Document:

EX-4.17

Exhibit 4.17

THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY OTHER SECURITIES LAWS AND MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN EFFECTIVE
REGISTRATION STATEMENT COVERING SUCH SECURITIES UNDER THE ACT AND ANY OTHER APPLICABLE SECURITIES
LAWS, OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION THAT SUCH
REGISTRATION IS NOT REQUIRED.

HALO TECHNOLOGY HOLDINGS, INC.

WARRANT TO PURCHASE ______ SHARES OF

COMMON STOCK, PAR VALUE $0.00001 PER SHARE

Date: October —, 2006 Warrant No. —

For value received, HALO TECHNOLOGY HOLDINGS, INC., a Nevada corporation (the
"Corporation”), hereby certifies that      (“—”), or its registered transferees,
successors or assigns (each person or entity holding all or part of this Warrant being referred to
as a “Holder”), is the registered holder of warrants (the “Warrants”) to subscribe
for and purchase      shares (as adjusted pursuant to Section 3 hereof)(the
"Warrant Shares”) of the fully paid and nonassessable common stock, par value $0.00001 per
share (the “Common Stock”), of the Corporation, at a purchase price per share initially
equal to Eighty Cents ($.80) (the “Warrant Price”) at any time (i) commencing on the date
hereof (the “Commencement Date”) and (ii) ending on 5:00 P.M., Eastern Time, on the five
(5) year anniversary date of the Commencement Date (the “Expiration Date”), subject to the
provisions and upon the terms and conditions hereinafter set forth. As used in this Warrant, the
term “Business Day” means any day other than a Saturday or Sunday on which commercial banks
located in New York, New York are open for the general transaction of business. This Warrant has
been issued in connection with —‘s investment in 10% Subordinated Convertible Notes of the
Corporation pursuant to that certain Subscription Agreement between —— and the Corporation of
even date herewith (the “Subscription Agreement”).

1. Method of Exercise; Payment; Issuance of New Warrant.

(a) Subject to the provisions hereof, the Holder may exercise this Warrant, in whole or in
part and from time to time, by the surrender of this Warrant (with the Notice of Exercise attached
hereto as Appendix A duly executed) at the principal office of the Corporation, or such
other office or agency of the Corporation as it may reasonably designate by written notice to the
Holder, during normal business hours on any Business Day, and the payment by the Holder by cash,
certified check payable to the Corporation or wire transfer of immediately available funds to an
account designated to the exercising Holder by the Corporation of an amount equal to the then
applicable Warrant Price multiplied by the number of Warrant Shares then being purchased. On the
date on which the Holder shall have satisfied in full the Holder’s obligations set forth herein
regarding an exercise of this Warrant (provided such date is prior to the Expiration Date), the
Holder (or such other person or persons as directed by the Holder, subject to compliance with
applicable securities laws) shall be treated for all purposes as the holder of record of such
Warrant Shares as of the close of business on such date.

(b) In the event of any exercise of the rights represented by this Warrant, certificates for
the whole number of shares of Common Stock so purchased shall be delivered to the Holder (or such
other person or persons as directed by the Holder, subject to compliance with applicable securities
laws) as promptly as is reasonably practicable (but not later than three (3) Business Days) after
such exercise at the Corporation’s expense, and, unless this Warrant has been fully exercised, a
new Warrant representing the whole number of Warrant Shares, if any, with respect to which this
Warrant shall not then have been exercised shall also be issued to the Holder as soon as reasonably
practicable thereafter (but not later than three (3) Business Days) after such exercise.

2. Reservation of Shares; Stock Fully Paid; Listing. The Corporation shall keep
reserved a sufficient number of shares of the authorized and unissued shares of Common Stock to
provide for the exercise of the rights of purchase represented by this Warrant in compliance with
its terms. All Warrant Shares issued upon exercise of this Warrant shall be, at the time of
delivery of the certificates for such Warrant Shares upon payment in full of the Warrant Price
therefor in accordance with the terms of this Warrant, duly authorized, validly issued, fully paid
and non-assessable shares of Common Stock of the Corporation. The Corporation shall during all
times prior to the Expiration Date when the shares of Common Stock issuable upon the exercise of
this Warrant are authorized for listing or quotation on any national securities exchange, Nasdaq
(or the Over-the-Counter Bulletin Board or the “pink sheets”, as the case may be), keep the shares
of Common Stock issuable upon the exercise of this Warrant authorized for listing or quotation on
such national securities exchange, Nasdaq (or the Over-the-Counter Bulletin Board or the “pink
sheets”, as the case may be).

3. Adjustments and Distributions.

(a) If the Corporation shall, while this Warrant is outstanding and at any time on or before
the second anniversary of the Commencement Date, issue or sell shares of its Common Stock or
"Common Stock Equivalents” (as defined below) without consideration or at a price
per share or “Net Consideration Per Share” (as defined below) less than the
Warrant Price in effect immediately prior to such issuance or sale, then in each such case the
Warrant Price then in effect at such time, except as hereinafter provided, shall be lowered to an
amount equal to the consideration per share received by the Corporation in such issuance of Common
Stock or Common Stock Equivalents.(b) Common Stock Equivalents.

(i) General. For the purposes of this Warrant, the issuance of any warrants, options,
subscription or purchase rights with respect to shares of Common Stock and the issuance of
any securities (including, without limitation, securities evidencing indebtedness)
convertible into or exchangeable for shares of Common Stock and the issuance of any
warrants, options, subscription or purchase rights with respect to such convertible or
exchangeable securities (collectively, “Common Stock Equivalents”), shall be deemed
an issuance of Common Stock. Any obligation, agreement or undertaking to issue Common Stock
Equivalents at any time in the future shall be deemed to be an issuance at the time such
obligation, agreement or undertaking is made or arises. No adjustment of the Warrant Price
shall be made under this Warrant upon the issuance of any shares of Common Stock which are
issued pursuant to the exercise, conversion or exchange of any Common Stock Equivalents.

(ii) Adjustments for Adjustment, Cancellation or Expiration of Common Stock
Equivalents. Should the Net Consideration Per Share of any such Common Stock Equivalents be
decreased from time to time other than as a result of the application of anti-dilution
provisions substantially similar to the provisions of this Warrant, then, upon the
effectiveness of each such change, the Warrant Price will be that which would have been
obtained (1) had the adjustments made upon the issuance of such Common Stock Equivalents
been made upon the basis of the new Net Consideration Per Share of such securities, and (2)
had the adjustments made to the Warrant Price since the date of issuance of such Common
Stock Equivalents been made to such Warrant Price as adjusted pursuant to clause (1) above.
Any adjustment of the Warrant Price which relates to any Common Stock Equivalent shall be
disregarded if, as, and when such Common Stock Equivalent expires or is canceled without
being exercised, or is repurchased by the Corporation at a price per share at or less than
the original purchase price, so that the Warrant Price effective immediately upon such
cancellation or expiration shall be equal to the Warrant Price that would have been in
effect (x) had the expired or canceled Common Stock Equivalent not been issued, and (y) had
the adjustments made to the Warrant Price since the date of issuance of such Common Stock
Equivalents been made to the Warrant Price which would have been in effect had the expired
or canceled Common Stock Equivalent not been issued.

(c) Net Consideration Per Share. For purposes of this Warrant, the “Net
Consideration Per Share” which shall be receivable by the Corporation for any
Common Stock issued upon the exercise or conversion of any Common Stock Equivalents shall be
determined as follows:

(i) The “Net Consideration Per Share” shall mean the amount equal to the total
amount of consideration, if any, received by the Corporation for the issuance of such Common
Stock Equivalents, plus the minimum amount of consideration, if any, payable to the
Corporation upon exercise, or conversion or exchange thereof, divided by the maximum
aggregate number of shares of Common Stock (without regard to any provision contained
therein providing for a subsequent adjustment to such number) that would be issued if all
such Common Stock Equivalents were exercised, exchanged or converted.

(ii) The “Net Consideration Per Share” which shall be receivable by the
Corporation shall be determined in each instance as of the date of issuance of Common Stock
Equivalents without giving effect to any possible future upward price adjustments or rate
adjustments which may be applicable with respect to such Common Stock Equivalents.

(d) Stock Dividends for Holders of Capital Stock Other Than Common Stock. In the
event that the Corporation shall make or issue (otherwise than to holders of Common Stock), or
shall fix a record date for the determination of holders of any capital stock of the Corporation
other than holders of Common Stock entitled to receive, a dividend or other distribution payable in
Common Stock or securities of the Corporation convertible into or otherwise exchangeable for shares
of Common Stock of the Corporation, then such Common Stock or other securities issued in payment of
such dividend shall be deemed to have been issued for their fair market value as is reasonably
determined in good faith by the Board of Directors of the Corporation.

(e) Consideration Other than Cash. For purposes of this Warrant, if a part or all of
the consideration received by the Corporation in connection with the issuance of shares of Common
Stock or the issuance of any of the securities described in this Warrant consists of property other
than cash, such consideration shall be deemed to have a fair market value as is reasonably
determined in good faith by the Board of Directors of the Corporation.

(f) Exceptions to Anti-Dilution Adjustments. This Section 3.1 shall not apply
(A) under any of the circumstances which would constitute an Extraordinary Common Stock Event (as
described below) (such circumstances being accounted for pursuant to Section 3.2 hereof),
(B) to the issuance of Common Stock upon the conversion of the Corporation’s Series D Preferred
Stock, (C) to the issuance of shares of Common Stock upon conversion of the Company’s existing
convertible notes and the warrants issued in connection therewith, including, without limitation,
the shares of Common Stock issuable upon conversion of the Company Notes issued pursuant to the
Subscription Agreements, (D) upon the exercise of (x) this Warrant and any other warrants issued by
the Corporation in connection with the Offering (as defined in the Subscription Agreement), (y) any
warrants issued in connection with the issuance of the Series C Preferred Stock or any Initial
Warrants or Additional Warrants issued pursuant to a certain Senior Note and Warrant Purchase
Agreement, dated as of January 31, 2005, by and among the Corporation and the Purchasers signatory
thereto or other warrants or options to purchase shares of Common Stock or (z) the warrants issued
to Fortress Credit Corp. in connection with the Corporation’s $50 million senior credit agreement,
(E) the issuance of any convertible debt or convertible equity in connection with the Corporation’s
acquisition of five portfolio companies from Platinum Equity LLC as described in the Corporation’s
Current Report on Form 8-K filed with the Securities and Exchange Commission on September 16, 2005,
or the exercise or conversion of any such debt or equity securities, (F) issuance of any
convertible debt or convertible equity as described in the Corporation’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 18, 2006, or the exercise or
conversion of any such debt or equity securities or any debt or equity securities for which such
securities are exchanged or (G) other securities convertible into shares of Common Stock,
outstanding prior to the original issue date of this Warrant. Further, the adjustments described
in this Section 3.1 shall not apply with respect to the issuance or sale of shares of
Common Stock, or the grant of options exercisable therefor, issued or issuable after the original
issue date of this Warrant to:

(i) directors, officers, employees and consultants of the Corporation or any subsidiary
pursuant to any qualified or non-qualified stock option plan or agreement, stock purchase
plan or agreement, stock restriction agreement, employee stock ownership plan, consultant
equity compensation plan or arrangement approved by the Board of Directors or an authorized
committee thereof, including any repurchase or stock restriction agreement, or such other
options, issuances, arrangements, agreements or plans intended principally as a means of
providing compensation for employment or services and approved by the Board of Directors;

(ii) capital stock, or options or warrants to purchase capital stock, issued to
financial institutions or lessors in connection with commercial credit arrangements,
equipment financings, commercial property lease transactions or similar transactions;

(iii) capital stock, or warrants or options to purchase capital stock, issued in
connection with bona fide acquisitions, mergers or similar transactions, the terms of which
are approved by the Board of Directors of the Corporation; and

(iv) capital stock issued or issuable to an entity as a component of any business
relationship with such entity for the purpose of (A) joint venture, technology licensing or
development activities, (B) distribution, supply or manufacture of the Corporation’s
products or services or (C) any other arrangements involving corporate partners that are
primarily for purposes other than raising capital, the terms of which business relationship
with such entity are approved by the Board of Directors.

(g) No Fractional Adjustments. No adjustment of the Warrant Price shall be made in an
amount less than one cent per share, provided that any adjustments which are not required to be
made by reason of this sentence shall be carried forward and shall be either taken into account in
any subsequent adjustment made prior to three years from the date of the event giving rise to the
adjustment being carried forward and prior to exercise, or shall be made at the end of three years
from the date of the event giving rise to the adjustment being carried forward.

(h) No Increased Warrant Price. Notwithstanding any other provisions of this
Section 3, except to the limited extent provided for in Sections 3.1(a)(ii), no
adjustment of the Warrant Price pursuant to this Section 3 shall have the effect of
increasing the Warrant Price above the Warrant Price in effect immediately prior to such
adjustment.

3.2 Adjustment Upon Extraordinary Common Stock Event. Upon the happening of an
Extraordinary Common Stock Event (as hereinafter defined), the Warrant Price shall, simultaneously
with the happening of such Extraordinary Common Stock Event, be adjusted by multiplying such
Warrant Price by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to such Extraordinary Common Stock Event and the denominator of which
shall be the number of shares of Common Stock outstanding immediately after such Extraordinary
Common Stock Event, and the product so obtained shall thereafter be the Warrant Price which, as so
adjusted, shall be readjusted in the same manner upon the happening of any successive Extraordinary
Common Stock Event or Events.

An “Extraordinary Common Stock Event” shall mean (i) the issue of additional shares of
Common Stock as a dividend or other distribution on outstanding shares of Common Stock, (ii) a
subdivision of outstanding shares of Common Stock into a greater number of shares of Common Stock,
or (iii) a combination or reverse stock split of outstanding shares of Common Stock into a smaller
number of shares of the Common Stock.

3.3 Adjustment Upon Certain Dividends. In the event the Corporation shall make or
issue, or shall fix a record date for the determination of holders of Common Stock entitled to
receive, a dividend or other distribution with respect to the Common Stock payable in (i)
securities of the Corporation other than shares of Common Stock, or (ii) other
assets (excluding cash dividends or distributions), then and in each such event provision shall be
made so that the Holder shall receive upon exercise of this Warrant in addition to the number of
shares of Common Stock receivable thereupon, the number of securities or such other assets of the
Corporation which they would have received had this Warrant been exercised immediately prior to
such event.

3.4 Adjustment Upon Capital Reorganization or Reclassification. If the Common Stock
shall be changed into the same or different number of shares of any other class or classes of
capital stock, whether by capital reorganization, recapitalization, reclassification or otherwise
(other than an Extraordinary Common Stock Event provided for in Section 3.2, a dividend or
other distribution provided for in Section 3.3, or a merger or other transaction provided
for in Section 3.5), then and in each such event, the Holder shall have the right
thereafter to receive, upon exercise of this Warrant, in lieu of the number of shares of Common
Stock which the Holder would otherwise have been entitled to receive, the kind and amount of shares
of capital stock and other securities and property receivable upon such reorganization,
recapitalization, reclassification or other change by the holders of the number of shares of Common
Stock for which this Warrant could have been exercised immediately prior to such reorganization,
recapitalization, reclassification or change, all subject to further adjustment as provided herein.

(a) Recapitalization, Reorganization, Reclassification, Consolidation, Merger or Sale.
In case the Corporation after the Commencement Date shall do any of the following (each, a
"Triggering Event”): (i) consolidate or merge with or into any other entity (in one or a
series of transactions) which results in the holders of the Corporation’s capital stock pursuant to
such consolidation or merger holding less than a majority of the voting rights of the surviving
corporation, including, without limitation, the right to elect a majority of the board of directors
of the surviving corporation, or (ii) transfer all or substantially all of its properties or assets
to any other entity, or (iii) effect a capital reorganization or reclassification of its capital
stock where the holders of the Corporation’s capital stock prior to such recapitalization or
reclassification hold less than a majority of voting rights of the Corporation after such
recapitalization or reclassification, including, without limitation, the right to elect a majority
of the board of directors of the surviving corporation, other than any event set forth in
Section 3.4, then, and in the case of each such Triggering Event, proper provision shall be
made so that, upon the basis and the terms and in the manner provided in this Warrant, the Holder
shall be entitled upon the exercise hereof at any time after the consummation of such Triggering
Event, to the extent this Warrant is not exercised prior to such Triggering Event, to receive at
the Warrant Price in effect at the time immediately prior to the consummation of such Triggering
Event in lieu of the Common Stock issuable upon such exercise of this Warrant prior to such
Triggering Event, the securities, cash and property to which such Holder would have been entitled
upon the consummation of such Triggering Event if such Holder had exercised the rights represented
by this Warrant immediately prior thereto (including the right of a shareholder to elect the type
of consideration it will receive upon a Triggering Event), subject to adjustments (subsequent to
such corporate action) as nearly equivalent as possible to the adjustments provided for elsewhere
in this Section 3; provided, however, the Holder at its option may elect to
receive an amount in cash equal to the value of this Warrant calculated in accordance with the
Black-Scholes formula.

3.5 Certificate as to Adjustments; Notice by Corporation. In each case of an
adjustment or readjustment of the Warrant Price, the Corporation at its expense will furnish the
Holder with a certificate prepared by the Treasurer or Chief Financial Officer of the Corporation,
showing such adjustment or readjustment, and stating in detail the facts upon which such adjustment
or readjustment is based.

3.6 Further Adjustments. In the event that, as a result of an adjustment made
pursuant to this Section 3, the Holder shall become entitled to receive any shares of
capital stock of the Corporation other than shares of Common Stock, the number of such other shares
so receivable upon exercise of this Warrant shall be subject thereafter to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to
the Warrant Shares contained in this Warrant.

3.7 Adjustment of Number of Shares. Upon each adjustment in the Warrant Price
pursuant to this Section 3, the number of Warrant Shares purchasable hereunder shall be
adjusted, to the nearest whole share, to the product obtained by multiplying the number of Warrant
Shares purchasable immediately prior to such adjustment by a fraction, (i) the numerator of which
shall be the Warrant Price immediately prior to such adjustment, and (ii) the denominator of which
shall be the Warrant Price immediately thereafter.

4. Transfer Taxes. The Corporation will pay any documentary stamp taxes attributable
to the initial issuance of Warrant Shares issuable upon the exercise of the Warrant;
provided, however, that the Corporation shall not be required to pay any tax or
taxes which may be payable in respect of any transfer involved in the issuance or delivery of any
certificates for Warrant Shares in a name other than that of the registered holder of this Warrant
in respect of which such shares are issued, and in such case, the Corporation shall not be required
to issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting
the same has paid to the Corporation the amount of such tax or has established to the Corporation’s
reasonable satisfaction that such tax has been paid.

5. Mutilated or Missing Warrants. In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Corporation shall issue in exchange and substitution of and upon
cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen
or destroyed, a new Warrant of like tenor and for the purchase of a like number of Warrant Shares,
but only upon receipt of evidence reasonably satisfactory to the Corporation of such loss, theft or
destruction of the Warrant, and with respect to a lost, stolen or destroyed Warrant, reasonable and
customary indemnity or bond with respect thereto, if requested by the Corporation.

6. Fractional Shares. No fractional shares of Common Stock shall be issued in
connection with any exercise or cashless exercise hereunder, and in lieu of any such fractional
shares the Corporation shall make a cash payment therefor to the Holder (or such other person or
persons as directed by the Holder, subject to compliance with all applicable laws) based on the
Fair Market Value of a share of Common Stock on the date of exercise or cashless exercise of this
Warrant.

7. Compliance with Securities Act and Legends. The Holder, by acceptance hereof,
agrees that it will not offer, sell or otherwise dispose of this Warrant, or any shares of Common
Stock to be issued upon exercise hereof except under circumstances which will not result in a
violation of the Securities Act of 1933, as amended, or the rules and regulations promulgated
thereunder, as amended (the “1933 Act”), or any state’s securities laws. All shares of
Common Stock issued upon exercise of this Warrant (unless registered under the 1933 Act) shall be
stamped or imprinted with a legend as follows:

THIS SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY OTHER SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (1) AN
EFFECTIVE REGISTRATION STATEMENT COVERING THESE SECURITIES UNDER
THE ACT AND ANY OTHER APPLICABLE SECURITIES LAWS, OR (2) AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION THAT SUCH
REGISTRATION IS NOT REQUIRED.

8. Rights as a Stockholder. Except as expressly provided in this Warrant, no
Holder, as such, shall be entitled to vote or receive dividends or be deemed the holder of Common
Stock or any other securities of the Corporation which may at any time be issuable on the exercise
hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder,
as such, any of the rights of a stockholder of the Corporation or any right to vote for the
election of the directors or upon any matter submitted to stockholders at any meeting thereof, or
to receive notice of meetings, or to receive dividends or subscription rights or otherwise, until
this Warrant shall have been exercised and the Warrant Shares purchasable upon the exercise hereof
shall have become deliverable, as provided herein.

9. Modification and Waiver. This Warrant and any provision hereof shall not be
changed, waived, discharged or terminated except by an instrument in writing signed by the
Corporation and the then current Holder, and such change, waiver, discharge or termination shall be
binding on any future Holder, provided, however, that no such changes shall be
applicable to the other warrants issued pursuant to the Notes described in the Subscription
Agreement unless the holders thereof expressly agree thereto in writing.

10. Notices. Unless otherwise provided, any notice required or permitted under this
Warrant shall be given in accordance with the terms of the Subscription Agreement.

11. Descriptive Headings. The descriptive headings contained in this Warrant are
inserted for convenience only and do not constitute a part of this Warrant.

12. Governing Law. The validity, interpretation and performance of this Warrant shall
be governed by, and construed in accordance with, the laws of the State of New York applicable to
contracts made and to be performed entirely within such State, regardless of the law that might be
applied under principles of conflicts of law.

13. Acceptance. Receipt and execution of this Warrant by the Holder hereof shall
constitute acceptance of and agreement to the foregoing terms and conditions.

14. Identity of Transfer Agent. The Transfer Agent for the Common Stock is Pacific
Stock Transfer Company. Upon the appointment of any subsequent transfer agent for the Common Stock
or other shares of the Corporation’s capital stock issuable upon the exercise of the rights of
purchase represented by this Warrant, the Corporation will mail to the Holder a statement setting
forth the name and address of such transfer agent.

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

16. Assignment. Subject to the terms hereof and compliance with applicable federal
and state securities laws, this Warrant may be transferred by the Holder with respect to any or all
of the Warrant Shares then purchasable hereunder. Upon surrender of this Warrant to the
Corporation, together with a properly endorsed notice of transfer (an “Assignment Form”),
for transfer of this Warrant in its entirety by the Holder, the Corporation shall issue a new
warrant of the same denomination to the designated transferee. Upon surrender of this Warrant to
the Corporation, together with a properly endorsed Assignment Form, by the Holder for transfer with
respect to a portion of the Warrant Shares then purchasable hereunder, the Corporation shall issue
a new warrant to the designated transferee, in such denomination as shall be requested by the
Holder hereof, and shall issue to such Holder a new warrant covering the number of Warrant Shares
in respect of which this Warrant shall not have been transferred. In addition to, and not in
limitation of, the foregoing, a Holder that is a corporation, a partnership or a limited liability
company, may distribute any portion of this Warrant to its respective shareholders, partners or
members. Unless and until the provisions for assignment set forth herein have been fully complied
with, the Corporation may treat the last registered Holder as the absolute owner of this Warrant
for all purposes, notwithstanding any notice to the contrary.

17. Limitation on Exercise. Notwithstanding anything to the contrary contained
herein, the number of shares of Common Stock that may be acquired by the Holder upon any exercise
of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure
that, following such exercise (or other issuance), the total number of shares of Common Stock then
beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial
ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of
the Exchange Act, does not exceed 9.99% of the total number of issued and outstanding shares of
Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise).
For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. Each delivery of an Exercise
Notice hereunder will constitute a representation by the Holder that it has evaluated the
limitation set forth in this paragraph and determined that issuance of the full number of Warrant
Shares requested in such Exercise Notice is permitted under this paragraph. This provision shall
not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in
order to determine the amount of securities or other consideration that such Holder may receive in
the event of a merger or other business combination or reclassification involving the Corporation
as contemplated in Section 3 of this Warrant. By written notice to the Corporation, the
Holder may waive the provisions of this Section but any such waiver will not be effective until the
61st day after such notice is delivered to the Corporation.

18. Registration. The Corporation shall register the resale of the Warrant Shares
pursuant to the terms of Section 11 of the Subscription Agreement.

IN WITNESS WHEREOF, the Corporation and the Holder have caused this Warrant to be executed on
their behalf by one of their officers thereunto duly authorized.

HALO TECHNOLOGY HOLDINGS, INC.

By:

Name:

Title:EX-10.133

Exhibit 10.133

Subscription Agreement

October —, 2006

HALO Technology Holdings, Inc.

Attention: Ernest Mysogland

200 Railroad Avenue

Greenwich, CT 06830

Re: Subscription for Convertible Notes and Warrants

Gentlemen:

This Subscription Agreement (this “Agreement”) sets forth the terms and conditions under which
the undersigned investor (an “Investor,” and collectively with other investors, the “Investors”)
agrees to purchase 10% Subordinate Convertible Notes (the “Notes”) of Halo Technology Holdings,
Inc., a Nevada Corporation (the “Company”), and warrants (the “Warrants”) exercisable for shares of
common stock, par value $0.00001 per share of the Company (the “Common Stock”) (the issuance and
sale of the Notes and Warrants by the Company pursuant to the terms hereof is referred to herein as
the “Offering”). The Notes are convertible into shares of Common Stock pursuant to their terms.
The shares of Common Stock for which the Notes are convertible are sometimes referred to herein as
the “Conversion Shares.” The shares of Common Stock for which the Warrants are exercisable are
sometimes referred to herein as the “Warrant Shares.” The Notes, Conversion Shares, the Warrants
and the Warrant Shares are referred to collectively as the “Securities.” A form of the Note is
attached hereto as Exhibit A. A form of the Warrant is attached hereto as Exhibit B.

The purchase price of the Notes and Warrants shall be the face amount of the Notes purchased
by the Investor. The number of Warrants issued to the Investor shall be determined as follows:
the Investor shall be issued one (1) warrant for every two (2) shares of Common Stock in which the
Note purchased by the Investor is convertible into as of the Closing Date (as defined herein).

The undersigned understands that, when issued, the Conversion Shares will have the rights,
privileges and preferences as set forth in the Company’s Articles of Incorporation as may be
amended from time to time (the “Articles”), and the Nevada Revised Statutes, as may be amended from
time to time. The undersigned understands that the Warrants, when issued will have the rights,
privileges and preferences as set forth in the form of Warrant attached thereto. The undersigned
further understands that the offering is being made without registration of any of the Securities
under the Securities Act of 1933, as amended (the “Securities Act”) or otherwise, and is being made
only to “accredited investors” (as defined in Rule 501 of Regulation D under the Securities Act).

1. Subscription. Subject to the terms and conditions hereof, the undersigned hereby
subscribes for, and agrees to purchase, that amount of Securities set forth in Appendix A hereto,
the purchase price for which is payable as described in Section 4 hereof. The undersigned
acknowledges that the Securities will be subject to restrictions on transfer as further set forth
in this Agreement.

2. Intentionally omitted.

3. The Closing. The closing of the Offering (the “Closing”) shall take place at the
offices of the Company, on such date as mutually agreed to by the Company and the Investor, which
such date shall be no later than October      , 2006. The date on which the Closing occurs is
referred to herein as the “Closing Date”.

4. Payment of the Purchase Price. Payment for the Securities in an amount as set
forth in the Signature Page to this Agreement shall be received by the Company at or prior to the
Closing from the undersigned by wire transfer of immediately available funds or by such other form
of payment that may be agreed to by the Company and the undersigned. The Company shall deliver, or
cause to be delivered, to the undersigned the Securities promptly upon receipt of the applicable
amount set forth on Appendix A.

5. Representations, Warranties and Covenants of the Undersigned. The undersigned
Investor hereby represents and warrants to and covenants with the Company and each officer,
director, representative and agent of the Company that:

(a) In General:

(i) The undersigned Investor has all requisite authority to enter
into this Agreement and to perform all the obligations required to be performed by
the undersigned hereunder.

(ii) The undersigned Investor is a resident of the state set forth on
the signature page hereto and is not acquiring the Securities as an agent or
otherwise for any other person.

(b) Information Concerning the Company:

(i) The undersigned Investor has not been furnished any offering
literature other than this Agreement and the Exhibits thereto and has relied only on
the information contained therein, and in the Company Reports.

(ii) The undersigned Investor understands that, unless the
undersigned Investor notifies the Company in writing to the contrary at or before
the Closing, all the undersigned’s representations and warranties contained in this
Agreement will be deemed to have been reaffirmed and confirmed as of the Closing,
taking into account all information received by the undersigned Investor.

(iii) The undersigned Investor understands that the purchase of the
Securities involves various and substantial risks, including those outlined in the
Company Reports and in this Agreement.

(iv) The undersigned Investor understands that no federal or state
agency has passed upon the Securities or made any finding or determination
concerning the fairness or advisability of this investment.

(v) The undersigned Investor understands that estimates and
projections like those contained in the Company Reports, by their nature, involve
significant elements of subjective judgment and analysis that may or may not be
correct; that there can be no assurance that such projections or goals will be
attained; and that the projections and estimates contained in the Company Reports
should not be relied upon as a promise or representation of the future performance
of the Company.

(c) Status of Undersigned:

(i) The undersigned Investor has such knowledge, skill and experience
in business, financial and investment matters so that it is capable of evaluating
the merits and risks of an investment in the Securities. To the extent necessary,
the undersigned Investor has retained, at the undersigned’s own expense, and relied
upon, appropriate professional advice regarding the investment, tax and legal merits
and consequences of this Agreement and owning the Securities.

(ii) The undersigned Investor is an “accredited investor” as defined
in Rule 501(a) of Regulation D (“Regulation D”) under the Securities Act. The
undersigned Investor agrees to furnish any additional information requested to
assure compliance with applicable federal and state securities laws in connection
with the purchase and sale of the Securities. The undersigned Investor represents
that the undersigned Investor has completed the Accredited Investor Certificate
contained in Appendix B and that the information contained therein is complete and
accurate as of the date thereof and is hereby affirmed as of the date hereof.

(d) Restrictions on Transfer or Sale of Securities:

(i) The undersigned Investor is acquiring the Securities, solely for
its own beneficial account, for investment purposes, and not with a view to, or for
resale in connection with, any distribution of any of the Securities. The
undersigned Investor understands that the Securities have not been registered under
the Securities Act or any State Securities Laws by reason of specific exemptions
under the provisions thereof which depend in part upon the investment intent of the
undersigned and of the other representations made by the undersigned in this
Agreement. The undersigned Investor understands that the Company is relying upon
the representations and agreements contained in this Agreement (and any supplemental
information) for the purpose of determining whether this transaction meets the
requirements for such exemptions.

(ii) The undersigned Investor understands that the Securities are and
will be “restricted securities” under applicable federal securities laws and that
the Securities Act and the rules of the SEC provide in substance that the
undersigned Investor may dispose of the Securities only pursuant to an effective
registration statement under the Securities Act or an exemption therefrom, and the
undersigned Investor understands that the Company has no obligation or intention to
register any of the Conversion Shares or the Warrant Shares (except for the
registration rights granted hereunder), or to take action so as to permit sales
pursuant to the Securities Act (including Rule 144 thereunder). Accordingly, the
undersigned Investor understands that under the SEC’s rules, the undersigned
Investor may dispose of the Securities principally only in “private placements”
which are exempt from registration under the Securities Act, in which event the
transferee will acquire “restricted securities” subject to the same limitations as
in the hands of the undersigned Investor. As a consequence, the undersigned
Investor understands that it must bear the economic risks of the investment in the
Securities for an indefinite period of time.

(iii) Intentionally omitted.

(iv) The undersigned Investor has not offered or sold any portion of
the Securities purchased hereunder and has no present intention of dividing any such
Securities with others or of reselling or otherwise disposing of any portion of such
Securities either currently or after the passage of a fixed or determinable period
of time or upon the occurrence or nonoccurrence of any predetermined event or
circumstance.

(v) The undersigned Investor acknowledges that neither the Company
nor any other person offered to sell the Securities to it by means of any form of
general advertising, such as media advertising or seminars.

(vi) The undersigned Investor acknowledges that the Company has the
right in its sole and absolute discretion to abandon this private placement at any
time prior to the completion of the Offering and to return the previously paid
purchase price of the Securities without interest thereon, to the respective
subscribers.

(vii) The undersigned Investor has not used any person as a
“Purchaser Representative” within the meaning of Regulation D to represent it in
determining whether it should purchase the Securities.

6. Conditions to Obligations of the Undersigned and the Company. The obligations of
the undersigned Investor to purchase and pay for the amount of Securities specified herein are
subject to the satisfaction at or prior to the Closing of the following respective conditions
precedent:

(a) The representation and warranties of the Company contained in Section 7 hereof,
shall be true and correct on and as of the Closing in all material respects with the same effect as
though such representations and warranties had been made on and as of the Closing;

(b) No action, suit or proceeding before any arbitrator or any governmental
authority shall have been commenced and no investigation by any governmental authority shall have
been threatened against the Company, or any of the officers or directors of the Company, seeking to
restrain, prevent or change the transactions contemplated by this Agreement or any related
agreement or seeking damages in connection with such transactions; and

(c) The Company shall have obtained the written consents of all parties necessary
for the execution and delivery by the Company of this Agreement and any other agreement required in
connection with the Offering and the performance of its obligations hereunder all of which written
consents shall be reasonably satisfactory in form, scope and substance to the Investor;

(d) The Investor shall have received a copy of resolutions, duly adopted by the
Board of Directors of the Company, which shall be in full force and effect at the time of Closing,
authorizing the executor, delivery and performance by the Company of this Agreement and any other
agreement required in connection with the Offering, and the consummation by the Company of the
transactions contemplated hereby and thereby, certified as such by the Secretary of the Company;
and

(e) The Company shall have satisfied such other conditions precedent that it agrees
to in connection with the Offering, including, without limitation, the execution and delivery of
definitive agreements and the delivery of a legal opinion (which may be delivered by the Company’s
general counsel), each in a form reasonably acceptable to the Investor.

7. Representations and Warranties of the Company. The Company hereby makes the
following representations and warranties to the Investor as of the date hereof and as of the date
of the Closing:

(a) Organization and Qualification. Each of the Company and its Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite
power and authority to own and use its properties and assets and to carry an its business as
currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of
the provisions of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to
conduct business and is in good standing as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or property owned by it makes such
qualification necessary, except where the failure to be so qualified or in good standing, as the
case may be, could not have or reasonably be expected to result in (i) a material adverse effect on
the legality, validity or enforceability of this Agreement, (ii) a material adverse effect on the
results of operations, assets, business, prospects or financial condition of the Company and the
Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to
perform in any material respect on a timely basis its obligations under this Agreement and no
action, claim, suit, investigation or proceeding (including, without limitation, an investigation
or partial proceeding, such as a deposition), whether commenced or threatened (“Proceeding”) has
been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke,
limit or curtail such power and authority or qualification.

(b) Authorization; Enforcement. The Company has the requisite corporate power and
authority to enter into and to consummate the Offering. The execution and delivery of this
Agreement by the Company and the consummation by it of the transactions contemplated hereby have
been duly authorized by all necessary action on the part of the Company and no further consent or
action is required by the Company, other than the Required Approvals (as defined below). This
Agreement, when executed and delivered in accordance with the terms hereof, will constitute the
valid and binding obligation of the Company enforceable against the Company in accordance with its
terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors’ rights generally and (ii) as
limited by laws relating to the availability of specific performance, injunctive relief or other’
equitable remedies.

(c) No Conflicts. The execution, delivery and performance of this Agreement by the
Company and the consummation by the Company of the Offering do not and will not: (i) conflict with
or violate any provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining
the Required Approvals (as defined below), conflict with, or constitute a default (or an event that
with notice or lapse of time or both would become a default) under, or give to others, any rights
of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of any agreement, credit facility, debt or other instrument (evidencing a Company or
Subsidiaries’ debt or otherwise) or other understanding to which the Company or either of the
Subsidiaries is a party or by which any property or asset of the Company or its Subsidiaries is
bound or affected, or (iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority as currently in
effect to which the Company or either of the Subsidiaries is subject (including federal and state
securities laws and regulations), or by which any property or asset of the Company or either of the
Subsidiaries is bound or affected; except in the case of each of clauses (ii) and (iii), such as
could not, individually or in the aggregate (a) adversely affect the legality, validity or
enforceability of the Offering, (b) have or result in or be reasonably likely to have or result in
a material adverse effect on the results of operations, assets, prospects, business or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (c) adversely
impair the Company’s ability to perform fully on a timely basis its obligations under this
Agreement (any of (a), (b) or (c), a “Material Adverse Effect”).

(d) Filings, Consents and Approvals. Neither the Company nor the Subsidiaries is
required to obtain any consent, waiver, authorization or order of, give any notice to, or make any
filing or registration with, any court or other federal, state, local or other governmental
authority or other Person in connection with the execution, delivery and performance by the Company
of this Agreement, other than: (i) the filing with the SEC of the Registration Statement, (ii) the
filing with the SEC of a Form D pursuant to SEC Regulation D, and (iii) applicable Blue Sky filings
(collectively, the “Required Approvals”).

(e) Issuance of the Securities. The Securities offered hereunder and each component
or underlying security, are duly authorized and, when issued and paid for in accordance with this
Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all
liens, and not subject to any preemptive rights. The Company has reserved from its duly authorized
capital stock a number of shares of Common Stock required for issuance of the Conversion Shares and
the Warrant Shares.

(f) Capitalization. The number of shares and type of all authorized, issued and
outstanding capital stock of the Company is as set forth in the Company Reports. No Person has any
right of first refusal, preemptive right, right of participation, or any similar right to
participate in the Offering. Except for options and shares of capital stock issued or issuable
under the Company’s stock option plan or as disclosed in the Company Reports, there are no
outstanding options, warrants, script rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exchangeable for,
or giving any Person or entity any right to subscribe for or acquire, any shares of Common Stock,
or contracts, commitments, understandings or arrangements by which the Company or any of the
Subsidiaries is or may become bound to issue additional shares of Common Stock, or securities or
rights convertible or exchangeable into shares of Common Stock. Except as set forth in the Company
Reports, the issuance and sale of the Securities will not obligate the Company to issue shares of
Common Stock or other securities to any Person (other than pursuant to this Offering) and will not
result in a right of any holder of Company securities to adjust the exercise, conversion, exchange
or reset price under such securities. All of the outstanding shares of capital stock of the
Company are validly issued, fully paid and nonassessable, have been issued in compliance with all
federal and state securities laws, and none of such outstanding shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase securities. No further
approval or authorization of any stockholder, the Board of Directors of the Company or others is
required for the issuance and sale of the Securities and the Warrant Shares. Except as set forth in
the Company Reports, there are no stockholders agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to which the Company is a party or, to the
knowledge of the Company, between or among any of the Company’s stockholders. The authorized
capital stock of Company consists of 200,000,000 shares of Company capital stock, of which
150,000,000 are designated as Common Stock, par value $0.00001 per share and of which 50,000,000
are designated as preferred shares, par value $0.00001 per share (“Company Preferred Shares”). As
of the date hereof, there are (x) 30,160,375 shares of Company Common Stock issued and outstanding,
and (y) 7,045,454 shares of the Company’s Series D Preferred Stock issued and outstanding.

(g) SEC Reports; Financial Statements. The Company has filed all reports required
to be filed by it under the Securities Act and the Securities Exchange Act of 1934, as amended
(“Exchange Act”), including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding
the date hereof (or such shorter period as the Company was required by law to file such material)
in accordance with the time requirements of the Securities Act and the Exchange Act. As of their
respective dates, the Company Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act and the rules and regulations of the SEC promulgated
thereunder, and none of the Company Reports, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they were made, not
misleading. The Company has advised Investor that a correct and complete copy of each of the
Company Reports (together with all exhibits and schedules thereto and as amended to date) is
available at http://www.sec.gov, a website maintained by the SEC where Investor may view the
Company Reports. The financial statements of the Company included in the Company Reports comply in
all material respects with applicable accounting requirements and the rules and regulations of the
SEC with respect thereto as in effect at the time of’ filing. Such financial statements have been
prepared in accordance with generally accepted accounting principles applied on a consistent basis
during the periods involved (“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto, and fairly present in all material respects the financial position
of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of
operations and cash flows for the periods then ended.

(h) Material Changes. Except as disclosed in the Company Reports, since the date of
the latest audited financial statements included in the Company Reports: (i) there has been no
event, occurrence or development that has had a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice and (B)
liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or
required to be disclosed in filings made with the SEC, (iii) the Company has not altered its method
of accounting or the identity of its auditors, except as disclosed in the Company Reports, (iv) the
Company has not declared or made any dividend or distribution of cash or other property to its
stockholders except in the ordinary course of business consistent with prior practice, or
purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock
except consistent with prior practice or pursuant to existing Company stock option or similar
plans, and (v) the Company has not issued any equity securities to any officer, director or
Affiliate, except pursuant to existing Company stock option or similar plans.

(i) Litigation. Except as disclosed in the Company Reports, there is no action,
suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, the Subsidiaries or any of its properties
before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an “Action”) which: (i) adversely affects
or challenges the legality, validity or enforceability of this Agreement or the Securities or (ii)
could, if there were an unfavorable decision, individually or in the aggregate, have or reasonably
be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor
any director or officer thereof, is or has been the subject of any Action involving a claim of
violation of or liability under federal or state securities laws or a claim of a breach of
fiduciary duty. The Company does not have pending before the SEC any request for confidential
treatment of information. There has not been, and to the knowledge of the Company, there is not
pending or contemplated, any investigation by the SEC involving the Company or any current or
former director or officer of the Company. The SEC has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company or any Subsidiaries
under the Exchange Act or the Securities Act.

(j) Compliance. Except as described in Section 7(p), neither the Company nor any
Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit agreement or any other
agreement or instrument to which it is a party or by which it or any of its properties is bound
(whether or not such default or violation has been waived), (ii) is in violation of any order of
any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute,
rule or regulation of any governmental authority, including without limitation all foreign,
federal, state and local laws applicable to its business, except in each case under (i), (ii) and
(iii) as could not have a Material Adverse Effect.

(k) Patents and Trademarks. The Company and the Subsidiaries have, or have rights
to use, all patents, patent applications, trademarks, trademark applications, service marks, trade
names, copyrights, licenses and other similar rights necessary or material for use in connection
with their respective businesses as currently conducted and which the failure to so have could have
a Material Adverse Effect (collectively, the “Intellectual Property Rights”). Neither the Company
nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the
Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of
the Company, all such Intellectual Property Rights are enforceable and there is no existing
infringement by another Person of any of the Intellectual Property Rights of others.

(l) Transactions with Affiliates and Employees. Except as disclosed in the Company
Reports, none of the officers or directors of the Company and, to the knowledge of the Company,
none of the employees of the Company is presently a party to any transaction with the Company or
any Subsidiary (other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of services to or by,
providing for rental of real or personal property to or from, or otherwise requiring payments to or
from any officer, director or such employee or, to the knowledge of the Company, any entity in
which any officer, director, or any such employee has a substantial interest or is an officer,
director, trustee or partner, in each case in excess of $60,000 other than (i) for payment of
salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf
of the Company and (iii) for other employee benefits, including stock option agreements under any
stock option plan of the Company.

(m) Internal Accounting Controls. Each of the Company and the Subsidiaries is in
material compliance with all provisions of the Sarbanes Oxley Act of 2002 which are presently
applicable to it.

(n) Private Placement. Assuming the accuracy of the undersigned Investor’s
representations and warranties set forth in Section 5, and such representations and warranties
given by other Investors in this Offering, no registration under the Securities Act is required for
the offer, and sale of the Securities by the Company to the Investors as contemplated hereby.

(o) Solvency. Based on the financial condition of the Company as of each Closing
Date after giving effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder, (i) the Company’s fair saleable value of its assets exceeds the amount that
will be required to be paid on or in respect of the Company’s existing debts and other liabilities
(including known contingent liabilities) as they mature; (ii) the Company’s assets do not
constitute unreasonably small capital to carry on its business for the current fiscal year as now
conducted and as proposed to be conducted including its capital needs taking into account the
particular capital requirements of the business conducted by the Company, and projected capital
requirements and capital availability thereof; and (iii) the current cash flow of the Company,
together with the proceeds the Company would receive, were it to liquidate all of its assets, after
taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or
in respect of its debt when such amounts are required to be paid. The Company does not intend to
incur debts beyond its ability to pay such debts as they mature (taking into account the timing and
amounts of cash to be payable on or in respect of its debt).

(p) Cash Flow and EBITDA.  The Company was in compliance with the financial
covenants made by the Company under that certain Credit Agreement dated August 2, 2005 between
Fortress Credit Corp., (“Fortress”), the Company, and the Subsidiaries of the Company listed in
Schedule 1 thereto (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”) for the period which ended March 31, 2006. Halo anticipates that it will not
be in compliance with all of such financial covenants under the Credit Agreement for the period
ended June 30, 2006 once its annual financial statements are tested against such financial
covenants. The Company is in the process of negotiating modifications to such financial covenants,
and, if such modifications are agreed to by Fortress, such modifications would remedy any such
non-compliance. Based on its discussions with Fortress, the Company reasonably anticipates such
covenants will be so modified; however, there is no assurance that Fortress will agree to such
modifications. .

(q) Obligations Irrevocable. The obligations of the undersigned Investor hereunder
to purchase the Securities shall be irrevocable, except with the consent of the Company.

8. Specific Performance. The undersigned Investor acknowledges and agrees that in
the event of any breach of this Agreement, the Company would be irreparably harmed and could not be
made whole by monetary damages. The undersigned Investor accordingly agrees to waive the defense
in any action for injunction or specific performance that a remedy at law would be adequate and
that the parties hereto, in addition to any other remedy to which they may be entitled at law or in
equity, shall be entitled to an injunction or to compel specific performance of this Agreement.

9. Brokers and Finders. The Company represents that no Person will have, as a
result of the transactions contemplated by the Transaction Documents, any valid right, interest or
claim against or upon the Investor for any commission, fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or on behalf of the Company or any
Subsidiary.

10. Registration Rights. For a period of two (2) years from the date of the
Closing, the Investors shall have registration rights for the Conversion Shares and Warrant Shares
(together, the “Registrable Shares”) as follows:

(a) Registration of Common Stock. The Company undertakes to register the
Registrable Shares via a suitable registration pursuant to the rights set forth in this Section 11.
The Company shall file the Registration Statement on or before the later of (i) thirty (30) days
after the Closing or (ii) thirty (30) days after the Form S-4 filed by the Company relating to its
acquisition of Unify Corp. (the “Unify Form S-4”) has been declared effective, but in no event
later than November 30, 2006. The Company shall cause the Registration Statement to be declared
effective within 120 days after the Closing (provided that such 120 day period shall be extended by
30 additional days in the event that it is subject to a full review by the Securities and Exchange
Commission (the “SEC”)). In the event that (i) the Company fails to file the Registration
Statement on or before the time specified above, (ii) the Registration Statement is not declared
effective by the sooner of (A) within three (3) days after the SEC states that their will be no
review or that the SEC has no further comments and (B) the time period specified above, or (iii)
another default of the Company’s obligations under this Section 10 occurs, the Investor shall
receive from the Company upon demand therefor an amount equal to 2% of the aggregate value of the
principal amount of Notes purchased hereto for each 30 days thereafter during which such default
continues (or the pro-rata portion thereof), subject to a maximum penalty of 10% of the principal
amount of the Note purchased by the Investor. Such amounts may only be paid in cash, in available
funds, if the senior obligations under the Credit Agreement have been Paid in Full (as such term is
defined in the Senior Subordination Agreement referred to below) and such payment in cash is
permissible under that certain subordination agreement among the Company, the Investor, the
Subsidiaries of the Company, dated on or about the date hereof (as amended, restated, supplemented
or otherwise modified from time to time, the “Senior Subordination Agreement”). If such amounts
may not be paid in cash without violating the Credit Agreement or the Senior Subordination
Agreement, then such amounts shall be paid in registered shares of Common Stock determined on the
date that such payment is due with the value of each share equal to 80% of the 20 day volume
weighted average price of Common Stock.

(b) Piggyback Registration. Whenever the Company proposes to register any of its
securities under the Securities Act and the registration form to be used may be used for the
registration of any of the Registrable Shares, the Company shall give prompt written notice to the
undersigned Investor of its intention to effect such a registration and, subject to the terms of
paragraphs (c) and (d) hereof, shall include in such registration all Registrable Shares with
respect to which the Company has received written requests for inclusion therein (“Piggyback
Registration”) within 10 days after the receipt of the Company’s notice.

(c) Priority on Primary Registrations. If a registration is an underwritten
primary registration on behalf of the Company, and the managing underwriters advise the Company in
writing that in their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold in such offering without adversely affecting the
marketability of the offering, the Company shall include in such registration (i) first, the
securities the Company proposes to sell, (ii) second, the shares requested to be included pursuant
to that certain Investors’ Agreement entered into the 31st day of January, 2005 by and
among the Company and the persons listed on Exhibit A thereto (the “Series C Agreement”) and/or
pursuant to that certain Investor’s Agreement is entered into the 26th day of October,
2005 by and among the Company and Platinum Equity, LLC (the “Series D Agreement”) and/or the Unify
Form S-4, (iii) third, the Registrable Shares requested to be included in such registration, pro
rata among the Investors on the basis of the number of shares requested to be included therein by
each such Investor, and (iv) fourth, other securities requested to be included in such registration
pro rata among the holders thereof on the basis of the number of shares requested to be included
therein.

(d) Priority on Secondary Registrations. If a Piggyback Registration is an
underwritten secondary registration on behalf of holders of the Company’s securities and the
managing underwriters advise the Company in writing that in their opinion the number of securities
requested to be included in such registration exceeds the number which can be sold in such offering
without adversely affecting the marketability of the offering, the Company shall include in such
registration (i) first, the securities requested to be included therein by the holders requesting
such registration, (ii) second, the shares requested to be included pursuant to the Series C
Agreement and/or pursuant to the Series D Agreement, (iii) third, the Registrable Shares requested
to be included in such registration, pro rata among the Investors on the basis of the number of
shares requested to be included therein by each such Investor, and (iv) fourth, other securities
requested to be included in such registration pro rata among the holders thereof on the basis of
the number of shares requested to be included therein.

(e) Applicability. Piggyback Registration rights shall not apply to the
registration statements filed pursuant to the Series C Agreement, the Series D Agreement or the
Subscription Agreement concerning Series E Stock and related warrants sold prior to the date hereof
(unless the Company obtains the consent of the investors in the Series E Stock, which consent the
Company shall use its commercially reasonable efforts to obtain), the Unify Form S-4, and any other
registration statements on Form S-4 or Form S-8. Registration rights provisions with respect to
shares of Series E Preferred Stock and related warrants sold after the date hereof shall not,
without the Investors prior written consent, contain a provision restricting the Company’s ability
to register the Registrable Shares on the same registration statement used to register shares of
common stock issuable upon conversion or exchange of such Series E Preferred Stock and upon
exercise of the warrants issued in connection therewith.

(f) Effectiveness Period. The Company will maintain the Registration Statement or
post-effective amendment filed under the terms of this Agreement effective under the Securities Act
until the earlier of (i) the date that all of the Registrable Shares have been sold pursuant to
such Registration Statement, (ii) all Registrable Shares have been otherwise transferred to Persons
who may trade such shares without restriction under the Securities Act, and the Company has
delivered a new certificate or other evidence of ownership for such securities not bearing a
restrictive legend, or (iii) all Registrable Shares may be sold at any time, without volume or
manner of sale limitations pursuant to Rule 144(k) or any similar provision then in effect under
the Securities Act in the opinion of counsel to the Company, which counsel shall be reasonably
acceptable to the Investor (the “Effectiveness Period”).

(g) Fees and Expenses. All fees, disbursements and out-of-pocket expenses and costs
incurred by the Company in connection with the preparation and filing of the Registration
Statement, in making filings with NASD or NASDR (including, without limitation, pursuant to NASD
Rule 2710), and in complying with applicable federal securities and Blue Sky laws (including,
without limitation, all attorneys’ fees of the Company) shall be borne by the Company. The
Investor shall bear the cost of underwriting and/or brokerage discounts, fees and commissions, if
any, applicable to the Registrable Shares being registered and the fees and expenses of their
counsel. The Company shall use its reasonable best efforts to qualify any of the Securities for
sale in such states as any Investor reasonably designates and shall furnish indemnification.
However, the Company shall not be required to qualify in any state which will require an escrow or
other restriction relating to the Company and/or the sellers, or which will require the Company to
qualify to do business in such state or require the Company to file therein any general consent to
service of process. The Company at its expense will supply each of the Investors with one unbound
copy of the applicable Registration Statement and any prospectus included therein and other related
documents.

(h) Certificates and Legends. Certificates evidencing the Registrable Shares shall
not contain any legend: (i) while a Registration Statement covering the resale of such security is
effective under the Securities Act, or (ii) following any sale of such Registrable Shares pursuant
to Rule 144, or (iii) if such Registrable Shares are eligible for legend removal under Rule 144(k),
or (iv) if such legend is not required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the staff of the SEC); provided,
however, in connection with the issuance of the Shares and Warrant Shares, Investor hereby agrees
to adhere to and abide by all prospectus delivery requirements under the Securities Act and rules
and regulations of the SEC. The Company shall instruct its transfer agent (or, if required by
transfer agent, cause an attorney to issue a legal opinion to such transfer agent) promptly after
the effectiveness of the Registration Statement (in the case of item (i) herein) or upon request of
the Investor (in the case of items (ii), (iii) or (iv) herein) to effect the removal of the legend
hereunder. If all or any portion of a Warrant is converted or exercised at a time when there is an
effective Registration Statement to cover the resale of the Warrant Shares, or if such Warrant
Shares may be sold under Rule 144(k) or if such legend is not otherwise required under applicable
requirements of the Securities Act (including judicial interpretations thereof) then such Warrant
Shares shall be issued free of all legends. The Company agrees that following the effectiveness of
the Registration Statement or at such time as such legend is no longer required under this Section
11(h), it will, no later than five business days following the delivery by Investor to the
Company’s transfer agent of a certificate representing Registrable Shares accompanied by
appropriate stock power or other required documentation, as applicable, issued with a restrictive
legend (such fifth Business Day, the “Legend Removal Date”), deliver or cause to be delivered to
such Investor a certificate representing such shares that is free from all restrictive and other
legends, in each case without charge to the Investor other than customary transfer fees which may
be charged by the transfer agent or broker-dealer. The Company may not make any notation on its
records or give instructions to any transfer agent of the Company that enlarge the restrictions on
transfer set forth in this Section 11(h), except as may be required by or in compliance with the
Securities Act or other applicable legal requirements.

(i) Rule 144 Information. At all times after one (1) year following the final
closing of the Offering, the Company will prepare and furnish to Investor and make publicly
available in accordance with Rule 144(c) such information as is required far Investor to sell the
Registrable Shares under Rule 144. The Company further covenants that it will take such further
action as any holder of Registrable Shares may reasonably request, all to the extent required from
time to time to enable such Person to sell such Registrable Shares without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144. In addition, the
Investor shall be entitled to unlimited Piggyback Registration rights under Section 11(b) above.

(j) Registration Information. In the case of each registration effected by the
Company pursuant to any section herein, the Company will keep each Investor advised in writing as
to the initiation of each registration and as to the completion thereof. At its expense, the
Company will:

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

(ii) Notice. Notify the Investor at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of the
happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading or incomplete in light of
the circumstances then existing, and at the request of shareholders, prepare and
furnish to them a reasonable number of copies of a supplement to or an amendment of
such prospectus as may be necessary so that, as thereafter delivered to the
Investor, such prospectus shall not include an untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading or incomplete in light of the circumstances
then existing; provided, that, (i) for not more than forty-five (45) calendar days
in any twelve (12) month period), and (ii) for any period during which the Company
prepares and files with the SEC such audited financial statements, pro forma
financial information, supplements, amendments and other information required in
connection with the Company’s acquisition of significant assets or businesses, other
fundamental changes otherwise as required by the Securities Act, SEC rules or
otherwise, and until the SEC declares effective any registration statement,
prospectus, supplement or amendment (each of (i) and (ii) an “Allowed Delay”), the
prospectus made part of such registration statement may omit material information
concerning the Company; provided further that the Company shall promptly (a) notify
each Investor in writing of the existence of (but in no event, without the prior
written consent of such Investor, shall the Company disclose to such Investor any of
the facts or circumstances regarding) the omission of any material information
giving rise to an Allowed Delay and (b) advise each Investor in writing to cease all
sales under such registration statement until the termination of the Allowed Delay;

(iii) Stop Orders. Use its commercially reasonable best efforts to
prevent the issuance of any stop order or other suspension of effectiveness of a
registration statement, and, if such an order is issued, to obtain the withdrawal of
such order at the earliest possible moment and to notify Investor (and, in the event
of an underwritten offering, the managing underwriter) of the issuance of such order
and the resolution thereof;

(iv) NASD Filings. If NASD Rule 2710 requires any broker-dealer to
make a filing prior to executing a sale of Registrable Shares by an Investor, make
an Issuer Filing with the NASD Corporate Financing Department pursuant to NASD Rule
2710 and respond within five business days to any comments received from NASD in
connection therewith; and

(v) SEC Rules. Otherwise use its commercially reasonable best
efforts to comply with all applicable rules and regulations of the SEC.

(k) Company Indemnity. To the extent Investor includes any Convertible Shares or
Warrant Shares in a registration statement pursuant to the terms hereof, the Company will indemnify
and hold harmless Investor, its directors and officers, and each Person, if any, who controls
Investor within the meaning of the Securities Act, from and against, and will reimburse Investor,
its directors and officers and each controlling Person with respect to, any and all loss, damage,
liability, cost and expense to which Investor or such controlling Person may become subject under
the Securities Act or otherwise, insofar as such losses, damages, liabilities, costs or expenses
are caused by any untrue statement or alleged untrue statement of any material fact contained in
such registration statement, any prospectus contained therein or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances in which they were made, not misleading; provided, however, that the Company
will not be liable in any such case to the extent that any such loss, damage, liability, cost or
expense arises out of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission so made in conformity with information furnished by Investor or any such
controlling Person in writing specifically for use in the preparation thereof.

(l) Investor Indemnity. To the extent Investor includes any Convertible Shares or
Warrant Shares in a registration statement pursuant to the terms hereof, investor will indemnify
and hold harmless the Company, its directors and officers and any controlling Person from and
against, and will reimburse the Company, its directors and officers and any controlling Person with
respect to, any and all loss, damage, liability, cost or expense to which the Company, its
directors and officers or such controlling Person may become subject under the Securities Act or
otherwise, insofar as such losses, damages, liabilities, costs or expenses are caused by any untrue
statement or alleged untrue statement of any material fact contained in such registration
statement, any prospectus contained therein or any amendment or supplement thereto, or arise out of
or are based upon the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was so made in
reliance upon and in conformity with written information furnished by or on behalf of the Investor
specifically for use in the preparation thereof and provided further, that the maximum amount that
may be recovered from Investor shall be limited to the amount of proceeds received by Investor from
the sale of such Registrable Shares.

(m) Limitation on Indemnity. To the extent any indemnification by an indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable hereunder to the
extent permitted by law, provided that (i) no contribution shall be made under circumstances where
the indemnifying patty would not have been liable for indemnification pursuant to the provisions
hereof, (ii) no seller of securities guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of
securities who was not guilty of such fraudulent misrepresentation, and (iii) the amount of the
contribution together with any other payments made in respect of such loss, damage, liability or
expense, by any seller of securities shall be limited to the net amount of proceeds received by
such seller from the sale of such securities.

(n) Representations of Investors. The undersigned Investor hereby represents to and
covenants with the Company that, during the period in which any registration statement (each a
“Registration Statement”) effected pursuant to this Section 11 remains effective, such Investor
will:

(i) not engage in any stabilization activity in connection with any
of the Company’s securities;

(ii) cause to be furnished to any purchaser of the Warrant Shares and
to the broker-dealer, if any, through whom Warrant Shares may be offered, a copy of
the final prospectus relating to such Registration Statement; and

(iii) not bid for or purchase any securities of the Company or any
rights to acquire the Company’s securities, or attempt to induce any person to
purchase any of the Company’s securities or any rights to acquire the Company’s
securities, in each case, other than as permitted under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”).

(o) Information for Use in Registration Statement. Each Investor covenants to the
Company that such Investor will complete the information requested by the Selling Investor’s
Questionnaire attached as Exhibit C hereto (the “Questionnaire”), and further covenants to the
Company that all information provided by such Investor in the Questionnaire will be true, accurate
and complete as of the date provided. Each Investor understands that the written information in
the Questionnaire and all written representations made in this Agreement are being provided to the
Company specifically for use in, or in connection with, the Registration Statement and the
prospectus contained therein, and has executed this Agreement with such knowledge.

(p) Indemnification of Investor. Subject to the provisions of this Section 11(p),
the Company will indemnify and hold the Investor and its directors, officers, shareholders,
partners, employees and agents (each, an “Investor Party”) harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such investor Party may suffer or incur as a result of or relating to (a)
any breach of any of the representations, warranties, covenants or agreements made by the Company
in this Agreement or (b) any action instituted against Investor, at, its respective Affiliates, by
any stockholder of the Company who is not an Affiliate of such investor, with respect to any of the
transactions contemplated by this Agreement (unless such action is based upon a breach of such
Investor’s representation, warranties or covenants tinder this Agreement or any agreements or
understandings such Investor may have with any such stockholder or any violations by the Investor
of state of federal securities laws or any conduct by such Investor which constitutes fraud, gross
negligence, willful misconduct or malfeasance). If any action shall be brought against any
investor Party in respect of which indemnity may be sought pursuant to this Agreement, such
Investor Party shall promptly notify the Company in writing, and the Company shall have the right
to assume the defense thereof with counsel of its own choosing. Any Investor Party shall have the
right to employ separate counsel in any such action and participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Investor Party except to the
extent that (i) the employment thereof has been specifically authorized by the Company in writing,
(ii) the Company has failed after a reasonable period of time to assume such defense and to employ
counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a
material conflict on any material issue between the position of the Company and the position of
such Investor Party. The Company will not be liable to any Investor Party under this Agreement (i)
for any settlement by a Investor Party effected without the Company’s prior written consent, which
shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a
loss, claim, damage or liability is attributable to any Investor Party’s breach of any of the
representations, warranties, covenants or agreements made by Investor in this Agreement.
Notwithstanding the foregoing, in the event and to the extent that any such action is based on
claims under any Registration Statement, Sections 11(k), (l) and (m) shall control.

11. Miscellaneous.

(a) Survival. All representations, warranties, covenants and agreements contained
in this Agreement shall be deemed to be representations, warranties, covenants and agreements as of
the date hereof (except to the extent any such representation or warranty expressly speaks as of an
earlier date, in which case such representation or warranty shall be deemed to be as of such
earlier date) and shall survive the execution and delivery of this Agreement.

(b) No Waiver; Cumulative Remedies. No failure or delay on the part of any party to
this Agreement in exercising any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or remedy hereunder.
The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

(c) Amendments, Waivers and Consents. Any provision in the Agreement to the
contrary notwithstanding, and except as hereinafter provided, changes in, termination or amendments
of or additions to this Agreement may be made, and compliance with any covenant or provision set
forth herein may be omitted or waived, if the Company shall obtain consent thereto in writing from
a majority in interest of all of the Investors. Any waiver or consent may be given subject to
satisfaction of conditions stated therein and any waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. Notwithstanding anything to the
contrary contained herein (x) no amendment, consent or waiver shall be effective to reduce the
unanimous consent required above and (y) any amendment, consent or waiver shall apply to all the
Investors and shall not discriminate against any particular Investor or Investors.

(d) Addresses for Notices. All notices, requests, demands and other communications
provided for hereunder or under any Transaction Document shall be in writing (including telegraphic
and facsimile communications with confirmation of receipt) and mailed, telegraphed or delivered to
each applicable party at the address set forth on the signature page hereto or at such other
address as to which such party may inform the other parties in writing in compliance with the terms
of this Section. If to any other holder of capital stock of the Company: at such holder’s address
for notice as set forth in the register maintained by the Company, or, as to each of the foregoing,
at the addresses set forth on the signature page hereto or at such other address as shall be
designated by such Person in a written notice to the other parties complying as to delivery with
the terms of this Section. If to the Company: at the address set forth on page 1 hereof, or at
such other address as shall be designated by the Company in a written notice to the other parties
complying as to delivery with the terms of this Section. All such notices, requests, demands and
other communications shall, when mailed (which mailing must be accomplished by first class mail,
postage prepaid; electronic facsimile transmission; express overnight courier service; or
registered or certified mail, return receipt requested) or telegraphed, and shall be considered to
be delivered three (3) days after dispatch or upon receipt.

(e) Binding Effect; Assignment. This Agreement shall be binding upon and inure to
the benefit of the Company and the Investors and their respective heirs, successors and assigns,
except that the Company shall not have the right to delegate its obligations hereunder or to assign
its rights hereunder or any interest herein without the prior written consent of the holders of all
of the Securities.

(f) Prior Agreements. This Agreement, the Transaction Documents or other agreements
executed and delivered herewith constitute the entire agreement between the parties and supersedes
any prior understandings or agreements concerning the subject matter hereof.

(g) Severability. The provisions of this Agreement and the terms of the Securities
are severable and, in the event that any court of competent jurisdiction shall determine that any
one or more of the provisions or part of a provision contained in this Agreement or the terms of
the Securities shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision or
part of a provision of this Agreement or the terms of the Securities, but this Agreement and the
terms of the Securities shall be reformed and construed as if such invalid or illegal or
unenforceable provision, or part of a provision, had never been contained herein, and such
provisions or part reformed so that it would be valid, legal and enforceable to the maximum extent
possible.

(h) Confidentiality. Each Investor agrees that it will keep confidential and will
not disclose or divulge any confidential, proprietary or secret information which such Investor may
obtain from the Company pursuant to financial statements, reports and other materials submitted by
the Company to such Investor pursuant to this Agreement, or pursuant to visitation or inspection
rights previously granted to any Investor, unless such information is known, or until such
information becomes known, to the public; provided, however, that a Investor may disclose such
information (i) on a confidential basis to its attorneys, accountants, consultants and other
professionals to the extent necessary to obtain their services in connection with its investment in
the Company, (ii) to any prospective purchaser of any of the Securities from such Investor as long
as such prospective purchaser agrees in writing to be bound by the provisions of this Section,
(iii) to any affiliate or partner of such Investor and (iv) as required by applicable law.

(i) Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement
shall be governed by, and construed in accordance with, the internal laws of the State of New York
without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York
County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the
transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are
specified for the giving of notices under this Agreement. Each of the parties hereto irrevocably
consents to the jurisdiction of any such court in any such suit, action or proceeding and to the
laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of
venue of any such suit, action or proceeding brought in such courts and irrevocably waives any
claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED
SPECIFICALLY AS TO THIS WAIVER.

(j) Headings. Article, section and subsection headings in this Agreement are
included herein for convenience of reference only and shall not constitute a part of this Agreement
for any other purpose.

(k) Counterparts. This Agreement may be executed in any number of counterparts, all
of which taken together shall constitute one and the same instrument, and any of the parties hereto
may execute this Agreement by signing any such counterpart.

(l) Further Assurances. From and after the date of this Agreement, upon the request
of any Investor or the Company, the Company and the Investors shall execute and deliver such
instruments, documents and other writings as may be reasonably necessary or desirable to confirm
and carry out and to effectuate fully the intent and purposes of this Agreement and the Transaction
Documents.

(m) Independent Nature of Investors’ Obligations and Rights. The obligations of
each Investor under any Transaction Document are several and not joint with the obligations of any
other Investor, and no Investor shall be responsible in any way for the performance of the
obligations of any other Investor under any Transaction Document. The decision of each Investor to
purchase Securities pursuant to the Transaction Documents has been made by such Investor
independently of any other Investor. Nothing contained herein or in any Transaction Document, and
no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption
that the Investors are in any way acting in concert or as a group with respect to such obligations
or the transactions contemplated by the Transaction Documents. Each Investor acknowledges that no
other Investor has acted as agent for such Investor in connection with making its investment
hereunder and that no Investor will be acting as agent of such Investor in connection with
monitoring its investment in the Securities or enforcing its rights under the Transaction
Documents. The Company acknowledges that each of the Investors has been provided with the same
Transaction Documents for the purpose of closing a transaction with multiple Investors and not
because it was required or requested to do so by any Investor.

(n) Expenses. The Company shall pay up to $5,000 in expenses incurred by the
Investor in connection with its diligence review. In addition, the Company shall also pay the
legal fees and expense incurred by the Investor in connection with the negotiation of this
Agreement and the other Transaction Documents, of which up to $30,000 of such fees and expenses
shall be paid upon the execution of this Agreement.

(o) Participation Right. Subject to the terms and conditions specified in this
Section 12(o), for a period of one year after the date that the registration statement the Company
is required to file pursuant to Section 11 hereof is declared effective, the Investor shall have a
right to participate with respect to up to the first $5,000,000 of any (i) future equity or
equity-linked securities, or (ii) debt which is convertible into equity or in which there is an
equity component (“Additional Securities”) on the same terms and conditions as offered by the
Company to the other purchasers of such Additional Securities. Each time the Company proposes to
offer any Additional Securities, the Company shall make an offering of such Additional Securities
to the Investor in accordance with the following provisions:

(i) the Company shall deliver a notice (the “Notice”) to the Investor
stating (i) its bona fide intention to offer such Additional Securities, (ii) the
number of such Additional Securities to be offered, (iii) the price and terms, if
any, upon which it proposes to offer such Additional Securities, and (iv) the
anticipated closing date of the sale of such Additional Securities.

(ii) by written notification received by the Company, within
seven (7) days after giving of the Notice, any Investor may elect to purchase or
obtain, at the price and on the terms specified in the Notice, up to that portion of
such Additional Securities which equals the proportion that the number of shares of
Common Stock purchased by such Investor pursuant to the terms hereof bears to the
total number of shares of Common Stock sold by the Company to other Investors in the
Offering. The Company shall promptly, in writing, inform each Investor which elects
to purchase all of the Additional Shares available to it (“Fully-Exercising
Purchaser”) of any other Investor’s failure to do likewise. During the five-day
period commencing after such information is given, each Fully-Exercising Investor
shall be entitled to obtain that portion of the Additional Securities for which the
Investors were entitled to subscribe but which were not subscribed for by the
Investors which is equal to the proportion that the number of shares of Common Stock
purchased by such Fully-Exercising Purchaser in the Offering bears to the total
number of shares of Common Stock purchased in the Offering by all Fully-Exercising
Purchasers who wish to purchase some of the unsubscribed shares;

(iii) if all Additional Securities which the Investors are entitled
to obtain pursuant to subsection 12(o)(ii) are not elected to be obtained as
provided in subsection 12(o)(ii) hereof, the Company may, during the 60-day period
following the expiration of the period provided in subsection 12(o)(ii) hereof,
offer the remaining unsubscribed portion of such Additional Securities to any person
or persons at a price not less than, and upon terms no more favorable to the offeree
than those specified in the Notice. If the Company does not consummate the sale of
such Additional Securities within such period, the right provided hereunder shall be
deemed to be revived and such Additional Securities shall not be offered or sold
unless first reoffered to the Investors in accordance herewith;

The participation right in this Section 12(o) shall not be applicable to (i) the issuance or
sale of shares of Common Stock (or options therefor) to employees, officers, directors, or
consultants of the Company for the primary purpose of soliciting or retaining their employment or
service pursuant to a stock option plan (or similar equity incentive plan) or otherwise approved by
the Board, or (ii) the issuance of securities in connection with mergers, acquisitions, strategic
business partnerships or joint ventures (the primary purpose of which, in the reasonable judgment
of the Board, is not to raise additional capital).

(p) The Notes sold hereunder are subordinate to the existing senior
indebtedness of the Company under the Credit Agreement, and the existing Subordinated Secured
Promissory Notes, dated January 31, 2005 in the aggregate principal amount of $2,500,000 (as
amended, the “Existing Sub Debt”). This Subscription and the Notes are subject to the undersigned
Investor entering into those certain intercreditor and subordination agreements and the Senior
Subordination Agreement (collectively, the “Subordination Agreement”) with the senior lenders under
the Credit Agreement, and the holders of the Existing Sub Debt, subordinating the Notes and any
rights thereunder to the rights of such lenders and holders. The undersigned Investor hereby
consents to any further borrowings under the Credit Agreement, and agrees to consent to any senior
indebtedness in order to refinance the borrowings under the Credit Agreement or otherwise, and
agrees to enter into any subordination or intercreditor agreements requested by any senior lender
(or their agents) to the Company that is substantially similar to the Senior Subordination
Agreement.

12. Additional Definitions. In addition to those terms defined above and elsewhere
in this Agreement, for the purposes of this Agreement, the following terms shall have the meanings
set forth below:

“Affiliate” means, with respect to any Person, any other Person which directly or indirectly
through one or more intermediaries Controls, is controlled by, or is under common control with,
such Person.

“Agreement” means this Subscription Agreement.

“Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City
are open for the general transaction of business.

“Company Reports” means all of the Company’s registration statements, prospectuses, reports,
financial statements and documents (including all exhibits and amendments thereto) as filed by the
Company with the SEC.

“Confidential Information” means trade secrets, confidential information and know-how
(including but not limited to ideas, formulae, compositions, processes, procedures and techniques,
research and development information, computer program code, performance specifications, support
documentation, drawings, specifications, designs, business and marketing plans, and customer and
supplier lists and related information).

“Control” (including the terms “controlling”, “controlled by” or “under common control with”)
means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

“Person” means an individual, corporation, partnership, limited liability company, trust,
business trust, association, joint stock company, joint venture, sole proprietorship,
unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

“SEC” means the Securities and Exchange Commission

“Subsidiary” of any Person means another Person, an amount of the voting securities, other
voting ownership or voting partnership interests of which is sufficient to elect at least a
majority of its Board of Directors or other governing body (or, if there are no such voting
interests, 50% or more of the equity interests of which) is owned directly or indirectly by such
first Person.

“Transaction Documents” means this Agreement, the Warrants and any and all other agreements or
instruments entered into between the Company and the Investor in connection with the Offering.

* * * * *

1

[The remainder of this page is blank; the Signature Pages follow.]Appendix A — Signature

Page

IN WITNESS WHEREOF, the undersigned has executed this Prepaid Subscription Agreement this
—th day of October, 2006.

	 
	 

	 

	 

	Investor

By:      

Name:

	Title:

	 

	- Name of Investor

     

Print Title of individual signing on behalf of an entity, if applicable

Accepted and agreed as of October 12, 2006:

Halo Technology Holdings, Inc.

By:

Name:

Title

CONSIDERATION TO BE DELIVERED

2

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