Document:

exv10w3

 

Exhibit 10.3

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933.

<Date1>

CONFIDENTIAL TO: <Name>

You have been granted Restricted Stock Units under the Steelcase Inc. Incentive Compensation Plan
(the “Plan”).

This Award Agreement provides additional information regarding your rights under the Plan and your
Award. A copy of the Plan has already been provided to you. If there is any inconsistency between
this Award Agreement and the Plan, the Plan controls. Capitalized terms used in this Award
Agreement are defined in the Plan or defined hereunder.

Overview of Your Award

	1.	 	Type of Award: Restricted Stock Unit, as permitted under Article 11 of the Plan (“Restricted
Stock Unit”).
	 
	2.	 	Number of Restricted Stock Units Granted under this Award: <Shares>
	 
	3.	 	Grant Date: <Date1>
	 
	4.	 	Period of Restriction: Subject to the terms of the Plan and paragraph 5 below, the
Restricted Stock Units granted under this Award Agreement will vest as follows:
	 
	 	 	[INSERT VESTING SCHEDULE]
	 
	 	 	Each vesting date above shall be referred to as the applicable “Release Date”. The period
that you hold your Restricted Stock Units prior to the applicable Release Date shall be
referred to as the applicable Period of Restriction.
	 
	5.	 	Vesting Upon Death, Disability, Retirement Eligibility or Termination without Cause:

	 	a.	 	Death. Your Restricted Stock Units will become fully vested if you die
while an Employee after <Date1 + 6 months>.
	 
	 	b.	 	Disability. Your Restricted Stock Units will become fully vested if
you become Disabled while an Employee after <Date1 + 6 months>. A “Disability”
or “become Disabled” means that, by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than twelve months, you are unable to engage in any
substantial gainful activity or are receiving income replacement benefits under an
accident and health plan covering employees of the Company for a period of not less
than three months.

 

 

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	 	c.	 	Retirement Eligibility. Your Restricted Stock Units will become fully
vested in the event you become Retirement Eligible during the Restriction Period and
the Company will issue you one share of Class A common stock of the Company for each
vested Restricted Stock Unit as soon as practicable following the applicable Release
Date (and not when you become Retirement Eligible or on the date of Retirement), but in
no event more than 90 days following the applicable Release Date. “Retirement
Eligible” means your age plus years of continuous service total 80 or more and
“Retirement” means your employment is terminated following becoming Retirement
Eligible.
	 
	 	d.	 	Termination without Cause. Your Restricted Stock Units will become
fully vested if you are terminated without Cause by the Company or the Affiliate then
employing you (a “Termination without Cause”); provided, that such termination
of employment constitutes a “separation from service” under Section 409A of the Code.
The term “Cause” means (i) your willful and continued failure to perform substantially
your duties with the Company or the Affiliate then employing you (other than any such
failure resulting from incapacity due to physical or mental illness), or (ii) your
willful engaging in illegal conduct or gross misconduct that is materially and
demonstrably injurious to the Company; provided, that for purposes of this
definition, no act or failure to act, on your part, will be considered “willful” unless
it is done, or omitted to be done, by you in bad faith or without reasonable belief
that your action or omission was in the best interests of the Company or the Affiliate
then employing you.

	6.	 	Change in Control:

	 	a.	 	In the event of a Change in Control after <Date1>, the Restricted Stock
Units granted under this Award will become immediately fully vested.
	 
	 	b.	 	Notwithstanding anything to the contrary, if the Change in Control event does
not constitute a change in ownership or effective control of the Company or a change in
ownership of a substantial portion of the assets of the Company under Section 409A of
the Code, and if the Company determines your Restricted Stock Units constitute deferred
compensation subject to Section 409A of the Code, then the Company will issue you one
share of Class A common stock of the Company for each vested Restricted Stock Unit as
soon as practicable following the applicable Release Date (and not upon the Change in
Control), but in no event more than 90 days following the applicable Release Date.

	7.	 	Payment: Except as provided in paragraphs 5(c) and 6(b), upon the vesting of your Restricted
Stock Units, the Company will issue you one share of Class A common stock of the Company for
each vested Restricted Stock Unit as soon as practicable, but in no event more than 90 days
following the date of vesting. In all cases, the date the Shares are issued to you with
respect to your Restricted Stock Units is referred to as the “Transfer Date”.

 

 

<Name>

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	8.	 	Non-Transferable: The Restricted Stock Units granted under this Award are not transferable.
	 
	9.	 	Voting Rights and Dividend-Equivalents:

	 	a.	 	No Voting Rights. You are not the owner of record of the shares of
Class A common stock underlying your Restricted Stock Units until the applicable
Transfer Date and accordingly, you will have no voting rights on such Shares.
	 
	 	b.	 	Cash Dividend-Equivalents. You will receive a cash payment equal to
any cash dividends that the Company declares and pays on its Class A common stock with
respect to the Shares underlying your outstanding Restricted Stock Units granted under
this Award. The Company shall pay such cash dividend-equivalents at such time or times
as it determines in its sole discretion; provided, the Company shall pay any
cash dividend-equivalents within the calendar year in which the cash
dividend-equivalent is declared.
	 
	 	c.	 	Stock Dividend-Equivalents. You will be entitled to be credited with
dividend-equivalents in the form of Shares of Class A common stock of the Company with
respect to your outstanding Restricted Stock Units, calculated as follows: on each date
that a stock dividend is paid by the Company while your Restricted Stock Units are
outstanding, you will be credited with an additional number of Restricted Stock Units
equal to the number of whole Shares that would have been issued with respect to your
outstanding Restricted Stock Units had the Restricted Stock Units been issued as
Shares. The additional Restricted Stock Units credited under this paragraph will be
subject to the same terms and conditions applicable to your Restricted Stock Units
originally granted under this Award Agreement, including, without limitation, for
purposes of crediting of additional dividend-equivalents.

	10.	 	Forfeiture of Awards:

	 	a.	 	Your Restricted Stock Units will be forfeited if, during the applicable Period
of Restriction, you cease to be an Employee for any reason other than for death,
Disability, Retirement, a Termination without Cause or a termination of employment
following a Change in Control.
	 
	 	b.	 	If you engage in any Competition (as defined in the Plan and determined by the
administrative committee in its discretion)

	 	(i)	 	before the applicable Transfer Date, you will forfeit all
outstanding Restricted Stock Units granted under this Award Agreement, or
	 
	 	(ii)	 	between the applicable Transfer Date, and the <first>
anniversary of the applicable Transfer Date, you must return to the Company all
shares of Class A common stock that have been issued to you pursuant to this

 

 

<Name>

<Date>

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Award Agreement and you will forfeit all outstanding Restricted
Stock Units, if any, granted under this Award Agreement.

	11.	 	Taxes: You may be required to pay to the Company or a Subsidiary and the Company and/or
Subsidiary shall have the right and is hereby authorized to withhold from any payment due or
transfer made under the Restricted Stock Unit Award or from any compensation or other amount
owing to you the amount (in cash, Shares, other securities or other property) of any
applicable withholding taxes in respect of the Restricted Stock Unit Award or any payment or
transfer under or with respect to the Restricted Stock Unit Award and to take such other
action as may be necessary to satisfy all obligations for the payment of such withholding
taxes.
	 
	12.	 	No Acquired Rights: You acknowledge and agree that the Plan is discretionary in nature and
limited in duration, and may be amended, cancelled, or terminated by the Company, in its sole
discretion, at any time. The grant of Restricted Stock Units under the Plan is a one-time
benefit and does not create any contractual or other right to receive a grant of Restricted
Stock Units or benefits in lieu of Restricted Stock Units in the future. Future grants, if
any, will be at the sole discretion of the Company, including, but not limited to, the timing
of any grant, the number of units, and vesting provisions. Any Restricted Stock Units or
benefits granted under the Plan will not be considered to be part of your salary for any
reason, including, but not limited to, the determination of any severance, redundancy or
resignation payments or benefits.
	 
	13.	 	No Guarantee of Employment: This Award of Restricted Stock Units does not limit or restrict
the right of the Company or any Affiliate to terminate your employment or service at any time
or for any reason.
	 
	14.	 	Consent To Transfer Personal Data: By signing your initials and signing below, you
voluntarily acknowledge and consent to the collection, use, processing and transfer of
personal data as described in this paragraph. You are not obliged to consent to such
collection, use, processing and transfer of personal data. However, failure to provide the
consent may affect your ability to participate in the Plan. The Company, its Subsidiaries and
your employer hold certain personal information about you, including your name, home address
and telephone number, date of birth, social security number or other employee identification
number, salary, nationality, job title, any shares of stock or directorships held in the
Company, details of all Restricted Stock Units, or any other entitlement to shares of stock
awarded, cancelled, purchased, vested, unvested or outstanding in your favor, for the purpose
of managing and administering the Plan (“Data”). The Company and/or its Subsidiaries will
transfer Data amongst themselves as necessary for the purpose of implementation,
administration and management of your participation in the Plan, and the Company and/or any of
its Subsidiaries may each further transfer Data to any third parties assisting the Company in
the implementation, administration and management of the Plan. These recipients may be
located in the European Economic Area, or elsewhere throughout the world, such as the United
States. You authorize them to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing your

 

 

<Name>

<Date>

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	 	 	participation in the Plan, including any requisite transfer of such Data as may be required for the
administration of the Plan and/or the subsequent holding of shares of stock on your behalf to
a broker or other third party with whom you may elect to deposit any shares of stock acquired
pursuant to the Plan. You may, at any time, review Data, require any necessary amendments to
it or withdraw the consents herein in writing by contacting the Company; however, withdrawing
your consent may affect your ability to participate in the Plan.
	 
	15.	 	Amendment: This Award Agreement may be amended or modified by the Committee as long as the
amendment or modification does not materially adversely affect your Award. Notwithstanding
anything to the contrary contained in the Plan or in this Award Agreement, to the extent that
the Company determines that the Restricted Stock Units are subject to Section 409A of the Code
and fail to comply with the requirements of Section 409A of the Code, the Company reserves the
right to amend, restructure, terminate or replace the Restricted Stock Units in order to cause
the Restricted Stock Units to either not be subject to Section 409A of the Code or to comply
with the applicable provisions of such section.
	 
	16.	 	Six-Month Delay: To the extent required in order to avoid accelerated taxation and/or tax
penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits
that would otherwise be provided pursuant to this Award Agreement during the six-month period
immediately following your “separation from service” (as defined
under Section 409A of the Code) will instead be paid as soon as practicable following the
first business day after the date that is six months following the your separation from
service (or death, if earlier), but in no event later than 30 days following such date.

 

 

<Name>

<Date>

Page 6

If you have any questions regarding your Award or this Award Agreement, or would like a copy of the
Plan, please contact John Hagenbush, Director, Global Compensation, at (616) 246-9532.

Sincerely,

A

James P. Hackett

President and CEO

Please acknowledge your agreement to participate in the Plan and this Award Agreement, and to abide
by all of the governing terms and provisions, by signing the following representation. Your signed
representation must be returned by <Date1 + XDays> to:

Steelcase Inc.

Attn: Steven Dobias

Compensation Department (GH-2E-04)

PO Box 1967

Grand Rapids, MI 49508

616-246-9746

Agreement to Participate

By signing a copy of this Award Agreement and returning it I acknowledge that I have read the Plan,
and that I fully understand all of my rights under the Plan, as well as all of the terms and
conditions that may limit my rights under this Award Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Participant:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	<Name>	 	 
	 

	 	 	 	 	 	 	 	<Employee #>EXHIBIT 4.1

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTIONS.
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND
MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS.

                       ELECTRONIC SENSOR TECHNOLOGY, INC.
                             (a Nevada corporation)

                            9% CONVERTIBLE DEBENTURE

Issue Date: March 28, 2008                                         $2,000,000.00
Maturity Date: March 28, 2013
Conversion Price: $0.0486

     This 9% CONVERTIBLE DEBENTURE (this "Debenture") is issued by ELECTRONIC
SENSOR TECHNOLOGY, INC., a Nevada corporation (the "Company"). FOR VALUE
RECEIVED, the Company promises to pay to HALFMOON BAY CAPITAL LTD, a British
Virgin Islands company (together with its registered successors and assigns, the
"Holder"), the principal sum of $2,000,000.00 on or before the Maturity Date,
together with interest on the aggregate unconverted principal amount, in the
amounts and at the times set forth below.

1.   Interest; Redemption.

     (a)    Interest. Interest shall accrue on the unpaid principal balance of
this Debenture from the Issue Date to but excluding the Maturity Date at a rate
per annum of nine percent (9%), calculated on the basis of a 365/366 day year,
as the case may be, and actual days elapsed, and shall be payable in arrears on
each Interest Payment Date (as defined below) for the period commencing on the
immediately preceding Interest Payment Date (or, in the case of the first
Interest Payment Date, commencing on the Issue Date) and ending on the calendar
day immediately preceding such Interest Payment Date. As used herein, "Interest
Payment Date" means (i) March 28 and September 28 of each year; (ii) each date
of prepayment, in respect of the principal amount of this Debenture that is
being prepaid; (iii) each Conversion Date (as defined in Section 2(a)), in
respect of the principal amount of this Debenture that is being converted; and
(iv) the date on which the principal amount of this Debenture is due in full
(whether at maturity, by acceleration or otherwise).
<PAGE>
     (b)    Principal. The unconverted unpaid principal amount of this Debenture
shall be due and payable on the Maturity Date.

     (c)    Payments. Principal and interest on this Debenture less any amounts
required to be withheld by any tax authority with jurisdiction over the Company
(the "Withheld Amounts") shall be paid to the Holder in United States Dollars by
wire transfer of immediately available funds to such account located within the
continental United States of America as the Holder may notify the Company in
writing from time to time. The Company shall pay all Withheld Amounts to the
applicable taxing authority in the manner and within the time period required by
applicable law.

     (d)    Prepayment. In the event that the Company intends to prepay all or
any portion of the principal amount of this Debenture, it shall notify the
Holder in writing of its intention to do so, specifying the principal amount
that the Company intends to prepay (a "Repayment Notice"). Upon the Holder's
receipt of a Repayment Notice, the Holder may exercise its right to convert all
or any portion of the principal amount of this Debenture pursuant to Section
2(a) by delivering a Notice of Conversion (as defined in Section 2(a)) within
fifteen (15) days of receipt of the Repayment Notice (the "Conversion Window
Period"). If the Holder does not deliver a Notice of Conversion to the Company
during the Conversion Window Period, the Company shall pay to the Holder the
principal amount set forth in the Repayment Notice within five (5) Business Days
following the end of the Conversion Window Period.

     (e)    Business Days. Any payment that would be due on a date that is a
Saturday, Sunday or day that is a federal legal holiday in the United States or
a day on which banking institutions in the State of California are authorized or
required by law or other government action to close, shall instead be due on the
next succeeding day that does not fall into any of the foregoing categories (a
"Business Day").

2.   Conversion.

     (a)    Voluntary Conversion. At any time from the date hereof until this
Debenture is no longer outstanding, so long as the Holder is an "accredited
investor" as defined in Rule 501(a) under the Act or a "qualified institutional
buyer" as defined in Rule 144A(a) under the Act, this Debenture shall be
convertible into shares of common stock of the Company, par value $.001 per
share (the "Common Stock") at the option of the Holder, in whole or in part at
any time and from time to time. The Holder shall effect conversions by
delivering to the Company a notice of conversion in the form attached hereto as
Exhibit A (a "Notice of Conversion"), specifying therein the principal amount of
this Debenture to be converted and the date on which such conversion is to be
effected (a "Conversion Date"). If no Conversion Date is specified in a Notice
of Conversion, the Conversion Date shall be the date that such Notice of
Conversion is received by the Company.

     (b)    Mechanics of Conversion. The number of shares of Common Stock
issuable upon a conversion hereunder (the "Conversion Shares") shall be
equivalent to (i) the outstanding

                                        2
<PAGE>
principal amount of this Debenture to be converted as set forth in the Notice of
Conversion, divided by (ii) the Conversion Price (as adjusted pursuant to
Section 3 through the Conversion Date). As soon as practicable following the
Conversion Date, the Company will deliver or cause to be delivered to the Holder
a certificate in the Holder's name representing the Conversion Shares.

     (c)    Reservation of Shares Issuable Upon Conversion. The Company
covenants that it will at all times while this Debenture remains outstanding,
reserve and keep available out of its authorized and unissued shares of Common
Stock, shares of Common Stock solely for the purpose of issuance upon conversion
in full of this Debenture. The Company covenants that all shares of Common Stock
so issuable shall, upon issue, be duly and validly authorized, issued and fully
paid and non-assessable.

3.   Adjustment of Conversion Price.

     (a)    Stock Dividends and Stock Splits. If the Company, at any time while
this Debenture is outstanding (i) pays a stock dividend or otherwise makes a
distribution or distributions on shares of its Common Stock or any other equity
or equity equivalent securities payable in shares of Common Stock,
(ii) subdivides outstanding shares of Common Stock into a larger number of
shares, (iii) combines (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, or (iv) issues by
reclassification of shares of the Common Stock any shares of capital stock of
the Company, then the Conversion Price shall be multiplied by the quotient of
(A) the number of shares of Common Stock outstanding immediately before such
event, divided by (B) the number of shares of Common Stock outstanding
immediately after such event.

     (b)    Fundamental Transaction. If, at any time while this Debenture is
outstanding, (i) the Company effects any merger or consolidation of the Company
with or into another entity, (ii) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions,
(iii) any tender offer or exchange offer (whether by the Company or another
person or entity) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or
property, or (iv) the Company effects any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property
(in any such case, a "Fundamental Transaction"), then upon any subsequent
conversion of this Debenture, the Holder shall have the right to receive, for
each Conversion Share that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction, the same
kind and amount of securities, cash or property as it would have been entitled
to receive upon the occurrence of such Fundamental Transaction if it had been,
immediately prior to such Fundamental Transaction, the holder of one share of
Common Stock.

     (c)    Notice to Holder. Whenever the Conversion Price is adjusted pursuant
to this Section 3, the Company shall promptly mail to the Holder a notice
setting forth the Conversion Price after such adjustment and setting forth a
brief statement of the facts requiring such

                                        3
<PAGE>
adjustment.

4.   Events of Default.

     (a)    "Event of Default", wherever used herein, means any one of the
following events:

            (i)     Any default in the payment when due and payable of (A)
     interest on this Debenture, which failure to pay is not cured within
     three (3) Business Days, or (B) principal of this Debenture;

            (ii)    A material breach by the Company of its other obligations
     under this Debenture, which material breach is not cured within thirty (30)
     days following receipt of notice thereof from the Holder; or

            (iii)   (A) The Company commences a case, as debtor, under any
     applicable bankruptcy or insolvency laws as now or hereafter in effect or
     any successor thereto, or any other proceeding under any reorganization,
     arrangement, adjustment of debt, relief of debtors, dissolution, insolvency
     or liquidation or similar law of any jurisdiction whether now or hereafter
     in effect relating to the Company; (B) there is commenced a case against
     the Company under any applicable bankruptcy or insolvency laws, as now or
     hereafter in effect or any successor thereto, which remains undismissed for
     a period of ninety (90) days; (C) the Company is adjudicated by a court of
     competent jurisdiction insolvent or bankrupt; (D) the Company suffers any
     appointment of any custodian or the like for the Company or any substantial
     part of its property, which continues undischarged or unstayed for a period
     of ninety (90) days; or (E) the Company makes a general assignment for the
     benefit of creditors.

         (b) Remedies Upon Event of Default. If any Event of Default occurs, the
full principal amount of this Debenture, together with accrued and unpaid
interest thereon, shall become immediately due and payable in cash. Amounts not
paid when due shall bear interest at the maximum lawful rate and shall be
payable upon demand of the Holder.

5.   Miscellaneous.

     (a)    Notices. Any and all notices required or permitted to be given to a
party pursuant to the provisions of this Debenture shall be made in accordance
with Section 6.8 of the Securities Purchase Agreement between the Company and
the Holder dated on or about the date hereof, which Section is incorporated
herein by reference.

     (b)    Lost or Mutilated Debenture. If this Debenture shall be mutilated,
lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Debenture, or in lieu
of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture
for the principal amount of this Debenture so mutilated, lost, stolen or
destroyed but only upon receipt of evidence of such loss, theft or destruction
of

                                        4
<PAGE>
such Debenture, and of the ownership hereof, and indemnity, if requested, all
reasonably satisfactory to the Company.

     (c)    Governing Law. This Debenture will be governed by and construed in
accordance with the laws of the State of California, without giving effect to
that body of laws pertaining to conflict of laws.

     (d)    Waiver. Any waiver by the Holder of a breach of any provision of
this Debenture shall not operate as or be construed to be a waiver of any other
breach of such provision or of any breach of any other provision of this
Debenture.

     (e)    Severability. If any provision of this Debenture is held to be
invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Debenture shall not in any way be
affected or impaired thereby and the Company and the Holder will attempt to
agree upon a valid and enforceable provision that is a reasonable substitute
therefor, and upon so agreeing, shall incorporate such substitute provision in
this Debenture.

     (f)    Headings. The headings contained herein are for convenience only, do
not constitute a part of this Debenture and shall not be deemed to limit or
affect any of the provisions hereof.

                          *            *            *

                                        5
<PAGE>
     IN WITNESS WHEREOF, the Company has caused this Debenture to be duly
executed by a duly authorized officer as of the date first above indicated.

                                    ELECTRONIC SENSOR TECHNOLOGY, INC.

                                    By: /s/ Barry S. Howe
                                        ----------------------------------------
                                    Name:  Barry S. Howe
                                    Title: President and Chief Executive Officer

                                -Signature Page-
                                    Debenture
<PAGE>
                                    Exhibit A

                              NOTICE OF CONVERSION

     Halfmoon Bay Capital Ltd (the "Holder") hereby elects to convert principal
under the 9% Convertible Debenture of Electronic Sensor Technology, Inc., a
Nevada corporation, due on March 28, 2013, into shares of common stock of the
Company, par value $.001 per share (the "Common Stock"), as of the date written
below.

     Conversion Date:

     Principal Amount of Debenture to be Converted:

     Number of Shares of Common Stock to be Issued:

     The Holder hereby represents, warrants and certifies that it is (a) an
"accredited investor" as defined in Rule 501(a) under the Securities Act of
1933, as amended (the "Securities Act") or a "qualified institutional buyer" as
defined in Rule 144A(a) under the Securities Act, (b) not required to be
registered as a broker-dealer under Section 15 of the Securities Exchange Act of
1934, as amended, and (c) acquiring the Common Stock for its own account and not
with a view toward public resale or distribution.

                                    HALFMOON BAY CAPITAL LTD

                                    By:
                                        ----------------------------------------
                                    Name:
                                    Title:

                                       A-1

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