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Exhibit 4.7  

HYPERSPACE COMMUNICATIONS, INC.

AND

CAPITAL GROWTH FINANCIAL, LLC  

 
 

FORM OF
  REPRESENTATIVE'S OPTION AGREEMENT FOR UNITS    
    

Dated as of                        , 2004  

        REPRESENTATIVE'S
OPTION AGREEMENT FOR UNITS dated as of            , 2004 among HYPERSPACE COMMUNICATIONS, INC., a Colorado corporation (the "Company") and CAPITAL GROWTH
FINANCIAL, LLC, the representative of the underwriters, a Florida limited liability company (hereinafter referred to variously as the "Holder", "Underwriter" or "Representative"). 

W I T N E S S E T H:  

        WHEREAS, the Representative has agreed pursuant to the underwriting agreement (the "Underwriting Agreement") dated as of the date hereof between the
Representative, on behalf of the several underwriters, and the Company, to underwrite, on a firm commitment basis, the Company's proposed public offering ("Public Offering") of up to 2,070,000 units
(inclusive of 270,000 over allotment units) ("Units") at a public offering price of $5.50 per Unit, each Unit consisting of one (1) share of the Company's common stock no par value per share
("Common Stock") and two (2) Redeemable Common Stock Purchase Warrants ("Warrants"); and 

        WHEREAS,
the Company proposes to issue to the Representative options ("Representative Unit Purchase Option") to purchase up to an aggregate of 90,000 Units [5.0% of the Units
sold in the Offering] (the "Representative Units") of the Company at a purchase price of $.001 per Unit Purchase Option, (exercisable at 165% of the public offering price of the Units);
and 

        WHEREAS,
the Representative Units shall be the same as the units sold in the Public Offering ("Public Units") and each Representative Unit shall entitle the Representative to purchase
(i) one share of Common Stock ("Unit Share") and (ii) two Warrants ("Unit Warrants"); and 

        WHEREAS,
the Representative's Unit Purchase Option to be issued pursuant to this Agreement will be issued on the Closing Date (as such term is defined in the Underwriting Agreement) by
the Company to the Representative in consideration for, and as part of the compensation in connection with the Public Offering; 

        NOW,
THEREFORE, in consideration of the premises, the payment by the Representative to the Company of an aggregate of Ninety Dollars ($90.00) ($0.001 per Unit), the agreements herein set
forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

        1.    Grant.    The Holder is hereby granted the right to purchase, at any time
from                        2005
[one year from the Effective Date] until 5:00 P.M., Mountain Standard Time, on                        , 2009, up to an
aggregate of                        Representative Units at an
initial exercise price (subject to adjustment as provided in Section 8 hereof) of 165% of the Public Offering Price (the "Exercise Price"). 

        2.    Representative's Unit Purchase Option Certificates.    The Representative's option certificates (the
"Representative's Unit Purchase Option Certificates") delivered and to be delivered pursuant to this Agreement shall be in the form set forth in Exhibit A, attached hereto and made a part
hereof, with such appropriate insertions, omissions, substitutions, and other variations as required or permitted by this Agreement. 

        3.    Exercise of Representative's Unit Purchase Options.    The Representative's Unit Purchase Options initially are
exercisable at an aggregate initial exercise price (subject to adjustment as provided in Section 8 hereof) per Unit, as set forth in  Section 6
hereof payable by (i) certified or official bank check in New York Clearing House funds, subject to adjustment as provided in  Section 8 hereof; or (ii) through a cashless exercise.
"Cashless Exercise" means an exercise of Unit Purchase Options in which, in lieu of
payment of the Exercise Price, the Holder elects to receive a lesser number of Securities such that the value of the Securities that such Holder would otherwise have been entitled to receive but has
agreed not to receive, as determined by the closing price of such Securities on the date of exercise or, if such date is not a trading day, on the next prior trading day, is equal to the Exercise
Price with respect to such exercise. A Holder may only elect a Cashless Exercise if Securities issuable by the Company on such exercise are publicly traded securities. Upon surrender at the Company's
principal offices in Colorado (presently located at 8480 East Orchard Road, Suite 6600, Greenwood 

 

Village,
Colorado 80111), of an Representative's Unit Purchase Option with the annexed Form of Election to Purchase duly executed, together with payment of the Purchase Price (as hereinafter
defined) for the Representative Units purchased, the registered holder of an Representative's Unit Purchase Option ("Holder" or "Holders") shall be entitled to receive a certificate or certificates
for the Representative Units so purchased. The Representative Units shall be comprised of the same share of Common Stock and Warrants as being sold to the public in the Public Offering. The purchase
rights represented by each Representative's Unit Purchase Option are exercisable at the option of the Holder thereof, in whole or in part (but not as to fractional shares of Common Stock underlying
the Representative Units). In the case of the purchase of less than all the Representative Units purchasable under any Representative's Unit Purchase Option, the Company shall cancel the
Representative's Unit Purchase Option upon the surrender thereof and shall execute and deliver a new Representative's Unit Purchase Option of like tenor for the balance of the Representative Units
purchasable thereunder. 

        4.    Issuance of Certificates.    Upon the exercise of the Representative's Unit Purchase Option, the issuance of
certificates for the Unit Warrants and Unit Shares or other securities, properties or rights underlying such Representative's Unit Purchase Option, shall be made forthwith (and in any event within
five (5) business days thereafter) without charge to the Holder thereof including, without limitation, any tax which may be payable in respect of the issuance thereof, and such
certificates shall (subject to the provisions of Sections 5 and 7 hereof) be issued in the name of, or in such names as may be directed by, the
Holder thereof; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any such certificates
in a name other than that of the Representative and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall
have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. 

        The
Representative's Unit Purchase Option and the certificates representing the Unit Warrants and Unit Shares issuable upon exercise of the Representative's Unit Purchase Option shall be
executed on behalf of the Company by the manual or facsimile signature of the Chairman or Vice Chairman of the Board of Directors or President or Vice President of the Company under its corporate seal
reproduced thereon, attested to by the manual or facsimile signature of the then present Secretary or Assistant Secretary of the Company. The Representative's Unit Purchase Option shall be dated the
date of the execution by the Company upon initial issuance, division, exchange, substitution or transfer. The certificates representing the Unit Warrants and Unit Shares issuable upon exercise of the
Representative's Unit Purchase Options shall be identical in form and substance to those issued and sold to the public in connection with the Public Offering, including the terms of redemption for the
Warrants. 

        5.    Restriction On Transfer of Representative's Unit Purchase Option.    The Holder of a Representative's Unit
Purchase Option, by its acceptance thereof, covenants and agrees that the Representative's Unit Purchase Option is being acquired as an investment and not with a view to the distribution thereof; and
that the Representative's Unit Purchase Option may not be sold, transferred, assigned, hypothecated or otherwise disposed of, in whole or in part, for a period of one year from the effective date of
the offering except to officers or partners of the Representative and members of the selling group in the Public Offering, and/or their officers or partners, as required in compliance with NASD
Rule 2710(g). 

        6.    Exercise Price.    

        6.1    Initial and Adjusted Exercise Price.    Except as otherwise provided in  Section 8 hereof, the initial exercise price of
each Representative's Unit Purchase Option shall be $9.075 [165% of Unit Offering
Price] per Unit. The exercise price shall be adjusted from time to time in accordance with the provisions of Section 8 hereof. 

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        6.2    Exercise Price.    The term "Exercise Price" herein shall mean the initial exercise prices or the adjusted
exercise price, depending upon the context of the Representative's Unit Purchase Option. 

        7.    Registration Rights.    

        7.1    Demand Registration Under the Securities Act of 1933.    At any time commencing
after                        , 2005
[one (1) year from the Effective Date] through and including                        , 2009 (five (5) years from the
Effective Date), the Holders of the Representative's
Unit Purchase Option, Unit Warrants and Unit Shares, representing a "Majority" of the shares of Common Stock issuable upon the exercise of the Representative Units (assuming the exercise of all of the
Representative's Unit Purchase
Option) shall have the right (which right is in addition to the registration rights under Section 7.2 hereof), exercisable by written notice to
the Company, to have the Company prepare and file with the Commission, on one occasion, a registration statement and such other documents, including a prospectus, as may be necessary in the opinion of
both counsel for the Company and counsel for the Representative and Holders, in order to comply with the provisions of the Act, so as to permit a public offering and sale of their respective Unit
Warrants and Unit Shares during a period equal to the longer of: (i) nine (9) months or (ii) the unexpired term of the Unit Warrants by such Holders and any other Holders of the
Representative's Unit Purchase Option, Representative Units and the Units who shall notify the Company within ten (10) days after receiving notice from the Company of such request. 

        7.2    Piggyback Registration.    If, at any time commencing
after                        , 2004, through and including
                        , 2009 (five (5) years from the Effective Date), the Company proposes to register any of its
securities under the Act (other than in connection with a merger or pursuant to
Form S-8 or similar form) it will give written notice by registered or certified mail, at least thirty (30) days prior to the filing of each such registration statement, to
the Representative and to all other Holders of the Representative's Unit Purchase Option, Unit Warrants or Unit Shares underlying the Representative Units, of its intention to do so. If any of the
Representatives or other Holders of the Representative's Unit Purchase Option, Unit Warrants or Unit Shares underlying the Representative Units, notify the Company within twenty (20) days after
receipt of any such notice of its or their desire to include any such securities in such proposed registration statement, the Company shall afford each of the Representative and such Holders of the
Representative's Unit Purchase Option, Unit Warrants or Unit Shares underlying the Representative Units, the opportunity to have any of such securities registered under such registration statement. 

        Notwithstanding
the provisions of this Section 7.2, the Company shall have the right at any time after it shall have given written
notice pursuant to this Section 7.2 (irrespective of whether a written request for inclusion of any such securities shall have been made) to
elect not to file any such proposed registration statement, or to withdraw the same after the filing but prior to the Effective Date thereof. 

        (b)   The
Company covenants and agrees to give written notice of any registration request under this Section 7.3 by any
Holder or Holders to all other registered Holders of the Representative's Unit Purchase Option, Unit Shares and Unit Warrants, underlying the Representative Units within ten (10) days from the
date of the receipt of any such registration request. 

        7.4    Covenants of the Company With Respect to Registration.    In connection with any registration under  Section 7.2 or 7.3
hereof, the Company covenants and agrees as follows: 

        (a)   The
Company shall use its best efforts to file a registration statement within forty-five (45) days of receipt of any demand therefor in
accordance with Section 7.1, shall use 

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its
best efforts to have any registration statement declared effective at the earliest possible time, and shall furnish each Holder desiring to sell the Units underlying the Representative's Unit
Purchase Option and Representative Units such number of prospectuses as shall reasonably be requested. Notwithstanding the foregoing sentence, the Company shall be entitled to postpone the filing of
any registration statement otherwise required to be prepared and filed by it pursuant to this Section 7.4(a) if (i) the Company is under contract or other binding legal obligation for a
material acquisition, reorganization or divestiture, or (ii) the Company is publicly committed to a self-tender or exchange offer and the filing of a registration statement would
cause a violation of Regulation M under the Securities Exchange Act of 1934. In the event of such postponement, the Company shall be required to file the registration statement pursuant to this
Section 7.4(a) upon the earlier of (i) the consummation or termination, as applicable, of the event requiring such postponement or (ii) 90 days after the receipt of the
initial demand for such registration. 

        (b)   The
Company shall pay all costs (excluding fees and expenses of Holder(s) counsel and any underwriting or selling commissions), fees and expenses in connection with all
registration statements filed pursuant to Sections 7.2 and 7.3(a) hereof including, without limitation, the Company's legal and accounting fees,
printing expenses, and blue sky fees and expenses. The Holder(s) will pay all costs, fees and expenses in connection with any registration statement filed pursuant to  Section 7.3(c). If the Company
shall fail to comply with the provisions of Section 7.4(a),
the Company shall, in addition to any other equitable or other relief available to the Holder(s), be liable for any or all incidental, special and consequential damages and damages due to loss of
profit sustained by the Holder(s) requesting registration of their Representative's Unit Purchase Option, Unit Shares and Unit Warrants underlying the Representative Units. 

        (c)   The
Company will take all necessary action which may be required in qualifying or registering the Representative's Unit Purchase Option, Unit Shares and Unit Warrants
underlying the Representative Units included in a registration statement for offering and sale under the securities or blue sky laws of such states as reasonably are requested by the Holder(s),
provided that the Company shall not be obligated to execute or file any general consent to service of process or to qualify as a foreign corporation to do business under the laws of any such
jurisdiction. 

        (d)   The
Company shall indemnify the Holder(s) of the Representative's Unit Purchase Option, Representative Units, Unit Shares and Unit Warrants to be sold pursuant to any
registration statement and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act of 1934, as
amended ("Exchange Act"), against all loss, claim, damage, expense or liability (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to
which any of them may become subject under the Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions
pursuant to which the Company has agreed to indemnify the Representative contained in Section 7 of the Underwriting Agreement. 

        (e)   The
Holder(s) of the Representative's Unit Purchase Option, Unit Shares and Unit Warrants underlying the Representative Units to be sold pursuant to a registration
statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company within the meaning of
Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim, damage or expense or liability (including all expenses reasonably incurred in investigating,
preparing or defending against any claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such 

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Holders,
or their successors or assigns, for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in  Section 7 of the Underwriting Agreement
pursuant to which the Representative has agreed to indemnify the Company. 

        (f)    Nothing
contained in this Agreement shall be construed as requiring the Holder(s) to exercise their Representative's Unit Purchase Option or the Representative Units
prior to the initial filing of any registration statement or the effectiveness thereof. 

        (g)   If
the Representative Units, Unit Shares and Unit Warrants underlying the Representative Units are to be sold in an underwritten public offering, the Company shall use
its best efforts to furnish to each Holder participating in the offering and to each such underwriter, a signed counterpart, addressed to such underwriter, of (i) an opinion of counsel to the
Company dated the date of the closing under the underwriting agreement, and (ii) a "cold comfort" letter dated the date of the closing under the underwriting agreement signed by the independent
public accountants who have issued a report on the Company's financial statements included in such registration statement, in each case covering substantially the same matters with respect to such
registration statement (and the prospectus included therein) and, in the case of such accountants' letter, with respect to events subsequent to the date of such financial statements, as are
customarily covered in opinions of issuer's counsel and in accountants' letters delivered to underwriters in underwritten public offerings of securities. 

        (h)   The
Company shall as soon as practicable after the Effective Date of the registration statement, and in any event within 15 months thereafter, have made
"generally available to its security holders" (within the meaning of Rule 158 under the Act) an earnings statement (which need not be audited) complying with Section 11(a) of the
Act and covering a period of at least 12 consecutive months beginning after the Effective Date of the registration statement. 

        (i)    The
Company shall deliver promptly to each Holder participating in the offering requesting the correspondence and memoranda described below, and the managing
underwriters, copies of all correspondence between the Commission and the Company, its counsel or auditors and all memoranda relating to discussions with the Commission or its staff with respect to
the registration statement and permit each Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration
statement as it deems reasonably
necessary to comply with applicable securities laws or rules of the National Association of Securities Dealers, Inc. ("NASD"). Such investigation shall include access to books, records and
properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times and as often as any such
Holder shall reasonably request. 

        (j)    The
Company shall enter into an underwriting agreement with the managing underwriter(s) selected for such underwriting, if any, by Holders holding a Majority of the
Representative's Unit Purchase Option, Representative Units, Unit Shares and Unit Warrants underlying the Representative Units requested to be included in such underwriting. Such underwriting
agreement shall be satisfactory in form and substance to the Company, each Holder and such managing underwriters, and shall contain such representations, warranties and covenants by the Company and
such other terms as are customarily contained in agreements of that type used by the managing underwriter(s). 

        The
Holders shall be parties to any underwriting agreement relating to an underwritten sale of their Representative's Unit Purchase Option, Representative Units and the Units underlying
the Representative's Units and may, at their option, require that any or all the 

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representations,
warranties and covenants of the Company to or for the benefit of such underwriter(s) shall also be made to and for the benefit of such Holders. Such Holders shall not be required to
make any representations or warranties to or agreements with the Company or the underwriter(s) except as they may relate to such Holders, their intended methods of distribution, and except for matters
related to disclosures with respect to such Holders, contained or required to be contained, in such registration statement under the Act and the rules and regulations thereunder. 

        (k)   For
purposes of this Agreement, the term "Majority" in reference to the Holders of Representative's Unit Purchase Option, Representative Units, Unit Shares and Unit
Warrants, shall mean in excess of fifty percent (50%) of the then outstanding Units, assuming the full exercise of all Representative's Unit Purchase Option and Representative Units that
(i) are not held by the Company, an affiliate, officer, creditor, employee or agent thereof or any of their respective affiliates, members of their families, persons acting as nominees or in
conjunction therewith or (ii) have not been resold to the public pursuant to Rule 144 under the Act or a registration statement filed with the Commission under the Act. 

        8.    Adjustments to Exercise Price and Number of Securities.    

        The
Exercise Price and number of securities issuable with respect to the Unit Warrants shall be adjusted on the same terms and conditions, and at the same time, as any adjustments in the
Exercise Price and number of shares issuable with respect to the Public Warrants required by the terms of the Public Warrants. 

        9.    Exchange and Replacement of Representative's Unit Purchase Option.    Each Representative's Unit Purchase Option
is exchangeable without expense, upon the surrender thereof by the registered Holder at the principal executive office of the Company, for a new Representative's Unit Purchase Option of like tenor and
date representing in the aggregate the right to purchase the same number of Units as provided in the original Representative's Unit Purchase Option in such denominations as shall be designated by the
Holder thereof at the time of such surrender. 

        Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of any Representative's Unit Purchase Option, and, in case of loss,
theft or destruction, of indemnity or security reasonably satisfactory to it, and reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of the
Representative's Unit Purchase Option, if mutilated, the Company will make and deliver a new Representative's Unit Purchase Option of like tenor, in lieu thereof. 

        10.    Elimination of Fractional Interests.    The Company shall not be required to issue certificates representing
fractions of shares of Common Stock upon the exercise of the Representative's Unit Purchase Option, nor shall it be required to issue scrip or pay cash in lieu of fractional interests, it being the
intent of the parties that all fractional interests shall be eliminated by rounding any fraction up to the nearest whole number of shares of Common Stock or other securities, properties or rights. 

        11.    Reservation and Listing of Securities.    The Company shall at all times reserve and keep available out of its
authorized shares of Common Stock, solely for the purpose of issuance upon the exercise of the Representative's Unit Purchase Option and the Representative Units, such number of shares of Common Stock
or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Representative's Unit Purchase Option and/or the
Representative Units and payment of the Exercise Price therefor, all Representative Units and/or Unit Shares or Unit Warrants and other securities issuable upon such exercise shall be duly and validly
issued, fully paid, non-assessable and not subject to the preemptive rights of any stockholder. As long as the Representative's Unit Purchase Option and/or Representative Units shall be
outstanding, the Company shall use its best efforts to cause all Unit Shares and Unit Warrants issuable 

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upon
the exercise of the Representative's Unit Purchase Option and Representative Units to be listed (subject to official notice of issuance) on all securities exchanges on which the Common Stock
issued to the public in connection herewith may then be listed and/or quoted on the American Stock Exchange 

        12.    Notices to Representative's Option Holders.    Nothing contained in this Agreement shall be construed as
conferring upon the Holders the right to vote or to consent or to receive notice as a stockholder in respect of any meetings of stockholders for the election of directors or any other matter, or as
having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration
of the Representative's Unit Purchase Option or Representative Units and their exercise, any of the following events shall occur: 

        (a)   the
Company shall take a record of the holders of its shares of Common Stock for the purpose of entitling them to receive a dividend or distribution payable otherwise
than in cash, or a cash dividend or distribution payable otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of
the Company; or 

        (b)   the
Company shall offer to all the holders of its Common Stock any additional shares of capital stock of the Company or securities convertible into or exchangeable for
shares of capital stock of the Company, or any option, right or warrant to subscribe therefor; or 

        (c)   a
dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or merger) or a sale of all or substantially all of its property
assets and business as an entirety shall be proposed; then, in any one or more of such events the Company shall give written notice of such event at least fifteen (15) days prior to the date
fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, convertible or exchangeable securities or
subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of closing the transfer books, as the
case may be. Failure to give such notice or any defect therein shall not affect the validity of any action taken in connection with the declaration or payment of any such dividend, or the issuance of
any convertible or exchangeable securities, or subscription rights, options or warrants, or any proposed dissolution, liquidation, winding up or sale. 

        13.    Notices    

        All
notices requests, consents and other communications hereunder shall be in writing and shall be deemed to have been duly made when delivered, or mailed by registered or certified
mail, return receipt requested: 

        (a)   If
to the registered Holder of the Representative's Unit Purchase Option, to the address of such Holder as shown on the books of the Company; or 

        (b)   If
to the Company, to the address set forth in Section 3hereof or to such other address as the Company may
designate by notice to the Holders. 

        14.    Supplements and Amendments.    The Company and the Representative may from time to time supplement or amend
this Agreement without the approval of any holders of Representative's Unit Purchase Option (other than the Representative) in order to cure any ambiguity, to correct or supplement any provision
contained herein which may be defective or inconsistent with any provisions herein or to make any other provisions in regard to matters or questions arising hereunder which the Company and the
Representative may deem necessary or desirable and which the Company and the Representative deem shall not adversely affect the interests of the Holders of Representative's Unit Purchase Option. 

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        15.    Successors.    All the covenants and provisions of this Agreement shall be binding upon and inure to the
benefit of the Company, the Holders and their respective successors and assigns hereunder. 

        16.    Termination.    This Agreement shall terminate at the close of business on            , 2009.
Notwithstanding the foregoing, the indemnification provisions of Section 7 shall survive such termination until the close of business on
            , 2010. 

        17.    Governing Law: Submission to Jurisdiction.    

        (a)   This
Agreement and each Representative's Unit Purchase Option issued hereunder shall be deemed to be a contract made under the laws of the State of Florida and for all
purposes shall be construed in accordance with the laws of such State without giving effect to the rules of said State governing the conflicts of laws. 

        (b)   The
Company, the Representative and the Holders hereby agree that any action, proceeding or claim against it arising out of, or relating in any way to, this Agreement
shall be brought and enforced in the courts of the State of Florida or of the United States of America Federal Courts located in the State of Florida, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. The Company, the Representative and the Holders hereby irrevocably waive any objection to such exclusive jurisdiction or inconvenient forum. Any such process or
summons to be served upon any of the Company, the Representative and the Holders (at the option of the party bringing such action, proceeding or claim) may be served by transmitting a copy thereof, by
registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 13 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the party so served in any action, proceeding or claim. The Company, the Representative and the Holders agree that the
prevailing party(ies) in any such action or proceeding shall be entitled to recover from the other party(ies) all of its/their reasonable legal costs and expenses relating to such action or proceeding
and/or incurred in connection with the preparation therefor. 

        18.    Entire Agreement; Modification.    This Agreement (including the Underwriting Agreement to the extent portions
thereof are referred to herein) contains the entire understanding between the parties hereto with respect to the subject matter hereof and, except as provided in  Section 14 hereof, may not be
modified or amended except by a writing duly signed by the party against whom enforcement of the modification or
amendment is sought. 

        19.    Severability.    If any provision of this Agreement shall be held to be invalid or unenforceable, such
invalidity or unenforceability shall not affect any other provision of this Agreement. 

        20.    Captions.    The caption headings of the Sections of this Agreement are for convenience of reference
only and are not intended, nor should they be construed as, a part of this Agreement and shall be given no substantive effect. 

        21.    Benefits or this Agreement.    Nothing in this Agreement shall be construed to give to any person or
corporation other than the Company and the Representative and any other registered Holder(s) of the Representative's Unit Purchase Option or Unit Shares or Unit Warrants underlying the
Representative's Unit any legal or equitable right, remedy or claim under this Agreement; and this Agreement shall be for the sole and exclusive benefit of the Company and the Representative and any
other Holder(s) of the Representative's Unit Purchase Option or Representative Units. 

        22.    Counterparts.    This Agreement may be executed in any number of counterparts and each of such counterparts
shall for all purposes be deemed to be an original, and such counterparts shall together constitute but one and the same instrument. 

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        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, as of the day and year first above written. 

	[SEAL]	 	HYPERSPACE COMMUNICATIONS, INC.
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	John P. Yeros
	 	 	 	 	Title:	Chairman
	Attest:	 	 	 	 	 
	

Secretary	
 	

 	
 	

 	

 
	 	 	CAPITAL FINANCIAL GROWTH, LLC
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 

9

EXHIBIT A 

[FORM OF REPRESENTATIVE'S UNIT PURCHASE OPTION CERTIFICATE] 

        THE
REPRESENTATIVE'S UNIT PURCHASE OPTION REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO
(i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, (ii) TO THE EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE
DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
AVAILABLE. 

        THE
TRANSFER OR EXCHANGE OF THE REPRESENTATIVE'S UNIT PURCHASE OPTION REPRESENTED BY THIS CERTIFICATE IS RESTRICTED IN ACCORDANCE WITH THE REPRESENTATIVE'S OPTION AGREEMENT FOR UNITS
REFERRED TO HEREIN. 

EXERCISABLE ON OR BEFORE

5:00 P.M., MOUNTAIN STANDARD TIME,                        , 2009 

	No. W-	 	            Representative's Unit Purchase Options	 	 

Representative's Unit Purchase Option 

        This
Representative's Unit Purchase Option certifies that Capital Growth Financial, LLC, or registered assigns, is the registered holder of
            [            ] Representative's Unit Purchase Options to purchase initially, at any time
from                        , 2005 until 5:00 p.m. Mountain Standard
Time on                        , 2009 ("Expiration Date"), up
to            [            ] Units (the "Warrants") of Hyperspace Communications, Inc., a Colorado
corporation (the "Company"), at an initial exercise price, subject to adjustment in certain events (the "Exercise Price"), of $        [165% of the public offering price of the
Units] upon surrender of this Representative's Unit Purchase Option and payment of the Exercise Price at an office or agency of the Company, but subject to the conditions set forth herein
and in the Representative's Option Agreement for Units dated as of                        , 2004 between the Company and Capital
Growth Financial, LLC (the "Representative's Option Agreement"). Payment of the
Exercise Price shall be made by certified or official bank check in New York Clearing House funds payable to the order of the Company. 

        No
Representative's Unit Purchase Option may be exercised after 5:00 p.m., Mountain Standard Time, on the Expiration Date, at which time all Representative's Unit Purchase Options
evidenced hereby, unless exercised prior thereto, shall thereafter be void. 

        The
Representative's Unit Purchase Option evidenced by this Representative's Unit Purchase Option Certificate are part of a duly authorized issue of Units pursuant to the
Representative's Option Agreement, which Representative's Option Agreement is hereby incorporated by reference in and made a part of this instrument and is hereby referred to for a description of the
rights, limitation of rights, obligations, duties and immunities thereunder of the Company and the holders (the words "holders" or "holder" meaning the registered holders or registered holder) of the
Representative's Unit Purchase Option. 

        The
Representative's Option Agreement provides that upon the occurrence of certain events the exercise prices and/or number of the Company's securities issuable thereupon may, subject to
certain conditions, be adjusted. In such event, the Company will, at the request of the holder, issue a new Representative's Unit Purchase Option Certificate evidencing the adjustment in the exercise
price and the number and/or type of securities issuable upon the exercise of the Representative's Unit Purchase Option; provided, however, that the failure of the Company to issue such new
Representative's Unit Purchase Options shall not in any way change, alter or otherwise impair, the rights of the holder as set forth in the Representative's Option Agreement. 

 

        Upon
due presentment for registration of transfer of this Representative's Unit Purchase Option at an office or agency of the Company, a new Representative's Unit Purchase Option or
Representative's Unit Purchase Options of like tenor and evidencing in the aggregate a like number of Representative's Unit Purchase Options shall be issued to the transferee(s) in exchange for this
Representative's Unit Purchase Option, subject to the limitations provided herein and in the Representative's Option Agreement, without any charge except for any tax or other governmental charge
imposed in connection with such transfer. 

        Upon
the exercise of less than all of the Representative's Unit Purchase Options evidenced by this Certificate, the Company shall forthwith issue to the holder hereof a new
Representative's Unit Purchase Option Certificate representing such number of unexercised Representative's Unit Purchase Options. 

        The
Company may deem and treat the registered holder(s) hereof as the absolute owner(s) of this Representative's Unit Purchase Option (notwithstanding any notation of ownership or other
writing hereon made by anyone), for the purpose of any exercise hereof, and of any distribution to the holder(s) hereof, and for all other purposes, and the Company shall not be affected by any notice
to the contrary. 

        All
terms used in this Representative's Unit Purchase Option which are defined in the Representative's Option Agreement shall have the meanings assigned to them in the Representative's
Option Agreement. 

        [Signature Page Follows]

2

 

        IN
WITNESS WHEREOF, the Company has caused this Representative's Unit Purchase Option to be duly executed under its corporate seal. 

Dated
as of                        , 2004 

	[SEAL]	 	HYPERSPACE COMMUNICATIONS, INC.
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	John P. Yeros
	 	 	 	 	Title:	Chairman
	Attest:	 	 	 	 	 
	

Secretary	
 	

 	
 	

 	

 

3

 
[FORM OF ELECTION TO PURCHASE] 

        The
undersigned hereby irrevocably elects to exercise the right, represented by this Representative's Unit Purchase Option, to purchase            Units and herewith tenders in
payment for such securities a certified or official bank check payable in New York Clearing House Funds to the order of Hyperspace Communications, Inc. in the amount of
$                  
            , or pursuant to the cancellation of Representative's Unit Purchase Option's pursuant to a cashless exercise of this Representative's Unit Purchase Option, in accordance with
Section 3 of the Representative's Option Agreement for Units, all in accordance with the terms hereof. The undersigned requests that a certificate for such securities be registered in the name
of                        whose address
is                        and that such Certificate be delivered
to                        whose address
is                        .
 

Dated:

	 	Signature	 	 

	 	(Signature must conform in all respects to name of holder as specified on the face of the Representative's Unit Purchase Option.)
	

 	

 
 (Insert Social Security or Other

Identifying Number of Holder)

4

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Exhibit 4.8  

 
 

COMPUTERSHARE TRUST COMPANY, INC.
  WARRANT AGREEMENT    
    

        HyperSpace Communications, Inc., a Colorado corporation (the "Company"), and Computershare Trust
Company, Inc., a Colorado limited purpose trust company ("Warrant Agent"), agree as follows: 

        WHEREAS,
in connection with (i) the offering to the public of up to 1,800,000 units ("Units"), each Unit consisting of one share of
Common Stock, no par value per share of the Company ("Common Stock"), and two redeemable warrants each warrant entitling the holder thereof to purchase
one share of Common Stock ("Redeemable Warrants") (the Units, shares of Common Stock and Redeemable Warrants sometimes collectively referred to as the
"Securities"); (ii) the over-allotment option to purchase up to 270,000 Units from the Company (the
"Over-allotment Option"); and (iii) the sale to Capital Growth Financial, LLC
("Representative"), as representative of the several underwriters (individually "Underwriter" and
collectively "Underwriters"), its successors and assigns of an option (the "Representative's Unit Purchase
Option") to purchase up to 90,000 Units, issued in accordance with the terms of a Representative's option agreement ("Representative's Option
Agreement"), the underlying Securities being identical to the Securities being sold to the public (the warrants issuable upon the exercise of the  Representative's Unit Purchase Option are referred to as the "Common Stock Warrants"), the Company will
issue up to 4,140,000 Redeemable Warrants and may issue up to 180,000 Common Stock Warrants; and 

        WHEREAS,
the Company desires to provide for the issuance of certificates representing the Redeemable Warrants and the Common Stock Warrants (collectively, the
"Warrants"); and 

        WHEREAS,
the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration, transfer and
exchange of certificates representing the Warrants and the exercise of the Warrants. 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements hereinafter set forth and for the purpose of defining the terms and provisions of the Warrants and the
certificates representing the Warrants and the respective rights and obligations thereunder of the Company, the holders of certificates representing the Warrants and the Warrant Agent, the parties
hereto agree as follows: 

        1.     Capitalized
terms shall have the meanings set forth herein. As used herein, the following terms shall have the following meanings, unless the context shall otherwise
require: 

        (a)   "Common Stock" shall mean the common stock of the Company, no par value per share. 

        (b)   "Corporate Office" shall mean the office of the Warrant Agent (or its successor) at which at any particular time its
principal business shall be administered, which office is located on the date hereof at 350 Indiana Street, Suite 800, Golden, CO, 80401. 

        (c)   "Exercise Date" shall mean, subject to the provisions of Section 10 hereof, as to any Warrant, the date on which
the Warrant Agent shall have received both: (i) the Warrant Certificate representing such Warrant, with the exercise form thereon duly executed by the Registered Holder thereof with such
Registered Holder's signature guaranteed, and (ii) payment by certified or cashier's check made payable to the Warrant Agent for the account of the Company, of the amount in lawful money of the
United States of America equal to the applicable Purchase Price. 

        (d)   "Initial Warrant Exercise Date" shall mean twelve months from the effective date of the Registration Statement. 

1

 

        (e)   "Initial Warrant Redemption Date" shall mean twelve months from the effective date of the Registration Statement. 

        (f)    "Purchase Price" shall mean, subject to modification and adjustment as provided in Section 11,            per
share of Common Stock. 

        (g)   "Registration Statement" shall mean the registration statement on Form SB-2 (Registration
No. 333-115404) filed with the United States Securities and Exchange Commission pursuant to which the Securities have been registered for offering and sale to the public. 

        (h)   "Registered Holder" shall mean the person in whose name any certificate representing the Warrants shall be registered on
the books maintained by the Warrant Agent pursuant to Section 5. 

        (h)   "Representative's Option Agreement" shall mean the agreement dated as
of                            , 2004 between the
Company and Representative relating to and governing the terms and provisions of the Representative's right to purchase Units from the Company. 

        (i)    "Subsidiary" or "Subsidiaries" shall mean any corporation or
corporations, as the case may be, of which stock having ordinary power to elect a majority of the Board of Directors of such corporation (regardless of whether or not at the time stock of any other
class or classes of such corporation shall have or may have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned by the Company or by one or more
Subsidiaries, or by the Company and one or more Subsidiaries. 

        (j)    "Transfer Agent" shall mean Computershare Trust Company, Inc., or its authorized successor. 

        (k)   "Underwriting Agreement" shall mean the underwriting agreement dated as
of                        , 2004 between the Company and
Representative, relating to the purchase for resale to the public of the Securities. 

        (l)    "Warrant Certificate" shall mean a certificate representing each of the Warrants substantially in the form annexed hereto
as Exhibit A. 

        (m)  "Warrant Expiration Date" shall mean, unless the Warrants are redeemed as provided in Section 12 hereof prior to
such date, 5:00 p.m. (Mountain Standard Time) on                            , 2009 or, if such date shall
be a recognized New York Stock Exchange holiday or a day on which banks are
authorized to close, then 5:00 p.m. (Mountain Standard Time) on the next following day which is not a recognized New York Stock Exchange holiday or a day on which banks are authorized to close. 

        2.     Warrants. 

        (a)   Each
Warrant shall initially entitle the Registered Holder of the Warrant Certificate representing such Warrant to purchase, at the Purchase Price therefor, from the
Initial Warrant Exercise Date until
the Warrant Expiration Date, one share of Common Stock upon the exercise thereof, subject to modification and adjustment as provided in Section 11. 

        (b)   Upon
execution of this Agreement, Warrant Certificates representing 3,600,000 Redeemable Warrants to purchase up to an aggregate of 3,600,000 shares of Common Stock
(subject to modification and adjustment as provided in Section 11) shall be executed by the Company and delivered to the Warrant Agent. 

        (c)   Upon
exercise of the Over-allotment Option, in whole or in part as to the Units, and payment of the applicable sums, Warrant Certificates representing up to
540,000 Redeemable Warrants to purchase up to an aggregate of 540,000 shares of Common Stock (subject to 

2

 

modification
and adjustment as provided in Section 11) shall be executed by the Company and delivered to the Warrant Agent. 

        (d)   Upon
exercise of the Representative's Unit Purchase Option, and payment of the applicable exercise price, Warrant Certificates representing up to 180,000 Common Stock
Warrants to purchase up to an aggregate of up to 180,000 shares of Common Stock (subject to modification and adjustment as provided in Section 11 hereof and in the Representative's Option
Agreement), shall be executed by the Company and delivered to the Warrant Agent. 

        (e)   From
time to time, up to the Warrant Expiration Date, as the case may be, the Warrant Agent shall countersign and deliver Warrant Certificates in required denominations
of one or whole number multiples thereof to the person entitled thereto in connection with any transfer or exchange permitted under this Agreement. Except as provided in Section 8 hereof, no
Warrant Certificates shall be issued except: (i) Warrant Certificates initially issued hereunder, (ii) Warrant Certificates issued upon any transfer or exchange of Warrants,
(iii) Warrant Certificates issued in replacement of lost, stolen, destroyed or mutilated Warrant Certificates pursuant to Section 8, (iv) Warrant Certificates issued upon exercise
of the Representative's Unit Purchase Option (including Common Stock Warrants in excess of 320,000 issued as a result of the anti-dilution provisions contained in the Representative's
Option Agreement), and (v) at the option of the Company, Warrant Certificates in such form as may be approved by its Board of Directors, to reflect any adjustment or change in the Purchase
Price, the number of shares of Common Stock purchasable upon exercise of the Warrants, or the Redemption Price therefor, made pursuant to Section 11 hereof. 

        3.     Certificates. The Warrant Certificates shall be substantially in the form attached hereto as Exhibit A (the
provisions of which are hereby incorporated herein) and may have such letters, numbers or other marks of identification or designation and such legends, summaries or endorsements printed, lithographed
or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law or with any rule or regulation
made pursuant thereto or with any rule or regulation of any stock exchange on which the Warrants may be listed, or to conform to usage. The Warrant Certificates shall be dated the date of issuance
thereof (whether upon initial issuance, transfer, exchange or in lieu of mutilated, lost, stolen or destroyed Warrant Certificates). Warrant Certificates shall be executed on behalf of the Company by
its Chairman of the Board, President, Treasurer or an Assistant Treasurer, and its Secretary or an Assistant Secretary, by manual signatures or by facsimile signatures printed thereon, and shall have
imprinted thereon a facsimile of the Company's seal. Any Warrant Certificate may be signed by, or made to bear the facsimile signature of, any person who at the actual date of the preparation of such
Warrant Certificate shall be a proper officer of the Company to sign such Warrant Certificate even though such person was not such an officer upon the date of the Agreement. If any person whose
signature or facsimile signature as an officer of the Company has been placed upon any Warrant Certificate shall have ceased to be such officer before such Warrant Certificate is countersigned, issued
and delivered, such Warrant Certificate may be countersigned, issued and delivered with the same effect as if such person had not ceased to be such officer. 

        4.     Countersigning. Warrant Certificates shall be manually countersigned by the Warrant Agent and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Warrant Certificates shall cease to be such officer of the Company before the date of issuance of
the Warrant Certificates or before countersignature by the Warrant Agent and issue and delivery thereof, such Warrant Certificates, nevertheless, may be countersigned by the Warrant Agent, issued and
delivered with the same force and effect as though the person who signed such Warrant Certificates had not ceased to be such officer of the Company. 

3

 

        5.     Registration of Transfer and Exchanges. 

        (a)   Warrant
Certificates may be exchanged for other Warrant Certificates representing an equal aggregate number of Warrants or may be transferred in whole or in part.
Warrant Certificates to be so exchanged shall be surrendered to the Warrant Agent at its Corporate Office, and, upon satisfaction of the terms and conditions hereof, the Company shall execute and the
Warrant's Agent shall countersign, issue and deliver in exchange therefor the Warrant Certificate or Certificates which the Registered Holder making the exchange shall be entitled to receive. 

        (b)   The
Warrant Agent shall keep, at such office, books in which, subject to such reasonable regulations as it may prescribe, it shall register Warrant Certificates and the
transfer thereof. Upon due presentment for registration of transfer of any Warrant Certificate at such office, the Company shall
execute and the Warrant Agent shall issue and deliver to the transferee or transferees a new Warrant Certificate or Certificates representing an equal aggregate number of Warrants. 

        (c)   With
respect to any Warrant Certificates presented for registration of transfer, or for exchange or exercise, the subscription or exercise form, as the case may be, on
the reverse thereof shall be duly endorsed or be accompanied by a written instrument or instruments of transfer and subscription, in form satisfactory to the Company and the Warrant Agent, duly
executed by the Registered Holder thereof with such Registered Holder's signature guaranteed. 

        (d)   A
service charge may be imposed by the Warrant Agent for any exchange, registration or transfer of Warrant Certificates. However, the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 

        (e)   All
Warrant Certificates surrendered for transfer or exchange shall be promptly canceled by the Warrant Agent. 

        (f)    Prior
to due presentment for registration or transfer thereof, the Company and the Warrant Agent may deem and treat the Registered Holder of any Warrant Certificate as
the absolute owner thereof of each Warrant represented thereby (notwithstanding any notations of ownership or writing thereon made by anyone other than the Company or the Warrant Agent) for all
purposes and shall not be affected by any notice to the contrary. 

        6.     Exercise of Warrants. 

        (a)   Warrants
may be exercised commencing at any time on or after the Initial Warrant Exercise Date, but not after the Warrant Expiration Date, upon the terms and subject to
the conditions set forth herein (including the provisions set forth in Sections 10 and 12 hereof) and in the applicable Warrant Certificate. A Warrant shall be deemed to have been exercised
immediately prior to the close of business on the Exercise Date, provided that the Warrant Certificate representing such Warrant, with the exercise form thereon duly executed by the Registered Holder
thereof with such Registered Holder's signature guaranteed, together with payment in by certified or cashier's check made payable to the order of the Warrant Agent for the account of the Company, of
an amount in lawful money, of the United States of America equal to the applicable Purchase Price, has been received in good funds by the Warrant Agent. The person entitled to receive the securities
deliverable upon such exercise shall be treated for all purposes as the holder of such securities as of the close of business on the Exercise Date. Upon the exercise of Warrants, the Warrant Agent
shall promptly notify the Company in writing of such fact and of the number of securities delivered upon such exercise. As soon as practicable on or after the Exercise Date, and in any event within
five business days after such date, the Warrant Agent, subject to subsection (b) below, shall promptly deposit the payment into an interest bearing escrow account established by
mutual agreement of the Company and the Warrant Agent at a federally insured commercial bank. All funds deposited in the escrow account will be disbursed on a weekly basis, with accrued interest, to
the Company once they have been determined by the Warrant Agent to 

4

 

be
collected funds. Once the funds are determined to be collected, the Warrant Agent, on behalf of the Company, shall cause to be issued to the person or persons entitled to receive the same a Common
Stock certificate or certificates for the shares of Common Stock deliverable upon such exercise, and the Warrant Agent shall deliver the same to the person or persons entitled thereto. 

        (b)   At
any time upon the exercise of Warrants after the Initial Warrant Exercise Date, if (i) the Market Price (as hereinafter defined) of the Company's Common Stock
is equal to or greater than the Purchase Price, (ii) the exercise of the Warrant is solicited by an Underwriter at such time as such Underwriter is a member of the National Association of
Securities Dealers, Inc. ("NASD"), (iii) the Warrant is not held in a discretionary account, (iv) disclosure of the compensation arrangement is made in documents provided to the
holders of the Warrants, and (v) the solicitation of the Warrant is not in violation of Regulation M promulgated under the Securities Exchange Act of 1934, then the soliciting
Underwriter shall be entitled to receive from the Company upon exercise of each of the Warrants so exercised, a fee of five percent (5%) of the aggregate price of the Warrants so exercised (the
"Exercise Fee"). Within five (5) days after the end of each month, commencing in            2005, the Warrant Agent will notify the Representative of each Warrant Certificate which has
been
properly completed for exercise by holders of Warrants during the last month. The Warrant Agent will provide the Representative with the following information in connection with the exercise of each
Warrant: the Exercise Date, the Name of the Registered Holder, the number of Warrants exercised, the number of shares of Common Stock issued upon exercise of the Warrant, the Name of the soliciting
broker/dealer or underwriter, and such other information as the Representative shall reasonably request that is available from the records of the Warrant Agent. The Company hereby authorizes and
instructs the Warrant Agent to deliver to the soliciting Underwriters, if known to the Warrant Agent, or to the Representative if not so known, the Exercise Fee promptly after receipt by the Warrant
Agent from the Company of a check payable to the order of the appropriate Underwriter in the amount of the Exercise Fee. In the event that an Exercise Fee is paid to an Underwriter with respect to a
Warrant which was not properly completed for exercise or in respect of which such Underwriter is not entitled to an Exercise Fee, such Underwriter will return such Exercise Fee to the Warrant Agent
which shall forthwith return such fee to the Company. The Representative and the Company may at any time
after                            , 2005, and during
business hours, examine the records of the Warrant Agent, including its ledger of original Warrant Certificates returned to the Warrant Agent upon exercise of warrants. Notwithstanding any
provision to the contrary, the provisions of this Section 6(b) may not be modified, amended or deleted without the prior consent of the Representative. 

        (c)   The
Company shall not be required to issue fractions of Warrants upon the reissue of Warrants, any adjustments as described in Section 11 or otherwise; but the
Company in lieu of issuing any such fractional interest, shall round up or down to the nearest full Warrant. If the total Warrants surrendered by exercise would result in the issuance of a fractional
share, the Company shall not be required to issue a fractional share but rather the aggregate number of shares issuable will be rounded up or down to the nearest full share. 

        (d)   Anything
in this Section 6 notwithstanding, no Warrant will be exercisable unless at the time of exercise the Company has filed with the Securities and Exchange
Commission a registration statement under the Securities Act of 1933, as amended (the "Act") covering the shares of Common Stock issuable upon exercise
of such Warrant and such shares have been so registered or qualified or deemed to be exempt under the securities laws of the state of residence of the holder of such Warrant. 

        (e)   All
Warrant Certificates surrendered upon exercise of the Warrants shall be cancelled. 

5

 

        (f)    Expenses
incurred by Computershare Trust Company, Inc., acting in the capacity as Warrant Agent will be paid by the Company as set out in Exhibit B. These
expenses, including delivery of exercised share certificate to the shareholder, will be deducted from the exercise fee submitted prior to the distribution of funds to the Company. A detailed
accounting statement relating to the number of shares exercised, names and registered Warrant Holder(s) and the net amount of exercised funds remitted will be given to the Company with the payment of
each exercise amount. 

        7.     Taxes. The Company shall pay all documentary, stamp or similar taxes and other governmental charges that may be imposed
with respect to the issuance of Warrants, or the issuance or delivery of any shares of Common Stock upon exercise of the Warrants; provided, however, that if shares of Common Stock are to be delivered
in a name other than the name of the Registered Holder of the Warrant Certificate representing any Warrant being exercised, then no such delivery shall be made unless the person requesting the same
has paid to the Warrant Agent the amount of transfer taxes or charges incidental thereto, if any. 

        8.     Mutilated or Missing Warrant Certificates. On receipt by the Company and the Warrant Agent of evidence satisfactory as to
the ownership of and the loss, theft, destruction or mutilation of any Warrant Certificate, the Company shall execute and the Warrant Agent shall countersign and deliver in lieu thereof, a new Warrant
Certificate representing an equal aggregate number of Warrants. In the case of loss, theft or destruction of any Warrant Certificate, the Registered Holder requesting issuance of a new Warrant
Certificate shall be required to secure and the Registered Holder shall pay the costs of obtaining an indemnity bond from an approved surety bonding company. In the event a Warrant Certificate is
mutilated, such Certificate shall be surrendered and canceled by the Warrant Agent prior to delivery of a new Warrant Certificate. Applicants for a substitute Warrant Certificate shall also comply
with such other regulations and pay such other reasonable charges as the Warrant Agent may prescribe. 

        9.     Reservation of Shares. 

        (a)   The
Company covenants to the Registered Holders that it will at all times reserve and keep available out of its authorized Common Stock, solely for the purpose of
issuance upon exercise of warrants, such number of shares of Common Stock as shall then be issuable upon the exercise of all outstanding Warrants. The Company covenants to the Registered Holders that
all shares of Common Stock which shall be issuable upon exercise of the Warrants shall, at the time of delivery thereof, be duly and validly issued and fully paid and nonassessable and free from all
preemptive or similar rights, taxes, liens and charges with respect to the issuance thereof, and that upon issuance such shares shall be listed on each securities exchange, if any, on which the other
shares of outstanding Common Stock of the Company are then listed. 

        (b)   The
Warrant Agent is hereby irrevocably authorized as the Transfer Agent to requisition from time to time certificates representing shares of Common Stock or other
securities required upon exercise of the Warrants, and the Company will comply with all such requisitions. 

        10.   Governmental Restrictions. The Company covenants that, so long as any unexpired Warrants remain outstanding, the Company
will file such post-effective amendments to the Registration Statement (or other appropriate registration statements or post-effective amendment or supplements) as may be
necessary to permit it to deliver to each person exercising a Warrant, a prospectus meeting the requirements of Section 10(a)(3) of the Act and otherwise complying therewith, and will
deliver such a prospectus to each such person. To the extent that during any period it is not reasonably likely that the Warrants will be exercised, due to market price or otherwise, the Company need
not file such a post-effective amendment during such period. The Company will use its reasonable efforts to obtain appropriate approvals or registrations under state "blue sky" securities
laws; provided the Company shall not be required to qualify to do business as a foreign corporation or file a general consent to the 

6

 

services
of process in any such jurisdiction. With respect to any such securities, however, Warrants may not be exercised by, or shares of Common Stock issued to, any Registered Holder in any state in
which such exercise would be unlawful. The Company shall have the authority to suspend the exercise of all Warrants, until such registration or approval shall have been obtained; but all Warrants, the
exercise of which is requested during any such suspension, shall be exercisable at the Exercise Price. If any such period of suspension continues past the Expiration Date, all Warrants, the exercise
of which have been requested on or prior to the Expiration Date, shall be exercisable upon the removal of such suspension until the close of business on the business day immediately following the
expiration of such suspension. 

        11.   Adjustments. 

        (a)   Except
as hereinafter provided, in the event the Company shall, at any time or from time to time after the date hereof, sell any shares of Common Stock for a
consideration per share less than the last sale price of the Common Stock as reported on the American Stock Exchange, the closing bid price of the Common Stock if traded on the OTC Electronic Bulletin
Board or NASDAQ Small Cap Market or the last sales price, if listed on NASDAQ National Market or a national exchange, in either case, on the trading date next preceding such sale (the
"Market Price"), or issue any shares of Common Stock as a stock dividend to the holders of Common Stock, or subdivide or combine the outstanding shares
of Common Stock into a greater or lesser number of shares (any such sale, issuance, subdivision or combination being herein called a "Change of
Shares"), then, and thereafter immediately before the date of such sale or the record date for each Change of Shares, the Purchase Price for the shares of Common Stock issuable
upon exercise of the Warrants (whether or not the same shall be issued and outstanding) in effect immediately prior to such Change of Shares shall be changed to a price (including any applicable
fraction of a cent to the nearest cent) determined by dividing (1) the product of, (a) the Purchase Price in effect immediately before such Change of Shares, and (b) the sum of
(i) the total number of shares of Common Stock outstanding immediately prior to such Change of Shares, and (ii) the number of shares determined by dividing, (A) the aggregate
consideration, if any, received by the Company upon such sale, issuance, subdivision or combination, by (B) the Market Price; by (2) the total number of shares of Common Stock
outstanding immediately after such Change of Shares, however, that in no event shall the Purchase Price be adjusted pursuant to this computation to an amount in excess of the Purchase Price in effect
immediately prior to such computation, except in the case of a combination of outstanding shares of Common Stock, as provided by Section 11(h) hereof. 

        (b)   For
the purposes of any adjustment to be made in accordance with this Section 11 the following provisions shall be applicable: 

        (i)    In
case of the issuance or sale of shares of Common Stock (or of other securities deemed hereunder to involve the issuance or sale of shares of Common Stock) for a
consideration part or all of which shall be cash, the amount of the cash portion of the consideration therefor deemed to have been received by the Company shall be (1) the subscription price
(before deducting any commissions or any expenses incurred in connection therewith), if shares of Common Stock are offered by the Company for subscription, or (2) the public offering price
(before deducting therefrom any compensation paid or discount allowed in the sale, underwriting or purchase thereof by underwriters or dealers or others performing similar services, or any expenses
incurred in connection therewith), if such securities are sold to underwriters or dealers for public offering without a subscription offering, or (3) the gross amount of cash actually received
by the Company for such securities, in any other case. 

        (ii)   In
case of the issuance or sale (otherwise than as a dividend or other distribution on any stock of the Company, and otherwise than on the exercise of options, rights
or warrants 

7

 

or
the conversion or exchange of convertible or exchangeable securities) of shares of Common Stock (or of other securities deemed hereunder to involve the issuance or sale of shares of Common Stock)
for a consideration part or all of which shall be other than cash, the amount of the consideration therefor other than cash deemed to have been received by the Company shall be the value of such
consideration as determined in good faith by the Board of Directors of the Company. 

        (iii)  Shares
of Common Stock issuable by way of dividend or other distribution on any stock of the Company shall be deemed to have been issued immediately after the opening
of business on the day following the record date for the determination of shareholders entitled to receive such dividend or other distribution and shall be deemed to have been issued without
consideration. 

        (iv)  The
reclassification of securities of the Company other than shares of Common Stock into securities including shares of Common Stock shall be deemed to involve the
issuance of such shares of Common Stock for a consideration other than cash immediately prior to the close of business on the date fixed for the determination of security holders entitled to receive
such shares, and the value of the consideration allocable to such shares of Common Stock shall be determined as provided in subsection 11(b)(ii) of this Section 11. 

        (v)   The
number of shares of Common Stock at any one time outstanding shall be deemed to include the aggregate maximum number of shares issuable (subject to readjustment upon
the actual issuance thereof) upon the exercise of options, rights or warrants and upon the conversion or exchange of convertible or exchangeable securities. 

        (iv)  Upon
each adjustment of the Purchase Price pursuant to this Section 11, the number of shares of Common Stock purchasable upon the exercise of each Warrant shall
be the number derived by multiplying the number of shares of Common Stock purchasable immediately prior to such adjustment by the Purchase Price in effect prior to such adjustment and dividing the
product so obtained by the applicable adjusted Purchase Price. 

        (c)   In
case the Company shall at any time after the date hereof issue options, rights or warrants to subscribe for shares of Common Stock, or issue any securities
convertible into or exchangeable for shares of Common Stock, for a consideration per share (determined as provided in this Section 11 and as provided below) less than the Market Price,
(including the issuance of any such securities without consideration such as by way of dividend or other distribution), the Purchase Price for the Warrants (whether or not the same shall be issued and
outstanding) in effect immediately prior to the issuance of such options, rights or warrants, or such convertible or exchangeable securities, as the case may be, shall be reduced to a price determined
by making the computation in accordance with the provisions of this Section 11, provided that: 

        (i)    The
aggregate maximum number of shares of Common Stock issuable or that may become issuable under such options, rights or warrants (assuming exercise in full even if not
then currently exercisable or currently exercisable in full) shall be deemed to be issued and outstanding at the time such options, rights or warrants were issued, for a consideration equal to the
minimum purchase price per share provided for in such options, rights or warrants at the time of issuance, plus the consideration, if any, received by the Company for such options, rights or warrants;
provided, however, that upon the expiration or other termination of such options, rights or warrants, if any thereof shall not have been exercised, the number of shares of Common Stock deemed to be
issued and outstanding pursuant to this subsection 11(c)(i) (and for the purposes of subsection 11(b)(v)) shall be reduced by the number of shares as to which options, warrants and/or
rights shall have expired, and such number of shares shall no longer be deemed to be issued and outstanding, and the Purchase Price then in effect shall forthwith be readjusted and thereafter be the
price that it would 

8

 

have
been had adjustment been made on the basis of the issuance only of the shares actually issued plus the shares remaining issuable upon the exercise of those options, rights or warrants as to which
the exercise rights shall not have expired or terminated unexercised. 

        (ii)   The
aggregate maximum number of shares of Common Stock issuable or that may become issuable upon conversion or exchange of any convertible or exchangeable securities
(assuming conversion or exchange in full even if not then currently convertible or exchangeable in full) shall be deemed to be issued and outstanding at the time of issuance of such securities, for a
consideration equal to the consideration received by the Company for such securities, plus the minimum consideration, if any, receivable by the Company upon the conversion or exchange thereof;
provided, however, that upon the expiration or other termination of the right to convert or exchange such convertible or exchangeable securities (whether by reason of redemption or otherwise), the
number of shares of Common Stock deemed to be issued and outstanding pursuant to this subsection 11(c)(ii) (and for the purposes of
subsection 11(b)(v)) shall be reduced by the number of shares as to which the conversion or exchange rights shall have expired or terminated unexercised, and such number of shares shall no
longer be deemed to be issued and outstanding, and the Purchase Price then in effect shall forthwith be readjusted and thereafter be the price that it would have been had an adjustment been made on
the basis of the issuance only of the shares actually issued plus the shares remaining issuable upon conversion or exchange of those convertible or exchangeable securities as to which the conversion
or exchange rights shall not have expired or terminated unexercised. 

        (iii)  If
any change shall occur in the exercise price per share provided for in any of the options, rights or warrants referred to in subsection (i) of this
section 11(c), or in the price per share or ratio at which the securities referred to in subsection (ii) of this Section 11(c) are convertible or exchangeable and if
a change in the Purchase Price has not occurred by reason of the event giving rise to the change in the price per share of such other options, rights, warrants or convertible or exchangeable
securities, such options, rights or warrants or conversion or exchange rights, as the case may be, to the extent not theretofore exercised, shall be deemed to have expired or terminated on the date
when such price change became effective in respect of shares not theretofore issued pursuant to the exercise or conversion or exchange thereof, and the Company shall be deemed to have issued upon such
date new options, rights or warrants or convertible or exchangeable securities. 

        (d)   In
case of any reclassification or change of outstanding shares of Common Stock issuable upon exercise of the Warrants (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 subdivision or combination), or in case of any consolidation or merger of the Company with or into another corporation (other
than a merger with a subsidiary in which merger the Company is the continuing corporation and which does not result in any reclassification or change of the then outstanding shares of Common Stock or
other capital stock issuable upon exercise of the Warrants) or in case of any sale or conveyance to another corporation of the property of the Company as an entirety or substantially as an entirety,
then, as a condition of such reclassification, change, consolidation, merger, sale or conveyance, the Company, or such successor or purchasing corporation, as the case may be, shall make lawful and
adequate provision whereby the Registered Holder of each Warrant then outstanding shall have the right thereafter to receive on exercise of such Warrant the kind and amount of securities and property
receivable upon such reclassification, change, consolidation, merger, sale or conveyance by a holder of the number of securities issuable upon exercise of such Warrant immediately prior to such
reclassification, change, consolidation, merger, sale or conveyance and the Company shall forthwith file at the Corporate Office of the Warrant Agent a statement signed by its Chairman of the Board or
President and by its Treasurer or an Assistant 

9

 

Treasurer
or its Secretary or an Assistant Secretary evidencing such provision. Such provisions shall include provision for adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in Section 11(a) and (b). The above provisions of this Section 11(d) shall similarly apply to successive reclassifications and changes of shares of
Common Stock and to successive consolidations, mergers, sales or conveyances. 

        (e)   Irrespective
of any adjustments or changes in the Purchase Price or the number of shares of Common Stock purchasable upon exercise of the Warrants, the Warrant
Certificates theretofore and thereafter issued shall, unless the Company shall exercise its option to issue new Warrant Certificates pursuant to Section 2(e) hereof, continue to express
the Purchase Price per share and the number of shares purchasable thereunder as the Purchase Price per share and the number of shares purchasable thereunder were expressed in the Warrant Certificates
when the same were originally issued. 

        (f)    After
each adjustment of the Purchase Price pursuant to this Section 11, the Company will promptly prepare a certificate signed by the Chairman of the Board or
President, and by the Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary, of the Company setting forth: (i) the Purchase Price as so adjusted, (ii) the number
of shares of Common Stock purchasable upon exercise of each Warrant, after such adjustment, and (iii) a brief statement of the facts accounting for such adjustment. The Company will promptly
file such certificate with the Warrant Agent and cause a brief summary thereof to be sent by ordinary first class mail to each Registered Holder at his last address as it shall appear on the registry
books of the Warrant Agent. No failure to mail such notice nor any defect therein or in the mailing thereof shall affect the validity thereof. The affidavit of an officer of the Warrant Agent or the
Secretary or an Assistant Secretary of the Company that such notice has been mailed shall, in the absence of fraud, be prima facie evidence of the facts stated therein. 

        (g)   No
adjustment of the Purchase Price shall be made as a result of or in connection with (A) the issuance or sale of the Representative's Unit Purchase Option or
the Securities underlying the Representative's Unit Purchase Option, (B) the issuance or sale of the securities pursuant to the Initial Public Offering, including the Option Securities and the
securities underlying the Securities, (C) the issuance or sale of shares of Common Stock pursuant to options, warrants, stock purchase agreements and convertible or exchangeable securities
outstanding or in effect on the date hereof, or (D) the issuance or sale of shares of Common Stock if the amount of said adjustment shall be less than $.02 for one share of Common Stock,
provided, however, that in such case, any adjustment that would otherwise be required then to be made shall be carried forward and shall be made at the time of and together with the next subsequent
adjustment that shall amount, together with any adjustment so carried forward, to at least $.02 for one share of Common Stock. In addition, Registered Holders shall not be entitled to cash dividends
paid by the Company prior to the exercise of any Warrant or Warrants held by them. 

        (h)   Subdivision and Combination. In case the Company shall at any time issue any shares of Common Stock in connection with a
stock dividend in shares of Common Stock or subdivide or combine the outstanding shares of Common Stock, the Purchase Price shall forthwith be proportionately decreased in the case of a stock dividend
or a subdivision or increased in the case combination. 

        12.   Redemption. 

        (a)   Commencing
on the Initial Warrant Redemption Date, the Company may, on thirty (30) days prior written notice redeem all the Redeemable Warrants at $.25 per
Redeemable Warrant, provided, however, that before any such call for redemption of Warrants can take place, the (A) closing sale price for the Common Stock on the American Stock Exchange or
(B) the closing bid price on the electronic market on which the Common Stock is traded, shall have for 

10

 

twenty
(20) consecutive trading days ending on the 5th day prior to the notice of redemption exceeded $9.50 per share of Common Stock (subject to adjustment in the event of
any stock splits or other similar events as provided in Section 11 hereof). All Redeemable Warrants must be redeemed if any are redeemed. 

        (b)   In
the event the Company exercises its right to redeem all of the Redeemable Warrants, it shall give or cause to be given notice to the Registered Holders of the
Redeemable Warrants, by mailing to such Registered Holders a notice of redemption, first class, postage prepaid, within 30 calendar days of the aforementioned twenty (20) consecutive
trading days and not earlier than the thirtieth (30th) day before the date fixed for redemption, at their last address as shall appear on the records of the Warrant Agent. Any notice mailed in
the manner provided herein shall be conclusively presumed to have been duly given whether or not the Registered Holder receives such notice. At the time of the mailing to the Registered Holders of the
Warrants of the notice of redemption, the Company shall deliver or cause to be delivered to the Representative a similar notice telephonically and confirmed in writing together with a list of the
Registered Holders (including their respective addresses and number of Warrants beneficially owned) to whom such notice of redemption has been or will be given. 

        (c)   The
notice of redemption shall specify (i) the redemption price, (ii) the date fixed for redemption, (iii) the place where the Warrant Certificate
shall be delivered and the redemption price shall be paid, and (iv) that the right to exercise the Warrant shall terminate at 5:00 p.m. (Mountain Standard Time) on the business day
immediately preceding the date fixed for redemption. The date fixed for the redemption of the Warrants shall be the Redemption Date. No failure to mail such notice nor any defect therein or in the
mailing thereof shall affect the validity of the proceedings for such redemption except as to a Registered Holder (a) to whom notice was not mailed or (b) whose notice was defective. An
affidavit of the Warrant Agent or the Secretary or Assistant Secretary of the Company that notice of redemption has been mailed shall, in the absence of fraud, be prima facie evidence of the facts
stated therein. 

        (d)   Any
right to exercise a warrant shall terminate at 5:00 p.m. (Mountain Standard time) on the business day immediately preceding the Redemption Date. The
redemption price payable to the Registered Holders shall be mailed to such persons at their addresses of record. 

        13.
Intentionally Omitted. 

        14.   Rights of Warrant Holders. No Warrant Holder, as such, shall have any rights of a shareholder of the Company, either at
law or equity, and the rights of the Warrant Holders, as such, are limited to those rights expressly provided in this Agreement or in the Warrant Certificates. The Company and the Warrant Agent may
treat the registered Warrant Holder in respect of any Warrant Certificates as the absolute owner thereof for all purposes notwithstanding any notice to the contrary. 

        15.   Warrant Agent. The Company hereby appoints the Warrant Agent to act as the agent of the Company and the Warrant Agent
hereby accepts such appointment upon the following terms and conditions by all of which the Company and every Warrant Holder, by acceptance of his Warrants, shall be bound: 

        (a)   Statements
contained in this Agreement and in the Warrant Certificates shall be taken as statements of the Company. The Warrant Agent assumes no responsibility for the
correctness of any of the same except such as describes the Warrant Agent or for action taken or to be taken by the Warrant Agent. 

        (b)   The
Warrant Agent shall not be responsible for any failure of the Company to comply with any of the Company's covenants contained in this Agreement or in the Warrant
Certificates. 

11

 

        (c)   The
Warrant Agent may consult at any time with counsel satisfactory to it (who may be counsel for the Company) and the Warrant Agent shall incur no liability or
responsibility to the Company or to any Warrant Holder in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the opinion or the advice of such
counsel, provided the Warrant Agent shall have exercised reasonable professional care and diligence, as is common for Warrant Agents, in the performance of its duties. 

        (d)   The
Warrant Agent shall incur no liability or responsibility to the Company or to any Warrant Holder for any action taken in reliance upon any notice, resolution,
waiver, consent, order, certificate or other paper, document or instrument believed by it to be genuine and to have been signed, sent or presented by the proper party or parties. 

        (e)   The
Company agrees to pay to the Warrant Agent reasonable compensation for all services rendered by the Warrant Agent in the execution of this Agreement as set out in  Exhibit B to reimburse the Warrant
Agent for all pre-approved expenses, taxes and governmental charges and all other charges of any
kind or nature incurred by the Warrant Agent in the execution of this Agreement and to indemnify the Warrant Agent and save it harmless against any and all liabilities, including judgments, costs and
counsel fees, for this Agreement except as a result of the Warrant Agent's negligence or bad faith. 

        (f)    The
Warrant Agent shall be under no obligation to institute any action, suit or legal proceeding or to take any other action likely to involve expense unless the Company
or one or more Warrant Holders shall furnish the Warrant Agent with reasonable security and indemnity for any costs and expenses which may be incurred in connection with such action, suit or legal
proceeding, but this provision shall not affect the power of the Warrant Agent to take such action as the Warrant Agent may consider proper, whether with or without any such security or indemnity. All
rights of action under this Agreement or under any of the Warrants may be enforced by the Warrant Agent without the possession of any of the Warrant Certificates or the production thereof at any trial
or other proceeding relative thereto, and any such action, suit or proceeding instituted by the Warrant Agent shall be brought in its name as Warrant Agent, and any recovery of judgment shall be for
the ratable benefit of the Warrant Holders as their respective rights or interest may appear. 

        (g)   The
Warrant Agent and any shareholder, director, officer or employee of the Warrant Agent may buy, sell or deal in any of the Warrants or other securities of the Company
or become pecuniary interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not
Warrant Agent under this Agreement. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity. 

        16.   Successor Warrant Agent. Any corporation into which the Warrant Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Warrant Agent shall be a party, or any corporation succeeding to the corporate trust business of
the Warrant Agent, shall be the successor to the Warrant Agent hereunder without the execution or filing of any paper or any further act of a party or the parties hereto. In any such event or if the
name of the Warrant Agent is changed, the Warrant Agent or such successor may adopt the countersignature of the original Warrant Agent and may countersign such Warrant Certificates either in the name
of the predecessor Warrant Agent or in the name of the successor Warrant Agent. 

        17.   Change of Warrant Agent. The Warrant Agent may resign or be discharged by the Company from its duties under this
Agreement by the Warrant Agent or the Company, as the case may be, giving notice in writing to the other, and by giving a date when such resignation or discharge shall take effect, which notice shall
be sent at least 60 days prior to the date so specified. If the Warrant Agent shall 

12

 

resign,
be discharged or shall otherwise become incapable of acting, the Company shall appoint a successor to the Warrant Agent. If the Company shall fail to make such appointment within a period of
60 days after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Warrant Agent or by any Warrant Holder or after discharging the Warrant Agent,
then any Warrant Holder may apply to a Court of competent jurisdiction, for the appointment of a successor to the Warrant Agent. Pending appointment of a successor to the Warrant Agent, either by the
Company or such Court, the Company shall carry out the duties of the Warrant Agent. After appointment, the successor Warrant Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Warrant Agent without further act or deed and the former Warrant Agent shall deliver and transfer to the successor Warrant Agent any property at
the time held by it thereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for effecting the delivery or transfer. Failure to give any notice provided for in the
section, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Warrant Agent or the appointment of the successor Warrant Agent, as the case may
be. 

        18.   Notices. Any notice or demand authorized by this Agreement to be given or made by the Warrant Agent or by any Warrant
Holder to or on the Company shall be sufficiently given or made if sent by mail, first class, certified or registered, postage prepaid, addressed (until another address is filed in writing by the
Company with the Warrant Agent), as follows: 

Hyperspace
Communications, Inc.

8480 East Orchard Road, Suite 6600

Greenwood Village, Colorado 80111

Attn: Chief Financial Officer 

or
at such other address(es) as may have been furnished to the Warrant Agent and the Warrant Holders in writing pursuant to the terms of this Section 18. 

        Any
notice or demand authorized by this Agreement to be given or made by any Warrant Holder or by the Company to or on the Warrant Agent shall be sufficiently given or made if sent by
mail, first class, certified or registered, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company), as follows: 

Computershare
Trust Company, Inc.

350 Indiana Street, Suite 800

Golden, Colorado 80401 

or
at such other address(es) as may have been furnished to the Company and the Warrant Holders in writing pursuant to the terms of this Section 18. 

        Any
distribution, notice or demand required or authorized by this Agreement to be given or made by the Company or the Warrant Agent to or on the Warrant Holders shall be sufficiently
given or made if sent by mail, first class, certified or registered, postage prepaid, addressed to the Warrant Holders at their last known addresses as they shall appear on the registration books for
the Warrant Certificates maintained by the Warrant Agent. 

        Copies
of any notice delivered pursuant to this Agreement shall be delivered to the Representative, as follows: 

Capital
Growth Financial, LLC,

225 NE Mizner Boulevard, Suite 750

Boca Raton, Florida 33432

Attention: President 

or
at such other addresses as may have been furnished to the Company and the Warrant Agent in writing pursuant to the terms of this Section 18. 

13

 

        19.   Supplements and Amendments. The Warrant Agent and the Company may by supplemental agreement make any changes or
corrections in this Agreement without the approval of any holders of Warrants (i) that they shall deem appropriate to cure any ambiguity or to correct any defective or inconsistent provision or
manifest mistake or error herein contained; (ii) that they may deem necessary or desirable and which shall not adversely affect the interests of the holders of warrant certificates; or
(iii) which may be required by law; provided, however, that this Agreement shall not otherwise be modified, supplemented or altered in any respect except with the consent in writing of the
Registered Holders representing not less than 50% of the Warrants then outstanding; provided, further, that no change in the number of the securities purchasable upon the exercise of any Warrant, or
the Purchase Price therefor, shall be made without the consent in writing of the Registered Holder of the Warrant Certificate, other than such changes as are specifically permitted or prescribed by
this Agreement as originally executed. In addition, this Agreement may not be modified, amended or supplemented without the prior written consent of the Representative, other than (i) to cure
any ambiguity or to correct any provision which is inconsistent or which is a manifest mistake or error; (ii) to make any such change that is necessary or desirable and which shall not
adversely affect the interests of the Representative; or (iii) except as may be required bylaw. 

        20.   Successors. All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent
shall bind and inure to the benefit of their respective successors and assigns hereunder. 

        21.   Termination. This Agreement shall terminate at the close of business on the Warrant Expiration Date, or such earlier date
upon which all Warrants have been exercised or redeemed; provided, however, that if exercise of the Warrants is suspended pursuant to Section 10 and such suspension continues past the Warrant
Expiration Date, this Agreement shall terminate at the close of business on the business day immediately following the expiration of such suspension. The provisions of Section 15 shall survive
such termination. 

        22.   Governing Law. This Agreement and each Warrant Certificate issued hereunder shall be deemed to be a contract made under
the laws of the State of Colorado and for all purposes shall be construed in accordance with the laws of said State. 

        23.   Benefits of this Agreement. Nothing in this Agreement shall be construed to give any person or corporation other than the
Company, the Warrant Agent and the Warrant Holders any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company,
the Warrant Agent and the Warrant Holders. 

        24.   Counterparts. This Agreement may be executed in any number of counterparts, each of such counterparts shall for all
purposes be deemed to be an original and all such counterparts shall together constitute but one and the same instrument. 

14

 

        Date:
                                     

	

 

 	

 	

HyperSpace Communications, Inc.

a Colorado corporation

By:                                        
                     

Name:                                        
               

Title:                                        
                 
	ATTEST:	 	 	 	 

	
 Secretary	 	Computershare Trust Company, Inc. a Colorado corporation
	

 	
 	

By:	
 	

 Vice President
	

SEAL	
 	

Computershare Trust Company, Inc.

a Colorado corporation
	ATTEST:	 	 	 	 
	

 	
 	

By:	
 	

	
 Secretary	 	 	 	 

15

   Exhibit A  

[Form of Warrant Certificate]

1

  

	    No. HCO            	 	VOID AFTER 5:00 P.M. on             , 2009
	

 	
 	

             WARRANTS

REDEEMABLE WARRANT CERTIFICATE TO

PURCHASE ONE SHARE OF COMMON STOCK  

HYPERSPACE COMMUNICATIONS, INC.  

	    NO.             	 	CUSIP: 44915D 11 1

THIS
CERTIFIES THAT, FOR VALUE RECEIVED                          or registered assigns (the "Registered Holder") is the owner of
the number of redeemable warrants (the "Warrants")
specified above. Each Warrant initially entitles the Registered Holder to purchase, subject to the terms and conditions set forth in this Certificate and the Warrant Agreement (as hereinafter
defined), one fully paid and non-assessable share of Common Stock, no par value per share, of Hyperspace Communications, Inc., a Colorado corporation (the "Company"), at any time
from                              , 2005 and prior to the Expiration Date (as hereinafter
defined) upon the presentation and surrender of
this Warrant Certificate with the Subscription Form on the reverse hereof duly executed, at the corporate office of Computershare Trust Company, Inc., as Warrant Agent, or its successor
(the "Warrant Agent"), accompanied by payment of $         per share, subject to adjustment (the "Purchase Price"), in lawful-money of the United States of America
by certified or cashier's check made payable to the Warrant Agent for the account of the Company. 

        This
Warrant Certificate and each Warrant represented hereby are issued pursuant to and are subject in all respects to the terms and conditions set forth in the Warrant Agreement (the
"Warrant Agreement"), dated                         , 2004, by and between the Company and the Warrant Agent. 

        In
the event of certain contingencies provided for in the Warrant Agreement, the Purchase Price and the number of shares of Common Stock subject to purchase upon the exercise of each
Warrant represented hereby are subject to modification or adjustment. 

        Each
Warrant represented hereby is exercisable at the option of the Registered Holder, but no fractional interests will be issued. In the case of the exercise of less than all the
warrants represented hereby, the Company shall cancel this Warrant Certificate upon the surrender hereof and shall execute and deliver a new Warrant Certificate or Warrant Certificates of like tenor,
which the Warrant Agent shall countersign, for the balance of such Warrants. 

        The
term "Expiration Date" shall mean 5:00 P.M. (Mountain Standard Time) on                         
    , 2009. If such
date shall in the State of Colorado be a holiday or a day on which the banks are authorized to close, then the Expiration Date shall mean 5:00 P.M. (Mountain Standard Time) the next following
day which in the State of Colorado is not a holiday or a day on which banks are authorized to close. 

        The
Company shall not be obligated to deliver any securities pursuant to the exercise of this Warrant unless a registration statement under the Securities Act of 1933, as amended (the
"Act"), with respect to such securities is effective or an exemption thereunder is available. The Company has covenanted and agreed that, if required by the Act, and unless during any period it is not
reasonably likely that the Warrants will be exercised, it will file a registration statement under the Act, use its best efforts to cause the same to become effective, keep such registration
statement current, if required under the Act, while any of the Warrants are outstanding, and deliver a prospectus which complies with Section 10(a)(3) of the Act to the Registered Holder
exercising this Warrant. This Warrant shall not be exercisable by a Registered Holder in any state where such exercise would be unlawful. 

1

 

        This
Warrant Certificate is exchangeable, upon the surrender hereof by the Registered Holder at the corporate office of the Warrant Agent, for a new Warrant Certificate or Warrant
Certificates of like tenor representing an equal aggregate number of Warrants, each of such new Warrant Certificates to represent such number of Warrants as shall be designated by such Registered
Holder at the time of such surrender. Upon due presentment and payment of any tax or other charge imposed in connection therewith or incidental thereto, for registration or transfer of this Warrant
Certificate at such office, a new Warrant Certificate or Warrant Certificates representing an equal aggregate number of Warrants will be issued to the transferee in exchange therefor, subject to the
limitations provided in the Warrant Agreement. 

        Prior
to the exercise of any Warrant represented hereby, the Registered Holder shall not be entitled to any rights of a shareholder of the Company, including, without limitation, the
right to vote or to receive dividends or other distributions, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided in the Warrant Agreement. 

        Subject
to the provisions of the Warrant Agreement, this Warrant may be redeemed at the option of the Company, at a redemption price of $.25 per Warrant, at any time commencing after
                             , 2005 provided that (i) the closing sale price on the
American Stock Exchange or any other primary
exchange on which the Common Stock is traded, or (ii) the closing bid price for the Common Stock in the over-the-counter market as reported by the National Association
of Securities Dealers Automated Quotation System, in the event that the Common Stock is listed on an over-the-counter market or (iii) the closing sale price on NASDAQ,
if the Common Stock is quoted on NASDAQ, shall have for twenty (20) consecutive trading days ending on the fifth (5th) day prior to the Notice of Redemption, as defined
below, exceeded $9.50 per share of Common Stock (subject to adjustment in the event of any stock splits or other similar events). Notice of redemption (the "Notice of Redemption") shall be given not
less than thirty (30) days before the date fixed for redemption, all as provided in the Warrant Agreement. On and after the date fixed for redemption, the Registered Holder shall have no rights
with respect to this Warrant except to receive the $.25 per Warrant upon surrender of this Certificate. 

        Under
certain circumstances, Capital Growth Financial, LLC, its successors and assigns shall be entitled to receive an aggregate of five percent (5%) of the Purchase Price of the
Warrants represented hereby. 

        Prior
to due presentment for registration or transfer hereof, the Company and the Warrant Agent may deem and treat the Registered Holder as the absolute owner hereof and of each Warrant
represented hereby (notwithstanding any notations of ownership or writing hereon made by anyone other than a duly authorized officer of the Company or the Warrant Agent) for all purposes and shall not
be affected by any notice to the contrary, except as provided in the Warrant Agreement. 

        This
Warrant Certificate shall be governed by and construed in accordance with the laws of the State of Colorado without giving effect to conflicts of laws. 

        This
Warrant Certificate is not valid unless countersigned by the Warrant Agent. 

IN
WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed, manually or in facsimile by two of its officers thereunto duly authorized and a facsimile of its corporate seal
to be imprinted hereon. 

2

 

Dated:
                        , 2004 

	

 

 	

 	

HYPERSPACE COMMUNICATIONS, INC.

By:                                        
                                       

           Name:     John P. Yeros

           Title:       Chairman

By:                                        
                                       

           Name:     Mark J. Endry

           Title:       President

	

COUNTERSIGNED:	
 	

 
	

COMPUTERSHARE TRUST COMPANY, INC.

as Warrant Agent	
 	

 
	

By:	
 	

 Authorized Officer	
 	

 

3

 
 
 

SUBSCRIPTION FORM    
    

To
Be Executed by the Registered Holder in Order to Exercise Warrant 

        The
undersigned Registered Holder hereby irrevocably elects to exercise                          Warrants represented by this
Warrant Certificate, and to purchase the
securities issuable upon the exercise of such Warrants, and requests that certificates for such securities shall be issued in the name of: 

PLEASE
INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER 

	 	 	    
	 	 
	 	 	    
	 	 
	 	 	    
 (please print or type name and address)	 	 
	

and be delivered to:	
 	

 
	 	 	    
	 	 
	 	 	    
	 	 
	 	 	    
 (please print or type name and address)	 	 

and
if such number of Warrants shall not be all the Warrants evidenced by this Warrant Certificate, that a new Warrant Certificate for the balance of such Warrants be registered in the name of, and
delivered to the Registered Holder at the address stated below. 

4

 
 
 

IMPORTANT: PLEASE COMPLETE THE FOLLOWING:    

	1.
	The
exercise of this Warrant was solicited by Capital Growth Financial, LLC o

	2.
	The
exercise of this Warrant was solicited by                         . o

	3.
	If
the exercise of this Warrant was not solicited, please check the following box. o 

	

Dated:                         , 200  	
 	

    
 (Print Name)

    
    
Address    
 Social Security or Taxpayer

Identification Number

    
 Signature Guaranteed

5

 
 
 

ASSIGNMENT    
    

To
Be Executed by the Registered Holder in Order to Assign Warrants 

        FOR
VALUE RECEIVED,                         , hereby sells, assigns and transfers unto 

PLEASE
INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER 

	 	 	    
	 	 
	 	 	    
	 	 
	 	 	    
 (please print or type name and address)	 	 

                                        
                                          
                                 
of the 

Warrants
represented by this Warrant Certificate, and hereby irrevocably constitutes and appoints

                                         
                                          
   
 

Attorney
to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises. 

	Dated:                         , 200  	 	  

                                         
             
 Signature Guaranteed

THE
SIGNATURE TO THE ASSIGNMENT OR THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATSOEVER AND MUST BE MEDALLION GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE, MIDWEST STOCK
EXCHANGE OR BOSTON STOCK EXCHANGE, WHO IS A MEMBER OF THE MEDALLION PROGRAM. 

6

   Exhibit B  

[Computershare Expense Schedule]  

1

  

 
 

COMPUTERSHARE TRUST COMPANY, INC.
  WARRANT AGENT    
    

FEE SCHEDULE 

	1.	 	Account Maintenance Fees
	

 	
 	

1.1	
 	

Active securityholder accounts, new accounts, posting name and address changes, certificate detail, processing all transfers, posting debit/credit entries, place, maintain and release stop transfer orders, security and inventory control of unissued
certificates. 	
 	

$100.00 monthly
	 	 	1.2	 	Active certificate account	 	Included
	
2.	
 	

Reports to Issuer
	

 	
 	

2.1	
 	

Quarterly securityholder listing (company selected quarter)	
 	

Included
	 	 	2.2	 	Transfer journals (monthly)	 	Included
	 	 	2.3	 	Additional securityholder listing (upon request)	 	Included
	 	 	2.4	 	Securityholder mailing labels (upon request)	 	Included
	
3.	
 	

Warrant Exercises
	

 	
 	

3.1	
 	

Set up Fee	
 	

$1,000.00 (this will be deducted from the first warrant exercise)	
 	

 
	 	 	3.2	 	Handling Fee	 	$15.00 per presented item (per warrant exercise)	 	 
	 	 	3.3	 	Refund Checks	 	$1.75 per check	 	 
	
4.	
 	

Expense reimbursement
	

 	
 	

 	
 	

Will be in accordance with the fee schedule for transfer agent services.	
 	

 
	

 	
 	

 	
 	

All hourly time billed to the issuer will be at the rate of $25.00 per clock hour or fraction thereof, approved by issuer in advance.	
 	

 

LATE CHARGES ARE 11/2% PER MONTH ON OUTSTANDING

BALANCES OWING 45 DAYS FROM DATE OF INVOICE  

FEES ARE SUBJECT TO CHANGE WITH A 30 DAY NOTICE  

All Amounts in U.S. dollars  

1

QuickLinks

COMPUTERSHARE TRUST COMPANY, INC. WARRANT AGREEMENT

SUBSCRIPTION FORM

IMPORTANT: PLEASE COMPLETE THE FOLLOWING

ASSIGNMENT

COMPUTERSHARE TRUST COMPANY, INC. WARRANT AGENT

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