Document:

EX-10.4 VICIS CAPITAL RIGHTS AGREEMENT

 

EXHIBIT 10.4

INVESTOR RIGHTS AGREEMENT

     This INVESTOR RIGHTS AGREEMENT (this “AGREEMENT”) is entered into as of September 14, 2007, by
and among Brookside Technology Holding Corp., a Florida corporation (the “COMPANY”), and Vicis
Capital Master Fund (the “SERIES B INVESTOR”).

RECITALS:

     A. Series A Investor has executed and delivered to the Company a Securities Purchase Agreement
dated as of even date herewith (the “PURCHASE AGREEMENT”) to purchase Series B Convertible
Preferred Stock and Series D Warrants. The Series B Convertible Preferred Stock and Series D
Warrants are collectively referred to as the “SECURITIES.”

     B. To induce the Series B Investor to acquire the Securities, the Company hereby agrees that
this Agreement shall govern the rights of the Series B Investor and the Company.

     In consideration of the foregoing recitals and for good and other valuable consideration
hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

1. DEFINITIONS. For purposes of this Agreement:

     “AFFILIATE” means with respect to any individual, corporation, partnership, association,
trust, or any other entity (in each case, a “PERSON”), any Person that, directly or indirectly,
Controls, is Controlled by, or is under common Control with such Person, including, without
limitation, any general partner, executive officer, or director of such Person or any holder of ten
percent or more of the outstanding equity or voting power of such Person.

     “CERTIFICATE OF DESIGNATIONS” means the Company’s Certificate of Designations, Preferences and
Rights of the Series B Convertible Preferred Stock.

     “CLOSING” means the closing of the sale of Company Securities to the Series B Investor.

     “COMMON STOCK” means shares of the Company’s common stock.

     “CONTROL” means the possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of voting securities, by agreement
or otherwise).

     “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “EXEMPTED SECURITIES” shall have the meaning set forth in the Certificate of Designations.

     “HOLDER” means any Series A Investor owning or having the right to acquire Registerable
Securities or any assignee thereof.

 

 

     “NEW SECURITIES” means equity securities of the Company, whether now authorized or not, or
rights, options, or warrants to purchase such equity securities, or securities of any type
whatsoever that are, or may become, convertible into or exchangeable into or exercisable for such
equity securities; provided, however, that New Securities shall not include the EXEMPTED
SECURITIES.

     “PREFERRED STOCK” means shares of the Company’s preferred stock.

     “REGISTER,” “REGISTERED,” and “REGISTRATION” refer to a registration effected by preparing and
filing a registration statement or similar document in compliance with the Securities Act, and the
declaration or ordering of effectiveness of such registration statement or document.

     “REGISTERABLE SECURITIES THEN OUTSTANDING” means the number of shares determined by adding the
number of shares of Common Stock outstanding that are, and the number of shares of Common Stock
issuable pursuant to then exercisable or convertible securities that are, Registerable Securities
(as defined below in Section 2(a)(i)).

     “SEC” means the United States Securities and Exchange Commission.

     “SEC RULE 144” means Rule 144 promulgated by the SEC under the Securities Act.

     “SEC RULE 144(E)” means Rule 144(e) promulgated by the SEC under the Securities Act.

     “SECURITIES ACT” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     “SERIES B PREFERRED STOCK” means shares of the Company’s Series B Convertible Preferred Stock.

     “SERIES D WARRANTS” means the Series D Warrants granted to the Series B Investor.

     “SHARES” means shares of capital stock of the Company at any time outstanding, including
shares of Preferred Stock and shares of Common Stock issued or issuable upon exercise or
conversion, as applicable, of stock options, warrants, or other convertible securities of the
Company, in each case, now owned or subsequently acquired by any stockholder, or such stockholder’s
successors or assigns.

2. REGISTRATION RIGHTS. The Company covenants and agrees as follows

     a. REGISTRATION RIGHTS UPON COMPLETION OF CLOSING; ADDITIONAL WARRANTS.

          i. The Company hereby agrees to file, at its sole cost and expense, a registration statement
on Form SB-2 (or an alternative available form if the Reporting Company is not eligible to file a
Form SB-2) (the “REGISTRATION STATEMENT”) with the SEC no

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later than ninety (90) days after the date of the Final Closing Date (as defined in the
Purchase Agreement) the “FILING DEADLINE”), registering the following securities issued by the
Company: (i) all shares of Common Stock issued or issuable upon conversion of the SERIES B
PREFERRED STOCK; (ii) all shares of Common Stock issued or issuable upon exercise of the Series D
Warrants; (iii) all shares of Common Stock issued or issuable pursuant to Section 3(a)
below; and (iv) all shares of Common Stock issued or issuable upon exercise of penalty warrants, if
any, issued pursuant to Section 2(a)(ii) below (collectively, the “REGISTERABLE
SECURITIES”). The Company hereby agrees to use its commercially reasonable efforts to have the
Registration Statement declared effective by the SEC within one hundred fifty (150) days after the
date of the Closing; provided, however, that if the Company receives a review by, and comments
from, the SEC, then such deadline shall be extended by an additional sixty (60) days (as extended,
the “EFFECTIVE DATE DEADLINE”).

          ii. If the Company does not file the Registration Statement on or before the Filing Deadline,
then, in lieu of monetary damages or specific performance, the Company shall immediately issue to
the Series A Investor an additional Series A Warrant exercisable for the number of shares of Common
Stock equal to 1.5% of the sum of (i) the number of shares of Common Stock issuable upon conversion
of the SERIES B PREFERRED STOCK held by each such Series A Investor, and (ii) the number of shares
of Common Stock issuable upon exercise of the Series D Warrants held by each such Series A
Investor. In addition, for each subsequent thirty (30) day period after the Filing Deadline that
the Registration Statement is not filed, then, in lieu of monetary damages or specific performance,
the Company shall issue to Series A Investor an additional Series A Warrant exercisable for the
number of shares of Common Stock equal to 1.5% of the sum of (i) the number of shares of Common
Stock issuable upon conversion of the SERIES B PREFERRED STOCK held by each such Series A Investor,
and (ii) the number of shares of Common Stock issuable upon exercise of the Series D Warrants held
by each such Series A Investor; provided, however, that in no event shall the aggregate number of
shares of Common Stock issuable upon exercise of the Series D Warrants issued pursuant to this
Section 2(a)(ii) exceed nine percent (9.0%) of the Common Stock issuable upon conversion of
the SERIES B PREFERRED STOCK and upon exercise of the Series D Warrants originally issued on the
date of this Agreement.

          iii. If the Company’s Registration Statement is not declared effective by the SEC by the
Effective date Deadline, as provided in Section 2(a)(i) above, then, in lieu of monetary
damages or specific performance, the Company shall immediately issue to Series A Investor an
additional Series A Warrant exercisable for the number of shares of Common Stock equal to 1.5% of
the sum of (i) the number of shares of Common Stock issuable upon conversion of the SERIES B
PREFERRED STOCK into Common Stock held by each such Series A Investor, and (ii) the number of
shares of Common Stock issuable upon exercise of the Series D Warrants held by each such Series A
Investor. In addition, for each subsequent thirty (30) day period after the Effective Date Deadline
that the Registration Statement is not declared effective by the SEC, then, in lieu of monetary
damages or specific performance, the Company shall issue to Series A Investor an additional Series
A Warrant exercisable for the number of shares of Common Stock equal to 1.5% of the sum of (i) the
number of shares of Common Stock issuable upon conversion of the SERIES B PREFERRED STOCK held by
each such Series A Investor, and (ii) the number of shares of Common Stock issuable upon exercise
of the Series D Warrants held by each such Series A Investor; provided, however, that in no event
shall the aggregate

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number of shares of Common Stock issuable upon exercise of the Series D Warrants issued
pursuant to this Section 2(a)(iii) exceed nine percent (9.0%) of the Common Stock issuable
upon conversion of the SERIES B PREFERRED STOCK and upon exercise of the Series D Warrants
originally issued on the date of this Agreement. Issuances under this subparagraph (c) are in
addition to any issuance that may occur under subparagraph (b) above. The penalty warrants issuable
under subparagraph (b) above and under this subparagraph (c) shall be the sole and exclusive remedy
for failure to file the Registration Statement or to have the Registration Statement declared
effective.

          iv. Notwithstanding anything to the contrary contained in this Agreement or any other document
related hereto, if the SEC reviews a Registration Statement and challenges the Company’s ability to
register all of Registrable Securities on such Registration Statement without such offering being
categorized as a “primary offering” and/or the selling shareholders listed in such Registration
Statement being categorized as “underwriters,” the Company may reduce the number of Registrable
Securities included in such Registration Statement to a threshold that avoids such categorizations,
and, in such event, such reduction shall not give rise to a breach of this Agreement, the Purchase
Agreement or the Warrant or to any liquidated damages or any obligation to issue additional
securities, including those obligations to issue additional Series D Warrants pursuant to
subsection (ii) and (iii) above. In the event of any such reduction, the Company shall use its
commercially reasonable efforts, in compliance with SEC guidance, rules and regulations, and
subject to the terms of this Agreement, to register the balance of the Registerable Securities in
one or more future Registration Statements. It is acknowledged by the parties hereto that the SEC
recently has been taking the position that to avoid such categorizations, the number of Registrable
Securities included in a Registration Statement must be less that one-third (1/3) of the
outstanding shares owned by parties other than affiliates of the Company, the selling shareholders
listed in such Registration Statement and the affiliates of such selling shareholders. In the event
of any such reductions, the reduction shall be made pro rata amongst the Investors and the first
Registrable Securities to be reduced shall be those issuable upon conversion of the Preferred Stock
and the next shares to be reduced shall be those issuable upon exercise of the Series D Warrants.

     b. OBLIGATIONS OF THE COMPANY. Whenever required under this Section 2 to effect the
registration of any Registerable Securities, subject to the terms of and any limitations imposed by
this Agreement, the Company shall use its commercially reasonable efforts to:

          i. prepare and file with the SEC a registration statement with respect to such Registerable
Securities and use its commercially reasonable efforts to cause such registration statement to
become effective, and keep such registration statement effective until the earlier of (A) the first
anniversary of the Final Closing Date and (B) the date all Holders of Registerable Securities can
sell such Registerable Securities without restriction within a 180-day period, after which date the
Company may withdraw the Registration Statement;

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

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          iii. furnish to the Series B Investor such numbers of copies of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities Act, and such other
documents as they may reasonably request to facilitate the disposition of Registerable Securities
owned by them; and

          iv. use its commercially reasonable efforts to register and qualify the securities covered by
such registration statement under such other securities or Blue Sky laws of of up to ten states
designated in writing by the majority of the Series B Investor within ten days after the Closing;
provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of process in any such
states or jurisdictions, unless the Company is already subject to service in such jurisdiction and
except as may be required by the Securities Act.

     c. FURNISH INFORMATION. It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Section 2 with respect to the Registerable Securities of a
Holder that such Holder shall furnish to the Company such information regarding itself, the
Registerable Securities held by it, and the intended method of disposition of such securities as
shall be reasonably required to effect the registration of such Holder’s Registerable Securities.

     d. DELAY OF REGISTRATION. No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any registration pursuant to this Agreement as the result of any
controversy that might arise with respect to the interpretation or implementation of this
Section 2.

     e. REPORTS UNDER EXCHANGE ACT. With a view to making available to the Series B Investor the
benefits of SEC Rule 144 promulgated under the Securities Act and any other rule or regulation of
the SEC that may at any time permit a Holder to sell securities of the Company to the public
without registration, the Company agrees to use its commercially reasonable efforts to:

          i. make and keep public information available, as those terms are understood and defined in
SEC Rule 144, at all times after the effective date of the first registration statement filed by
the Company for the offering of its securities to the general public;

          ii. file with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

          iii. furnish to any Holder, so long as the Series A Investor owns any Registerable Securities,
forthwith upon request (i) a written statement by the Company that it has complied with the
reporting requirements of SEC Rule 144, the Securities Act and the Exchange Act (at any time after
it has become subject to such reporting requirements); (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by the Company; and
(iii) such other information as may be reasonably requested in availing any Holder of any rule or
regulation of the SEC that permits the selling of any such securities without registration or
pursuant to such form.

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     f. ASSIGNMENT OF REGISTRATION RIGHTS. The rights to cause the Company to register Registerable
Securities pursuant to this Section 2 may be assigned (but only with all related
obligations) by a Holder to a transferee or assignee of such securities, provided that:

          i. the Company is, within a reasonable time after such transfer, furnished with written notice
of the name and address of such transferee or assignee and the securities with respect to which
such registration rights are being assigned; and

          ii. such transferee or assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement.

     g. NO TRADING IN COMMON STOCK UNTIL CERTIFICATE RECEIVED. Series A Investor hereby agrees
that, unless the Series A Investor has taken possession of the stock certificate for Common Stock,
it or its Affiliates will not:

          i. lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, or
otherwise transfer or indirectly dispose of Common Stock not yet received, or

          ii. enter into any swap or other arrangement that transfers to another, in whole or in part,
any of the economic consequences of ownership for Common Stock not yet received.

     h. OBLIGATIONS OF THE SERIES B INVESTOR.

          i. Series A Investor acknowledges that the Company has the right to suspend sales under the
Registration Statement when the Company determines in good faith that offers and sales pursuant
thereto (a) should not be made by reason of the presence of material undisclosed circumstances or
developments, (b) would have an adverse effect on the Company or (c) is otherwise inadvisable;
provided that any such suspensions shall not exceed two 90-day periods within any one 12-month
period. Series A Investor agrees that, upon receipt of any notice from the Company of any such
suspension of the Registration Statement, Series A Investor shall forthwith discontinue disposition
of Registrable Securities pursuant to the Registration Statement until further notice is received
by the Company and/or the Series A Investor’s receipt of copies of the supplemented or amended
prospectus from the Company, such prospectus to be forwarded promptly to the Series A Investor by
the Company, and, if so directed by the Company, Series A Investor shall deliver to the Company all
copies, other than permanent file copies then in such Series A Investor’s possession, of the
prospectus covering such Registrable Securities current at the time of receipt of such notice.

          ii. As a condition to the inclusion of its Registrable Securities, Series A Investor shall
furnish to the Company such information regarding such Series A Investor and the distribution
proposed by such Series A Investor as the Company may reasonably request in writing.

          iii. Series A Investor hereby covenants with the Company not to make any sale of the
Registrable Securities without effectively causing the prospectus delivery

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requirements under the Act and any state securities laws to be satisfied and agrees not to
make any sale of the Registrable Securities in jurisdictions other than those designated pursuant
to Section 2(b).

          iv. Series A Investor acknowledges and agrees that the Registrable Securities sold pursuant to
the Registration Statement described in this Section are not transferable on the books of the
Company unless the stock certificate submitted to the transfer agent evidencing such Registrable
Securities is accompanied by a certificate reasonably satisfactory to the Company to the effect
that (i) the Registrable Securities have been sold in accordance with such Registration Statement
and (ii) the requirement of delivering a current prospectus has been satisfied.

          v. Series A Investor agrees not to take any action with respect to any distribution deemed to
be made pursuant to such Registration Statement which would constitute a violation of Regulation M
under the Exchange Act or any other applicable rule, regulation or law.

          vi. At the end of the period during which the Company is obligated to keep the Registration
Statement current and effective as described above, the Series B Investor of Registrable Securities
included in the Registration Statement shall discontinue sales of shares pursuant to such
Registration Statement upon receipt of notice from the Company of its intention to remove from
registration the shares covered by such Registration Statement which remain unsold, and such Series
B Investor shall notify the Company of the number of shares registered which remain unsold
immediately upon receipt of such notice from the Company.

          vii. All selling expenses relating to the sale of securities registered by or on behalf of
Series B Investor shall be borne by such Series B Investor, including all underwriting discounts
and selling commissions applicable to the sale of Registrable Securities and all fees and expenses
of legal counsel for any Series A Investor.

          viii. Series A Investor agrees to hold the Company and its directors, officers, employees,
controlling persons and agents and their respective heirs, representatives, successors and assigns
harmless and to indemnify them against all liabilities, costs and expenses incurred by any of them
as a result of (i) any misrepresentation made by the Series A Investor contained in this Agreement,
(ii) any sale or distribution by the Series A Investor in violation of the Act or any applicable
state securities or “blue sky” laws or (iii) any untrue statement of a material fact made by the
Series A Investor to the Company, including the information regarding the Series A Investor
contained in the registration statement.

3. SERIES B INVESTOR’ RIGHT OF FIRST OFFER; MOST FAVORED NATIONS EXCHANGE.

     a. RIGHT OF FIRST OFFER. Subject to the terms and conditions specified in this Section
3(a) and applicable securities laws, if the Company proposes to offer or sell any New
Securities within twelve (12) months after the Closing, the Company shall first make an offering of
such New Securities to Series A Investor in accordance with the following provisions of this
Section 3 (the “RIGHT OF FIRST OFFER”). A Series A Investor shall be entitled to

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apportion the right of first offer hereby granted to it among itself and its partners,
members, and Affiliates in such proportions as it deems appropriate subject to any applicable
securities laws limitations and subject to such Persons who acquire New Securities becoming a party
to this Agreement.

          i. The Company shall deliver a notice in accordance with the provisions of Section
6(e) hereof (the “OFFER NOTICE”) to each of the Series B Investor stating (i) its bona fide
intention to offer such New Securities; (ii) the number of such New Securities to be offered; and
(iii) the price and terms, if any, upon which it proposes to offer such New Securities.

          ii. By written notification received by the Company, within ten (10) calendar days after
mailing of the Offer Notice, each of the Series B Investor may elect to purchase or obtain, at the
price and on the terms specified in the Offer Notice, up to that portion of such New Securities
that equals the proportion that the number of shares of Common Stock issued and held, or issuable
upon conversion of the SERIES B PREFERRED STOCK (and any other securities convertible into, or
otherwise exercisable or exchangeable for, shares of Common Stock) then held, by such Series A
Investor bears to the total number of shares of Common Stock of the Company issued and held, or
issuable upon conversion of the SERIES B PREFERRED STOCK then held, by all of the Series B
Investor. The Company promptly shall inform in writing Series A Investor that elects to purchase
all the shares available to it (each, a “FULLY EXERCISING INVESTOR”) of any other Series A
Investor’s failure to do likewise. During the ten (10) day period commencing after receipt of such
information, each Fully Exercising Investor shall be entitled to obtain that portion of the New
Securities for which Series B Investor were entitled to subscribe but for which the Series B
Investor did not subscribe that is equal to the proportion that the number of shares of Common
Stock issued and held, or issuable upon conversion of SERIES B PREFERRED STOCK then held, by such
Fully Exercising Investor bears to the total number of shares of Common Stock issued and held, or
issuable upon conversion of the SERIES B PREFERRED STOCK then held, by all Fully Exercising
Investors who wish to purchase such unsubscribed shares.

          iii. If all New Securities referred to in the Offer Notice are not elected to be purchased or
obtained as provided in Section 3(a)(ii) hereof, the Company may, during the ninety (90)
day period following the expiration of the period provided in Section 3(a)(ii) hereof,
offer the remaining unsubscribed portion of such New Securities (collectively, the “REFUSED
SECURITIES”) to any Person(s) at a price not less than, and upon terms no more favorable to the
offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement
for the sale of the New Securities within such period, or if such agreement is not consummated
within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to
be revived and such New Securities shall not be offered unless first reoffered to the Series B
Investor in accordance with this Section 3(a)

     b. EXPIRATION OF RIGHT OF FIRST OFFER. The Right of First Offer provided to Series A Investor
under this Section 3 shall expire, with respect to any shares of Common Stock issued or
issuable upon conversion of the SERIES B PREFERRED STOCK (and any other securities convertible
into, or otherwise exercisable or exchangeable for, shares of Common Stock), when such shares are
sold into the public market pursuant to an effective Registration Statement, such that the Right of
First Offer provided hereunder to Series A

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Investor shall not be transferable to any purchaser for value who acquires the shares on the
public market.

4. MISCELLANEOUS.

     a. TRANSFERS, SUCCESSORS, AND ASSIGNS; JOINDER. The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and assigns of the
parties, as may be limited pursuant to this Agreement. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this
Agreement, except as expressly provided in this Agreement.

     b. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the
General Corporation Law of the State of Florida as to matters within the scope thereof, and as to
all other matters shall be governed by and construed in accordance with the internal laws of the
State of Florida, without regard to its principles of conflicts of laws. The parties agree that
venue for any dispute arising under this Agreement will lie exclusively in the state or federal
courts located in Hillsborough County, Florida, and the parties irrevocably waive any right to
raise forum non conveniens or any other argument that Florida is not the proper venue.

     c. COUNTERPARTS. This Agreement may be executed in any number of counterparts with the same
effect as if all parties hereto had signed the same document, and all counterparts shall be
construed together and shall constitute one instrument. This Agreement may be executed by any party
by delivery of a facsimile signature, which signature shall have the same force as an original
signature. A facsimile or photocopied signature shall be deemed to be the functional equivalent of
an original for all purposes.

     d. HEADINGS. The headings and subheadings in this Agreement are included for convenience and
identification only and are in no way intended to describe, interpret, define, or limit the scope,
extent, or intent of this Agreement or any provision hereof.

     e. NOTICES. All notices and other communications given or made pursuant to this Agreement
shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party
to be notified; (b) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient, and if not so confirmed, then on the next business day; (c) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid; or (d) one (1) business day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be
sent to the respective parties at their address as set forth below, or to such address or facsimile
number as subsequently modified by written notice given in accordance with this Section
6(e).

All notices to the Company shall be sent to:

Brookside Technology Holdings Corp.

7703 N. Lamar Boulevard

Suite 500

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Austin, Texas 78752

Attn: Michael Nole, Chief Executive Officer

Facsimile: (813) 854-1045

If to Series A Investor: 126 East 56th Street

Tower 56, Suite 700

New York, NY 10022

     f. COSTS OF ENFORCEMENT. If any party to this Agreement seeks to enforce its rights under this
Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred
by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

     g. AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the holders of a
majority of the SERIES B PREFERRED STOCK Then Outstanding. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon each holder of any SERIES B PREFERRED STOCK or
Registrable Securities Then Outstanding, each future holder of all such SERIES B PREFERRED STOCK or
Registrable Securities, and the Company. The Company shall give prompt written notice of any
amendment or termination hereof or waiver hereunder to any party hereto that did not consent in
writing to such amendment, termination or waiver. Any amendment, termination, or waiver effected in
accordance with this Section 6(g) shall be binding on all parties hereto, even if they do
not execute such consent. No waivers of or exceptions to any term, condition, or provision of this
Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such term, condition, or provision.

     h. SEVERABILITY. The invalidity or unenforceability of any provision hereof shall in no way
affect the validity or enforceability of any other provision.

     i. ADDITIONAL INVESTORS. Notwithstanding anything to the contrary contained herein, if the
Company issues additional shares of the Company’s SERIES B PREFERRED STOCK after the date hereof,
any purchaser of such shares shall become a party to this Agreement by executing and delivering an
additional counterpart signature page to this Agreement and, thereafter, shall be deemed an
“Investor” for all purposes hereunder.

     j. DELAYS OR OMISSIONS. No delay or omission to exercise any right, power, or remedy accruing
to any party under this Agreement, upon any breach or default of any other party under this
Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting
party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part
of any party of any breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in

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writing and shall be effective only to the extent specifically set forth in such writing. All
remedies, either under this Agreement or by law or otherwise afforded to any party, shall be
cumulative and not alternative.

[Remainder of this page intentionally left blank; signatures to follow]

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[Signature page to Investor Rights Agreement]

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
stated.

Brookside Technology Holding Corp.

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

PURCHASER OF SERIES B PREFERRED STOCK

Vicis Capital Master Fund

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 

Keith Hughes, authorized representative of Vicis Capital LLC and Vicis Capital Master Fund

12EX-10.5 VICIS STOCK PURCHASE WARRANT

 

EXHIBIT 10.5

THIS WARRANT OR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR
DISPOSITION MAY BE EFFECTED WITHOUT (i) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (ii)
AN OPINION OF COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATION IS NOT REQUIRED, (iii) RECEIPT OF A NO-ACTION LETTER(S) FROM THE APPROPRIATE
GOVERNMENTAL AUTHORITY(IES), OR (iv) OTHERWISE COMPLYING WITH THE PROVISIONS OF SECTION 7
OF THIS WARRANT.

WARRANT TO PURCHASE SHARES

OF COMMON STOCK (this “WARRANT”)

Brookside Technology Holding Corp., a Florida corporation (the “COMPANY”), hereby certifies that,
for value received, Dynamic Decisions Strategic Opportunities (the “HOLDER”) is the registered
holder of a warrant (the “WARRANT”) to subscribe for and purchase 10,000,000 shares of the fully
paid and nonassessable Common Stock (as adjusted pursuant to Section 4 hereof, the “WARRANT
SHARES”) of the Company, at a price per share equal to $0.114 (the “WARRANT PRICE,” as adjusted
pursuant to Section 4 hereof), subject to the provisions and upon the terms and conditions
hereinafter set forth.

As used herein, (a) the term “COMMON STOCK” shall mean the Company’s presently authorized Common
Stock, par value $.001 per share, and any stock into or for which such Common Stock may hereafter
be converted or exchanged and (b) the term “DATE OF GRANT” shall mean August 30, 2007.

	1.	 	Term. The purchase right represented by this Warrant is exercisable, in whole or in
part, at any time after the Date of Grant (the “INITIAL EXERCISE DATE”) and from time to time
thereafter through and including the close of business on the date five (5) years from the
Initial Exercise Date (the “EXPIRATION DATE”).

2. Exercise; Expiration; Redemption.

	 	a.	 	Method of Exercise; Payment; Issuance of New Warrant. Subject to Section
1 hereof, the purchase right represented by this Warrant may be exercised by the
holder hereof, in whole or in part and from time to time after the Initial Exercise
Date, by the surrender of this Warrant (with the notice of exercise form attached
hereto as Exhibit A duly executed) at the principal office of the Company and
by the payment to the Company of an amount equal to the then applicable Warrant Price
multiplied by the number of Warrant Shares then being purchased. The person or persons
in whose name(s) any certificate(s) representing shares of Common Stock shall be
issuable upon exercise of this Warrant shall be deemed to have become the holder(s) of
record of, and shall be treated for all purposes as the record holder(s) of, the shares
represented thereby (and such shares shall be deemed to have been issued) immediately
prior to the close of business on the

 

 

	 	 	 	date or dates upon which this Warrant is exercised. In the event of any exercise of
the rights represented by this Warrant, certificates for the shares of stock so
purchased shall be delivered to the holder hereof as soon as possible and in any
event within thirty (30) days after such exercise and, unless this Warrant has been
fully exercised, a new Warrant representing the portion of the Warrant Shares, if
any, with respect to which this Warrant shall not then have been exercised shall
also be issued to the holder hereof as soon as possible and in any event within such
thirty (30) day period.

	 	b.	 	Cashless Exercise. If the Company has not registered the resale of the shares
of common stock into which this Warrant may be exercised within one year of the Date of
Grabnt, then, from and after such time and until the expiration of this Warrant, this
Warrant may be exercised by means of a “cashless exercise” in which the Holder shall be
entitled to receive a certificate for the number of Warrant Shares equal to the
quotient obtained by dividing [(A-B) (X)] by (A), where:

	 	(A)	 	= the VWAP (as defined below) for the 10 Trading Days
immediately preceding the date of such election;
	 
	 	(B)	 	= the Exercise Price of this Warrant, as adjusted; and
	 
	 	(X)	 	= the number of Warrant Shares issuable upon exercise of this
Warrant in accordance with the terms of this Warrant by means of a cash
exercise rather than a cashless exercise.

For purposes of this Warrant, the term “VWAP” shall mean, for any date, the price
determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on Nasdaq or any other national securities exchange
on which the Common stock is then listed or quoted (each such exchange, a “Trading
Market”), the daily volume weighted average price of the Common Stock for such date
(or the nearest preceding date) on the Trading Market on which the Common Stock is
then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from
9:30 a.m. New York City time to 4:02 p.m. New York City time); (b) if the OTC
Bulletin Board is not a Trading Market, the volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board; (c) if the Common Stock is not then listed or quoted on a Trading Market or
the OTC Bulletin Board and if prices for the Common Stock are then reported in the
“Pink Sheets” published by Pink Sheets, LLC (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per
share of the Common Stock so reported; or (d) in all other cases, the fair market
value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Holder and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company.

2

 

	 	c.	 	Expiration. In the event that any portion of this Warrant is unexercised as of
the Expiration Date, such portion of this Warrant shall automatically expire, and the
Holder shall have no rights with respect to such unexercised portion of this Warrant.
	 
	 	d.	 	Maximum. In no event shall any holder be entitled to exercise any Warrant
Shares to the extent that, after such exercise, the sum of the number of shares of
Common Stock beneficially owned by any holder and its affiliates (other than shares of
Common Stock which may be deemed beneficially owned through the ownership of the
unexercised portion of the Warrant Shares or any unexercised right held by any holder
subject to a similar limitation), would result in beneficial ownership by any holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock (after
taking into account the shares to be issued to the holder upon such exercise). For
purposes of this Section 2(c), beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended.
Nothing herein shall preclude the holder from disposing of a sufficient number of other
            shares of Common Stock beneficially owned by the holder so as to thereafter permit the
continued exercise of this Warrant.

	3.	 	Stock Fully Paid Reservation of Shares. All Warrant Shares that may be issued upon
the exercise of the rights represented by this Warrant will, upon issuance pursuant to the
terms and conditions herein, be fully paid and non-assessable, and free from all taxes (other
than any taxes determined with respect to, or based upon, the income of the person to whom
such shares are issued), liens and charges (other than liens or charges created by actions of
the holder of this Warrant or the person to whom such shares are issued), and pre-emptive
rights with respect to the issue thereof. During the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have authorized,
and reserved for the purpose of the issue upon exercise of the purchase rights evidenced by
this Warrant, a sufficient number of shares of its Common Stock to provide for the exercise of
the rights represented by this Warrant.

	4.	 	Adjustment of Warrant Price and Number of Shares. The number and kind of securities
purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows:

	 	a.	 	Reclassification or Merger. In case of any reclassification, change or
conversion of securities of the class issuable upon exercise of this Warrant (other
than a change in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination), or in case of any merger of
the Company with or into another corporation (other than a merger with another
corporation in which the Company is the acquiring and the surviving corporation and
which does not result in any reclassification or change of outstanding securities
issuable upon exercise of this Warrant), or in case of any sale of all or substantially
all of the assets of the Company, the Company, or such successor or purchasing
corporation, as the case may be, shall duly execute and deliver to the holder of this
Warrant a new Warrant so that the holder of this Warrant shall have

3

 

	 	 	 	the right to receive, at a total purchase price not to exceed that payable upon the
exercise of the unexercised portion of this Warrant, and in lieu of the shares of
Common Stock theretofore issuable upon exercise of this Warrant, the kind and amount
of shares of stock, other securities, money and property receivable upon such
reclassification, change or merger by a holder of the number of shares of Common
Stock then purchasable under this Warrant. 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 4. The provisions of this
Section 4(a) shall similarly apply to successive reclassifications, changes,
mergers and transfers.

	 	b.	 	Subdivision or Combination of Shares. If at any time while this Warrant remains
outstanding and unexpired the Company shall subdivide or combine its outstanding shares
of Common Stock, the Warrant Price shall be proportionately decreased in the case of a
subdivision and increased in the case of a combination, effective at the close of
business on the date the subdivision or combination becomes effective.
	 
	 	c.	 	Stock Dividends. If at any time while this Warrant is outstanding and unexpired
the Company shall pay a dividend with respect to Common Stock payable in Common Stock,
then the Warrant Price shall be adjusted, from and after the date of determination of
stockholders entitled to receive such dividend or distribution, to that price
determined by multiplying the Warrant Price in effect immediately prior to such date of
determination by a fraction (i) the numerator of which shall be the total number of
            shares of Common Stock outstanding immediately prior to such dividend, and (ii) the
denominator of which shall be the total number of shares of Common Stock outstanding
immediately after such dividend.
	 
	 	d.	 	Adjustment of Number of Shares. Upon each adjustment in the Warrant Price, the
number of Warrant Shares purchasable hereunder shall be adjusted, to the nearest whole
share, to the product obtained by multiplying the number of Warrant Shares purchasable
immediately prior to such adjustment in the Warrant Price by a fraction, the numerator
of which shall be the Warrant Price immediately prior to such adjustment and the
denominator of which shall be the Warrant Price immediately thereafter

	5.	 	Notice of Adjustments. Whenever the Warrant Price or the number of Warrant Shares
purchasable hereunder shall be adjusted pursuant to Section 4 hereof, the Company
shall deliver to the holder of this Warrant a certificate signed by its chief financial
officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated, and the Warrant Price and
the number of Warrant Shares purchasable hereunder after giving effect to such adjustment

	6.	 	Fractional Shares. No fractional shares of Common Stock will be issued in connection
with any exercise hereunder, but in lieu of such fractional shares the Company shall make a
cash payment therefor based on the fair market value of a share of Common Stock on

4

 

the date of exercise, or round up to the next whole number of shares, at the Company’s
option. “FAIR MARKET VALUE” of a share of Common Stock as of a particular date (the
“DETERMINATION DATE”) shall mean (i) if shares of Common Stock are traded on a national
securities exchange (an “EXCHANGE”), the weighted average of the closing sale price of a
share of the Common Stock of the Company on the last five (5) trading days prior to the
Determination Date reported on such Exchange as reported in The Wall Street Journal
(weighted with respect to the trading volume with respect to each such day); (ii) if shares
of Common Stock are not traded on an Exchange but trade in the over-the-counter market and
such shares are quoted on the National Association of Securities Dealers Automated
Quotations System (“NASDAQ”), the weighted average of the closing sale price of a share of
the Common Stock of the Company on the last five (5) trading days prior to the Determination
Date reported on NASDAQ as reported in The Wall Street Journal (weighted with respect to the
trading volume with respect to each such day); (iii) if such shares are an issue for which
last sale prices are not reported on NASDAQ, the average of the closing sale price, in each
case on the last five (5) trading days (or if the relevant price or quotation did not exist
on any of such days, the relevant price or quotation on the next preceding business day on
which there was such a price or quotation) prior to the Determination Date as reported by
the Over the Counter Bulletin Board (the “OTCBB”), the National Quotation Bureau,
Incorporated, or any other successor organization; (iv) if no closing sales price is
reported for the Common Stock by the OTCBB, National Quotation Bureau, Incorporated or any
other successor organization for such day, the average of the high and low bid and asked
price of any of the market makers for the Common Stock as reported on the OTCBB or in the
“pink sheets” by the Pink Sheets, LLC on the last five (5) trading days; or (v) if no price
can be determined on the basis of the above methods of valuation, then the judgment of
valuation shall be determined in good faith by the Board of Directors of the Company, which
determination shall be described in a duly adopted board resolution certified by the
Company’s Secretary or Assistant Secretary. If the Board of Directors of the Company is
unable to determine any Valuation (as defined below), or if the holders of at least fifty
percent (50%) of all of the Warrant Shares then issuable hereunder (collectively, the
“REQUESTING HOLDERS”) disagree with the Board’s determination of any Valuation by written
notice delivered to the Company within five (5) business days after the determination
thereof by the Board of Directors of the Company is communicated to holders of the Warrants
affected thereby, which notice specifies a majority-in-interest of the Requesting Holders’
determination of such Valuation, then the Company and a majority-in-interest of the
Requesting Holders shall select a mutually acceptable investment banking firm of national
reputation which has not had a material relationship with the Company or any officer of the
Company within the preceding two (2) years, which shall determine such Valuation. Such
investment banking firm’s determination of such Valuation shall be final, binding and
conclusive on the Company and the holders of all of the Warrants issued hereunder and then
outstanding. Any and all costs and fees of such investment banking firm shall be borne
equally by the Company and the Requesting Holders, however, if the Valuation is within
ninety percent (90%) of either party’s valuation, then the other party shall pay all of the
costs and fees of such investment banking firm. The term “VALUATION” shall mean the
determination, to be made

5

 

initially by the Board of Directors of the Company, of the fair market value per share of
Common Stock pursuant to clause (v) above

	7.	 	Compliance with Securities Act and Investor Rights Agreement; Disposition of Warrant or
Warrant Shares.

	 	a.	 	Compliance with Securities Act. The holder of this Warrant, by acceptance
hereof, agrees that this Warrant and the shares of Common Stock to be issued upon
exercise hereof are being acquired for investment purposes only and that such holder
will not offer, sell or otherwise dispose of this Warrant, or any shares of Common
Stock to be issued upon exercise hereof, except under circumstances which will not
result in a violation of the Securities Act. Upon exercise of this Warrant, the holder
hereof shall confirm in writing, by executing the form attached as Schedule 1
to Exhibit A hereto, that the shares of Common Stock so purchased are being
acquired for investment and not with a view toward distribution or resale. This Warrant
and all shares of Common Stock issued upon exercise of this Warrant (unless registered
under the Securities Act) shall be stamped or imprinted with a legend in substantially
the following form:

“THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE
EFFECTED WITHOUT (i) AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (ii) AN
OPINION OF COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATION IS NOT REQUIRED, (iii) RECEIPT OF A NO-ACTION LETTER(S) FROM THE
APPROPRIATE GOVERNMENTAL AUTHORITY(IES), OR (iv) OTHERWISE COMPLYING WITH THE
PROVISIONS OF SECTION 7 OF THE WARRANT UNDER WHICH THESE SECURITIES WERE
ISSUED DIRECTLY OR INDIRECTLY.”

	 	b.	 	Representations. In addition, in connection with the issuance of this Warrant,
the holder specifically represents to the Company by acceptance of this Warrant as
follows:

     (i) The holder is aware of the Company’s business affairs and financial
condition, and has acquired information about the Company sufficient to reach an
informed and knowledgeable decision to acquire this Warrant. The holder is
acquiring this Warrant for its own account for investment purposes only and not
with a view to, or for the resale in connection with, any “distribution” thereof
for purposes of the Securities Act.

     (ii) The holder understands that this Warrant and the Warrant Shares have not
been registered under the Securities Act in reliance upon a specific exemption
there from, which exemption depends upon, among other things, the bona fide nature
of the holder’s investment intent as expressed herein. In this connection, the
holder understands that, in the view of the SEC, the statutory

6

 

basis for such exemption may be unavailable if the holder’s representation was
predicated solely upon a present intention to hold the Warrant and the Warrant
Shares for the minimum capital gains period specified under applicable tax laws,
for a deferred sale, for or until an increase or decrease in the market price of
the Warrant and the Warrant Shares, or for a period of one (1) year or any other
fixed period in the future.

     (iii) The holder further understands that this Warrant and the Warrant Shares
must be held indefinitely unless subsequently registered under the Securities Act
and any applicable state securities laws, or unless exemptions from registration
are otherwise available.

     (iv) The holder is aware of the provisions of Rule 144 and 144A, promulgated
under the Securities Act, which, in substance, permit limited public resale of
“restricted securities” acquired, directly or indirectly, from the issuer thereof
(or from an affiliate of such issuer), in a non-public offering subject to the
satisfaction of certain conditions, if applicable, including, among other things:
the availability of certain public information about the Company, the resale
occurring not less than one (1) year after the party has purchased and paid for the
securities to be sold; the sale being made through a broker in an unsolicited
“broker’s transaction” or in transactions directly with a market maker (as said
term is defined under the Securities Exchange Act of 1934, as amended) and the
amount of securities being sold during any three (3) month period not exceeding the
specified limitations stated therein.

     (v) The holder further understands that at the time it wishes to sell this
Warrant and the Warrant Shares there may be no public market upon which to make
such a sale, and that, even if such a public market then exists, the Company may
not be satisfying the current public information requirements of Rule 144 and 144A,
and that, in such event, the holder may be precluded from selling this Warrant and
the Warrant Shares under Rule 144 and 144A even if the one (1)-year minimum holding
period has been satisfied.

     (vi) The holder further understands that, in the event that all of the
requirements of Rule 144 and 144A are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration exemption
will be required; and that, notwithstanding the fact that Rule 144 and 144A are not
exclusive, the Staff of the SEC has expressed its opinion that persons proposing to
sell private placement securities other than in a registered offering and otherwise
than pursuant to Rule 144 and 144A will have a substantial burden of proof in
establishing that an exemption from registration is available for such offers or
sales, and that such persons and their respective brokers who participate in such
transactions do so at their own risk.

	 	c.	 	Exchange. This Warrant may be exchanged, without payment of any service charge,
for one (1) or more new Warrants of like tenor exercisable for the same aggregate
number of shares of Common Stock upon surrender to the Company by

7

 

	 	 	 	the registered holder hereof in person or by legal representative or by attorney
duly authorized in writing and, upon issuance of the new Warrant or Warrants, the
surrendered Warrant shall be cancelled and disposed of by the Company.

	 	d.	 	Disposition of Warrant or Warrant Shares. With respect to any offer, sale or
other disposition of this Warrant, or any Warrant Shares acquired pursuant to the
exercise of this Warrant prior to registration of such Warrant or Warrant Shares, the
holder hereof and each subsequent holder of this Warrant agrees to give written notice
to the Company prior thereto, describing briefly the manner thereof, together with a
written opinion of such holder’s counsel, if reasonably requested by the Company, to
the effect that such offer, sale or other disposition may be effected without
registration or qualification (under the Securities Act as then in effect or any
federal or state law then in effect) of this Warrant or such Warrant Shares and
indicating whether or not under the Securities Act certificates for this Warrant or
such Warrant Shares to be sold or otherwise disposed of require any restrictive legend
as to applicable restrictions on transferability in order to ensure compliance with
applicable laws. Promptly upon receiving such written notice and reasonably
satisfactory opinion, if so requested, the Company, as promptly as practicable, shall
notify such holder that such holder may sell or otherwise dispose of this Warrant or
such Warrant Shares, all in accordance with the terms of the notice delivered to the
Company. If a determination has been made pursuant to this Section 7(e) that
the opinion of counsel for the holder is not reasonably satisfactory to the Company,
the Company shall so notify the holder promptly after such determination has been made
and neither this Warrant nor any Warrant Shares shall be sold or otherwise disposed of
until such disagreement has been resolved. The foregoing notwithstanding, this Warrant
or such Warrant Shares may (i) as to such federal laws, be offered, sold or otherwise
disposed of in accordance with Rule 144 and 144A under the Securities Act, provided
that the Company shall have been furnished with such information as the Company may
reasonably request to provide a reasonable assurance that the provisions of Rule 144
and 144A have been satisfied and (ii) be offered, sold, distributed or otherwise
transferred to Affiliates of the Holder without regard to this Section 7(e),
but only if the Company is in receipt of an opinion of counsel as to the permissibility
of such transfer under federal and state securities laws and an investor representation
letter from the transferee, in form and substance reasonably satisfactory to the
Company. Each certificate representing this Warrant or the Warrant Shares thus
transferred (except a transfer pursuant to Rule 144) shall bear a legend as to the
applicable restrictions on transferability in order to ensure compliance with such
laws, unless, in the aforesaid opinion of counsel for the holder, such legend is not
required in order to ensure compliance with such laws. The Company may issue stop
transfer instructions to its transfer agent or, if acting as its own transfer agent,
the Company may stop transfer on its corporate books, in connection with such
restrictions. As used herein, “AFFILIATE OF THE HOLDER” shall mean (x) any owner,
shareholder, partner or member of the Holder, and (y) any other Person that directly or
indirectly, through one or more intermediaries, Controls or is Controlled by or is
under common Control with the Holder.

8

 

	9.	 	Rights as Stockholders; Information. No holder of this Warrant, as such, shall be
entitled to vote or be deemed the holder of Common Stock or any other securities of the
Company which may at any time be issuable on the exercise hereof for any purpose, nor shall
anything contained herein be construed to confer upon the holder of this Warrant, as such, any
of the rights of a stockholder of the Company or any right to vote for the election of the
directors or upon any matter submitted to stockholders at any meeting thereof, or to receive
notice of meetings, until this Warrant shall have been exercised and the Warrant Shares
purchasable upon the exercise hereof shall have become deliverable, as provided herein.
	 
	10.	 	Modification and Waiver. This Warrant and any provision hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the party against
which enforcement of the same is sought

	11.	 	Notices. Unless otherwise specifically provided herein, all communications under this
Warrant shall be in writing and shall be deemed to have been duly given (i) on the date of
service if served personally on the party to whom notice is to be given; (ii) on the day of
transmission if sent by facsimile transmission to the number shown on the books of the
Company, and telephonic confirmation of receipt is obtained promptly after completion of
transmission; (iii) on the day after delivery to Federal Express or similar overnight courier;
or (iv) on the fifth day after mailing, if mailed to the party to whom notice is to be given,
by first class mail, registered or certified, postage prepaid, and properly addressed, return
receipt requested, to each such holder at its address as shown on the books of the Company or
to the Company at the address indicated therefor on the signature page of this Warrant. Any
party hereto may change its address for purposes of this Section by giving the other party
written notice of the new address in the manner set forth herein.

	12.	 	Binding Effect on Successors. This Warrant shall be binding upon any corporation
succeeding the Company by merger, consolidation or acquisition of all or substantially all of
the Company’s assets, and all of the obligations of the Company relating to the Common Stock
issuable upon the exercise or conversion of this Warrant shall survive the exercise,
conversion and termination of this Warrant and all of the covenants and agreements of the
Company shall inure to the benefit of the successors and assigns of the holder hereof. The
Company will, at the time of the exercise or conversion of this Warrant, in whole or in part,
upon request of the holder hereof but at the Company’s expense, acknowledge in writing its
continuing obligation to the holder hereof in respect of any rights to which the holder hereof
shall continue to be entitled after such exercise or conversion in accordance with this
Warrant; provided, however, that the failure of the holder hereof to make any such request
shall not affect the continuing obligation of the Company to the holder hereof in respect of
such rights.

	13.	 	Lost Warrants or Stock Certificates. The Company covenants to the holder hereof that,
upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate and, in the case of any
loss, theft or destruction, upon receipt of an executed lost securities bond or indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation upon

9

 

	 	 	surrender and cancellation of such Warrant or stock certificate, the Company will make and
deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost, stolen,
destroyed or mutilated Warrant or stock certificate.
	 
	14.	 	Descriptive Headings. The descriptive headings of the several paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant.

	15.	 	Governing Law. This Warrant shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the laws of the State of Florida.

	16.	 	Remedies. In case any one (1) or more of the covenants and agreements contained in
this Warrant shall have been breached, the holders hereof (in the case of a breach by the
Company), or the Company (in the case of a breach by a holder), may proceed to protect and
enforce their or its rights either by suit in equity and/or by action at law, including, but
not limited to, an action for damages as a result of any such breach and/or an action for
specific performance of any such covenant or agreement contained in this Warrant.

	17.	 	Acceptance. Receipt of this Warrant by the holder hereof shall constitute acceptance
of and agreement to the foregoing terms and conditions.

	18.	 	No Impairment of Rights. The Company will not, by amendment of its Certificate of
Incorporation or through any other means, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holder of this Warrant against impairment.

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed on its behalf by one of its
officers thereunto duly authorized.

BROOKSIDE TECHNOLOGY HOLDING CORP.

                                                                     

Michael Nole, Chief Executive Officer

Dated: August ___, 2007

10

 

NOTICE TO FLORIDA RESIDENTS:

WHERE SALES ARE MADE TO FIVE OR MORE PERSONS IN FLORIDA (EXCLUDING CERTAIN INSTITUTIONAL PURCHASERS
DESCRIBED IN SECTION 517.061(7) OF THE FLORIDA SECURITIES AND INVESTOR PROTECTION ACT) (THE “ACT”),
ANY SUCH SALE MADE PURSUANT TO SECTION 517.061(11) OF THE ACT SHALL BE VOIDABLE BY THE PURCHASER
EITHER WITHIN THREE DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO THE
ISSUER, OR AN AGENT OF THE ISSUER, OR AN ESCROW AGENT OR WITHIN THREE DAYS AFTER THE AVAILABILITY
OF THAT PRIVILEGE IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER.

11

 

EXHIBIT A

NOTICE OF EXERCISE

To:                                         

1. The
undersigned hereby elects to purchase ____________ shares of Common Stock of pursuant to the terms of
the attached Warrant, and tenders herewith payment of the purchase price of such shares in full.

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

                         
                                        

(Name)

                         
                                        

                         
                                        

(Address)

3. The undersigned represents that the aforesaid shares are being acquired for the account of the
undersigned for investment 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. In support thereof, the undersigned has executed an Investment Representation
Statement attached hereto as Schedule 1

                         
                                        

(Signature)

                         
                                        

(Date)

12

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