Document:

Unassociated Document

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
      SECURITIES LAWS AND NEITHER SUCH WARRANT OR SHARES UNDERLYING THE WARRANTS
      NOR
      ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
      TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS
      EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
      OR
      (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
      ACT

    

    4C
      CONTROLS INC.

    

    COMMON
      STOCK PURCHASE WARRANT “A-1”

    

    
      	
              Number
                of Shares: 20,000,000

            	
               

            	
              Holder:
                Arimathea Limited

            
	
               

            	
               

            	 
	
              Original
                Issue Date: March 25, 2008

            	
               

            	 
	
               

            	
               

            	 
	
              Expiration
                Date: March 25, 2018

            	
               

            	 
	
               

            	
               

            	 
	
              Exercise
                Price per Share: U.S. $3.45

            	
               

            	 

    

     

    4C
      Controls Inc., a company organized and existing under the laws of the State
      of
      Nevada (the “Company”),
      hereby certifies that, for value received, ARIMATHEA
      LIMITED,
      or its
      registered assigns (the “Warrant
      Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company
      up
      to Twenty Million (20,000,000) shares (as adjusted from time to time as provided
      in Section 7, the “Warrant
      Shares”)
      of
      common stock, $.00001 par value (the “Common
      Stock”),
      of
      the Company at a price of Three Dollars and Forty-Five Cents ($3.45) per Warrant
      Share (as adjusted from time to time as provided in Section 7, the “Exercise
      Price”),
      at
      such dates as set forth in Section 5 hereof (such dates, the “Vesting
      Dates”)
      and
      from time to time from and after the date thereof and through and including
      5:00
      p.m. New York City time on March 25, 2018 (the “Expiration
      Date”),
      and
      subject to the following terms and conditions:

       

    1.   Registration
      of Warrant.
      The
      Company shall register this Warrant upon records to be maintained by the Company
      for that purpose (the “Warrant
      Register”),
      in
      the name of the record Warrant Holder hereof from time to time. The Company
      may
      deem and treat the registered Warrant Holder of this Warrant as the absolute
      owner hereof for the purpose of any exercise hereof or any distribution to
      the
      Warrant Holder, and for all other purposes, and the Company shall not be
      affected by notice to the contrary.

     

    2.   Investment
      Representation.
      The
      Warrant Holder by accepting this Warrant represents that the Warrant Holder
      is
      acquiring this Warrant for its own account or the account of an affiliate for
      investment purposes and not with the view to any offering or distribution and
      that the Warrant Holder will not sell or otherwise dispose of this Warrant
      or
      the underlying Warrant Shares in violation of applicable securities laws. The
      Warrant Holder acknowledges that the certificates representing any Warrant
      Shares will bear a legend indicating that they have not been registered under
      the United States Securities Act of 1933, as amended (the “Securities
      Act”)
      and
      may not be sold by the Warrant Holder except pursuant to an effective
      registration statement or pursuant to an exemption from registration
      requirements of the Securities Act and in accordance with federal and state
      securities laws. This Warrant was acquired by the Warrant Holder pursuant to
      the
      exemption from the registration requirements of the Securities Act afforded
      by
      Regulation S thereunder, and the Warrant Holder acknowledges and covenants
      that
      this Warrant may not be exercised by or on behalf of a Person except as provided
      in Regulation S). “Person”
      means an
      individual, partnership, firm, limited liability company, trust, joint venture,
      association, corporation, or any other legal entity.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.   Validity
      of Warrant and Issue of Shares.
      The
      Company represents and warrants that this Warrant has been duly authorized
      and
      validly issued and warrants and agrees that all of the Common Stock that may
      be
      issued upon the exercise of the rights represented by this Warrant will, when
      issued upon such exercise, be duly authorized, validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof. The Company further warrants and agrees that during the period
      within which the rights represented by this Warrant may be exercised, the
      Company will at all times have authorized and reserved a sufficient number
      of
      Common Stock to provide for the exercise of the rights represented by this
      Warrant.

     

    4.       
       Registration
      of Transfers and Exchange of Warrants.

     

    a.   Subject
      to compliance with the legend set forth on the face of this Warrant, the Company
      shall register the transfer of any portion of this Warrant in the Warrant
      Register, upon surrender of this Warrant with the Form of Assignment attached
      hereto duly completed and signed, to the Company at the office specified in
      or
      pursuant to Section 13. Upon any such registration or transfer, a new warrant
      to
      purchase Common Stock, in substantially the form of this Warrant (any such
      new
      warrant, a “New
      Warrant”),
      evidencing the portion of this Warrant so transferred shall be issued to the
      transferee and a New Warrant evidencing the remaining portion of this Warrant
      not so transferred, if any, shall be issued to the transferring Warrant Holder.
      The acceptance of the New Warrant by the transferee thereof shall be deemed
      the
      acceptance of such transferee of all of the rights and obligations of a Warrant
      Holder of a Warrant.

     

    b.   This
      Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to
      the
      office of the Company specified in or pursuant to Section 13 for one or more
      New
      Warrants, evidencing in the aggregate the right to purchase the number of
      Warrant Shares which may then be purchased hereunder. Any such New Warrant
      will
      be dated the date of such exchange.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

      

    5.      Exercise
      of Warrants.

     

    a.  This
      Warrant shall vest and become exercisable on the following Vesting Dates: in
      three equal tranches (each a “Tranche”)
      upon
      the attainment of the terms and conditions set forth on Exhibit
      A.

    

    b.
       Upon
      surrender of this Warrant with the Form of Election to Purchase attached hereto
      on Exhibit
      B,
      duly
      completed and signed to the Company, at its address set forth in Section 13,
      and
      upon payment and delivery of the Exercise Price per Warrant Share multiplied
      by
      the number of Warrant Shares that the Warrant Holder intends to purchase
      hereunder, in lawful money of the United States of America, in cash or by
      certified or official bank check or checks, to the Company, all as specified
      by
      the Warrant Holder in the Form of Election to Purchase, the Company shall
      promptly (but in no event later than 7 business days after the Date of Exercise
      (as defined herein)) issue or cause to be issued and cause to be delivered
      to or
      upon the written order of the Warrant Holder and in such name or names as the
      Warrant Holder may designate (subject to the restrictions on transfer described
      in the legend set forth on the face of this Warrant), a certificate for the
      Warrant Shares issuable upon such exercise, with such restrictive legend as
      required by the Securities Act. Any person so designated by the Warrant Holder
      to receive Warrant Shares shall be deemed to have become holder of record of
      such Warrant Shares as of the Date of Exercise of this Warrant.

     

    c.   A
      “Date
      of Exercise”
means
      the date on which the Company shall have received (i) this Warrant (or any
      New
      Warrant, as applicable), with the Form of Election to Purchase attached hereto
      (or attached to such New Warrant) appropriately completed and duly signed,
      and
      (ii) payment of the Exercise Price for the number of Warrant Shares so indicated
      by the Warrant Holder to be purchased.

     

    d.   This
      Warrant shall be exercisable at any time after the Vesting Dates and from time
      to time for such number of Warrant Shares as is indicated in the attached Form
      of Election To Purchase. If less than all of the Warrant Shares which may be
      purchased under this Warrant are exercised at any time, the Company shall issue
      or cause to be issued, at its expense, a New Warrant evidencing the right to
      purchase the remaining number of Warrant Shares for which no exercise has been
      evidenced by this Warrant.

     

    e.   (i) Notwithstanding
      anything contained herein to the contrary, the holder of this Warrant may,
      at
      its election exercised in its sole discretion, exercise this Warrant in whole
      or
      in part and, in lieu of making the cash payment otherwise contemplated to be
      made to the Company upon such exercise in payment of the Aggregate Exercise
      Price, elect instead to receive upon such exercise the “Net
      Number”
of
      shares of Common Stock determined according to the following formula (a
“Cashless
      Exercise”):

      

    Net
      Number = (A x (B - C))/B

     

    (ii) For
      purposes of the foregoing formula:

     

    A=
      the
      total number shares with respect to which this Warrant is then being
      exercised.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    B=
      the
      last reported sale price (as reported by Bloomberg) of the Common Stock on
      the
      trading day immediately preceding the date of the Exercise Notice.

     

    C=
      the
      Warrant Exercise Price then in effect at the time of such exercise.

     

    f.   The
      holder of this Warrant agrees not to exercise this Warrant for a period of
      twelve (12) months. The holder of this Warrant also agrees not to elect a
      Cashless Exercise so long as there is an effective registration statement for
      the Warrant Shares.

     

    6.   Maximum
      Exercise.
      The
      Warrant Holder shall not be entitled to exercise this Warrant
      on a Date of Exercise in connection with that number of shares of Common Stock
      which would be in excess of the sum of (i) the number of shares of Common Stock
      beneficially owned by the Warrant Holder and its affiliates on an exercise
      date,
      and (ii) the number of shares of Common Stock issuable upon the exercise of
      this
      Warrant with respect to which the determination of this limitation is being
      made
      on an exercise date, which would result in beneficial ownership by the Warrant
      Holder and its affiliates of more than 4.9% of the outstanding shares of Common
      Stock on such date. This Section 6 may be waived or amended only with the
      consent of the Holder and the consent of holders of a majority of the shares
      of
      outstanding Common Stock of the Company. For the purposes of the immediately
      preceding sentence, beneficial ownership shall be determined in accordance
      with
      Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
      13d-3 thereunder.

     

    7.   Adjustment
      of Exercise Price and Number of Shares.
      The
      character of the shares of stock or other securities at the time issuable upon
      exercise of this Warrant and the Exercise Price therefore, are subject to
      adjustment upon the occurrence of the following events, and all such adjustments
      shall be cumulative, provided however, that no adjustment of the number of
      shares of Common Stock or other securities shall occur unless and until such
      cumulative adjustment shall equal twenty percent (20%) of the number of shares
      of Common Stock or other securities at the time issuable upon exercise of this
      Warrant:

     

    a.   Adjustment
      for Stock Splits, Stock Dividends, Recapitalizations, Etc.
      The
      Exercise Price of this Warrant and the number of shares of Common Stock or
      other
      securities at the time issuable upon exercise of this Warrant shall be
      appropriately adjusted to reflect any stock dividend, stock split, combination
      of shares, reclassification, recapitalization, consolidation or other similar
      event affecting the number of outstanding shares of stock or
      securities.

     

    b.   Adjustment
      for Reorganization, Consolidation, Merger, Etc.
      In case
      of any consolidation or merger of the Company with or into any other
      corporation, entity or person, or any other corporate reorganization, in which
      the Company shall not be the continuing or surviving entity of such
      consolidation, merger or reorganization (any such transaction being hereinafter
      referred to as a "Reorganization"),
      then, in
      each case, the holder of this Warrant, on exercise hereof, as determined at
      the
      sole discretion of such holder, at any time after the consummation or effective
      date of such Reorganization (the "Effective
      Date"),
      shall
      receive, in lieu of the shares of stock or other securities at any time issuable
      upon the exercise of the Warrant issuable on such exercise prior to the
      Effective Date, the stock and other securities and property (including cash)
      to
      which such holder would have been entitled upon the Effective Date if such
      holder had exercised this Warrant immediately prior thereto (all subject to
      further adjustment as provided in this Warrant).

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    c.   Certificate
      as to Adjustments.
      In case
      of any adjustment or readjustment in the price or kind of securities issuable
      on
      the exercise of this Warrant, the Company will promptly give written notice
      thereof to the holder of this Warrant in the form of a certificate, certified
      and confirmed by the Board of Directors of the Company, setting forth such
      adjustment or readjustment and showing in reasonable detail the facts upon
      which
      such adjustment or readjustment is based.

      

    d.   The
      Company sells, grants or issues any shares, options, warrants, or any instrument
      convertible into shares or equity in any form below the exercise price per
      share
      of the Warrant.
      In the
      event the Company sells, grants or issues any shares, options, warrants, or
      any
      instrument convertible into shares or equity in any form below the current
      exercise price per share of the Warrant, other than Excluded Securities, then
      the current exercise price per share for the Warrant shall be reduced to such
      lower price per share. Such reduction shall be made at the time such transaction
      is executed. “Excluded
      Securities”
means
      Company shares reserved for employee and consultant stock options and
      compensatory equity incentive programs, stock grants made in connection with
      debt or equity financing, and stock, options, warrants, convertible instruments
      and any other securities issued in connection with the mergers and acquisitions
      of companies or assets. 

     

    8.   Fractional
      Shares.
      The
      Company shall not be required to issue or cause to be issued fractional Warrant
      Shares on the exercise of this Warrant. The number of full Warrant Shares that
      shall be issuable upon the exercise of this Warrant shall be computed on the
      basis of the aggregate number of Warrants Shares purchasable on exercise of
      this
      Warrant so presented. If any fraction of a Warrant Share would, except for
      the
      provisions of this Section 8, be issuable on the exercise of this Warrant,
      the
      Company shall, at its option, (i) pay an amount in cash equal to the Exercise
      Price multiplied by such fraction or (ii) round the number of Warrant Shares
      issuable, up to the next whole number.

     

    9.   Sale
      or Merger of the Company.
      Upon
      a
      Change in Control, the restrictions contained in Section 6 shall immediately
      be
      released and the Warrant Holder will have the right to exercise this Warrant
      concurrently with such Change in Control event or any and all Term. For purposes
      of this Warrant, the term “Change
      in Control”
shall
      mean a consolidation or merger of the Company with or into another company
      or
      entity in which the Company is not the surviving entity or the sale of all
      or
      substantially all of the assets of the Company to another company or entity
      not
      controlled by the then existing stockholders of the Company in a transaction
      or
      series of transactions.

      

    10.  Notice
      of Intent to Sell or Merge the Company.
      The
      Company will give Warrant Holder ten (10) business days notice before the event
      of a sale of all or substantially all of the assets of the Company or the merger
      or consolidation of the Company in a transaction in which the Company is not
      the
      surviving entity.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    11.  Issuance
      of Substitute Warrant.
      In the
      event of a merger, consolidation, recapitalization or reorganization of the
      Company or a reclassification of Company shares of stock, which results in
      an
      adjustment to the number of shares subject to this Warrant and/or the Exercise
      Price hereunder, the Company agrees to issue to the Warrant Holder a substitute
      Warrant reflecting the adjusted number of shares and/or Exercise Price upon
      the
      surrender of this Warrant to the Company.

     

    12. Registration
      of Shares. 

    

    (a) Inclusion
      on Registration Statement.
      If the
      Company proposes to file a registration statement under the Securities Act
      with
      respect to an offering for its own account of any class of its equity securities
      (other than a registration statement relating solely to employee benefit plans
      or filed in connection with an exchange offer, a transaction to which Rule
      145
      (or any successor provision) under the Securities Act applies or an offering
      of
      securities solely to the Company's existing shareholders), then the Company
      shall in each case give written notice of such proposed filing to the Warrant
      Holder as soon as practicable (but no later than 20 business days) before the
      anticipated filing date, and such notice shall offer the Warrant Holder the
      opportunity to register such number of shares of Common Stock as the Warrant
      Holder may request. The Warrant Holder shall so advise the Company in writing
      within 10 business days after the date on which the Company's notice is so
      given, setting forth the number of shares of Common Stock for which registration
      is requested. If the Company's offering is to be an underwritten offering,
      the
      Company shall, subject to the further provisions of this Agreement, use its
      reasonable best efforts to cause the managing underwriter or underwriters to
      permit the Warrant Holder to be included in the registration for such offering
      to include such Common Stock in such offering on the same terms and conditions
      as any similar securities of the Company included therein. The right of the
      Warrant Holder to registration pursuant to this Section 12 in connection with
      an
      underwritten offering by the Company shall, unless the Company otherwise
      assents, be conditioned upon the Warrant Holder's participation as a seller
      in
      such underwritten offering and its execution of an underwriting agreement with
      the managing underwriter or underwriters selected by the Company.
      Notwithstanding the foregoing, if the managing underwriter or underwriters
      of
      such offering deliver a written opinion to the Company that either because
      of
      (a) the kind of securities that the Company, the Warrant Holders and any other
      persons or entities intend to include in such offering or (b) the size of the
      offering that the Company, the Warrant Holders and any other persons or entities
      intend to make, the success of the offering would be materially and adversely
      affected by inclusion of the Common Stock requested to be included, then (i)
      in
      the event that the size of the offering is the basis of such managing
      underwriter's opinion, the number of shares of Common Stock to be registered
      and
      offered for the accounts of holders shall be reduced pro rata on the basis
      of
      the number of securities requested by such holders to be registered and offered
      to the extent necessary to reduce the total amount of securities to be included
      in such offering to the amount recommended by such managing underwriter or
      underwriters (provided that if securities are being registered and offered
      for
      the account of other persons or entities in addition to the Company, such
      reduction shall not be proportionally greater than any similar reductions
      imposed on such other persons or entities) and (ii) in the event that the
      combination of securities to be offered is the basis of such managing
      underwriters opinion, (x) the Common Stock to be included in such registration
      and offering shall be reduced as described in clause (i) above or (y) if such
      actions would, in the reasonable judgment of the managing underwriter, be
      insufficient to substantially eliminate the adverse effect that inclusion of
      the
      Common Stock requested to be included would have on such offering, such Common
      Stock will be excluded entirely from such registration and offering. Any Common
      Stock excluded from an underwriting shall, if applicable, be withdrawn from
      registration and shall not, without the consent of the Company, be transferred
      in a public distribution prior to the earlier of ninety (90) days (or such
      other
      shorter period of time as the managing underwriter may require) after the
      effective date of the registration statement or ninety (90) days after the
      date
      the holders of such stock are notified of such exclusion.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (b) Requirement
      of filing a Registration Statement.
      At any
      time after the date hereof, the Warrant Holder shall have the right to require
      the Company to prepare and file one registration statement with the U.S.
      Securities and Exchange Commission, which shall cover all of the shares of
      the
      Common Stock underlying this Warrant. The Company shall:

    

    (i)
        prepare
      and file with the Securities and Exchange Commission a registration statement
      on
      any form for which the Company then qualifies and which counsel for the Company
      shall deem appropriate and which form shall be available for the sale or
      distribution of such Common Stock in accordance with the intended method of
      distribution thereof, and use its reasonable best efforts to cause such
      registration statement to become effective; and

    

    (ii)
       prepare
      and file with the Securities and Exchange Commission such amendments and
      supplements to such registration statement and the prospectus used in connection
      therewith as may be necessary to keep such registration statement effective
      for
      a period of not less than ninety (90) days or such shorter period as shall
      terminate when the distribution of all Common Stock covered by such registration
      statement shall have terminated and comply with the provisions of the Securities
      Act with respect to the disposition of all securities covered by such
      registration statement during such period in accordance with the intended
      methods of disposition by the Warrant Holder.

     

    13.  Notice.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been given (i) on the date they are delivered if delivered in
      person; (ii) on the date initially received if delivered by facsimile
      transmission followed by registered or certified mail confirmation; (iii) on
      the
      date delivered by an overnight courier service; or (iv) on the third business
      day after it is mailed by registered or certified mail, return receipt requested
      with postage and other fees prepaid as follows:

     

    If
      to
      the Company:

     

    4C
      Controls Inc.

    1230
      Avenue of the Americas - 7th
      Floor

    Rockefeller
      Center

    New
      York,
      NY 10020 

    917-639-4305

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    If
      to
      the Warrant Holder:

    

    Arimathea
      Limited

    c/o
      Wilton Group

    22
      Athol
      Street

    Douglas

    Isle
      of
      Man IM1 1JA

     

    
      	
              14.  

            	
              Miscellaneous.

            

    

     

    a.   This
      Warrant shall be binding on and inure to the benefit of the parties hereto
      and
      their respective successors and permitted assigns. This Warrant may be amended
      only by a writing signed by the Company and the Warrant Holder.

      

    b.   Nothing
      in this Warrant shall be construed to give to any person or corporation other
      than the Company and the Warrant Holder any legal or equitable right, remedy
      or
      cause of action under this Warrant; this Warrant shall be for the sole and
      exclusive benefit of the Company and the Warrant Holder.

     

    c.   THE
      PARTIES HERETO AGREE THAT THIS WARRANT SHALL BE GOVERNED BY, AND CONSTRUED
      AND
      ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT
      GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. ALL PARTIES HERETO,
      TO THE FULLEST EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND
      VOLUNTARILY, WAIVE AND FOREVER RELINQUISH THE RIGHT TO A TRIAL BY JURY IN ANY
      ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO
      THIS
      WARRANT, ANY CONDUCT, ACT OR OMISSION OF ANY OTHER PARTY HERETO. THE COMPANY
      AND
      THE WARRANT HOLDER EACH HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION OF THE
      STATE OR FEDERAL COURTS LOCATED IN THE CITY AND STATE OF NEW YORK IN THE BOROUGH
      OF MANHATTAN FOR ALL PURPOSES IN CONNECTION WITH ANY ACTION OR PROCEEDING WHICH
      ARISES OUT OF OR RELATES TO THIS WARRANT AGREE THAT ANY ACTION INSTITUTED UNDER
      THIS WARRANT SHALL BE BROUGHT ONLY IN SUCH COURTS.

     

    d.   The
      headings herein are for convenience only, do not constitute a part of this
      Warrant and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    e.   In
      case
      any one or more of the provisions of this Warrant shall be invalid or
      unenforceable in any respect, the validity and enforceablilty of the remaining
      terms and provisions of this Warrant shall not in any way be affected or
      impaired thereby and the parties will attempt in good faith to agree upon a
      valid and enforceable provision which shall be a commercially reasonably
      substitute therefore, and upon so agreeing, shall incorporate such substitute
      provision in this Warrant.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    f.   The
      Warrant Holder shall not, by virtue hereof, be entitled to any voting or other
      rights of a shareholder of the Company, either at law or equity, and the rights
      of the Warrant Holder are limited to those expressed in this
      Warrant.

     

    

    [SIGNATURES
      ON FOLLOWING PAGE]

     

     

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
      the
      authorized officer as of the date first above stated and agreed by the Warrant
      Holder.

    

    

    4C
      CONTROLS INC., a Nevada corporation

    

    

    
      	By: 	 	/s/ Barbara
              Salz                                 
              
	 	 	Name: Barbara
              Salz
	 	 	Title: Corporate
              Secretary

    

    

    WARRANT
      HOLDER:

    

    ARIMATHEA
      LIMITED

    

    
       

      
        	By: 	 	_________________________
	 	 	Name:
	 	 	Title:

      

        

       

        

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
      A

    

    
      	 	
              (i)
                

            	
              The
                first Tranche shall vest and become exercisable upon the closing
                of the
                acquisition by the Company of the equity securities of BQT Solutions
                Ltd.,
                BQT Satellites Ltd. and BQT Intelligent Security Systems Pty Ltd.
                (collectively, the “BQT
                Companies”),
                as contemplated pursuant to the Securities Purchase Agreement, by
                and
                among the Company and the BQT Companies, dated as of March 19,
                2008;

            

    

    
      	 	
              (ii)

            	
              The
                second Tranche shall vest and become exercisable upon the closing
                of the
                first contract for the sale of a satellite by BQT Satellites Ltd.;
                and

            

    

    
      	 	
              (ii)

            	
              The
                third Tranche shall vest and become exercisable upon the closing
                of the
                second contract for the sale of a satellite by BQT Satellites
                Ltd.

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    EXHIBIT
      B

    

    FORM
      OF ELECTION TO PURCHASE

    

    (To
      be
      executed by the Warrant Holder to exercise the right to purchase shares of
      Common Stock under the foregoing Warrant)

     

    To:
      4C
      Controls Inc.:

    

    In
      accordance with the Warrant enclosed with this Form of Election to Purchase,
      the
      undersigned hereby irrevocably elects to purchase ______________ shares of
      Common Stock (“Common
      Stock”),
      $.00001 par value, of 4C Controls Inc., and encloses the Warrant and $____
      for
      each Warrant Share being purchased or an aggregate of $________________ in
      cash
      or certified or official bank check or checks, which sum represents the
      aggregate Exercise Price (as defined in the Warrant) together with any
      applicable taxes payable by the undersigned pursuant to the
      Warrant.

     

    The
      undersigned requests that certificates for the shares of Common Stock issuable
      upon this exercise be issued in the name of:

     

    
      	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              (Please
                print name and address)

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              (Please
                insert Social Security or Tax Identification Number)

            	
               

            	
               

            	
               

            

    

     

    If
      the
      number of shares of Common Stock issuable upon this exercise shall not be all
      of
      the shares of Common Stock which the undersigned is entitled to purchase in
      accordance with the enclosed Warrant, the undersigned requests that a New
      Warrant (as defined in the Warrant) evidencing the right to purchase the shares
      of Common Stock not issuable pursuant to the exercise evidenced hereby be issued
      in the name of and delivered to:

     

    
      	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              (Please
                print name and address)

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
 

    
      	
              Dated:
                _______________

            	
              Name
                of Warrant Holder:

            	
               

            	
               

            

    

     

    
      	
               

            	
               

            	
              (Print)
                

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
              (By:)

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
              (Name:)

            	
               

            
	
               

            	
               

            	 	
               

            
	
               

            	
               

            	
              (Title:)

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
              Signature
                must conform in all respects to name of Warrant Holder as specified
                on the
                face of the Warrant

            

    

     

     

    
      
         

      

      
        13Unassociated Document

    4C
      CONTROLS INC. 

    

    PROMISSORY
      NOTE

    
      	
              U.S.
                $61,000.00

            	
              April
                11, 2008

            

    

     

    
      	
              1.

            	
              FOR
                VALUE RECEIVED, 4C
                Controls Inc.,
                a
                Nevada corporation (the "Borrower"), hereby promises to pay to the
                order
                of Rudana
                Investment Group AG
                ("Lender"),
                at such time, place and in such manner as Lender may specify in writing,
                the principal amount of Sixty-One
                Thousand US dollars (US
                $61,000.00)
                (the "Principal") pursuant to the terms and conditions specified
                herein
                (this “Note”). The Borrower shall pay interest on the outstanding
                principal of this Note at the annual rate of 7.5% per annum, calculated
                based on a year of 365 days and actual days elapsed (the
                “Interest”).

            

    

    

    
      	
              2.

            	
              The
                Borrower hereby promises to pay to the order of the Lender the Principal
                and all Interest due thereon within thirty calendar (30) days upon
                delivery to the Company of written demand by the Lender (the “Due Date”),
                at such place and in such manner as Lender may specify in writing.
                

            

    

    

    
      	
              3.

            	
              Any
                and all fees, costs, expenses and disbursements charged by financial
                institutions with respect to wire transfer or other transmittal charges
                incurred in connection with delivery of the Principal from the Lender
                to
                the Borrower shall be deemed to have been received by the Borrower
                from
                the Lender and all such amounts shall be included in the calculation
                of
                Principal hereunder.

            

    

    

    
      	
              4.

            	
              This
                Note shall not be transferable by Borrower and the Borrower may not
                assign, transfer or sell all or a portion of its rights and interests
                to
                and under this Note to any persons and any such purported transfer
                shall
                be void ab initio. The Lender may transfer and assign this Note at
                its
                sole discretion.

            

    

    

    
      	
              5.

            	
              The
                failure at any time of the Lender to exercise any of its options
                or any
                other rights hereunder shall not constitute a waiver thereof, nor
                shall it
                be a bar to the exercise of any of its options or rights at a later
                date.
                All rights and remedies of the Lender shall be cumulative and may
                be
                pursued singly, successively or together, at the option of the Lender.
                The
                acceptance by the Lender of any partial payment shall not constitute
                a
                waiver of any default or of any of the Lender's rights under this
                Note. No
                waiver of any of its rights hereunder, and no modification or amendment
                of
                this Note, shall be deemed to be made by the Lender unless the same
                shall
                be in writing, duly signed on behalf of the Lender; and each such
                waiver
                shall apply only with respect to the specific instance involved,
                and shall
                in no way impair the rights of the Lender in any other respect at
                any
                other time.

            

    

    

    
      	
              6.

            	
              Any
                term or condition of this Note may be waived at any time by the party
                that
                is entitled to the benefit thereof, but no such waiver shall be effective
                unless set forth in a written instrument duly executed by or on behalf
                of
                the party waiving such term or
                condition.

            

    

    

    
      	
              7.

            	
              The
                Borrower represents and warrants that this Note is the valid and
                binding
                obligation of the Borrower, fully enforceable in accordance with
                its
                terms. The execution and delivery by the Borrower of this Note, the
                performance by the Borrower of its obligations hereunder and the
                consummation of the transactions contemplated hereby and thereby
                does not
                and will not: (a) conflict with or result in a violation or breach
                of any
                of the terms, conditions or provisions of the Borrower’s charter
                instruments; (b) conflict with or result in a violation or breach
                of any
                term or provision of any law or order applicable to the Borrower
                or any of
                its assets and properties; or (c) (i) conflict with or result in
                a
                violation or breach of, or (ii) result in or give to any person any
                rights
                or create any additional or increased liability of the Borrower under
                or
                create or impose any lien upon, the Borrower or any of its assets
                and
                properties under, any contract or permit to which the Borrower is
                a party
                or by which its assets and properties are bound.
                

            

    

     

    
      
         

      

      
        Page
          1 of
          4

        
          

        

      

      
         

      

    

    
      

        
          	
                  4C
                    Controls Inc. 

                	
                  Promissory
                    Note

                

        

         

      

    

    
      	
              8.

            	
              If
                any provision of this Note is held to be illegal, invalid or unenforceable
                under any present or future Law, and if the rights or obligations
                of any
                party hereto under this Note will not be materially and adversely
                affected
                thereby, (i) such provision will be fully severable; (ii) this Note
                will
                be construed and enforced as if such illegal, invalid or unenforceable
                provision had never comprised a part hereof; (iii) the remaining
                provisions of this Note will remain in full force and effect and
                will not
                be affected by the illegal, invalid or unenforceable provision or
                by its
                severance here from; and (iv) in lieu of such illegal, invalid or
                unenforceable provision, there will be added automatically as a part
                of
                this Note a legal, valid and enforceable provision as similar in
                terms to
                such illegal, invalid or unenforceable provision as may be
                possible.

            

    

    

    
      	
              9.

            	
              Any
                notice, authorization, request or demand required or permitted to
                be given
                hereunder shall be in writing and shall be deemed to have been duly
                given
                two days after it is sent by an internationally recognized delivery
                service to the address of record of the Lender or the Borrower,
                respectively. Any party may change its address for such communications
                by
                giving notice thereof to the other parties in conformity with this
                Section.

            

    

    

    
      	
              10.

            	
              This
                Note shall be governed by and construed under the laws of the State
                of
                Nevada as applied to agreements entered into and to be performed
                entirely
                within such State. Each party hereby irrevocably consents to the
                jurisdiction of the courts of any competent jurisdiction over one
                or more
                of the parties. In any such litigation the Borrower waives personal
                service of any summons, complaint or other process and agrees that
                the
                service thereof may be made by certified or registered mail directed
                to
                the registered corporate office of Borrower in the State of its
                incorporation. The Company hereby expressly waives trial by jury
                in any
                litigation in any court with respect to, in connection with, or arising
                out of this Note or the validity, protection, interpretation, collection
                or enforcement hereof and the company hereby waives the right to
                interpose
                any setoff or non-compulsory counterclaim or cross-claim in connection
                with any such litigation, irrespective of the nature of such setoff,
                counterclaim or cross-claim.

            

    

    

    
      	
              11.

            	
              A
                default shall exist on this Note if any of the following occurs and
                is
                continuing: (i) Failure to pay Principal and any accrued Interest
                on the
                Note on or before the Due Date; (ii) Failure by the Borrower to perform
                or
                observe any other covenant or agreement of the Borrower contained
                in this
                Note; (iii) A custodian, receiver, liquidator or trustee of the Borrower,
                or any other person acting under actual or purported force of law
                takes
                ownership, possession or title to Borrower property; (iv) any of
                the
                property of the Borrower is sequestered by court order; (v) a petition
                or
                other proceeding, voluntary or otherwise is filed by or against the
                Borrower under any bankruptcy, reorganization, arrangement, insolvency,
                readjustment of indebtedness, dissolution or liquidation law of any
                jurisdiction, whether now or hereafter in effect; or (vi) the Borrower
                makes an assignment for the benefit of its creditors, or generally
                fails
                to pay its obligations as they become due, or consents to the appointment
                of or taking possession by a custodian, receiver, liquidator or trustee
                of
                the Borrower or all or any part of its property. Upon any such default,
                the Borrower shall immediately notify the Lender, and upon notice
                to the
                Borrower, the Lender may declare the Principal of the Note, plus
                accrued
                Interest, to be immediately due and payable, upon which such Principal
                and
                accrued Interest shall become due and payable immediately. Interest
                upon
                default shall thereafter accrue at the rate of 15% per annum, calculated
                based on a year of 365 days and actual days elapsed from the date
                of such
                default. 

            

    

     

    
      
         

      

      
        Page
          2 of
          4

        
          

        

      

      
         

      

      
        

          
            	
                    4C
                      Controls Inc. 

                  	
                    Promissory
                      Note

                  

          

        

      

    

     

    
      	
              12.

            	
              The
                Borrower, any endorser, or guarantor hereof or in the future (individually
                an "Obligor" and collectively "Obligors") and each of them jointly
                and
                severally: (a) waive presentment, demand, protest, notice of demand,
                notice of intent to accelerate, notice of acceleration of maturity,
                notice
                of protest, notice of nonpayment, notice of dishonor, and any other
                notice
                required to be given under the law to any Obligor in connection with
                the
                delivery, acceptance, performance, default or enforcement of this
                Note,
                any endorsement or guaranty of this Note, any pledge, security, guaranty
                or other documents executed in connection with this Note; (b) consent
                to
                all delays, extensions, renewals or other modifications of this Note,
                or
                waivers of any term hereof or thereof, or release or discharge by
                the
                Lender of any of Obligors, or release, substitution or exchange of
                any
                security for the payment hereof, or the failure to act on the part
                of the
                Lender or any indulgence shown by the Lender (without notice to or
                further
                assent from any of Obligors), and agree that no such action, failure
                to
                act or failure to exercise any right or remedy by the Lender shall
                in any
                way affect or impair the Obligations (as hereinafter defined) of
                any
                Obligors or be construed as a waiver by the Lender of, or otherwise
                affect, any of the Lender's rights under this Note, under any endorsement
                or guaranty of this Note; (c) if the Borrower fails to fulfill its
                obligations hereunder when due, agrees to pay, on demand, all costs
                and
                expenses of enforcement of collection of this Note or of any endorsement
                or guaranty hereof and/or the enforcement of the Lender's rights
                with
                respect to, or the administration, supervision, preservation, protection
                of, or realization upon, any property securing payment hereof, including,
                without limitation, all attorney's fees, costs, expenses and
                disbursements, including, without further limitation, any and all
                fees
                related to any legal proceeding, suit, mediation arbitration, out
                of court
                payment agreement, trial, appeal, bankruptcy proceedings or any other
                actions of any nature whatsoever required on the part of Lender or
                Lender’s representatives to enforce this Note and the rights hereunder;
                and (d) waive the right to interpose any defense, set-off or
                counterclaim of any nature or description.

            

    

    

    
      	
              13.

            	
              The
                Borrower will not, by amendment of its Certificate of Incorporation
                or
                through any reorganization, recapitalization, transfer of assets,
                consolidation, merger, dissolution, issue or sale of securities or
                any
                other voluntary action, avoid or seek to avoid the observance or
                performance of any of the terms to be observed or performed hereunder
                by
                the Borrower, but will at all times in good faith assist in the carrying
                out of all the provisions of this Agreement and in the taking of
                all such
                action as may be necessary or appropriate in order to protect the
                rights
                of the Lender of this Note against impairment. This Note shall be
                enforceable against all successors and assigns of Borrower. Borrower
                hereby covenants that all of its subsidiaries and affiliates shall
                jointly
                and severally perform this Agreement to the same and full extent
                on behalf
                of Borrower if Borrower is unable to
                perform.

            

    

    
 

    
      
         

      

      
        Page
          3 of
          4

        
          

        

      

      
         

      

      

        
          	
                  4C
                    Controls Inc. 

                	
                  Promissory
                    Note

                

        

      

       

    

    
      	
              14.

            	
              This
                Note and all matters related hereto shall be governed, construed
                and
                enforced under the laws of the State of New York, without regard
                to
                conflict of law principles of any jurisdiction to the
                contrary.

            

    

    

    
      	
              15.

            	
              This
                Note supersedes all prior discussions and agreements between the
                parties
                with respect to the subject matter hereof and thereof and contains
                the
                sole and entire agreement between the parties hereto with respect
                to the
                subject matter hereof.

            

    

    

    
      	
              16.

            	
              If
                the Lender loses this Note, the Borrower shall issue an identical
                replacement note to the Lender upon the Lender's delivery to the
                Borrower
                of a customary agreement to indemnify the Borrower reasonably satisfactory
                to the Borrower for any losses resulting from issuance of the replacement
                note.

            

    

    

    
      	
              17.

            	
              The
                terms and conditions of this Note shall inure to the benefit of and
                be
                binding upon the respective successors and assigns of the parties.
                Nothing
                in this Note, express or implied, is intended to confer upon any
                party
                other than the parties hereto or their respective successors and
                assigns
                any rights, remedies, obligations, or liabilities under or by reason
                of
                this Note, except as expressly provided in this
                Note.

            

    

    

    IN
      WITNESS WHEREOF, the Borrower has caused this Note to be dated, executed and
      issued on its behalf, by its duly appointed and authorized officer, as of the
      11th
      day of
      April, 2008.

    

    4C
      CONTROLS INC. 

    

    
      	By: 	 	/s/ Gerald
              Sullivan                                  
                
	 	 	
              Name:
                Gerald Sullivan

            
	 	 	
              Title:  
                Chief
                Financial Officer

            

    

    

    
      
         

      

      
        Page
          4 of
          4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]