporation, a partnership, a joint venture, a trust, an unincorporated association, a government or political subdivision or agency thereof or any other entity. 

“Pledge Agreement” means the Pledge Agreement dated the date hereof executed and delivered by the Company and certain of its
subsidiaries to the Subordinated Creditor covering all the shares of capital stock or limited liability interests of direct and indirect subsidiaries of the Company. 
 “Security” means the Security set forth in EXHIBIT A attached hereto and made a part hereof. 
 “Security Agreement” means the Security Agreement dated the date hereof executed and delivered by the Company and certain of its
subsidiaries to the Subordinated Creditor covering substantially all of the assets of the Company and such subsidiaries. 
 “Senior Indebtedness” means all indebtedness, liabilities and obligations of the Borrower to the Lender of every kind and nature whatsoever, whether now existing or hereafter arising or created at any time, in each case pursuant
to the Financing Agreement and the other Loan Documents in effect on the date hereof. 
  

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 “Standstill Period” shall mean (a) any period during which the Company is
subject to any Insolvency Proceeding and (b) a period commencing from the date of a Blockage Notice from the Lender and continuing until the earlier of (i) (a) 180 days (if an Event of Default in the payment of principal and interest
is specified in such Blockage Notice) or (b) 120 days (if any other Event of Default is specified in such Blockage Notice), after the date of the Blockage Notice, (ii) the date that the Senior Indebtedness is paid and satisfied in full or
(iii) the event of default giving rise to such Blockage Notice is sooner cured within any applicable grace period or cured with the permission of the Lender; 
 provided, however, that (i) only one Standstill Period may be commenced within any period of 365 consecutive days (a “365 Day Period”), (ii) no Standstill Period shall be in effect for more than
180 days during any 365 Day Period, and (iii) there must be a consecutive 185-day period in any 365 Day Period during which no Standstill Period is in effect. 
 “State” means the State of New York. 
 “Subordinated Indebtedness” means any and all existing and future indebtedness, liabilities and obligations of the Company to
the Subordinated Creditor solely under the Subordinated Note. 
 “Subordinated Note” means the promissory note by
the Company initially to the Subordinated Creditor, as amended, modified, substituted, extended, and renewed from time to time. If at any time there exists more than one such Note, each such Note shall be referred to herein collectively as the
“Subordinated Note.” 
 Section 1.2 Other Definitional Provisions. 
 Unless otherwise defined herein, all terms used herein that are defined by the New York Uniform Commercial Code shall have the same
meanings as assigned to them by the New York Uniform Commercial Code unless and to the extent varied by this Agreement. The words “hereof”, “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and section, subsection, schedule and exhibit references are references to sections or subsections of, or schedules or exhibits to, as the case
may be, this Agreement unless otherwise specified. As used herein, the singular number shall include the plural, the plural the singular and the use of the masculine, feminine or neuter gender shall include all genders, as the context may require.
Reference to any one or more of the Financing Documents and any of the Financing Documents shall mean the same as the foregoing may from time to time be amended, restated, substituted, extended, renewed, supplemented or otherwise modified.
References to this Agreement include all Exhibits hereto. 
  

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 ARTICLE II 
 SUBORDINATION 
 Section 2.1 Subordinated Indebtedness. 
 2.1.1 Subordination. 
 The Subordinated Creditor hereby subordinates and postpones the payment of all of the Subordinated Indebtedness to and in favor of the indefeasible and full payment of the Senior Indebtedness; provided, however, the
Subordinated Creditor shall have limited rights to receive payment of the Subordinated Indebtedness as provided in Section 2.1.2 and Section 2.2.3 below. 
 2.1.2 Payments. 
 Until all of the Senior Indebtedness has been fully and indefeasibly paid, the Subordinated Creditor shall not, without the prior written consent of the Lender, except as permitted by the provisions of
Section 2.2.3 and EXHIBIT B attached hereto and made a part hereof, ask, demand, accelerate, declare a default under, sue for, set off, accept or receive any payment of all or any part of the Subordinated Indebtedness; provided, however, the
Subordinated Creditor may receive any payments described in EXHIBIT C attached hereto and made a part hereof. 
 Section 2.2 Security.

 2.2.1 Security for Subordinated Indebtedness. 
 The Subordinated Creditor and the Company agree, represent and warrant that the Subordinated Indebtedness is secured by a subordinate
security interest in the Security and a first lien security interest in the collateral described in the Pledge Agreement, the Security Agreement, and any UCC financing statement filed in connection therewith. 
 2.2.2 Subordination of Liens. 
 The Subordinated Creditor hereby subordinates the lien and priority of the Subordinated Creditor’s existing and future Liens and other interests, if any, in and to the Security to the Lender’s existing
interest in the Security. 
 2.2.3 No Action by Subordinated Creditor. 
 Except to the extent permitted by this Agreement, until the Senior Indebtedness has been fully and indefeasibly paid, the Subordinated
Creditor shall not, without the prior written consent of the Lender, which shall not be unreasonably withheld or delayed, ask, demand, assign, declare a default under, sue for, liquidate, sell, foreclose, set off, collect, accept a surrender,
receive any proceeds, petition, commence or otherwise initiate any Insolvency Proceedings (or join any other Person in so doing) against the Company or its assets, commence any action or proceeding to contest the provisions of this Agreement, or
otherwise realize or seek to realize upon all or any part of the Security; provided, however, that, upon the 

  

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conclusion of a Standstill Period, and in all events subject to the other provisions of this Agreement, the Subordinated Creditor may accelerate the
Subordinated Indebtedness and commence and pursue foreclosure proceedings under applicable law against the real and personal property of the Company. 
 2.2.4 Exercise of Remedies. 
 The Lender shall have the exclusive right to exercise
and enforce all of its privileges and rights with respect to the Security according to the Lender’s reasonable discretion and the exercise of the Lender’s reasonable business judgment, including, without limitation, the right to take or
retake control or possession of such Security and to hold, prepare for sale, process, sell, lease, dispose of, or liquidate such Security. 
 Section 2.3 Further Representations and Warranties. 
 The Company represents and warrants to the Lender that
true, correct and complete copies of all documents relating to the Subordinated Indebtedness in effect as of the date hereof have been furnished to the Lender. 
 Section 2.4 Further Documents. 
 The Subordinated Creditor and the Company agree they
shall promptly execute such further documents and acknowledgements (including, without limitation, amendments to and releases of financing statements and other documents of record) as the Lender may reasonably require to confirm or evidence their
respective obligations and the Lender’s rights under this Agreement. 
 ARTICLE III 
 DISTRIBUTIONS AND RECEIPTS 
 Section 3.1 Distributions, Etc. 
 3.1.1 Application of Proceeds. 
 In the event of any distribution, division or application, partial or complete, voluntary or involuntary, by operation of law or
otherwise, of all or any part of the assets of the Company or the proceeds thereof to creditors of the Company or to the holders of any indebtedness, liabilities and obligations of the Company, by reason of the liquidation, dissolution or other
winding up of the Company or the Company’s business, or in the event of any sale or Insolvency Proceedings with respect to the Company or its assets, then in any such event, any payment, distribution or benefit of any kind whatsoever or
character, either in cash, securities or other property, whether or not on account of the Security, which shall be payable, deliverable or receivable upon or with respect to all or any part of the Subordinated Indebtedness shall be paid or delivered
directly to the Lender for application to the Senior Indebtedness (whether due or not due and in such order and manner as the Lender may elect and including, without limitation any interest accruing subsequent to the commencement of any such event
or Insolvency Proceedings) until the Senior Indebtedness shall have been fully and indefeasibly paid and satisfied. 
  

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 3.1.2 Insolvency Proceedings. 
 In connection with any Insolvency Proceedings, the Subordinated Creditor hereby irrevocably authorizes and empowers the Lender, and
irrevocably appoints the Lender the Subordinated Creditor’s attorney-in-fact to, with respect to the Subordinated Indebtedness, (a) demand, sue for, collect and receive every payment or distribution and give acquittance therefor,
(b) enforce claims comprising Subordinated Indebtedness in the name of the Lender, or the name of the Subordinated Creditor, by proof of debt, proof of claim, suit or otherwise; (c) collect any assets of the Company distributed, dividended
or applied by way of dividend or payment, or any such securities issued, on account of Subordinated Indebtedness and apply the same, or the proceeds of any realization upon the same, to Senior Indebtedness (whether due or not due in such order and
manner as the Lender may elect) until all Senior Indebtedness shall have been indefeasibly paid in full; (d) vote claims compromising Subordinated Indebtedness to accept or reject any plan of partial or complete liquidation, reorganization,
arrangement, composition or extension, provided, however, that the foregoing shall not preclude the Subordinated Creditor from exercising any rights it may have under Section 1111(b) of the Bankruptcy Code; (e) take generally any action
which the Subordinated Creditor might otherwise take; and (f) take such other actions in the Lender’s own name or in the name of the Subordinated Creditor or otherwise, as the Lender may deem necessary or advisable to carry out the
provisions of this Agreement. 
 3.1.3 Execution of Additional Documents. 
 The Subordinated Creditor hereby agrees to execute and deliver to the Lender such other documents or other instruments as may be
reasonably requested by the Lender to confirm the obligations of the Subordinated Creditor under this Agreement. 
 Section 3.2 Receipts
by Subordinated Creditor. 
 Should any payment or distribution not permitted by the provisions of this Agreement, or
property or proceeds thereof, be received by the Subordinated Creditor upon or with respect to all or any part of the Subordinated Indebtedness and/or the Security prior to the full payment and satisfaction of the Senior Indebtedness, the
Subordinated Creditor will promptly deliver the same to the Lender in precisely the form received (except for the endorsement or assignment of the Subordinated Creditor when the Lender deems appropriate), for application to the Senior Indebtedness
(whether due or not due and in such order and manner as the Lender may elect), and, until so delivered, the same shall be held in trust by the Subordinated Creditor as property of the Lender. 
 ARTICLE IV 
 ADDITIONAL AGREEMENTS 
 Section 4.1 Consents, Waivers, Etc. 
 Subordinated Creditor hereby consents that at any time and from time to time and with or without consideration, the Lender may, without further consent of or notice to the Subordinated Creditor and without in any
manner affecting, impairing, lessening or releasing any of the provisions of this Agreement, renew, extend, change the manner, time, place and terms of 

  

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payment of, sell, exchange, release, substitute, surrender, realize upon, modify, waive, grant indulgences with respect to and otherwise deal with in any
manner: (a) all or any part of the Senior Indebtedness, provided, however, that the Lender may not increase the principal amount of the Senior Indebtedness without the Subordinated Creditor’s written consent; (b) all or any of the
Financing Documents to which it is a party; (c) all or any part of any property at any time included within the Security; and (d) any Person at any time primarily or secondarily liable for all or any part of the Senior Indebtedness and/or
any collateral and Security therefor, all as if this Subordination Agreement and any interest which the Subordinated Creditor has in the Security did not exist. Subordinated Creditor hereby waives, with respect to the Lender, demand, presentment for
payment, protest, notice of dishonor and of protest with respect to the Senior Indebtedness, the Subordinated Indebtedness and/or the Security, notice of acceptance of this Agreement, notice of the making of any of the Senior Indebtedness and notice
of default under any of the Financing Documents. 
 Section 4.2 Continuing Agreement. 
 This is a continuing Subordination Agreement until all of the Senior Indebtedness has been fully and indefeasibly paid and until all of
the Senior Indebtedness and all of the Subordinated Creditor’s obligations to the Lender have been performed and satisfied. Without implying any limitation on the foregoing, if at any time any payment or assets distributed or paid over, or
portion thereof, made by, or for the account of, the Company, by any Subordinated Creditor or otherwise on account of any of the Senior Indebtedness is set aside by any court or trustee having jurisdiction as a voidable preference or fraudulent
conveyance or must otherwise be restored or returned by the Lender to the Company or any other Person under any Insolvency Proceedings or otherwise, the Subordinated Creditor and the Company hereby agree that this Agreement shall continue and remain
in full force and effect or be reinstated, as the case may be, all as though any such payment had not been made and this Agreement had at all times remained in effect. 
 Section 4.3 No Third Party Beneficiaries. 
 The provisions of this Agreement are
solely for the benefit of the Lender and the Subordinated Creditor, and their respective successors and assigns, and to any other Person which, with the Lender’s concurrence, replaces financing provided by the Lender in full and to the
satisfaction of Lender; and there are no other parties or Persons whatsoever (including, without limitation, the Company and its successors and assigns, except with respect to Sections 5.6.5 and 5.6.6) who are intended to be benefited in any manner
whatsoever by this Agreement. 
 Section 4.4 Transfer or Assignment of the Senior Indebtedness. 
 If any of the Senior Indebtedness should be transferred or assigned by the Lender, this Agreement will inure to the benefit of the
Lender’s transferee or assignee to the extent of such transfer or assignment, provided that the Lender shall continue to have the unimpaired right to enforce this Agreement as to any of the Senior Indebtedness not so transferred or assigned.

  

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 ARTICLE V 
 MISCELLANEOUS 
 Section 5.1 Notices. 
 All notices, requests and demands to or upon the parties to this Agreement shall be in writing and shall be deemed to have been given or made when
delivered by hand on a Business Day, or two (2) days after the date when deposited in the mail, postage prepaid by registered or certified mail, return receipt requested, or when sent by overnight courier, on the Business Day next following the
day on which the notice is delivered to such overnight courier, addressed as follows: 
  

			
	 Company:
	  	ACT Teleconferencing, Inc.
		  	1526 Cole Boulevard
		  	Suite 300
		  	Golden, Colorado 80401
		  	Facsimile: (303) 235-4399
		  	Attention: Gene Warren, CEO
		  	
	 Lender:
	  	Silicon Valley Bank
		  	3003 Tasman Drive
		  	Santa Clara, California 95054
		  	Facsimile: (972) 387-0782
		  	Attention: Benjie Polnick
		  	
	 Subordinated Creditor:
	  	Dolphin Direct Equity Partners, LP
		  	c/o Dolphin Asset Management Corp.
		  	129 East 17th Street
		  	New York, NY 10003
		  	Attention: Carlos Salas
		  	
		  	With a copy to:
		  	
		  	Hughes Hubbard & Reed LLP
		  	One Battery Park Plaza
		  	New York, NY 10004
		  	Attention: Gary J. Simon

 By written notice, each party to this Agreement may change the address to which
notice is given to that party, provided that such changed notice shall include a street address to which notices may be delivered by overnight courier in the ordinary course on any Business Day. 
 Section 5.2 Additional Senior Indebtedness. 
 Nothing herein contained shall obligate the Lender to grant credit to, or continue financing arrangements with, the Company. 
  

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 Section 5.3 Delay in Enforcement, etc. 
 No delay or failure on the part of the Lender to exercise any of its rights or remedies hereunder or now or hereafter existing at law or
in equity or by statute or otherwise, or any partial or single exercise thereof, shall constitute a waiver thereof. All such rights and remedies are cumulative and may be exercised singly or concurrently and the exercise of any one or more of them
will not be a waiver of any other. No modification to or waiver of any of the Lender’s rights and remedies under this Agreement or otherwise, and no modification or amendment of this Agreement, shall be deemed to be made by the Lender unless
the same shall be in writing, duly signed on behalf of the Lender, and each such waiver, if any, shall apply only with respect to the specific instance involved and shall in no way impair the rights and remedies of the Lender hereunder in any other
respect at any other time. Without limiting the generality of the foregoing, the Lender may proceed against the Company with or without proceeding against any guarantor, surety, indemnitor or any other Person who may be liable for all or any part of
the Obligations, may proceed against all or any part of the Security, or may refrain taking all or any such action without affecting the agreements and obligations of the parties to this Agreement. 
 Section 5.4 Successors and Assigns. 
 This Agreement shall be binding upon the Subordinated Creditor and the Company and the Subordinated Creditor’s and the Company’s successors and assigns and shall inure to the benefit of the Lender and the
Lender’s successors and assigns, and other holders of or obligees under the Senior Indebtedness and any Person which, with the Lender’s concurrence replaces financing provided by the Lender. 
 Section 5.5 Headings. 
 The paragraph headings of this Agreement are for convenience only, and shall not limit or otherwise affect any of the terms hereof. 
 Section 5.6 Applicable Law; Jurisdiction. 
 5.6.1 Applicable Law. 
 The parties to this Agreement acknowledge and agree that this Agreement shall be governed by the laws of the State, as if this Agreement
had been executed, delivered, administered and performed solely within the State even though for the convenience and at the request of the Subordinated Creditor or the Company, this Agreement may be executed elsewhere. 
 5.6.2 Submission to Jurisdiction. 
 The parties to this Agreement irrevocably submit to the jurisdiction of any state or federal court sitting in the State over any suit, action or proceeding arising out of or relating to this Agreement or any of the
other Financing Documents. The parties to this Agreement irrevocably waive, to the fullest extent permitted by law, any objection that either of them may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought
in any such court and any claim that any such suit, action or proceeding brought in any 

  

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such court has been brought in an inconvenient forum. Final judgment in any such suit, action or proceeding brought in any such court shall be conclusive and
binding and may be enforced in any court in which the applicable party is subject to jurisdiction, by a suit upon such judgment, provided that service of process is effected upon the applicable party in one of the manners specified in this Section
or as otherwise permitted by applicable laws. 
 5.6.3 Service of Process. 
 The parties to this Agreement hereby consent to process being served in any suit, action or proceeding of the nature referred to in this
Section by the mailing of a copy thereof by registered or certified mail, postage prepaid, return receipt requested, at the address designated in or pursuant to Section 5.1 (Notices). The parties to this Agreement irrevocably agree that such
service (y) shall be deemed in every respect effective service of process in any such suit, action or proceeding, and (z) shall, to the fullest extent permitted by law, be taken and held to be valid personal service. Nothing in this
Section shall affect the right of the Lender to serve process in any manner otherwise permitted by law or limit the right of the Lender otherwise to bring proceedings against the Subordinated Creditor or the Company, as the case may be, in the
courts of any jurisdiction or jurisdictions. 
 5.6.4 No Credit on Subordinated Indebtedness. 
 Notwithstanding anything to the contrary contained herein, if any payment is made to the Lender that, but for this Agreement, would have
been made to or retained by the Subordinated Creditor, such payment shall not, as between the Company and the Subordinated Creditor, be deemed to reduce in any manner the amount of the Subordinated Indebtedness owed to the Subordinated Creditor by
the Company. 
 5.6.5 Consent to Loan Documents. 
 Notwithstanding any provision of any Financing Document, the Lender hereby consents to the execution, delivery and performance by the
Borrowers of the Loan Documents (as defined in the Loan Agreement between the Company and the Subordinated Creditor dated June 30, 2006) and agrees that such execution, delivery and performance, including the payment or deemed payment of money,
shall not (subject to the terms of this Agreement) constitute a default or an event of default under, or otherwise be restricted by, any Financing Document (however defined therein). 
 5.6.6 Release of Liens by Lender. 
 Lender hereby agrees that, upon the indefeasible payment in full of (i) the Loans, (ii) all interest then due and owing thereon, and (iii) any unpaid costs or expenses, including attorneys fees, owing
to Lender under the Financing Agreement by the Company or the Subordinated Creditor, the Lender will release all of its liens on and security interests in any of the assets or other property of the Company and the Company shall automatically be
released from all of its obligations under the Financing Documents, and this Agreement shall automatically terminate. 
  

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 IN WITNESS THEREOF, the signatures of the Subordinated Creditor and of the Company are subscribed to this
Agreement as of the date first written above. 
  

			
	 DOLPHIN DIRECT EQUITY PARTNERS, LP

		
	By:	 	 Dolphin Advisors, LLC

		 	 its managing general partner

		
	By:	 	 Dolphin Management Inc.

		 	 its managing member

		
	By:	 	  
		 	 Name:

		 	 Title:

	
	 ACT TELECONFERENCING, INC.

		
	By:	 	  
		 	 Name:

		 	 Title:

	
	 SILICON VALLEY BANK

		
	By:	 	  
		 	 Name:

		 	 Title:

  

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 EXHIBIT A 
 SECURITY DEFINITION 
 “Security” means any security agreement, pledge, pledge
agreement, guaranty agreement, mortgage, deed of trust, deed to secure debt, trust deed, land trust, indenture, indemnity deed of trust, indemnification agreement, proceeding in rem, reimbursement agreement, financing statement, purchase agreement,
conditional sales contract, installment sales contract, collateral agreement, financing lease, letter of credit, bond, loan agreement, hypothecation agreement, deposit, financing statement or assignment, and also means any agreement, document,
security device or arrangement, document, statutory lien, lien arising by operation of law, judgment or other lien, right of setoff, encumbrance, proceeding or other document or right, in whatever form or however arising, whether similar or
dissimilar to the foregoing which directly or indirectly secures or enforces payment or performance of any Person against, or otherwise encumbers or gives notice of an encumbrance upon, the real property, personal property, rights or assets of any
Person. 
 Notwithstanding the above definition and the provisions of the Financing Agreement, Security shall not include the Pledge
Agreement, the lien thereof or the property encumbered thereby, and Lender shall have no rights under this Agreement or otherwise in respect of the existing and future interest of Subordinated Creditor under the Pledge Agreement, the lien thereof,
or the property encumbered thereby. 
  

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 EXHIBIT B 
 PERMITTED ACTIONS 
 Notwithstanding the provisions of the Agreement: 
 If any Event of Default (as defined in the Subordinated Note) exists and is continuing, whether or not a Blockage Notice has been delivered by Lender,
the Subordinated Creditor may, at its option, to the extent permitted by the terms of the Subordinated Note, after prior notice to Lender (A) declare all or any part of the unpaid principal amount of the Subordinated Note and all interest
accrued and unpaid thereon, and all fees, costs, expenses, indemnities and other obligations payable under the Subordinated Note, to be immediately due and payable, without presentment, demand, notice, protest or other formalities of any kind, and
(B) only after all of the Senior Indebtedness has been fully and indefeasibly paid, foreclose the lien of the Pledge Agreement and exercise any of the other rights and remedies available to the Subordinated Creditor under the Pledge Agreement
following the occurrence of such an Event of Default. 
  

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 EXHIBIT C 
 PERMITTED PAYMENTS 
 Until delivery of a Blockage Notice by Lender, the Subordinated Creditor
may receive payments of principal and interest under the Subordinated Note in accordance with its terms. 
 There shall be no prepayment of
the Subordinated Indebtedness. 
 Notwithstanding anything to the contrary anywhere contained, the Company may make or apply and the
Subordinated Creditor may receive payments of amounts or value under the Securities Purchase Agreement made as of the 30th day of June 2005 (the “Securities Purchase Agreement”) between the Company and the Subordinated Creditor) and any other Transaction Document (as defined in the Securities Purchase Agreement), other than as contemplated
solely by the Subordinated Note. 
  

 -14-Common Stock Purchase Warrant

 Exhibit 4(i) 
 NEITHER THIS WARRANT NOR THE COMMON SHARES OF ATMOSPHERIC GLOW TECHNOLOGIES, INC. WHICH MAY BE PURCHASED PURSUANT TO THIS WARRANT HAVE BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
UNDER ANY STATE SECURITIES LAWS. NEITHER THE SHARES NOR THE WARRANT MAY BE SOLD, ASSIGNED, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF WITHOUT EFFECTIVE REGISTRATION OR QUALIFICATION UNDER SUCH ACT AND LAWS OR ARE EXEMPTED THEREFROM. 

COMMON STOCK PURCHASE WARRANT 
 THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) is issued as of the                     , 2006, by Atmospheric
Glow Technologies, Inc. (the “Company”), in favor of                          (the “Warrant Holder”).

 WHEREAS, the Company has determined to issue this Warrant to the Warrant Holder, pursuant to which the Warrant Holder shall have
the right to purchase an aggregate of                  Common Shares of the Company, in exchange for the consideration described below and otherwise upon the
terms and conditions set forth herein; and 
 WHEREAS, all acts and things necessary have been done and performed to make this Warrant
the valid, binding and legal obligation of the Company; 
 NOW, THEREFORE, in consideration of the mutual agreements contained herein,
the Company and the Warrant Holder agree as follows: 
 ARTICLE I 
 Warrant Consideration 
 1.01. Warrant Consideration. Warrant Holder has
purchased                  Common Shares under an offering by the Company pursuant to Regulation D which under the terms of the offering entitle Warranted Holder
to receive Warrants to purchase additional Common Shares of the Company. 
 ARTICLE II 
 Warrant Price, Duration and Exercise of Warrant 
 2.01. Warrant Price. This Warrant shall entitle the Warrant Holder, subject to the terms and provisions hereof, to purchase from the Company
                     Common Shares of the Company at the price of $0.12 per share (the “Warrant Price”), subject to the adjustments
provided in Article III of this Warrant. The Warrant Price as used herein shall mean the price per share at which Common Shares may be purchased at the time this Warrant is exercised. 
 2.02. Duration of Warrant. This Warrant may be exercised at any time after the date hereof and for two (2) years from such date (the
“Expiration Date”). Notwithstanding the foregoing, if notice has been given to the Warrant Holder as provided in Article III hereof in connection with the liquidation, dissolution or winding up of the Company, this Warrant shall expire at
the close of business on the third (3rd) full business day before the date specified in the 

 
notice as the record date for determining holders of Common Shares entitled to receive any distribution upon the liquidation, dissolution or winding up of
the Company; provided, however, that such date is at least thirty (30) days after the date of the notice. 
 2.03. Exercise of
Warrant. 
 (a) This Warrant may be exercised in whole or in part by surrendering this Warrant at the Principal Office of the Company on
any business day prior to the close of business of the Company on the Expiration Date. In order to validly exercise this Warrant, the Warrant Holder shall duly complete, execute and deliver to the Company the Election to Purchase attached hereto and
made a part hereof as Exhibit A accompanied by the payment in full, in lawful money of the United States, of the Warrant Price for each full Common Share as to which this Warrant has been exercised plus any applicable taxes. Notwithstanding
the foregoing, (i) this Warrant may not be exercised for fewer than 100,000 Common Shares at any one time, unless the remaining Common Shares subject to this Warrant is less than 100,000 Common Shares, in which case this Warrant must be
exercised for all remaining Common Shares; and (ii) the Company is not required under the terms and provisions of this Warrant to register or qualify this Warrant or the Common Shares that will be issued to the Warrant Holder upon the exercise
of this Warrant under the Securities Act of 1933, as amended (the “Securities Act”) or the securities “blue sky” laws of any state. 
 (b) As soon as practicable after the exercise of this Warrant, whether in whole or in part, the Company shall issue to, or upon the order of, the Warrant Holder, in whatever name or names the Warrant Holder may
direct, a certificate or certificates for the number of full Common Shares with respect to which this Warrant has been exercised, registered in the name or names specified by the Warrant Holder (provided that there is no violation of securities laws
in such direction). If this Warrant has not been exercised in full, a new Warrant for purchases of the number of Common Shares (including fractional Shares) as to which this Warrant has not been exercised shall be issued to the Warrant Holder in
exchange for this Warrant (or any replacement Warrant), which will be immediately canceled by the Company. 
 (c) If the exercise of this
Warrant in part entitles the Warrant Holder to a fraction of a Common Share, the Company shall pay a cash adjustment with respect to that fractional Common Share in an amount equal to the same fraction of the current fair value of one Common Share
on the business day that next precedes the day of exercise of this Warrant. For this purpose, the current fair value of such Common Share shall be the price of one Common Share on the principal stock exchange on which the Common Shares of the
Company are traded at the close of the market on the next preceding business day, or, if the Common Shares are not then listed on a stock exchange, the average of the reported bid and asked prices on that day in the over-the-counter market. If no
sales take place on the next preceding day, the price or the average of the bid and asked prices, whichever is applicable, shall be determined as of the preceding business day on which Common Shares of the Company were traded closest in time to the
date of exercise, provided that such day is no more than five (5) business days prior to the date of exercise of this Warrant. If no public market then exists for the Common Shares, the fair value of the Common Shares shall be determined by the
Company’s independent auditors, which determination shall be binding upon the Company and the Warrant Holder. 
 (d) All Common Shares
issued upon the exercise of this Warrant shall be duly and validly issued, fully paid and non-assessable, and the Company shall pay all taxes in 

  

 2 

 
connection with the issuance of such Common Shares. The Company shall not be required to pay any tax imposed in connection with any transfer involved in the
issuance of a certificate for Common Shares in any name other than that of the Warrant Holder. In such event, the Company shall not be required to issue or deliver any certificate for such Common Shares until the tax has been paid. 
 (e) Each person in whose name any certificate for Common Shares is issued shall be deemed to have become the holder of record of the Common Shares on the
date on which this Warrant was surrendered to the Company and payment of the Warrant Price and any applicable taxes was made to the Company, irrespective of the date of delivery of the certificate evidencing the Common Shares, except that, if the
date of surrender and payment is a date when the stock transfer books of the Company are closed, a person shall be deemed to have become the holder of such Common Shares at the close of business on the next succeeding date on which the stock
transfer books are open. Except as otherwise provided in Article III, each person holding any Common Shares received upon the exercise of this Warrant shall be entitled to receive only dividends which are payable to holders of record on or after the
date on which the person is deemed to become the holder of record of such shares. 
 ARTICLE III 
 Adjustments 
 3.01. Stock Dividends
and Splits. If after the date of this Warrant, and subject to the provisions of Section 3.07 hereof, the number of outstanding Common Shares of the Company is increased by a distribution of additional Common Shares of the Company or by a
split-up of Common Shares of the Company, then, on the day following the date fixed for the determination of holders of Common Shares entitled to receive the distribution or split-up, the number of Common Shares to be issued upon the exercise of
this Warrant shall be increased in proportion to the increase in the outstanding Common Shares and the Warrant Price shall be correspondingly decreased. 
 3.02. Aggregation of Common Shares. If after the date of this Warrant, and subject to the provisions of Section 3.07 hereof, the number of outstanding Common Shares of the Company is decreased by a reverse
stock split or a combination or reclassification of the Common Shares of the Company, then, after the effective date of the reverse stock split, combination or reclassification, the number of Common Shares to be issued upon the exercise of this
Warrant shall be decreased in proportion to the decrease in the outstanding Common Shares and the then applicable Warrant Price shall be correspondingly increased. 
 3.03. Special Stock Dividends. If after the date of this Warrant, shares of any class of stock (other than Common Shares) are issued by way of a distribution on outstanding Common Shares, then, commencing with
the day following the date fixed for the determination of the holders of Common Shares entitled to receive the distribution, in addition to any Common Shares receivable upon the exercise of this Warrant, the Warrant Holder, upon exercise of this
Warrant, shall be entitled to receive, as nearly as practicable, the same number of shares, plus any shares issued upon any subsequent change, replacement, subdivision or combination of the distributed shares, to which the Warrant Holder would have
been entitled to receive if this Warrant had been exercised immediately prior to the distribution. No adjustment in the Warrant Price shall be made merely by virtue of the happening of any event specified in this Section 3.03. 
  

 3 

 3.04. Reorganization, Etc. If after the date of this Warrant any capital reorganization or
reclassification of the Common Shares of the Company, or consolidation or merger of the Company with another legal entity, or sale of all or substantially all of its assets to another legal entity is effective, then, as a condition of the
reorganization, reclassification, consolidation, merger or sale, lawful and fair provision shall be made whereby the Warrant Holder after the transaction shall have the right to purchase and receive, upon the basis and upon the terms and conditions
specified in this Warrant and in lieu of the Common Shares of the Company purchasable and receivable immediately prior to the transaction upon the exercise of the rights represented by this Warrant, the shares of stock, securities or assets that may
be issued or payable with respect to or in exchange for a number of outstanding Common Shares equal to the number of Common Shares purchasable and receivable immediately prior to the transaction upon the exercise of the rights represented by this
Warrant as if the reorganization, reclassification, consolidation, merger or sale had not taken place. Appropriate provisions shall be made in connection with a reorganization, reclassification, consolidation, merger or sale with respect to the
rights and interests of the Warrant Holder to ensure that the provisions of this Warrant (including, without limitation, provisions for adjustments of the Warrant Price and of the number of Common Shares purchasable upon the exercise of this
Warrant) shall immediately after the transaction be applicable as nearly as possible to any shares of stock, securities or assets deliverable immediately after the transaction upon the exercise of this Warrant. The Company shall not effect any
consolidation, merger or sale unless, prior to the consummation of the transaction, the successor legal entity (if other than the Company) resulting from the consolidation or merger, or the legal entity purchasing the assets, assumes by written
instrument executed and delivered to the Warrant Holder the obligation to deliver to the Warrant Holder the shares of stock, securities or assets in accordance with the foregoing provisions that the Warrant Holder may be entitled to purchase in
accordance with the terms and provisions of this Section 3.04. 
 3.05. Notice of Change in Warrant. Upon any adjustment of the
Warrant Price or the number of Common Shares to be issued upon the exercise of this Warrant, then and in each case the Company shall give written notice of the adjustment to the Warrant Holder mailed to the address of the Warrant Holder registered
with the Company. The notice shall state the Warrant Price resulting from the adjustment and the increase or decrease, if any, in the number of Common Shares purchasable at that price upon the exercise of this Warrant, setting forth in reasonable
detail the method of calculation and the facts upon which the calculation is based. The failure to give such notice to the Warrant Holder, or any defect in such notice given to the Warrant Holder, shall not affect the legality or validity of the
changes or adjustments. 
 3.06. Other Notices. In case at any time: 
 (a) the Company makes any distributions payable in stock upon its Common Shares or makes any distributions (other than cash dividends) to the holders of
its Common Shares; 
 (b) the Company offers for subscription pro rata to the holders of its Common Shares any additional shares of stock of
any class or any other rights; 
 (c) there is a capital reorganization, a reclassification of the capital stock of the Company or a
consolidation or merger of the Company with, or a sale of all or substantially all of its assets to, another legal entity; or 
  

 4 

 (d) there is a voluntary or involuntary dissolution, liquidation or winding up of the Company;

 then, in any one or more of these cases, the Company shall give written notice to the Warrant Holder in the manner set forth in Section 3.05 of this
Warrant of the date on which (i) the books of the Company close or a record is taken for the dividend, distribution or subscription rights, or (ii) the reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation
or winding up of the Company takes place. The notice also shall specify the date as of which the holders of record of Common Shares shall participate in the dividend, distribution or subscription rights, or shall be entitled to exchange their Common
Shares for securities or other property deliverable upon the reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up of the Company. The notice shall be given at least thirty (30) days prior to the
transaction in question and not less than thirty (30) days prior to the record date or the date on which the Company’ transfer books are closed with respect to the transaction. The failure to give such notice to the Warrant Holder, or any
defect in such notice to the Warrant Holder, shall not affect the legality or validity of any transaction covered or to be covered in such notice. 
 3.07. Limitation on Fractions. Notwithstanding anything in Sections 3.01 or 3.02 hereof to the contrary, cumulative adjustments in the number of Common Shares issuable upon the exercise of this Warrant shall be made only to the
nearest multiple of one-tenth of a share, i.e., fractions of less than five-hundredths of a share shall be disregarded and fractions of five-hundredths of a share or more shall be treated as being one-tenth of a share. 
 3.08. Form of Warrant. This Warrant need not be changed due to any change pursuant to this Article III, and any Warrants issued after a change may
state the same Warrant Price and the same number of Common Shares as is stated in this Warrant. However, at any time in its sole discretion, the Company may make any change in the form of this Warrant that it may deem appropriate and that does not
affect the substance of this Warrant. Any Warrant subsequently issued, whether in exchange or substitution for an outstanding Warrant or otherwise, may be in the form as so changed. 
 ARTICLE IV 
 Other Provisions Relating to Rights of the Warrant Holder

 4.01. No Rights as Member Conferred by Warrant. This Warrant does not entitle the Warrant Holder, solely as the owner and
holder of this Warrant, to any of the rights of a shareholder of the Company prior to the exercise of this Warrant in whole or in part. 
 4.02. Lost, Stolen, Mutilated or Destroyed Warrants. If this Warrant is lost, stolen, mutilated or destroyed, the Company may issue a new Warrant of like denomination, tenor and date as this Warrant so lost, stolen, mutilated or
destroyed. Any such issuance of a new Warrant shall be on whatever terms and conditions with respect to indemnity or otherwise that the Company may in its sole discretion impose (which shall, in the case of a mutilated Warrant, include the surrender
of this Warrant). 
 4.03. Reservation of Common Shares. The Company shall at all times reserve and keep available the number of its
authorized but unissued Common Shares which is sufficient to permit the exercise in full of this Warrant and all other outstanding warrants and options issued by the 

  

 5 

 
Company. If at any time the number of authorized but unissued Common Shares of the Company is not sufficient for this purpose, the Company shall take such
action as, in the opinion of counsel, may be necessary to increase its authorized but unissued Common Shares to the number of Common Shares sufficient for these purposes. 
 ARTICLE V 
 Ownership and Transfer of Warrant 
 5.01. Ownership of Warrant. This Warrant shall be treated as owned only by the holder of record as determined by the Company. 
 5.02. Transfer of this Warrant. 
 (a)
Neither this Warrant nor the Common Shares to be issued upon exercise of this Warrant have been registered or qualified under the Securities Act or under the securities or “blue sky” laws of any state. The Warrant Holder hereby represents
and warrants to the Company that this Warrant and the underlying Common Shares were acquired for investment and not with a view to distribution or resale, and the Warrant Holder hereby covenants and agrees that neither this Warrant nor the Common
Shares to be issued upon the exercise of this Warrant may be made subject to a security interest, pledged, hypothecated or otherwise transferred except pursuant to an effective registration under federal and state laws or pursuant to exemptions from
registration. Each certificate representing any Common Shares issued pursuant to the exercise of this Warrant will bear a legend reflecting such restrictions on transfer. Prior to permitting transfer of this Warrant or the Common Shares to be issued
upon exercise of this Warrant, the Company may require an opinion of counsel acceptable to it that any such transfer complies with applicable laws. 
 (b) For any transfer that meets the criteria described in paragraph (a) above, this Warrant may be surrendered to the Company for transfer and, upon its cancellation, the Company shall deliver in exchange therefor a new Warrant, as
requested by the Warrant Holder, for purchase of the same aggregate number of Common Shares as were evidenced by the Warrant so canceled. 
 ARTICLE VI 
 Other Matters 
 6.01. Payment of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the Company in connection with the issuance or delivery of Common Shares upon the exercise
of this Warrant, but the Company shall not be required to pay any transfer taxes in connection with this Warrant or the issuance of Common Shares upon the exercise of this Warrant. 
 6.02. Modification of Warrant. Without the consent or concurrence of the Warrant Holder, the Company may by supplemental agreement or otherwise
make any changes or corrections in this Warrant that it is advised by counsel (who may be counsel for the Company) are required to cure any ambiguity or to correct any defective or inconsistent provision or clerical omission or mistake or manifest
error contained herein. 
 6.03. Notices and Demands to Company and Warrant Holder. Any notice or demand to be given or made by the
Company or the Warrant Holder shall be sufficiently given or made if sent by certified or registered mail, postage prepaid, addressed to the Company at its Principal Office, or to the Warrant Holder at the address registered with the Company.

  

 6 

 6.04. Applicable Law. The validity, interpretation and performance of this Warrant shall be
governed by the laws of the State of Delaware, without regard to the principles or provisions thereof regarding conflicts of laws. 
 6.05.
Persons Having Rights Under This Warrant. Nothing expressed in this Warrant and nothing that may be implied from any of the provisions hereof is intended, or shall be construed, to confer upon, or give to, any person or corporation other than
the Company and the Warrant Holder any right, remedy or claim under or by reason of this Warrant or of any covenant, condition, stipulation, promise or agreement contained herein, and all covenants, conditions, stipulations, promises and agreements
contained herein shall be for the sole and exclusive benefit of the Company and its successors and assigns and of the Warrant Holder. 
 6.06. Effect of Headings. The article and section headings in this Warrant are for convenience only and are not part of this Warrant and shall not affect the interpretation hereof. 
 WITNESS the signatures of the Company and the Warrant Holder as of the day first above written. 
  

			
	Atmospheric Glow Technologies, Inc.
		
	By:	 	  

		
	Title:	 	  

		 	(the “Company”)

  

			
	  
 [signature]

	
	  
 Print Name

		
	Address:	 	  

	
	  
 (the “Warrant
Holder”)

  

 7 

 EXHIBIT A 
 ELECTION TO PURCHASE 
 (To be executed upon exercise of the Warrants) 
 The undersigned hereby irrevocably elects to exercise the right, represented by the Warrant, to purchase
                     Common Shares of Atmospheric Glow Technologies, Inc., a Delaware corporation (the “Company”), and herewith
tenders in payment for such Common Shares a certified or official bank check payable to the order of the Company in the amount of $             all in accordance with the terms
hereof. The undersigned requests that a certificate for such Common Shares be registered in and delivered to the following name and address: 
                                       
                                        
                                     
                                       
                                        
                                     
                                       
                                        
                                     
 If said number of Common Shares is less than all the Common Shares purchasable pursuant to the Warrant, the undersigned requests that a new Warrant representing the
remaining balance of the Common Shares subject to the Warrant be registered in and delivered to the following name and address: 
                                       
                                        
                                     
                                       
                                        
                                     
                                       
                                        
                                     
 Dated:
                                 
  

			
	  
 Signature of Warrant
Holder

		
	Title:	 	  

		 	(if applicable)
	
	  
 Print Name of Warrant
Holder

 Note: The signature to this Election to Purchase must correspond with the names as written upon the face of
this Warrant in every particular, without alteration or enlargement in any manner whatsoever.

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