Document:

Unassociated Document

    

      THIS
        WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
        HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED
        UNTIL
        (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED
        (THE “1933
        ACT”)
        SHALL
        HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY
        OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT
        THAT REGISTRATION UNDER THE 1933 ACT IS NOT REQUIRED IN CONNECTION WITH SUCH
        PROPOSED TRANSFER NOR IS SUCH TRANSFER IN VIOLATION OF ANY APPLICABLE STATE
        SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY WARRANT ISSUED IN
        EXCHANGE FOR THIS WARRANT OR ANY SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
        OF THIS WARRANT.

       

      WARRANT
        TO PURCHASE COMMON STOCK

       

      OF

       

      ARGYLE
        SECURITY ACQUISITION CORPORATION

       

      W04122007-5

       

      This
        is
        to Certify That, FOR VALUE RECEIVED, Argyle
        Global Opportunities, L.P. or
        its
        assigns (“Holder”),
        is
        entitled to purchase, subject to the provisions of this Warrant, from Argyle
        Security Acquisition Corporation, a Delaware corporation (the “Company”),
        6,250
        shares of fully paid, validly issued and nonassessable shares of the common
        stock of the Company (“Common
        Stock”)
        at a
        price of $5.50 per share. The number of shares of Common Stock to be received
        upon the exercise of this Warrant and the price to be paid for each share
        of
        Common Stock may be adjusted from time to time as hereinafter set forth.
        The
        shares of Common Stock deliverable upon such exercise, and as adjusted from
        time
        to time, are hereinafter sometimes referred to as “Warrant
        Shares”
and
        the
        exercise price of a share Common Stock in effect at any time and as adjusted
        from time to time is hereinafter sometimes referred to as the “Exercise
        Price.”
        

       

      (a) EXERCISE
        OF WARRANT.

       

      (1) This
        Warrant may be exercised in whole or in part at any time or from time to
        time
from
        the
        date the Company consummates a Business Combination (as defined in the Company
        ’s certificate of incorporation) up
        to and
        including January 24, 2011 (the “Exercise
        Period”);
        provided, however, that (i) if either such day is a day on which banking
        institutions in the State of New York are authorized by law to close, then
        on
        the next succeeding day which shall not be such a day, and (ii) in the
        event of any merger, consolidation or sale of substantially all the assets
        of
        the Company as an entirety, resulting in any distribution to the Company’s
        stockholders, prior to termination of the Exercise Period, the Holder shall
        have
        the right to exercise this Warrant commencing at such time through the
        termination of the Exercise Period into the kind and amount of shares of
        stock
        and other securities and property (including cash) receivable by a holder
        of the
        number of shares of Common Stock into which this Warrant might have been
        exercisable immediately prior thereto. This Warrant may be exercised by
        presentation and surrender hereof to the Company at its principal office
        with
        the Purchase Form annexed hereto duly executed and accompanied by payment
        of the
        Exercise Price for the number of Warrant Shares specified in such form. As
        soon
        as practicable after each such exercise of this Warrant, but not later than
        seven (7) days following the receipt of good and available funds, the Company
        shall issue and deliver to the Holder a certificate or certificates for the
        Warrant Shares issuable upon such exercise, registered in the name of the
        Holder
        or its designee. If this Warrant should be exercised in part only, the Company
        shall, upon surrender of this Warrant for cancellation, execute and deliver
        a
        new Warrant evidencing the rights of the Holder thereof to purchase the balance
        of the Warrant Shares purchasable hereunder. As of the end of business on
        the
        date of receipt by the Company of this Warrant at its office in proper form
        for
        exercise, the Holder shall be deemed to be the holder of record of the shares
        of
        Common Stock issuable upon such exercise, notwithstanding that the stock
        transfer books of the Company shall then be closed or that certificates
        representing such shares shall not then be physically delivered to the
        Holder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (2) At
        any
        time during the Exercise Period, the Holder may, at its option, exercise
        this
        Warrant on a cashless basis by exchanging this Warrant, in whole or in part
        (a
“Warrant
        Exchange”),
        into
        the number of Warrant Shares determined in accordance with this
        Section (a)(2), by surrendering this Warrant at the principal office of the
        Company or at the office of its stock transfer agent, accompanied by a notice
        stating such Holder’s intent to effect such exchange, the number of Warrant
        Shares to be exchanged and the date on which the Holder requests that such
        Warrant Exchange occur (the “Notice
        of Exchange”).
        The
        Warrant Exchange shall take place on the date specified in the Notice of
        Exchange or, if later, the date the Notice of Exchange is received by the
        Company (the “Exchange
        Date”).
        Certificates for the shares issuable upon such Warrant Exchange and, if this
        Warrant should be exercised in part only, a new Warrant evidencing the rights
        of
        the Holder thereof to purchase the balance of the Warrant Shares purchasable
        hereunder, shall be issued as of the Exchange Date and delivered to the Holder
        within seven (7) days following the Exchange Date. In connection with any
        Warrant Exchange, this Warrant shall represent the right to subscribe for
        and
        acquire the number of Warrant Shares equal to (i) the number of Warrant
        Shares specified by the Holder in its Notice of Exchange (the “Total
        Number”)
        less
        (ii) the number of Warrant Shares equal to the quotient obtained by
        dividing (A) the product of the Total Number and the existing Exercise
        Price by (B) the current market value of a share of Common Stock. Current
        market value shall means the average closing sales price for a share of the
        Common Stock for the five trading days immediately preceding the date of
        the
        Notice of Exchange.

       

      (b) RESERVATION
        OF SHARES. The Company shall at all times reserve for issuance and/or delivery
        upon exercise of the this Warrant such number of shares of Common Stock as
        shall
        be required for issuance and delivery upon exercise of this Warrant.

       

      (c) FRACTIONAL
        SHARES. No fractional shares or scrips representing fractional shares shall
        be
        issued upon the exercise of this Warrant. With respect to any fraction of
        a
        share called for upon any exercise hereof, the Company shall pay to the Holder
        an amount in cash equal to such fraction multiplied by the current market
        value
        of a share of Common Stock, as defined in Section (a)(2) above.

       

      (d) LOSS
        OR
        DESTRUCTION OF WARRANT. Upon receipt by the Company of evidence satisfactory
        to
        it of the loss, theft, destruction or mutilation of this Warrant, and (in
        the
        case of loss, theft or destruction) of reasonably satisfactory indemnification,
        and upon surrender and cancellation of this Warrant, if mutilated, the Company
        will execute and deliver a new Warrant of like tenor and date. Any such new
        Warrant executed and delivered shall constitute an additional contractual
        obligation on the part of the Company, whether or not this Warrant so lost,
        stolen, destroyed, or mutilated shall be at any time enforceable by
        anyone.

       

      (e) RIGHTS
        OF
        THE HOLDER. The Holder shall not, by virtue hereof, be entitled to any rights
        of
        a shareholder in the Company, either at law or equity, and the rights of
        the
        Holder are limited to those expressed in this Warrant and are not enforceable
        against the Company except to the extent set forth herein.

       

      (f) ANTI-DILUTION
        PROVISIONS. In case the Company shall hereafter (i) declare a dividend or
        make a
        distribution on its outstanding Common Stock in shares of Common Stock, (ii)
        subdivide or reclassify its outstanding Common Stock into a greater number
        of
        shares, or (iii) combine or reclassify its outstanding Common Stock into
        a
        smaller number of shares, the Exercise Price in effect at the time of the
        record
        date for such dividend or distribution or of the effective date of such
        subdivision, combination or reclassification shall be adjusted so that it
        shall
        equal the price determined by multiplying the Exercise Price by a fraction,
        the
        denominator of which shall be the number of shares of Common Stock outstanding
        after giving effect to such action, and the numerator of which shall be the
        number of shares of Common Stock outstanding immediately prior to such action.
        The
        number of shares of Common Stock that the Holder shall thereafter, on the
        exercise hereof, be entitled to receive shall be adjusted to a number determined
        by multiplying the number of shares of Common Stock that would otherwise
        (but
        for the provisions of this -Section (f)) be issuable on such exercise by
        a
        fraction of which (a) the numerator is the Exercise Price that would otherwise
        (but for the provisions of this Section (f)) be in effect, and (b) the
        denominator is the Exercise Price in effect on the date of such exercise
        (taking
        into account the provisions of this Section (f)). Notwithstanding the foregoing,
        in no event shall the Exercise Price be less than the par value of the Common
        Stock. Adjustment
        pursuant to this Section shall be made successively whenever any event listed
        above shall occur. 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      (g) NOTICES
        TO WARRANT HOLDERS. So long as this Warrant shall be outstanding, (i) if
        the Company shall pay any dividend or make any distribution upon the Common
        Stock or (ii) if the Company shall offer to the holders of Common Stock for
        subscription or purchase by them any share of any class or any other rights
        or
        (iii) if any capital reorganization of the Company, reclassification of the
        capital stock of the Company, consolidation or merger of the Company with
        or
        into another corporation, sale, lease or transfer of all or substantially
        all of
        the property and assets of the Company to another corporation, or voluntary
        or
        involuntary dissolution, liquidation or winding up of the Company shall be
        effected, then in any such case, the Company shall cause to be mailed by
        certified mail to the Holder, at least fifteen days prior the date specified
        in
        (x) or (y) below, as the case may be, a notice containing a brief
        description of the proposed action and stating the date on which (x) a
        record is to be taken for the purpose of such dividend, distribution or rights,
        or (y) such reclassification, reorganization, consolidation, merger,
        conveyance, lease, dissolution, liquidation or winding up is to take place
        and
        the date, if any is to be fixed, as of which the holders of Common Stock
        or
        other securities shall receive cash or other property deliverable upon such
        reclassification, reorganization, consolidation, merger, conveyance,
        dissolution, liquidation or winding up.

       

      (h) RECLASSIFICATION,
        REORGANIZATION OR MERGER. In case of any reclassification, capital
        reorganization or other change of outstanding Common Stock of the Company,
        or in
        case of any consolidation or merger of the Company with or into another
        corporation (other than a merger with a subsidiary in which merger the Company
        is the continuing corporation and which does not result in any reclassification,
        capital reorganization or other change of outstanding Common Stock of the
        class
        issuable upon exercise of this Warrant) or in case of any sale, lease or
        conveyance to another corporation of the property of the Company as an entirety,
        the Company shall, as a condition precedent to such transaction, cause effective
        provisions to be made so that the Holder shall have the right thereafter
        by
        exercising this Warrant at any time prior to the expiration of the Warrant,
        to
        purchase the kind and amount of shares of stock and other securities and
        property receivable upon such reclassification, capital reorganization and
        other
        change, consolidation, merger, sale or conveyance by a holder of the number
        of
        shares of Common Stock that might have been purchased upon exercise of this
        Warrant immediately prior to such reclassification, change, consolidation,
        merger, sale or conveyance. Any such provision shall include provision for
        adjustments which shall be as nearly equivalent as may be practicable to
        the
        adjustments provided for in this Warrant. The foregoing provisions of this
        Section (h) shall similarly apply to successive reclassifications, capital
        reorganizations and changes of Common Stock and to successive consolidations,
        mergers, sales or conveyances. In the event that in connection with any such
        capital reorganization or reclassification, consolidation, merger, sale or
        conveyance, additional shares of Common Stock shall be issued in exchange,
        conversion, substitution or payment, in whole or in part, for a security
        of the
        Company other than Common Stock, any such issue shall be treated as an issue
        of
        Common Stock covered by the provisions of Section (f) hereof.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (i) No
        Net-Cash Settlement.
        In
        no
        event will the Holder be entitled to receive a net-cash settlement or other
        consideration in lieu of physical settlement in securities.

       

      (j) MODIFICATION
        OF AGREEMENT. The provisions of this Warrant may from time to time be amended,
        modified or waived, by the Company and the holder of this Warrant.

       

    

    
      Dated:
        April 16, 2007

      
         

        
          	 	 	
                  ARGYLE
                    SECURITY ACQUISITION CORPORATION

                
	 	 	 	 
	 	 	
                  By:

                	
                  /s/
                    Bob Marbut

                
	 	 	 	
                  Name:
                    Bob Marbut

                
	 	 	 	
                  Title:  
                    Co-Chief Executive Officer

                
	 	 	 	 
	
                  Holder:

                	 	 	 
	 	 	 	 
	Argyle
                  Global Opportunities, L.P.	 	 	 
	 	 	 	 
	
                  /s/
                    Bob Marbut

                	 	 	 
	
                  Name:
                    Bob Marbut

                  Title:  
Authorized
                    Signatory

                	 	 	 

        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        PURCHASE
          FORM

         

        
          
            	 	Dated
                    ____________________

          

        

         

        (1)
          The
          undersigned hereby irrevocably elects to exercise the within Warrant to
          the
          extent of purchasing shares of Common Stock of Argyle Security Acquisition
          Corporation (or such number of shares of Common Stock or other securities
          or
          property to which the undersigned is entitled in lieu thereof or in addition
          thereto under the provisions of the Warrant).

         

        (2)
          The
          undersigned hereby elects to make payment (Please check one):

         

        ___
          on a
          cashless basis pursuant to the provisions of Section (a)(2) of the
          Warrant.

         

        ___
          with
          the enclosed bank draft, certified check or money order payable to the
          Company
          in payment of the exercise price determined under, and on the terms specified
          in, the Warrant.

         

        (3)
          The
          undersigned hereby irrevocably directs that the said shares be issued and
          delivered as follows: 

         

        
          	
                  Name(s)
                    in Full

                	 	
                  Address(es)

                	 	
                  Number
                    of Shares 

                	 	
                  S.S.
                    or IRS #

                
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

        

         

         

         

        _____________________________

        Signature
          of Holder

         

        _____________________________

        Print
          Name

         

        
          
            
            

          

          
            5Unassociated Document

    NOTE
      AND WARRANT ACQUISITION AGREEMENT

     

    

    Argyle
      Security Acquisition Corporation

    200
      Concord Plaza Suite 700

    San
      Antonio, TX 78216

    

    The
      undersigned (the “Investor”),
      hereby confirms its agreement with you as follows: 

    

    1. This
      Note
      and Warrant Acquisition Agreement (the “Agreement”)
      is
      made as of the date set forth below between Argyle Security Acquisition
      Corporation, a Delaware corporation (the “Company”),
      and
      the Investor.

     

    2. The
      Company is selling notes in the aggregate principal amount of $300,000 (each
      a
“Note”)
      bearing an interest rate of 4% in the form of Exhibit A hereto and 37,500
      warrants in the form of Exhibit B hereto (each a “Warrant”
and,
      together with the Notes, the “Securities”),
      each
      warrant to purchase one share of the common stock of the Company (the
“Common
      Stock”),
      to
      the investors in a private placement (the “Offering”).
      

     

    3. The
      terms
      and conditions of Annex I are incorporated by reference into this
      Agreement.

     

    4. The
      Company will issue to the Investor (i) $32,000 aggregate principal amount of
      Notes on the Closing Date, (ii) 4,000 Warrants.

     

    5. All
      transferees of the Securities and the Common Stock into which the Securities
      are
      exercisable shall be bound by the restrictions set forth herein, the Note and
      the Warrant.

     

    Please
      confirm that the foregoing correctly sets forth the agreement between us by
      signing in the space provided below for that purpose.

    

    
      	 	
              Dated
                April 16, 2007

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
              “INVESTOR”

            
	
               

            	
               

            
	
               

            	
              /s/
                Wesley
                Clark                                                          
                

            
	
               

            	
               

            
	
               

            	
              Print
                Name: Wesley
                Clark                                           
                

            
	
               

            	
              Address:    
                Wesley K. Clark Associates

                                  
                116 Ottenheimer Plaza

                                   
                Little
                Rock, Arkansas 72201

            
	
               

            	
               

            
	
               

            	
              Facsimile:
                ______________________________

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    AGREED
      AND ACCEPTED:

    ARGYLE
      SECURITY ACQUISITION CORPORATION

    

     

    By: /s/
      Bob
      Marbut                                                  

    Print
      Name: Bob Marbut

    Title:           
      Co-Chief Executive Officer

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      I

    

     

    1. Waiver
      of Liquidation Distributions.
      In
      connection with the Securities purchased pursuant to this Agreement, the
      Investor hereby waives any and all right, title, interest or claim of any kind
      in or to any liquidating distributions by the Company in the event of a
      liquidation of the Company upon the Company's failure to timely complete a
      Business Combination (as defined in the Company’s Second Amended and Restated
      Certificate of Incorporation). 

     

    2. Lock-Up
      Agreement.
      The
      Investor may not sell, assign, hypothecate, or transfer any of the Securities
      purchased pursuant to this Agreement until the earlier of consummation of a
      Business Combination or liquidation of the Company. 

     

    3. Representations
      and Warranties of the Investors.
      The
      Investor represents and warrants to the Company that:

     

    3.1 The
      Investor is an “accredited investor” as that term is defined in Rule 501 of
      Regulation D promulgated under the Securities Act of 1933, as amended (the
      “Securities Act”).

     

    3.2 The
      Securities are being acquired for the Investor’s own account, only for
      investment purposes and not with a view to, or for resale in connection with,
      any distribution or public offering thereof within the meaning of the Securities
      Act.

     

    3.3 The
      Investor has the full right, power and authority to enter into this Agreement
      and this Agreement is a valid and legally binding obligation of the Investor

      enforceable against the Investor in accordance with its terms.

     

    4. Registration
      Rights.

     

    4.1 Demand
      Registration.
      At any
      time and from time to time on or after the date on which the Company has
      consummated a Business Combination, persons holding a majority-in-interest
      of
      the shares of Common Stock underlying the Warrants sold on the date hereof
      (the
“Registrable Securities”) may make a written demand for registration under the
      Securities Act of all or part of their Registrable Securities (a “Demand
      Registration”). Any demand for a Demand Registration shall specify the number of
      Registrable Securities proposed to be sold. The Company will notify all holders
      of Registrable Securities of the demand, and each holder of Registrable
      Securities who wishes to include all or a portion of such holder’s Registrable
      Securities in the Demand Registration (each such holder including shares of
      Registrable Securities in such registration, a “Demanding Holder”) shall so
      notify the Company within fifteen (15) days after the receipt by the holder
      of
      the notice from the Company. Upon any such request, the Demanding Holders shall
      be entitled to have their Registrable Securities included in the Demand
      Registration. 

     

    The
      Company shall, as expeditiously as possible and in any event within sixty (60)
      days after receipt of a request for a Demand, prepare and file with the SEC
      a
      registration statement on any form for which the Company then qualifies or
      which
      counsel for the Company shall deem appropriate and which form shall be available
      for the sale of all Registrable Securities to be registered thereunder, and
      shall use its best efforts to cause such registration statement to become
      effective as promptly as practicable. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      Company shall not be obligated to effect more than two Demand Registrations
      in
      respect of the Registrable Securities.

     

    4.2 “Piggyback”
      Registration Rights.
      Subject
      to the last sentence of this Section 4.2, at any time after a Business
      Combination, if the Company shall determine to proceed with the actual
      preparation and filing of a new registration statement under the Securities
      Act
      in connection with the proposed offer and sale of any of its securities by
      it or
      any of its security holders (other than a registration statement on Form S-4,
      S-8 or other limited purpose form), the Company will give written notice of
      its
      determination to the Investor or its nominee. Upon the written request from
      a
      majority-in-interest of the Registrable Securities, within 15 days after receipt
      of any such notice from the Company, the Company will, except as herein
      provided, cause all of the Registrable Securities covered by such request (the
      “Requested Stock”) held by the Investors making such request (the “Requesting
      Holders”) to be included in such registration statement (each, a “Piggy-Back
      Registration”), all to the extent requisite to permit the sale or other
      disposition by the prospective seller or sellers of the Requested Stock;
      provided, further, that nothing herein shall prevent the Company from, at any
      time, abandoning or delaying any registration. If any registration pursuant
      to
      this Section 4.2 shall be underwritten in whole or in part, the Company may
      require that the Requested Stock be included in the underwriting on the same
      terms and conditions as the securities otherwise being sold through the
      underwriters. In such event, the Requesting Holders shall, if requested by
      the
      underwriters, execute an underwriting agreement containing customary
      representations and warranties by selling stockholders and a lock-up on
      Registrable Securities not being sold. If in the good faith judgment of the
      managing underwriter of such public offering the inclusion of all of the
      Requested Stock would reduce the number of shares to be offered by the Company
      or interfere with the successful marketing of the shares of stock offered by
      the
      Company, the number of shares of Requested Stock otherwise to be included in
      the
      underwritten public offering may be reduced pro rata (by number of shares)
      among
      the Requesting Holders and all other holders of registration rights who have
      requested inclusion of their securities or excluded in their entirety if so
      required by the underwriter. To the extent only a portion of the Requested
      Stock
      is included in the underwritten public offering, those shares of Requested
      Stock
      which are thus excluded from the underwritten public offering and any other
      securities of the Company held by such holders shall be withheld from the market
      by the holders thereof for a period, not to exceed 90 days, which the managing
      underwriter reasonably determines is necessary in order to effect the
      underwritten public offering. At such time as the provisions of the registration
      rights agreement filed as an exhibit to the registration statement relating
      to
      the Company’s initial public offering may be exercised, the exercise and
      procedural provisions of such agreement, rather than the provisions of Sections
      4.2, 4.3 and 4.4 hereof, shall govern the Registrable Securities with respect
      to
      Piggy-Back Registrations.

     

    4.3 Registration
      Procedures.
      To the
      extent required by Sections 4.1 or 4.2, the Company will:

     

    (a) prepare
      and file with the SEC a registration statement with respect to such securities,
      and use its best efforts to cause such registration statement to become and
      remain effective until the earlier of the date on which all of the Registrable
      Securities included in the registration statement have been disposed of in
      accordance with the intended method(s) of distribution set forth in such
      registration statement or three years from the effective date;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) prepare
      and file with the SEC such amendments to such registration statement and
      supplements to the prospectus contained therein as may be necessary to keep
      such
      registration statement effective until the earlier of the date on which all
      of
      the Registrable Securities included in the registration statement have been
      disposed of in accordance with the intended method(s) of distribution set forth
      in such registration statement or three years from the effective
      date;

     

    (c) furnish
      to the holders participating in such registration and to the underwriters of
      the
      securities being registered such reasonable number of copies of the registration
      statement, preliminary prospectus, final prospectus and such other documents
      as
      such underwriters may reasonably request in order to facilitate the public
      offering of such securities;

     

    (d) use
      its
      best efforts to register or qualify the securities covered by such registration
      statement under such state securities or blue sky laws of such jurisdictions
      as
      the holders may reasonably request in writing within 20 days following the
      original filing of such registration statement, except that the Company shall
      not for any purpose be required to execute a general consent to service of
      process or to qualify to do business as a foreign corporation in any
      jurisdiction wherein it is not so qualified;

     

    (e) notify
      the holders, promptly after it shall receive notice thereof, of the time when
      such registration statement has become effective or a supplement to any
      prospectus forming a part of such registration statement has been
      filed;

     

    (f) notify
      the holders promptly of any request by the SEC for the amending or supplementing
      of such registration statement or prospectus or for additional
      information;

     

    (g) prepare
      and promptly file with the SEC and promptly notify such holders of the filing
      of
      such amendment or supplement to such registration statement or prospectus as
      may
      be necessary to correct any statements or omissions if, at the time when a
      prospectus relating to such securities is required to be delivered under the
      Securities Act, any event shall have occurred as the result of which any such
      prospectus or any other prospectus as then in effect would include an untrue
      statement of a material fact or omit to state any material fact necessary to
      make the statements therein, in the light of the circumstances in which they
      were made, not misleading; and 

     

    (i) advise
      the holders, promptly after it shall receive notice or obtain knowledge thereof,
      of the issuance of any stop order by the SEC suspending the effectiveness of
      such registration statement or the initiation or threatening of any proceeding
      for that purpose and promptly use its best efforts to prevent the issuance
      of
      any stop order or to obtain its withdrawal if such stop order should be
      issued.

     

    The
      Investors shall cooperate with the Company in providing the information
      necessary to effect the registration of the Registrable Securities, including
      completion of customary questionnaires. 

     

    4.4 Expenses.
      The
      Company shall bear all costs and expenses incurred in connection with any Demand
      Registration pursuant to Section 4.1, any Piggy-Back Registration pursuant
      to
      Section 4.2, and all expenses incurred in performing or complying with its
      other
      obligations under this Agreement, whether or not the registration statement
      becomes effective, including, without limitation: (i) all registration and
      filing fees; (ii) fees and expenses of compliance with securities or “blue sky”
laws (including fees and disbursements of counsel in connection with blue sky
      qualifications of the Registrable Securities); (iii) printing expenses; (iv)
      the
      Company’s internal expenses (including, without limitation, all salaries and
      expenses of its officers and employees); (v) the fees and expenses incurred
      in
      connection with the exchange listing of the Registrable Securities; (vi)
      National Association of Securities Dealers, Inc. fees; (vii) fees and
      disbursements of counsel for the Company and fees and expenses for independent
      certified public accountants retained by the Company (including the expenses
      or
      costs associated with the delivery of any opinions or comfort letters); (viii)
      the fees and expenses of any special experts retained by the Company in
      connection with such registration and (ix) the fees and expenses of one legal
      counsel selected by the holders of a majority-in-interest of the Registrable
      Securities included in such registration. The Company shall have no obligation
      to pay any underwriting discounts or selling commissions attributable to the
      Registrable Securities being sold by the holders thereof, which underwriting
      discounts or selling commissions shall be borne by such holders. Additionally,
      in an underwritten offering, all selling shareholders and the Company shall
      bear
      the expenses of the underwriter pro rata in proportion to the respective amount
      of shares each is selling in such offering.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5. Waiver
      and Indemnification.
      The
      Investor hereby waives any and all rights to assert any present or future
      claims, including any right of rescission, against the Company with respect
      to
      its purchase of Securities, and agrees to indemnify and hold the Company from
      all losses, damages or expenses that relate to claims or proceedings brought
      against the Company by any transferee of the Securities.

     

    6. Counterparts;
      Facsimile.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and all of which taken together
      shall
      constitute one and the same instrument. This Agreement or any counterpart may
      be
      executed via facsimile transmission, and any such executed facsimile copy shall
      be treated as an original.

     

    7.Governing
      Law.
      This
      Agreement shall for all purposes be deemed to be made under and shall be
      construed in accordance with the laws of the State of New York. Each of the
      parties hereby agrees that any action, proceeding or claim against it arising
      out of or relating in any way to this Agreement shall be brought and enforced
      in
      the courts of the State of New York or the United States District Court for
      the
      Southern District of New York, and irrevocably submits to such jurisdiction,
      which jurisdiction shall be exclusive. Each of the parties hereby waives any
      objection to such exclusive jurisdiction and that such courts represent an
      inconvenient forum.

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