Document:

Unassociated Document

     

    CHANGE
      IN CONTROL AGREEMENT

    

    This
      CHANGE IN CONTROL AGREEMENT (the “Agreement”)
      is
      made on of this 6th
      day of
      February, 2006, effective as of the 3rd
      day of
      January, 2006, by and among UNION CENTER NATIONAL BANK, a bank chartered under
      the laws of Congress (the “Bank”),
      CENTER BANCORP INC., a New Jersey corporation that owns all of the capital
      stock
      of the Bank (the “Company”)
      and
      CHARLES E. NUNN, JR. (“Employee”).

    

    BACKGROUND:

    

    WHEREAS,
      Employee is currently employed as a Senior Vice President of
      the
      Bank and as a Vice President of the Company; and

    

    WHEREAS,
      the Boards of Directors of the Bank and the Company believe it is imperative
      that the Bank and the Company be able to rely upon Employee to continue in
      his
      position in the event that the Bank or the Company receives any proposal from
      a
      third person concerning a possible acquisition of the equity securities or
      assets of the Bank or the Company, and that the Bank and the Company be able
      to
      receive and rely upon Employee’s advice, if they request it, as to the best
      interests of the Company, the Bank and their respective shareholders, without
      concern that Employee might be distracted by the personal uncertainties and
      risks created by such a proposal; and

    

    WHEREAS,
      to achieve that goal, and to retain Employee’s services prior to any such
      activity, the Bank, the Company and Employee have agreed to enter into this
      Agreement to govern Employee’s termination benefits in the event of a Change in
      Control Event (as defined below).

    

    NOW,
      THEREFORE, in consideration of the foregoing premises and for other good and
      valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto hereby agree as follows:

    

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

    

    (a)
      “Cause”
means
      (i) Employee’s conviction of, guilty plea to, or confession of guilt of, any
      crime that constitutes a felony or criminal act involving moral turpitude,
      (ii)
      Employee’s commission of a fraudulent, illegal, disloyal or dishonest act in
      respect of the Bank or the Company, (iii) termination of the Bank’s business due
      to unprofitability, insolvency, bankruptcy or directive by governmental
      regulators, (iv) Employee’s willful misconduct or gross negligence that
      reasonably could be expected to be materially injurious to the business,
      operations, or reputation of the Bank and/or the Company, (v) Employee’s
      violation of a material nature of the Bank’s or the Company’s policies or
      procedures in effect from time to time; provided, however, to the extent such
      violation is subject to cure, such violation shall not constitute “Cause”
unless
      Employee fails to cure such violation within 10 days after written notice
      thereof, (vi) Employee’s material failure to perform Employee’s duties as
      assigned to Employee by the Bank and/or the Company from time to time; provided,
      however, to the extent such failure is subject to cure, such failure shall
      not
      constitute “Cause”
unless
      Employee fails to cure such failure within 10 days after written notice thereof,
      or (vii) Employee’s death. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Termination
      for “Cause” shall not be construed to include the takeover of the Bank or the
      Company, in either a hostile or voluntary manner, by another person, firm or
      corporation.

    

    (b)
      “Change
      in Control Event”
means
      (i) the consummation of an acquisition by a third party of a majority of the
      voting capital stock of the Company or the Bank or substantially all of the
      assets of the Company or the Bank or (ii) a change in the composition of the
      Board of Directors of the Company (the “Board”)
      such
      that the Continuing Directors (as hereinafter defined) no longer constitute
      a
      majority of the Board.

    

    (c)
      “Continuing
      Directors”
shall
      mean (i) each current member of the Company’s Board of Directors and (ii) each
      person who is hereinafter first nominated to such Board by unanimous vote of
      the
      persons who then constitute Continuing Directors. 

    

    (d)
      “Good
      Reason”
means
      the resignation by Employee within 180 days after the occurrence of a Change
      in
      Control Event. 

    

    (e)
      “Release”
means
      a
      general release agreement in a form acceptable to the Company and the Bank,
      which Release shall include, among other things, a general release of the Bank,
      the Company and related parties from all liability. 

    

    (f)
      “Trigger
      Event”
shall
      mean, the occurrence during the Term (as defined below) of either: (i) the
      termination of Employee’s employment by the Bank and the Company (or their
      respective successors) upon, or within 12 months following, a Change in Control
      Event, other than a termination of Employee’s employment by the Bank and the
      Company (or their respective successors) for Cause; or (ii) Employee’s
      resignation for Good Reason, provided that Employee delivers written notice
      of
      Employee’s resignation to the Bank and the Company (or their respective
      successors ) at least 30 days prior to the effective date of such
      resignation.

    

    2.
      Term
      of Agreement.
      Except
      as otherwise provided in the next sentence of this Section 2, the term of this
      Agreement shall be three (3) years, effective as of January 3, 2006 and
      terminating January 2, 2009 (the “Initial
      Term”).
      Notwithstanding the foregoing, this Agreement shall automatically be extended
      (a) at the end of the Initial Term, for successive one year renewal terms
      unless, at least twelve-months prior to the commencement of any such renewal
      term, notice of termination of this Agreement is given by any party hereto
      to
      the other parties hereto and (b) if a Change in Control Event occurs at any
      time
      during the Initial Term or any such renewal term, for a period of one (1) year
      from the date of such Change in Control Event. The Initial Term, together with
      any renewal term, shall be referred to in this Agreement as the “Term.”

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.
      Trigger
      Event Payments and Benefits.
      Upon
      the occurrence of a Trigger Event (a) subject to Employee’s execution, delivery
      and non-revocation of the Release, Employee shall be entitled to: (i) a lump
      sum
      payment equal to the product of (x) three (3) and (y) the sum of (1) Employee’s
      annual base salary as in effect immediately prior to the Trigger Event, (2)
      the
      largest annual cash bonus received by Employee from the Bank and/or the Company
      in the 2 year period preceding the Trigger Event, (3) the amount recorded on
      Employee’s W-2 (for the calendar year preceding the calendar year in which the
      Trigger Event occurs) that is attributable to fringe benefits provided to
      Employee by the Bank and/or the Company, (4) the annual premium of Employee’s
      long-term care policy as in effect immediately preceding the Trigger Event
      (to
      the extent such amount is not recorded on Employee’s W-2 as attributable to
      fringe benefits), and (5) the maximum matching contribution that could have
      been
      made under the Bank’s 401(k) plan if Employee had remained employed by the Bank
      and the Company for an additional one (1) year following the Trigger Event
      (the
“Trigger
      Event Payment”);
      and
      (ii) if Employee timely elects COBRA coverage and provided Employee continues
      to
      make contributions for such continuation coverage equal to Employee’s
      contribution amount in effect immediately preceding the date of Employee’s
      termination of employment, the Bank and/or the Company, as applicable, shall
      waive the remaining portion of Employee’s healthcare continuation payments under
      COBRA for an eighteen (18)-month period following the Trigger Event; and (b)
      all
      stock options granted to Employee by the Company shall be exercisable in full,
      effective as of the date of the Trigger Event. Notwithstanding the foregoing,
      in
      the event that Employee becomes eligible to obtain alternate healthcare coverage
      from a new employer before the 18-month anniversary of the Trigger Event, the
      Bank’s and/or the Company’s obligation to waive the remaining portion of
      Employee’s healthcare continuation coverage under COBRA shall cease. Employee
      understands and affirms that Employee is obligated to inform the Bank and the
      Company if Employee becomes eligible to obtain alternate healthcare coverage
      from a new employer before the 18-month anniversary of the Trigger Event. The
      Trigger Event Payment (less applicable withholdings and deductions) shall be
      paid to Employee in a lump sum on the next regular payroll date following the
      8th
      day
      after Employee’s execution and delivery of the Release; provided, however, that
      if necessary to comply with the restriction in Section 409A(a)(2)(B) of the
      Internal Revenue Code of 1986, as amended (the “Code”)
      concerning payments to “specified employees,” the Trigger Event Payment shall be
      made on the first business day of the seventh month following the Trigger Event.
      Employee shall have no obligation to seek substitute employment or otherwise
      mitigate the Bank’s and the Company’s obligations to make the payments set forth
      in this Section 3.

    

    4.
      Taxes.
      In the
      event that either the Company's independent public accountants or the Internal
      Revenue Service determines that any payment, coverage or benefit provided to
      Employee is subject to the excise tax imposed by Section 4999 (or any successor
      provision) of the Code (“Section
      4999”),
      the
      Company and the Bank shall pay to Employee, on the later of the 30th
      day
      thereafter (or the first business day following such 30th
      day) or
      the date that the Trigger Event Payment is paid pursuant to Section 3 above,
      in
      addition to any other payment, coverage or benefit due and owing hereunder,
      an
      amount determined by multiplying the rate of excise tax then imposed by Section
      4999 by the amount of the “excess parachute payment” received by Employee
      (determined without regard to any payments made to Employee pursuant to this
      Section 4) and dividing the product so obtained by the amount obtained by
      subtracting the aggregate local, state and Federal income tax rate applicable
      to
      the receipt by Employee of the "excess parachute payment" (taking into account
      the deductibility for Federal income tax purposes of the payment of state and
      local income taxes thereon) from the amount obtained by subtracting from 1.00
      the rate of excise tax then imposed by Section 4999 of the Code, it being the
      intention of the parties hereto that Employee's net after tax position be
      identical to that which would have obtained had Sections 28OG and 4999 not
      been
      part of the Code.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    5.
      At
      Will Employment.
      This
      Agreement shall not affect any rights of the Bank, the Company or the Employee
      prior to a Change in Control Event or any of your rights granted in any other
      agreement, plan or arrangements, except that if Employee receive all payments
      under this Agreement, Employee shall not be entitled to receive any payments
      or
      benefits under any other severance arrangement (if any) with the Bank or the
      Company. The rights, duties and benefits provided under this Agreement only
      shall become effective upon a Change in Control Event. Nothing in this Agreement
      shall alter Employee’s status as an “at-will” employee. If Employee’s employment
      by the Bank and/or the Company is terminated for any reason prior to a Change
      in
      Control Event, this Agreement shall thereafter be of no further force and
      effect

    

    6.
      Headings.
      Headings used in this Agreement are for convenience of reference only and do
      not
      affect the meaning of any provision.

    

    7.
      Counterparts.
      This
      Agreement may be executed as of the same effective date in one or more
      counterparts, each of which shall be deemed an original.

    

    8.
      Binding
      Agreement; Assignment.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and their respective successors and assigns.

    

    9.
      Governing
      Law; Jurisdiction.
      This
      Agreement and any and all matters arising directly or indirectly herefrom shall
      be governed by, and construed in accordance with, the internal laws of the
      State
      of New Jersey, without reference to the choice of law principles thereof. Any
      legal action, suit or other proceeding arising out of or in any way connected
      with this Agreement shall be brought in the courts of the State of New Jersey,
      or in the United States courts for the District of New Jersey. With respect
      to
      any such proceeding in any such court: (i) each party generally and
      unconditionally submits itself and its property to the exclusive jurisdiction
      of
      such court (and corresponding appellate courts therefrom), and (ii) each party
      waives, to the fullest extent permitted by law, any objection it has or
      hereafter may have the venue of such proceeding as well as any claim that it
      has
      or may have that such proceeding is in an inconvenient forum.

    

    10.
      Amendments.
      This
      Agreement may only be amended or otherwise modified, and the provisions hereof
      may only be waived, by a writing executed by the parties hereto.

    

    11.
      Entire
      Agreement.
      This
      Agreement shall constitute the entire agreement of the parties with respect
      to
      the matters covered hereby and shall supersede all previous written, oral or
      implied understandings between them with respect to such matters. Without
      limitation, this Agreement supercedes and replaces the provisions set forth
      in
      the third and fourth paragraphs of the offer letter dated February 23, 2004
      from
      the Bank to the Employee.

    

    12.
      Opportunity
      to Consult Counsel.
      Employee hereby acknowledges that he has read and fully understands this
      Agreement, that he has been advised that Lowenstein Sandler PC
      is
      counsel to the Bank and the Company and not to Employee, and that Employee
      has
      been advised to, and has had the opportunity to, consult with counsel and
      Employee’s personal financial or tax advisor with respect to this Agreement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

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

    

    
      
        	 	 	 
	 	UNION
                CENTER NATIONAL BANK
	 
 	 
 	 
 
	 	By:  	/s/ John
                J.
                Davis
	 	
                
                  

                

                Name: John J. Davis

                
                  Title:
                    President & Chief Executive Officer

                  Date:
                    February 6, 2006 

                

              

      

       

    

    
      	 	 	 
	 	CENTER
              BANCORP INC.
	 
 	 
 	 
 
	 	By:  	/s/ John
              J. Davis
	 	
              
                

              

              Name: John J. Davis

              Title: President & Chief Executive
                Officer

              Date: February 6,
                2006

            

    

    

    
      	WITNESS: 	 	 	EMPLOYEE:
	 	 	 	 
	/s/ Julie
              D’Aloia	 	 	/s/ Charles
              E. Nunn Jr.
	
              
                

              

              Name: Julie D’Aloia 

              Date: February 6, 2006

            	 	 	
              
                

              

              Name: Charles E. Nunn, Jr.

              Date: February 6,
                2006

            

    

     

    
      
        
        

      

      
        5Unassociated Document

    THE
      WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES TO BE ISSUED UPON
      ITS
      EXERCISE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
      1933
      (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”)
      AND SHALL NOT BE SOLD OR TRANSFERRED UNLESS SUCH SALE OR TRANSFER HAS BEEN
      REGISTERED UNDER THE SECURITIES ACT AND STATE ACTS, OR AN EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS IS AVAILABLE, THE AVAILABILITY OF WHICH MUST BE
      ESTABLISHED TO THE SATISFACTION OF THE COMPANY. 

    

    CLASS
      A STOCK PURCHASE WARRANT

    

    
      	Warrant No. --1-- 	 	
              Number
                of Shares:
                195,890

            

    

     

    AEROTELESIS,
      INC.

    COMMON
      STOCK, NO PAR VALUE PER SHARE

    VOID
      AFTER 5:00 P.M. EASTERN STANDARD TIME

    ON
      DECEMBER 31, 2009

    

    This
      Warrant is issued to The Nutmeg Group, LLC (“Purchaser”) by AEROTELESIS, INC., a
      Delaware corporation (hereinafter with its successors called the “Company”).

    

    For
      value
      received and subject to the terms and conditions hereinafter set out, Purchaser
      is entitled to purchase from the Company:

    

    59,813
      shares of Common Shares at a purchase price of $0.585 per share, 

    59,813
      shares of Common Shares at a purchase price of $1.170 per share, 

    19,088
      shares of Common Shares at a purchase price of $1.768 per share, 

    19,086
      shares of Common Shares at a purchase price of $2.358 per share, 

    19,045
      shares of Common Shares at a purchase price of $0.860 per share, 

    19,045
      shares of Common Shares at a purchase price of $1.719 per share, 

    

    all
      being
      fully paid and nonassessable shares of common stock, no par value per share
      (“Common Shares”) of the Company. Such purchase price per Common Share, as
      provided herein, is referred to as the “Purchase Price.” 

    

    The
      Purchaser may exercise this Warrant, in whole or in part, upon surrender of
      this
      Warrant, with the exercise form annexed hereto duly executed, at the office
      of
      the Company, or such other office as the Company shall notify the Purchaser
      in
      writing, together with a certified or bank cashier’s check payable to the order
      of the Company in the amount of the Purchase Price times the number of Common
      Shares being purchased.

    

    1. The
      person or persons in whose name or names any certificate representing Common
      Shares is issued hereunder shall be deemed to have become the holder of record
      of the Common Shares represented thereby as of the close of business on the
      date
      on which this Warrant is exercised with respect to such shares, whether or
      not
      the transfer books of the Company shall be closed. Until such time as this
      Warrant is exercised or terminates, the Purchase Price payable and the number
      and character of securities issuable upon exercise of this Warrant are subject
      to adjustment as hereinafter provided.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Unless
      previously exercised, this Warrant shall expire at 5:00 p.m. Eastern Standard
      Time, on December 31, 2009 and
      shall
      be void thereafter or can be extended at the Company’s discretion (“Expiration
      Date”). 

    

    3. The
      Company covenants that it will at all times reserve and keep available a number
      of its authorized Common Shares, free from all preemptive rights, which will
      be
      sufficient to permit the exercise of this Warrant. The Company further covenants
      that such shares as may be issued pursuant to the exercise of this Warrant
      will,
      upon issuance, be duly and validly issued, fully paid and nonassessable and
      free
      from all taxes, liens, and charges.

    

    4. If
      the
      Company subdivides its outstanding Common Shares, by split-up or otherwise,
      or
      combines its outstanding Common Shares, the Purchase Price then applicable
      to
      shares covered by this Warrant shall forthwith be proportionately decreased
      in
      the case of a subdivision, or proportionately increased in the case of a
      combination.

    

    5. If
      (a)
      the Company reorganizes its capital, reclassifies its capital stock,
      consolidates or merges with or into another corporation (but only if the Company
      is not the surviving corporation and
      no
      longer
      has more than a single shareholder) or sells, transfers or otherwise disposes
      of
      all or substantially all its property, assets, or business to another
      corporation, and (b) pursuant to the terms of such reorganization,
      reclassification, merger, consolidation, or disposition of assets, shares of
      common stock of the successor or acquiring corporation, or any cash, shares
      of
      stock, or other securities or property of any nature whatsoever (including
      warrants or other subscription or purchase rights) in addition to or in lieu
      of
      common stock of the successor or acquiring corporation (“Other Property”), are
      to be received by or distributed to the holders of Common Shares, then (c)
      Purchaser shall have the right thereafter to receive, upon exercise of this
      Warrant, the same number of shares of common stock of the successor or acquiring
      corporation and Other Property receivable upon such reorganization,
      reclassification, merger, consolidation, or disposition of assets as a holder
      of
      the number of Common Shares for which this Warrant is exercisable immediately
      prior to such event. At the time of such reorganization, reclassification,
      merger, consolidation or disposition of assets, the successor or acquiring
      corporation shall expressly assume the due and punctual observance and
      performance of each and every covenant and condition of this Warrant to be
      performed and observed by the Company and all the obligations and liabilities
      hereunder, subject to such modifications as may be deemed appropriate (as
      determined by resolution of the Board of Directors of the Company) in order
      to
      adjust the number of shares of the common stock of the successor or acquiring
      corporation for which this Warrant is exercisable. For purposes of this section,
      “common stock of the successor or acquiring corporation” shall include stock of
      such corporation of any class which is not preferred as to dividends or assets
      over any other class of stock of such corporation and which is not subject
      to
      redemption and shall also include any evidences of indebtedness, shares of
      stock, or other securities which are convertible into or exchangeable for any
      such stock, either immediately or upon the arrival of a specified date or the
      happening of a specified event and any warrants or other rights to subscribe
      for
      or purchase any such stock. The foregoing provisions of this section shall
      similarly apply to successive reorganizations, reclassifications, mergers,
      consolidations, or disposition of assets.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    6. If
      a
      voluntary or involuntary dissolution, liquidation or winding up of the Company
      (other than in connection with a merger or consolidation of the Company) is
      at
      any time proposed during the term of this Warrant, the Company shall give
      written notice to the Purchaser at least thirty days prior to the record date
      of
      the proposed transaction. The notice shall contain: (1) the date on which the
      transaction is to take place; (2) the record date (which must be at least thirty
      days after the giving of the notice) as of which holders of the Common Shares
      entitled to receive distributions as a result of the transaction shall be
      determined; (3) a brief description of the transaction; (4) a brief description
      of the distributions, if any, to be made to holders of the Common Shares as
      a
      result of the transaction; and (5) an estimate of the fair market value of
      the
      distributions. On the date of the transaction, if it actually occurs, this
      Warrant and all rights existing under this Warrant shall terminate.

    

    7. In
      no
      event shall any fractional Common Share of the Company be issued upon any
      exercise of this Warrant. If, upon exercise of this Warrant as an entirety,
      the
      Purchaser would, except as provided in this Section 7, be entitled to receive
      a
      fractional Common Share, then the Company shall issue the next higher number
      of
      full Common Shares, issuing a full share with respect to such fractional share.
      If this Warrant is exercised at one time for less than the maximum number of
      Common Shares purchasable upon the exercise hereof, the Company shall issue
      to
      the Purchaser a new warrant of like tenor and date representing the number
      of
      Common Shares equal to the difference between the number of shares purchasable
      upon full exercise of this Warrant and the number of shares that were purchased
      upon the exercise of this Warrant.

    

    8. Whenever
      the Purchase Price is adjusted, as herein provided, the Company shall promptly
      deliver to the Purchaser a certificate setting forth the Purchase Price after
      such adjustment and setting forth a brief statement of the facts requiring
      such
      adjustment.

    

    9. If
      at any
      time prior to the expiration or exercise of this Warrant, the Company shall
      pay
      any dividend or make any distribution upon its Common Shares or shall make
      any
      subdivision or combination of, or other change in its Common Shares, the Company
      shall cause notice thereof to be mailed, first class, postage prepaid, to
      Purchaser at least thirty full business days prior to the record date set for
      determining the holders of Common Shares who shall participate in such dividend,
      distribution, subdivision, combination or other change. Such notice shall also
      specify the record date as of which holders of Common Shares who shall
      participate in such dividend or distribution is to be determined. Failure to
      give such notice, or any defect therein, shall not affect the legality or
      validity of any dividend or distribution.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    10. The
      Company will maintain a register containing the names and addresses of the
      Purchaser and any assignees of this Warrant. Purchaser may change its address
      as
      shown on the warrant register by written notice to the Company requesting such
      change. Any notice or written communication required or permitted to be given
      to
      the Purchaser may be delivered by confirmed facsimile or telecopy or by a
      recognized overnight courier, addressed to Purchaser at the address shown on
      the
      warrant register.

    

    11.
      This
      Warrant has not been registered under the Securities Act of 1933, as amended
      (the “Securities Act”), or any state securities laws (“State Acts”) or
      regulations in reliance upon exemptions under the Securities Act, and exemptions
      under the State Acts. Subject to compliance with the Securities Act and State
      Acts, this Warrant and all rights hereunder are transferable in whole or in
      part, at the office of the Company at which this Warrant is exercisable, upon
      surrender of this Warrant together with the assignment hereof properly endorsed.
      The Common Stock into which the Warrants are exercisable will have piggyback
      registration rights, and the Warrants will be transferable. If by April 30,
      2006, the Company does not register the shares of Common Stock into which the
      Warrants are exercisable, or the shares of Common Stock into which the Warrants
      are exercisable are not otherwise freely tradable, then, at Purchaser’s option,
      the Warrant exercise may be cashless. 

    

    12.
      In
      case
      this Warrant shall be mutilated, lost, stolen, or destroyed, the Company may
      issue a new warrant of like tenor and denomination and deliver the same (a)
      in
      exchange and substitution for and upon surrender and cancellation of any
      mutilated Warrant, or (b) in lieu of any Warrant lost, stolen, or destroyed,
      upon receipt of evidence satisfactory to the Company of the loss, theft or
      destruction of such Warrant (including a reasonably detailed affidavit with
      respect to the circumstances of any loss, theft, or destruction) and of
      indemnity with sufficient surety satisfactory to the Company.

    

    13. Unless
      a
      current registration statement under the Securities Act, shall be in effect
      with
      respect to the securities to be issued upon exercise of this Warrant, the
      Purchaser, by accepting this Warrant, covenants and agrees that, at the time
      of
      exercise hereof, and at the time of any proposed transfer of securities acquired
      upon exercise hereof, the Company may require Purchaser to make such
      representations, and may place such legends on certificates representing the
      Common Shares issuable upon exercise of this Warrant, as may be reasonably
      required in the opinion of counsel to the Company to permit such Common Shares
      to be issued without such registration.

    

    14. This
      Warrant does not entitle Purchaser to any of the rights of a stockholder of
      the
      Company.

    

    15. Nothing
      expressed in this Agreement 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 parties to this Agreement 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 parties hereto and
      their respective successors and assigns.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    16. The
      provisions and terms of this Warrant shall be construed in accordance with
      the
      laws of the State of Illinois. 

    

    
       

      IN
        WITNESS WHEREOF, this Warrant has been duly executed by the Company as of
        March
        31, 2005  

    

    
      	 	 	 
	 	AEROTELESIS,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ AEROTELESIS,
              INC.
	 	
              

            
	 	 

    

      

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    FORM
      OF EXERCISE

    

    

    Date:
      ____________________

     

     

    
      	To:	 	AEROTELESIS,
              INC.
	 	 	11150 Wolympic Boulevard
	 	 	Suite 860
	 	 	Los Angeles, CA 90064
	 	 	Phone: 310-235-1727
	 	 	Fax:
              310-235-1728

    

     

     

    
    

    The
      undersigned hereby subscribes for _______ shares of common stock of AEROTELESIS,
      INC. covered by this Warrant and hereby delivers $___________ in full payment
      of
      the purchase price thereof. The certificate(s) for such shares should be issued
      in the name of the undersigned or as otherwise indicated below:

     

    
      	 	 
	 	 
	 	
              
Signature:
	 	 
	 	 
	 	
              
Printed
              Name
	 	 
	 	 
	 	
              
Name
              for Registration, if different
	 	 
	 	 
	 	
              
Street
              Address
	 	 
	 	 
	 	
              
City,
              State and Zip Code
	 	 
	 	 
	 	
              
Social
              Security Number

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    ASSIGNMENT

     

    For
      Value
      Received, the undersigned hereby sells, assigns and transfers unto the
      assignee(s) set forth below the within Warrant certificate, together with all
      right, title and interest therein, and hereby irrevocably constitutes and
      appoints ___________________________________ attorney, to transfer the said
      Warrant on the books of the within-named Company with respect to the number
      of
      Common Shares set forth below, with full power of substitution in the
      premises.

    
 

    
      	 	 	Social Security or	 	 	 	 
	 	 	other Identifying	 	 	 	 
	Name(s) of	 	Number(s) of	 	 	 	No. of
	Assignee(s)	 	Assignee(s)	 	Address	 	Shares

    

    
       

       

    

    
      	Dated: 	 
	
            	
              

            

    

     

    
      
        	 	 
	 	 
	 	
                
Signature:
	 	 
	 	NOTICE: THE SIGNATURE TO
                THIS
                ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE
                OF THE
                WARRANT IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR
                ANY
                CHANGE WHATSOEVER.
	 	 
	 	 
	 	
                
Print
                Name and Title
	 	 

      

    

     

    
      
        
        

      

      
        7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]