<SEC-DOCUMENT>0001513162-14-000425.txt : 20140715
<SEC-HEADER>0001513162-14-000425.hdr.sgml : 20140715
<ACCEPTANCE-DATETIME>20140715114753
ACCESSION NUMBER:		0001513162-14-000425
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20140715
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20140715
DATE AS OF CHANGE:		20140715

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COPYTELE INC
		CENTRAL INDEX KEY:			0000715446
		STANDARD INDUSTRIAL CLASSIFICATION:	PATENT OWNERS & LESSORS [6794]
		IRS NUMBER:				112622630
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11254
		FILM NUMBER:		14975111

	BUSINESS ADDRESS:	
		STREET 1:		900 WALT WHITMAN RD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		5165495900

	MAIL ADDRESS:	
		STREET 1:		900 WALT WHITMAN ROAD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<head><title>form8k.htm</title> </head> <body bgcolor=#ffffff><a name=page_1> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader1> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>UNITED STATES</font></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>SECURITIES AND EXCHANGE COMMISSION</font></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>Washington, D.C. 20549</font></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><u><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></u></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>FORM 8-K</font></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>CURRENT REPORT</font></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934</font></b></p> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>Date of Report (Date of earliest event reported):&nbsp; July 15, 2014</font></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><u><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>COPYTELE, INC.</font></u></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>(Exact name of registrant as specified in its charter)</font></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <div align=center> <table bordercolor=transparent style="WIDTH:50%; BORDER-COLLAPSE:collapse; MARGIN-LEFT:27.9pt" cellpadding=0 cellspacing=0> <tr> <td width=35% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=top> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman">Delaware</font></b></p></td> <td width=30% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=top> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman">001-11254</font></b></p></td> <td width=35% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=top> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman">11-2622630</font></b></p></td></tr> <tr> <td width=35% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=top> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman">(State or other jurisdiction<br>of incorporation)</font></p></td> <td width=30% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=top> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman">(Commission<br>File Number)</font></p></td> <td width=35% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=top> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman">(IRS Employer</font></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman">Identification No.)</font></p></td></tr></table></div> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt">&nbsp;</p> <div align=center> <table bordercolor=transparent style="WIDTH:50%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr> <td width=50% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=bottom> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman">900 Walt Whitman Road, Melville, NY</font></b></p></td> <td width=50% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt" valign=bottom> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman">11747</font></b></p></td></tr> <tr> <td width=50% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt"> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman">(Address of principal executive offices)</font></p></td> <td width=50% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt"> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman">(Zip Code)</font></p></td></tr></table></div> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>Registrant&#146;s telephone number, including area code:&nbsp; </font><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>(631) 549-5900</font></b></p> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;</font></p> <p style="PAGE-BREAK-AFTER:auto; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>Not Applicable</font></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>&nbsp;(Former name or former address, if changed since last report)</font></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><u><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></u></b></p> <p style="PAGE-BREAK-AFTER:auto; TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions: </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt 0.5in; TEXT-INDENT:-0.5in"><font style=FONT-SIZE:11pt face=wingdings lang=EN-US>&#168;</font><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule&nbsp;425 under the Securities Act (17&nbsp;CFR&nbsp;230.425)</font></p> <p style="MARGIN:0in 0in 0pt 0.5in; TEXT-INDENT:-0.5in"><font style=FONT-SIZE:11pt face=wingdings lang=EN-US>&#168;</font><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17&nbsp;CFR&nbsp;240.14a-12)</font></p> <p style="MARGIN:0in 0in 0pt 0.5in; TEXT-INDENT:-0.5in"><font style=FONT-SIZE:11pt face=wingdings lang=EN-US>&#168;</font><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17&nbsp;CFR&nbsp;240.14d-2(b))</font></p> <p style="MARGIN:0in 0in 0pt 0.5in; TEXT-INDENT:-0.5in"><font style=FONT-SIZE:11pt face=wingdings lang=EN-US>&#168;</font><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17&nbsp;CFR&nbsp;240.13e-4(c))</font></p><a name=_aciFooter1> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font size=+0><font style=FONT-SIZE:8pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_2> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader2> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style="FONT-SIZE:11pt; BACKGROUND:white" face="times new roman" color=black lang=EN-US>Cautionary Note Regarding Forward-Looking Statements</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="times new roman" color=black lang=EN-US>This Current Report, including the exhibits included herein, may contain forward-looking statements.&nbsp;&nbsp;We have based these forward-looking statements on our current expectations and projections about future events.&nbsp;&nbsp;Our actual results may differ materially from those discussed herein, or implied by, these forward-looking statements.&nbsp;&nbsp;Forward-looking statements are generally identified by words such as &#147;believe,&#148; &#147;expect,&#148; &#147;anticipate,&#148; &#147;intend,&#148; &#147;estimate,&#148; &#147;plan,&#148; &#147;project&#148; and other similar expressions. In addition, any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company&#146;s control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>Item 1.01 Entry into a Material Definitive Agreement.</font></b></p> <p style="BACKGROUND:white; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="times new roman" color=black lang=EN-US>On July 15, 2014, the Company, raised $4,000,000 of gross proceeds via a registered direct offering of its par value $0.01 per share common stock (the &#147;Common Stock&#148;) to certain investors (the &#147;Investors&#148;)( the &#147;Offering&#148;). The Company sold an aggregate of 16,000,000 shares of Common Stock and warrants to purchase an aggregate of 8,000,000 shares of Common Stock. The purchase price of the Common Stock is $0.25 per share. &nbsp;The warrants may be exercised at a price of $0.40 per share. </font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="times new roman" color=black lang=EN-US>The warrants are exercisable immediately as of the date of issuance at an exercise price of $0.40 per share and expire five years from the date of issuance. The exercise price of the warrants is subject to customary adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions. </font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="times new roman" color=black lang=EN-US>The exercisability of the warrants is limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.9% of the Company&#146;s Common Stock. The holder may elect to increase or decrease this beneficial ownership limitation to any other percentage, but not in excess of 9.9% 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), provided that any such increase or decrease will not be effective until 61 days after such written notice is delivered. A holder of the warrants has the right to exercise its warrants on a cashless basis if the registration statement or prospectus contained therein is not available for the issuance of the shares of Common Stock issuable upon exercise thereof. </font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>Additionally, under certain circumstances, the Company has the right to call for cancellation all or any portion of each warrant for which a notice of exercise has not yet been delivered for consideration equal to $.001 per share.&nbsp; This call provision may be invoked as follows: </font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; TEXT-INDENT:-0.25in"><font style=FONT-SIZE:11pt face=symbol color=black lang=EN-US>&#183;</font><font style=FONT-SIZE:7pt face="times new roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>with respect to 50% of a particular holder&#146;s warrant, at any time after the date of issuance (i) if the volume weighted average price for any 10 out of 20 consecutive trading days (such period also referred to as the measurement period) exceeds $0.50 (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like after the issuance date) and (ii) the holder is not in possession of any information that constitutes, or might constitute, material non-public information which was provided by the Company (the &#147;First Call Opportunity&#148;); and</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in">&nbsp;</p><a name=_aciFooter2> <div> <p style="MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:10pt face="Times New Roman" lang=EN-US>2</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_3> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader3> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in; TEXT-INDENT:-0.25in"><font style=FONT-SIZE:11pt face=symbol color=black lang=EN-US>&#183;</font><font style=FONT-SIZE:7pt face="times new roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>with respect to the remaining 50% of a particular holder&#146;s warrant, at any time after the date of issuance (i) if the volume weighted average price for any 10 out of 20 consecutive trading days (such period also referred to as the measurement period) exceeds $0.70 (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like after the issuance date), (ii) the Company has previously called all of the warrants that could be called by the Company at the First Call Opportunity and (iii) the holder is not in possession of any information that constitutes, or might constitute, material non-public information which was provided by the Company. </font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 1in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>The Company must deliver an irrevocable written notice to a holder to invoke these call provisions and the holder will have ten trading days to exercise its warrant prior to cancelation.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>The Company has agreed to indemnify each of the purchasers against certain losses resulting from its breach of any of the standard representations, warranties, or covenants typically included in registered direct offerings. </font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>Securities for the Offering are expected to be delivered or before July 18, 2014.&nbsp;&nbsp;After giving effect to the Offering, but without giving effect to the exercise of the warrants being offered in this Offering or the exercise of any other outstanding warrant or option, the Company will have 236,822,190 shares of Common Stock outstanding.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>The Offering was effected as a takedown off the Company&#146;s shelf registration statement on Form S-3 (File No.&nbsp;333-193869), which became effective on April 25, 2014, pursuant to a prospectus supplement filed with the Securities and Exchange Commission.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="times new roman" color=black lang=EN-US>Alere Financial Partners LLC, a division of Summer Street Research Partners (the &#147;Placement Agent&#148;), acted as the Company&#146;s non-exclusive placement agent in the Offering.&nbsp; </font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>The foregoing summaries of the Offering, including the terms of the form of warrant issued to each of the purchasers are subject to, and qualified in their entirety by, such documents attached hereto as Exhibits 10.1 and&nbsp;4.1, respectively, which are incorporated herein by reference.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>Item 8.01 Other Events.</font></b></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information set forth in Item 1.01 with respect to the Offering is hereby incorporated herein by reference.&nbsp; The Company&nbsp;has included&nbsp;as&nbsp;Exhibit 5.1 to this&nbsp;Current Report an&nbsp;opinion of its counsel, Ellenoff Grossman &amp; Schole LLP, relating to the legality of the issuance and sale of the shares of common stock, warrants and shares of common stock issuable upon exercise of the warrants in the Offering.</font></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>On July 15, 2014, the Company issued a press release announcing the execution of the Purchase Agreement.&nbsp;&nbsp;A copy of the press release is attached as Exhibit&nbsp;99.1 hereto and incorporated by reference herein.</font></p> <p style="BACKGROUND:white; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>Item 9.01 Financial Statements and Exhibits.</font></b></p> <p style="BACKGROUND:white; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="BACKGROUND:white; MARGIN:0in 0in 0pt"><b><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>(d) Exhibits.</font></b></p> <p style="BACKGROUND:white; TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <div align=left> <table bordercolor=transparent style=WIDTH:60% cellpadding=0 cellspacing=0> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">4.1</font></p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">Form of Warrant to purchase Common Stock by the Company in favor of the Investors</font></p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">5.1</font></p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">Opinion of Ellenoff Grossman &amp; Schole LLP</font></p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">10.1</font></p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">Securities Purchase Agreement, dated July 15, 2014, by and between the Company and the Investors</font></p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">23.1</font></p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">Consent of Ellenoff Grossman &amp; Schole LLP (included in Exhibit 5.1)</font></p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr> <td width=6% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">99.1</font></p></td> <td width=94% style="PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:0in; PADDING-RIGHT:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman">Press Release dated July 15, 2014</font></p></td></tr></table></div> <div align=left>&nbsp;</div><a name=_aciFooter3> <div> <p style="MARGIN:0in 0in 0pt" align=center><font size=+0><font style=FONT-SIZE:8pt face="Times New Roman" lang=EN-US>&nbsp;<font style=FONT-SIZE:10pt>3</font></font></font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_4> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader4> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="times new roman" lang=EN-US>SIGNATURES</font></b></p> <p style="MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in">&nbsp;</p> <p style="MARGIN:0in 0in 0pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt 3.5in">&nbsp;</p> <div align=left> <table bordercolor=transparent style="WIDTH:55%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr style=HEIGHT:14.5pt> <td width=20% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:11pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Dated: July 15, 2014</font></p></td> <td width=43% valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=35% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=20% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=43% valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=35% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=20% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=43% valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=37% colspan=2 style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:11pt; LINE-HEIGHT:normal" face="times new roman">COPYTELE, INC.</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=20% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=43% valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=35% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td></tr> <tr style=HEIGHT:14.5pt> <td width=20% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=43% valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right><font style="FONT-SIZE:11pt; LINE-HEIGHT:normal" face=Calibri,sans-serif color=#000000>By:</font></p></td> <td width=35% style="HEIGHT:14.5pt; BORDER-BOTTOM:windowtext 1pt solid; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:11pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>/s/ Robert A. Berman</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=20% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=43% valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=35% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:11pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Name: Robert A. Berman</font></p></td></tr> <tr style=HEIGHT:14.5pt> <td width=20% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=43% valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right /></td> <td width=2% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p></td> <td width=35% style="HEIGHT:14.5pt; PADDING-BOTTOM:0in; PADDING-TOP:0in; PADDING-LEFT:1.5pt; PADDING-RIGHT:1.5pt" valign=bottom> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:11pt; LINE-HEIGHT:normal" face="times new roman" color=#000000>Title: President and Chief Executive Officer</font></p></td></tr></table></div> <p style="MARGIN:0in 0in 10pt">&nbsp;</p><a name=_aciFooter4> <div> <p style="MARGIN:0in 0in 0pt" align=center><font size=+0><font style=FONT-SIZE:8pt face="Times New Roman" lang=EN-US>&nbsp;<font style=FONT-SIZE:10pt>4</font></font></font></p></div></div> <hr width=100% size=2 noshade align=center> </a></body>
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<head><title>exhibit4.1.htm</title> </head> <body bgcolor=#ffffff><a name=page_1 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader1 /> <div> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=center><b>EXHIBIT 4.1</b></p></div><div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b></b>&nbsp;</p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>COMMON STOCK PURCHASE WARRANT</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b></b>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 12pt" align=center><b><font style="TEXT-TRANSFORM:uppercase; FONT-SIZE:12pt" face="Times New Roman" lang=EN-US>COPYTELE, INC.</font></b></p> <p style="MARGIN:12pt 0in 0in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Number: _______________</font></p> <p style="MARGIN:12pt 0in 0in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Shares: _______&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issue Date: </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>July&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> __, 2014 (&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Issue Date</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;)&nbsp;</font><b><font style="TEXT-TRANSFORM:uppercase; FONT-SIZE:12pt" face="Times New Roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></b></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:1in; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>THIS COMMON STOCK PURCHASE WARRANT (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) certifies that, for value received, _____________ or its assigns (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Holder</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Issue Date and on or prior to </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>11:59:59 p.m. (local time in New York City, New York)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> on </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>July&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> __, 201</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>9&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Termination Date</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) but not thereafter, to subscribe for and purchase from CopyTele, Inc., a Delaware corporation (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Company</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;), up to ______ shares (as subject to adjustment hereunder, the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Shares</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>This Warrant is one of a series of warrants (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Other Warrants</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148; and such Other Warrants collectively with this Warrant, the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Warrants</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148;) issued pursuant to the Purchase Agreement (as defined below).</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Section 1</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Definitions</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Purchase Agreement</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;), dated </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>July&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> ___, 2014, among the Company and the purchasers signatory thereto.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Section 2</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Exercise</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>a)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Issue Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier&#146;s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>after the Holder&#146;s actual receipt of all such Warrant Shares pursuant to Section 2(d)(i)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. &nbsp;Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>applicable number of Warrant Shares purchased.&nbsp; The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business Day of receipt of such notice.&nbsp; </font><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.</font></b></p><a name=_aciFooter1 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;1</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_2 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader2 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>b)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Exercise Price</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; The exercise price per share of the Common Stock under this Warrant shall be $</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>0</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>40</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, subject to adjustment </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>in accordance with the terms hereof</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Exercise Price</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;).&nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>c)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Cashless Exercise</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. If, and only if, at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>,&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> the issuance of the Warrant Shares to the Holder, then this Warrant may be exercised, in whole or in part, at such time by means of a &#147;cashless exercise&#148; in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-27pt; MARGIN:0in 0in 0pt 99pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;(A) = the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a &#147;cashless exercise,&#148; as set forth in the applicable Notice of Exercise;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(B) = the Exercise Price of this Warrant, as adjusted hereunder; and </font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-0.5in; MARGIN:0in 0in 0pt 1.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-31.5pt; MARGIN:0in 0in 0pt 103.5pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-31.5pt; MARGIN:0in 0in 0pt 103.5pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>VWAP</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC Markets QB Tier is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Markets QB Tier, (c) if the Common Stock is not then listed or quoted for trading on the OTC Markets QB Tier and if prices for the Common Stock are then reported in the &#147;Pink Sheets&#148; published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. </font></p><a name=_aciFooter2 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;2</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_3 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader3 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>d)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Mechanics of Exercise</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. &nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>i.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Delivery of Warrant Shares Upon Exercise</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; The Company shall use best efforts to cause the Warrant Shares purchased hereunder to be transmitted</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>, free of any restrictive legend,</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> by the Transfer Agent to the Holder by </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(1) </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>crediting the account of the Holder&#146;s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>DWAC</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> because there is no effective registration statement</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, and </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(2) </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>, in any case, </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>by the date that is three (3) Trading Days after the latest of (</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>X</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>) the delivery to the Company of the Notice of Exercise and (</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Y</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>) payment of the aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Share Delivery Date</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;).&nbsp; The Warrant Shares shall be deemed to have been issued, and Holder or any other </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>P</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>erson so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>viii</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>) prior to the issuance of such shares, having been paid. &nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>ii.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Company&#146;s Failure to Timely Deliver Warrant Shares</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp; I</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>f </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>t</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>he Company fails to deliver the required number of Warrant Shares</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> by the Warrant Share Delivery Date</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> in the manner required pursuant to Section </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>2</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>(</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>d</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(i)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, and if after such </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Warrant Share Delivery Date</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Buy In</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder&#146;s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the price at which the sell order giving rise to such purchase obligation was executed and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Upon the written request of the Company, t</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>he Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy In.</font></p><a name=_aciFooter3 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>3</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_4 /><a name=_aciHeader4 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in; PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>iii.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Absolute and Unconditional Obligation</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp; The Company&#146;s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person (including, without limitation, the Holder) or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in; PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>iv.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>No Exclusive Remedy</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>.&nbsp; Nothing contained in this Warrant shall limit a Holder&#146;s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company&#146;s failure to timely deliver certificates representing Warrant Shares upon exercise of the Warrant as required pursuant to the terms hereof.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in; PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>v.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Delivery of New Warrants Upon Exercise</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in; PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>vi.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Rescission Rights</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>In addition to the Holder&#146;s other rights and remedies hereunder, i</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>f the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>third&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> Trading Day following the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in; PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>vii.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>No Fractional Shares or Scrip</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.&nbsp; As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in; PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>viii.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Charges, Taxes and Expenses</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>provided</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>however</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, that in the event Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.&nbsp; The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise.</font></p> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>ix.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Closing of Books</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.</font></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%">&nbsp;</div><a name=_aciFooter4 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;4</font></p></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp;<a name=page_5 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>e)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Holder&#146;s Exercise Limitations</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> this</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder&#146;s Affiliates, and any other Persons acting</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> or deemed to be acting</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> as a group together with the Holder or any of the Holder&#146;s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.&nbsp; Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder&#146;s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. &nbsp;In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>and regulations promulgated thereunder.&nbsp; For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company&#146;s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.&nbsp; Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.&nbsp; In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.&nbsp; The &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Beneficial Ownership Limitation</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall be 4.9% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.&nbsp; The Holder, upon not less than 61 days&#146; prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.9% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply.&nbsp; Any such increase or decrease will not be effective until the 61<sup>st</sup> day after such notice is delivered to the Company.&nbsp; The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.&nbsp; </font></p><a name=_aciFooter5 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>5</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_6 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader6 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>f)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Provision</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>i.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Subject to the provisions of Section 2(e) and this Section 2(f), if, after th</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>e date hereof</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, (i) the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>VWAP of the Common Stock</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> for any </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>ten (10)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> out of </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>twenty (20)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> consecutive Trading Days (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Measurement Period</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>)&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> exceeds </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>% of the then Exercise Price and (ii) the Holder is not in possession of any information that constitutes, or might constitute, material non-public information which was provided by the Company, then the Company may, within </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>four (4)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> Trading Day</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>s&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> of the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>last day</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> of such Measurement Period, call for cancellation</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> a</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> portion of this Warrant</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> representing up to 50% of the Warrant Shares</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> for which a Notice of Exercise has not yet been delivered (</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Maximum </font></u><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font></u><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Amount</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148;)&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> as of the date of the</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> 125%</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> Call Notice (as defined below) for consideration equal to $.001 per Warrant Share (such right, a &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font></u><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;).&nbsp; To exercise this right, the Company must deliver to the Holder an irrevocable written notice (a &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font></u><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Notice</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;), indicating therein the portion of </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>unexercised portion of this Warrant to which such notice applies, which shall not exceed the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Maximum 125% Call Amount</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; If the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>conditions set forth below for such </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call are satisfied from the period from the date of the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Notice through and including the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Date (as defined below), then </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>the&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>portion of this Warrant subject to such </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Notice for which a Notice of Exercise shall not have been received by the </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Date will be cancelled at </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>11</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>:</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>59:59&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>p.m. (</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>loal time in </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>New York City</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>, New York</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>time) on the tenth </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(10<sup>th</sup>) </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Trading Day after the date the Call Notice is received by the Holder (such date and time, the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>125% </font></u><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Call Date</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;).&nbsp; </font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>Any unexercised portion of this Warrant to which the 125% Call Notice does not pertain will be unaffected by such 125% Call Notice. In furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise with respect to Warrant Shares subject to a 125% Call Notice that are tendered through 11:59:59 p.m. (loal time in New York City, New York time) on the 125% Call Date. The parties agree that any Notice of Exercise delivered following a 125% Call Notice which calls less than the Maximum 125% Call Amount shall first reduce to zero the number of Warrant Shares subject to such 125% Call Notice prior to reducing the remaining Warrant Shares available for purchase under this Warrant. For example, if (A) this Warrant then permits the Holder to acquire one hundred (100) Warrant Shares, (B) a 125% Call Notice pertains to twenty-five </font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>(</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>25) Warrant Shares (e.g., one-half of the Maximum 125% Call Amount), and (C) prior to 11:59:59 p.m. (loal time in New York City, New York time) on the 125% Call Date the Holder tenders a Notice of Exercise in respect of ten (</font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>1</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>0) Warrant Shares, then (x) on the 125% Call Date</font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>the right</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>under this Warrant to acquire fifteen (15) Warrant Shares will be automatically cancelled, (y) the Company, in the time and manner required under this Warrant, will have issued and delivered to the Holder ten (</font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>1</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>0) Warrant Shares in respect of the exercises following receipt of the 125% Call Notice, and (z) the Holder may, until the Termination Date, exercise this Warrant for seventy-five (75) Warrant Shares. Subject again to the provisions of this Section 2(f)(i), the Company may deliver subsequent Call Notices for any portion of this Warrant for which the Holder shall not have delivered a Notice of Exercise. Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver a 125% Call Notice or require the cancellation of this Warrant (and any such 125% Call Notice shall be void), unless, from the beginning of the Measurement Period through the 125% Call Date, (1) the Company shall have honored in accordance with the terms of this Warrant all Notices of Exercise delivered by </font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>11:59:59&nbsp;</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>p.m. (New York City time) on the 125% Call Date, and (2) the Registration Statement shall be effective as to all Warrant Shares and the prospectus thereunder available for use by the Company for the sale of all such Warrant Shares to the Holder, and (3) the Common Stock shall be listed or quoted for trading on the Trading Market, and (4) there is a sufficient number of authorized shares of Common Stock for issuance of all Securities under the Transaction Documents, and (5) the issuance of the shares shall not cause a breach of any provision of Section 2(e) herein. </font></p><a name=_aciFooter6 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;6</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div> <p>&nbsp;</p>&nbsp; <a name=page_8 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader8 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>The Company&#146;s 125% Call </font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>r</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>ight shall be exercised ratably among the holders of all of the Warrants (including this Warrant) based on the number of Warrant Shares initially issuable upon exercise of all of the Warrants.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>ii.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>Subject to the provisions of Section 2(e) and this Section 2(f), if, after the date that the Company has called the entire Maximum 125% Call Amount and the final 125% Call Date has occurred, (i) the VWAP of the Common Stock for any Measurement Period exceeds 175% of the then Exercise Price and (ii) the Holder is not in possession of any information that constitutes, or might constitute, material non-public information which was provided by the Company, then the Company may, within four (4) Trading Days of the last day of such Measurement Period, call for cancellation of all or any portion of this Warrant for which a Notice of Exercise has not yet been delivered</font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US> (the &#147;</font><u><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>Maximum 175% Call Amount</font></u><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>&#148;) as of the date of the 175% Call Notice (as defined below)</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE> for consideration equal to $.001 per Warrant Share (such right, a &#147;</font><u><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>175% Call</font></u><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>&#148;). To exercise this right, the Company must deliver to the Holder an irrevocable written notice (a &#147;</font><u><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>175% Call Notice</font></u><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>&#148;), indicating therein the portion of the unexercised portion of this Warrant to which such notice applies. If the conditions set forth below for such 175% Call are satisfied from the period from the date of the 175% Call Notice through and including the 175% Call Date (as defined below), then the portion of this Warrant subject to such 175% Call Notice for which a Notice of Exercise shall not have been received by the 175% Call Date will be cancelled at 11:59:59 p.m. (loal time in New York City, New York time) on the tenth (10</font><font style=FONT-SIZE:7.5pt face=timesnewroman lang=X-NONE>th</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>) Trading Day after the date the Call Notice is received by the Holder (such date and time, the &#147;</font><u><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>175% Call Date</font></u><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>&#148;). Any unexercised portion of this Warrant to which the 175% Call Notice does not pertain will be unaffected by such 175% Call Notice. In furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise with respect to Warrant Shares subject to a 175% Call Notice that are tendered through 11:59:59 p.m. (loal time in New York City, New York time) on the 175% Call Date. The parties agree that any Notice of Exercise delivered following a 175% Call Notice which calls less than the Maximum 175% Call Amount shall first reduce to zero the number of Warrant Shares subject to such 175% Call Notice prior to reducing the remaining Warrant Shares available for purchase under this Warrant. For example, if (A) this Warrant then permits the Holder to acquire fifty (50) Warrant Shares, (B) a 175% Call Notice pertains to twenty-five (25) Warrant Shares, and (C) prior to 11:59:59 p.m. (loal time in New York City, New York time) on the 175% Call Date the Holder tenders a Notice of Exercise in respect of ten (10) Warrant Shares, then (x) on the 175% Call Date the right under this Warrant to acquire fifteen (15) Warrant Shares will be automatically cancelled, (y) the Company, in the time and manner required under this Warrant, will have issued and delivered to the Holder ten (10) Warrant Shares in respect of the exercises following </font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>receipt of the 175% Call Notice, and (z) the Holder may, until the Termination Date, exercise this Warrant for twenty-five (25) Warrant Shares. Subject again to the provisions of this Section 2(f)(ii), the Company may deliver subsequent 175% Call Notices for any portion of this Warrant for which the Holder shall not have delivered a Notice of Exercise. Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver a 175% Call Notice or require the cancellation of this Warrant (and any such 175% Call Notice shall be void), unless, from the beginning of the Measurement Period through the 175% Call Date, (1) the Company shall have honored in accordance with the terms of this Warrant all Notices of Exercise delivered by </font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>11:59:59&nbsp;</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>p.m. (New York City time) on the 175% </font><font style=FONT-SIZE:12pt face=timesnewroman lang=EN-US>C</font><font style=FONT-SIZE:12pt face=timesnewroman lang=X-NONE>all Date, and (2) the Registration Statement shall be effective as to all Warrant Shares and the prospectus thereunder available for use by the Company for the sale of all such Warrant Shares to the Holder, and (3) the Common Stock shall be listed or quoted for trading on the Trading Market, and (4) there is a sufficient number of authorized shares of Common Stock for issuance of all Securities under the Transaction Documents, and (5) the issuance of the shares shall not cause a breach of any provision of Section 2(e) herein. The Company&#146;s 175% Call right shall be exercised ratably among the holders of all of the Warrants (including this Warrant) based on the number of Warrant Shares initially issuable upon exercise of all of the Warrants.</font></p><a name=_aciFooter8 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;7</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_9 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader9 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Section 3</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Certain Adjustments</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>a)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Stock Dividends and Splits</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged.&nbsp; Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re&#8209;classification.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>b)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Pro Rata Distributions</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Distribution</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>provided</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>however</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).&nbsp; </font><font style="FONT-SIZE:12pt; TEXT-DECORATION:none" face="Times New Roman" color=windowtext lang=X-NONE>To the extent that this Warrant has not been partially or complete</font><font style="FONT-SIZE:12pt; TEXT-DECORATION:none" face="Times New Roman" color=windowtext lang=EN-US>ly&nbsp;</font><font style="FONT-SIZE:12pt; TEXT-DECORATION:none" face="Times New Roman" color=windowtext lang=X-NONE> exercised at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the Holder until the Holder has exercised this Warrant.</font></p><a name=_aciFooter9 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp; 8</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_10 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader10 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>c)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Fundamental Transaction</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Fundamental Transaction</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each <font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Alternate Consideration</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).&nbsp; For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.&nbsp; If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.&nbsp; The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Successor Entity</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the &#147;Company&#148; shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.</font></font></p></div> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>d)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Calculations</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.</font></p><a name=_aciFooter11 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>9</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_12 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader12 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>e)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Notice to Holder</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>i.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Adjustment to Exercise Price</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>; provided, however, such notice shall not contain any material, non-public information</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. &nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>ii.</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Notice to Allow Exercise by Holder</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.&nbsp; To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.&nbsp; The Holder shall </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.</font></p><a name=_aciFooter12 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>10</font> <hr width=100% size=2 noshade align=center> <p /></div></div> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp;<a name=page_13 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader13 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:-1.5in; MARGIN:0in 0in 12pt 1.5in"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Section 4</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Transfer of Warrant</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>a)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Transferability</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.&nbsp; Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.&nbsp; The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>b)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>New Warrants</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.&nbsp; Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto. </font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>c)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Register</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Warrant Register</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;), in the name of the record Holder hereof from time to time.&nbsp; The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Section 5</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Miscellaneous</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>a)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>No Rights as Stockholder Until Exercise</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>this Warrant</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>b)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Loss, Theft, Destruction or Mutilation of Warrant</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.</font></p> <p style="TEXT-ALIGN:center; TEXT-INDENT:0in; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp; 11</font></p></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_14 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader14 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>c)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Saturdays, Sundays, Holidays, etc</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>d)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Authorized Shares</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:1in; MARGIN:0in 0in 12pt 1in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.&nbsp; The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant.&nbsp; The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.&nbsp; The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).&nbsp; </font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 1in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms 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 actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.&nbsp; Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>the exercise of this Warrant and (iii) use reasonable </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>best </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.</font></p><a name=_aciFooter14 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>12</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_15 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader15 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 1in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>e)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Jurisdiction</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>f)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Restrictions</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws unless the Holder utilizes the cashless exercise provisions hereof and has held this Warrant for at least six (6) months (or one year in the event that there is not current public information available with respect to the Company as required by Rule 144(c)) and the Holder is not and has not been an Affiliate of the Company within 90 days of the date of exercise.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>g)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Nonwaiver and Expenses</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder&#146;s rights, powers or remedies.&nbsp; Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys&#146; fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>h)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Notices</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>i)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Limitation of Liability</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>j)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Remedies</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>of its rights under this Warrant.&nbsp;The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.</font></p><a name=_aciFooter15 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;13</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_16 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader16 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>k)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Successors and Assigns</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.&nbsp; The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>l)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Amendment</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>m)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Severability</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt 0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>n)</font><font style=FONT-SIZE:7pt face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Headings</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp; The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>********************</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><i></i>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(Signature Page Follows) </font></i></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center /><a name=_aciFooter16 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>14</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_17 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader17 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font size=+0></font>&nbsp;</p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center /> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:1in; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;&nbsp;</font></b></p> <div align=left> <table style="WIDTH:40%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr> <td width=100% style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; PADDING-TOP:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><b><font style="TEXT-TRANSFORM:uppercase; FONT-SIZE:12pt" face="times new roman bold">cOPYTELE, INC.</font></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr> <tr> <td width=100% style="PADDING-BOTTOM:0in; PADDING-LEFT:5.4pt; PADDING-RIGHT:5.4pt; PADDING-TOP:0in" valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman">By:__________________________________________</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman">Name:</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman">Title:</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td></tr></table></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b></b>&nbsp;</p> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p><a name=_aciFooter17 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>15</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_18 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader18 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>NOTICE OF EXERCISE</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="TEXT-TRANSFORM:uppercase; FONT-SIZE:12pt" face="Times New Roman" lang=EN-US>TO:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; COPYTELE, INC.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:1in; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(1)</font><font style=FONT-SIZE:7pt face="times new roman" lang=EN-US>&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:1in; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(2)</font><font style=FONT-SIZE:7pt face="times new roman" lang=EN-US>&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Payment shall take the form of (check applicable box):</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>[&nbsp; ] in lawful money of the United States; or</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0in; MARGIN:0in 0in 12pt 1.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>[ ] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:1in; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(3)</font><font style=FONT-SIZE:7pt face="times new roman" lang=EN-US>&nbsp;&nbsp; </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _______________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>The Warrant Shares shall be delivered to the following DWAC Account Number:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _______________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _______________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _______________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="TEXT-TRANSFORM:uppercase; FONT-SIZE:12pt" face="Times New Roman" lang=EN-US>[SIGNATURE OF HOLDER]</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Name of Investing Entity: ________________________________________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Signature of Authorized Signatory of Investing Entity</font></i><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>: _________________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Name of Authorized Signatory: ___________________________________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Title of Authorized Signatory: ____________________________________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Date: ________________________________________________________________________________________</font></p><a name=_aciFooter18 /> <div> <p style="TEXT-ALIGN:left; MARGIN:0in 0in 0pt" align=left>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>1</font></p></div></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_19 /> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader19 /> <div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>ASSIGNMENT FORM</font></b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>(To assign the foregoing warrant, execute<br>this form and supply required information. <br>Do not use this form to exercise the warrant.)</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:1in; MARGIN:0in 0in 12pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>FOR VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>_______________________________________________ whose address is</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>_______________________________________________________________.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>_______________________________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dated:&nbsp; ______________, _______</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Holder&#146;s Signature:&nbsp;&nbsp;&nbsp;&nbsp; _____________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Holder&#146;s Address:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _____________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _____________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Signature Guaranteed:&nbsp; ___________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>NOTE:&nbsp; The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company.&nbsp;Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.</font></p> <p style="TEXT-ALIGN:justify; TEXT-INDENT:0.5in; MARGIN:0in 0in 12pt">&nbsp;</p><a name=_aciFooter19 /> <div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=left><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp; 2</font></p></div></div> <hr width=100% size=2 noshade align=center> <p>&nbsp;</p></body>
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<TYPE>EX-5.1
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<FILENAME>exhibit5_1.htm
<DESCRIPTION>EXHIBIT 5.1
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<head><title>exhibit5_1.htm</title> </head> <body bgcolor=#ffffff><a name=page_1> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 5.1</font></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><b><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>ELLENOFF GROSSMAN &amp; SCHOLE LLP</font></b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>150 EAST 42<sup>ND</sup>&nbsp;STREET</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>NEW YORK, NEW YORK 10017</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>TELEPHONE: (212) 370-1300</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>FACSIMILE: (212) 370-7889</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>www.egsllp.com</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>July 15, 2014</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>CopyTele, Inc.</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>900 Walt Whitman Road</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>Melville, NY 11747</font></p> <p style="MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>Re: Registration Statement on Form S-3 (File No.&nbsp;333-193869)</font></p> <p style="MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>Ladies and Gentlemen:</font></p> <p style="TEXT-ALIGN:justify; MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We have acted as counsel to CopyTele, Inc., a Delaware corporation (the &#147;Company&#148;), in connection with (i) the above-captioned Registration Statement on Form S-3 and the prospectus contained therein (the &#147;Registration Statement&#148;), filed pursuant to the Securities Act of 1933 (the &#147;Act&#148;), as amended, (ii) the Prospectus Supplement dated July 15, 2014 to the Registration Statement (together with the prospectus contained in the Registration Statement, the &#147;Prospectus&#148;), relating to the issuance and sale by the Company under the Registration Statement of (i) 16,000,000 shares (the &#147;Shares&#148;) of the Company&#146;s common stock, par value $0.01 per share (the &#147;Common Stock&#148;), and (ii)&nbsp;warrants to purchase up to an aggregate of 8,135,000 shares of Common Stock, including warrants to purchase up to 135,000 shares of Common Stock issued to the placement agent in connection with the offering (the &#147;Warrants&#148;). The shares of Common Stock underlying the Warrants are referred to herein as the &#147;Warrant Shares.&#148; The Shares, the Warrants and the Warrant Shares are covered by the Registration Statement. We understand that the Shares, the Warrants and the Warrant Shares are to be offered and sold in the manner set forth in the Prospectus.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this opinion, we have examined such documents and reviewed such questions of law as we have considered necessary and appropriate for the purposes of our opinion set forth below.&nbsp; In rendering our opinion, we have assumed the authenticity of all documents submitted to us as originals, the genuineness of all signatures and the conformity to authentic originals of all documents submitted to us as copies.&nbsp; We have also assumed the legal capacity for all purposes relevant hereto of all natural persons and, with respect to all parties to agreements or instruments relevant hereto other than the Company, that such parties had the requisite power and authority (corporate or otherwise) to execute, deliver and perform such agreements or instruments, that such agreements or instruments have been duly authorized by all requisite action (corporate or otherwise), executed and delivered by such parties and that such agreements or instruments are the valid, binding and enforceable obligations of such parties.&nbsp; As to questions of fact material to our opinions, we have relied upon certificates of officers of the Company and of public officials.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p></div> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div><a name=page_2> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader2> <div> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align=right>&nbsp;</p><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based upon and subject to the foregoing, we are of the opinion that (i)&nbsp;the Shares have been duly authorized and, when issued and paid for as described in the Prospectus, will be validly issued, fully paid and non-assessable, (ii)&nbsp;provided that the Warrants have been duly executed and delivered by the Company and duly delivered to the purchasers thereof against payment therefor, then the Warrants, when issued and sold as described in the Prospectus, will be valid and legally binding obligations of the Company, enforceable against the Company in accordance with their terms, except as enforcement </font><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors&#146; rights generally and by general equitable principles (regardless of whether such enforceability is considered in a proceeding at law or in equity) and implied covenants of good faith and fair dealing, and (iii)&nbsp;the Warrant Shares, when issued upon exercise or exchange of the Warrants in accordance with their terms, will have been duly authorized and validly issued and will be fully paid and non-assessable.</font></div> <p style="TEXT-ALIGN:justify; MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The opinions expressed herein are limited to the laws of the General Corporation Law of the State of Delaware and the laws of the State of New York, as currently in effect, and no opinion is expressed with respect to any other laws or any effect that such other laws may have on the opinions expressed herein. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This opinion letter has been prepared, and is to be understood, in accordance with customary practice of lawyers who regularly give and lawyers who regularly advise recipients regarding opinions of this kind, is limited to the matters expressly stated herein and is provided solely for purposes of complying with the requirements of the Act, and no opinions may be inferred or implied beyond the matters expressly stated herein.&nbsp; The opinions expressed herein are rendered and speak only as of the date hereof and we specifically disclaim any responsibility to update such opinions subsequent to the date hereof or to advise you of subsequent developments affecting such opinions.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:9pt 0in 0pt; BACKGROUND:white"><font style=FONT-SIZE:11pt face="Times New Roman" color=black lang=EN-US>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We consent to the filing of this opinion with the SEC as Exhibit 5.1 to the Company&#146;s Current Report on Form 8-K, dated July 15, 2014, which is incorporated by reference in the Prospectus Supplement to the Registration Statement.&nbsp;We also consent to the reference of our firm under the caption &#147;Experts&#148; in the Prospectus Supplement and in each case in any amendment or supplement thereto.&nbsp; In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 and Section 11 of the Act or the rules and regulations of the Securities and Exchange Comission promulgated thereunder, nor do we admit that we are experts with respect to any part of the Registration Statement within the meaning of the term &#147;expert&#148; as used in the Act or the related rules and regulations of the Securities and Exchange Commission promulgated thereunder.</font></p> <p style="TEXT-INDENT:196.35pt; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-INDENT:196.35pt; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-INDENT:196.35pt; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>Very truly yours,<br></font></p> <p style="TEXT-INDENT:196.35pt; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:11pt face="Times New Roman" lang=EN-US>/s/ Ellenoff Grossman &amp; Schole LLP</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p></div> <hr width=100% size=2 noshade align=center></a></body>
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<DESCRIPTION>EXHIBIT 10.1
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<head><title>exhibit10_1_SECURITIES PURCHASE AGREEMENT</title> </head> <body bgcolor=#ffffff> <p align=right><strong>EXHIBIT 10.1</strong>&nbsp;<a name=page_1></p><a name=_aciHeader1> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:-0.5in"><b><font style=FONT-SIZE:16pt face="times new roman" lang=X-NONE>SECURITIES PURCHASE AGREEMENT</font></b></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>This Securities Purchase Agreement (this &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Agreement</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;) is dated as of </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>July 15</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, 2014, between CopyTele, Inc., a Delaware corporation (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Company</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;), and each purchaser identified on the signature pages hereto (each, including its successors and permitted assigns, a &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Purchaser</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; and collectively the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Purchasers</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148;).&nbsp;</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> (as defined below)</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>WHEREAS, to facilitate the transaction contemplated hereby, the parties hereto are entering into an Escrow Agreement (as defined below).</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>WHEREAS, the Company has engaged Alere Financial Partners, a division of Summer Street Research Partners, as placement agent (the &#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Placement Agent</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148;).&nbsp;</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:</font></p> <h1 style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0in"><b><font style=FONT-SIZE:12pt face="times new roman" lang=X-NONE>ARTICLE I.<br>DEFINITIONS</font></b></h1> <h2 style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>1.1</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Definitions.&nbsp; In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:</font></h2> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Action</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning ascribed to such term in Section 3.1(j).</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Affiliate</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Board of Directors</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the board of directors of the Company.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Business Day</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Closing</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the closing of the purchase and sale of the Securities pursuant to Section 2.1.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Closing Date</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers&#146; obligations to pay the Subscription Amount </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>and (ii) the Company&#146;s obligations to deliver the Securities, in each case, have been satisfied or waived, but in no event later than the third Trading Day following the date hereof.</font></p> <p style="TEXT-ALIGN:justify; PADDING-LEFT:0%; MARGIN:0in 0in 12pt 0.5in; PADDING-RIGHT:0%; TEXT-INDENT:0.5in">&nbsp;</p> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>1</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_2> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader2> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Commission</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the United States Securities and Exchange Commission.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Common Stock</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities may hereafter be reclassified or changed. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Common Stock Equivalents</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Company Counsel</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means Ellenoff Grossman &amp; Schole LLP, with offices located at 1345 Avenue of the Americas, New York, New York 10105. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Disclosure Schedules</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the Disclosure Schedules of the Company delivered concurrently herewith.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Escrow Agent</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means Signature Bank, a New York State chartered bank, with offices at 261 Madison Avenue, New York, New York 10016.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Escrow Agreement</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the escrow agreement entered into prior to the date hereof, by and among the Company</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US> and </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>the Escrow Agent pursuant to which the Purchasers shall deposit Subscription Amounts with the Escrow Agent to be applied to the transactions contemplated hereunder. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Exchange Act</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148; means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>FCPA</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148; means the Foreign Corrupt Practices Act of 1977, as amended.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>GAAP</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning ascribed to such term in Section 3.1(h).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Indemnified Party</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning ascribed to such term in Section 4.7.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Intellectual Property Rights</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning ascribed to such term in Section 3.1(o).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Liens</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction (other than restrictions on transfer under securities laws).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Material Adverse Effect</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning assigned to such term in Section 3.1(b).</font></p></div> <p style=TEXT-ALIGN:center>&nbsp;</p> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>2</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_3> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader3> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Material Permits</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning ascribed to such term in Section 3.1(m).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Per Share Purchase Price</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; equals $</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>0.25.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Person</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Placement Agent</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148; has the meaning set forth in the recitals.&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Proceeding</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), that has been commenced or to the Company&#146;s knowledge threatened.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Prospectus</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the final prospectus filed for the Registration Statement.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Prospectus Supplement</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with the Commission and delivered by the Company to each Purchaser</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>, in each case,</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> at the Closing.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Registration Statement</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the effective registration statement with Commission file No. 333-193869 which registers the sale of the Shares, the Warrants and the Warrant Shares.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Required Approvals</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning ascribed to such term in Section 3.1(e).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Rule 144</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule. </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Rule 424</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>SEC Reports</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; shall have the meaning ascribed to such term in Section 3.1(h).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Securities</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the Shares, the Warrants and the Warrant Shares.&nbsp;&nbsp; </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Securities Act</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Shares</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>3</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_4> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader4> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Short Sales</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means all &#147;short sales&#148; as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). </font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Subscription Amount</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as specified below such Purchaser&#146;s name on the signature page of this Agreement and next to the heading &#147;Subscription Amount,&#148; in United States dollars and in immediately available funds.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Subsidiary</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; as to any Person, means any corporation, partnership, limited liability company, joint venture, trust or estate of or in which more than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether at the time capital stock of any other class of such corporation may have voting power upon the happening of a contingency), (b) the interest in the capital or profits of such partnership, limited liability company, or joint venture or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#147;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Subsidiary</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148;&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> or to </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#147;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Subsidiaries</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148;&nbsp;</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE> in this Agreement shall refer to a Subsidiary or Subsidiaries of </font><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>the Company</font><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>.&nbsp;</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Trading Day</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means a day on which the principal Trading Market is open for trading.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Trading Market</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the QB Tier of the OTC Markets (or any successors to any of the foregoing).</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Transaction Documents</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means this Agreement, the Warrants and the Escrow Agreement.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&nbsp;&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>Transfer Agent</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=X-NONE>&#148; means American Stock Transfer and Trust Company, the current transfer agent of the Company, with a mailing address of 6201 15th Avenue Brooklyn, NY 11219, and a facsimile number of 718.765.8719, and any successor transfer agent of the Company.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#147;</font><u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>Warrants</font></u><font style=FONT-SIZE:12pt face="Times New Roman" lang=EN-US>&#148; means, collectively, the Common Stock purchase warrants delivered to the Purchasers at the Closing in accordance with Section 2.2(a) hereof, which Warrants shall be exercisable immediately upon issuance and have a term of exercise equal to five (5) years </font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>from the date such Warrants become exercisable, in the form of </font><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Exhibit A</font></u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US> attached hereto.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=X-NONE>&#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="Times New Roman" color=black lang=X-NONE>Warrant Shares</font></u><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=X-NONE>&#148; means the shares of Common Stock issuable upon exercise of the Warrants.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>4</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_5> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader5> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h1 style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 12pt; TEXT-INDENT:0in"><b><font style=FONT-SIZE:12pt face="times new roman" lang=X-NONE>ARTICLE II.<br>PURCHASE AND SALE</font></b></h1> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>2.1</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Closing.&nbsp; On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company agrees to sell, and the Purchasers, severally and not jointly, agree to purchase, up to an aggregate of $</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">4,000,000&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> of Shares and Warrants.&nbsp; Each Purchaser shall deliver to the Escrow Agent, via wire transfer or a certified check, immediately available funds equal to such Purchaser&#146;s Subscription Amount as set forth on the signature page hereto executed by such Purchaser and the Company shall deliver to each Purchaser their respective Shares and Warrants, and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing.&nbsp; Upon satisfaction of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">Company Counsel </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>or such other location as the parties shall mutually agree.</font></h2> <h2 style="MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>2.2</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Deliveries.&nbsp;</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(a)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> (and, with respect to subsections (i), (iv), (v) and (vi) of this Section 2.2(a), to the Placement Agent)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> the following:</font></h2> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(i)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>this Agreement duly executed by the Company;</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(ii)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (&#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>DWAC</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>&#148;) Shares equal to such Purchaser&#146;s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser;</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(iii)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>a Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>50</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>% of such Purchaser&#146;s Shares, with an exercise price equal to $</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>0</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>.</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>40</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>, subject to adjustment </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>as provided </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>therein (such Warrant certificate may be delivered within three Trading Days of the Closing Date); </font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(iv)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>;&nbsp;</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(v)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>a certificate signed by an executive officer on behalf of the Company, dated as of the Closing Date, confirming the accuracy of the Company&#146;s representations, warranties and performance of covenants</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black> contained herein</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE> as of the Closing Date</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>; and</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(vi)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>a legal opinion of Company Counsel addressed to each such Purchaser and the Placement Agent substantially in the form attached hereto as </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Exhibit A</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp;&nbsp;</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in">&nbsp;</h4></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>5</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_6> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader6> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(b)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company or the Escrow Agent, as applicable, the following:</font></h3></div> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(i)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>this Agreement duly executed by such Purchaser; and</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(ii)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>such Purchaser&#146;s Subscription Amount by wire transfer to the account specified in the Escrow Agreement</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>, except as otherwise arranged between the Company and any Purchaser as described in the Prospectus Supplement under &#147;Plan of Distribution</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>.</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;&nbsp;</font></h4> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>2.3</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Closing Conditions. </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The obligations of the Company hereunder in connection with the Closing are subject to only the following conditions being met:</font></h2> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(i)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchasers contained herein (unless as of a specific date therein in which case they shall be accurate as of such date); </font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(ii)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed; and</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(iii)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.</font></h4> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(b)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>The respective obligations of each Purchaser hereunder in connection with the Closing are subject to only the following conditions being met:</font></h3> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1.5in; TEXT-INDENT:0in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(i)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>the representations and warranties of </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>the Company</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE> contained in this Agreement and any certificate delivered pursuant hereto shall be true and correct in all respects (in the case of any representation or warranty qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified by materiality or Material Adverse Effect) on and as of the date </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>of this Agreement</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE> and on and as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined as of that specified date)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>;&nbsp;</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(ii)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; </font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(iii)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement; and</font></h4> <h4 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 1in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>(iv)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE>there shall have been no Material Adverse Effect with respect to the Company since the date hereof.</font></h4> <h1 style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 12pt; TEXT-INDENT:0in">&nbsp;</h1></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>6</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_7> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader7> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h1 style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 12pt; TEXT-INDENT:0in"><b><font style=FONT-SIZE:12pt face="times new roman" lang=X-NONE>ARTICLE III.</font></b><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE><br></font><b><font style=FONT-SIZE:12pt face="times new roman" color=black lang=X-NONE>REPRESENTATIONS AND WARRANTIES</font></b></h1> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>3.1</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Representations and Warranties of the Company.&nbsp; Except as set forth in the Disclosure Schedules or disclosed in the SEC Reports (other than with respect to Sections 3.1 (b), (c), (d), (e) and (f); exceptions to such sections must be set forth in the Disclosure Schedule), both of which shall qualify any representation made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Schedules or as reasonably evident in the SEC Reports (other than with respect to Sections 3.1 (b), (c), (d), (e) and (f); exceptions to such sections must be set forth in the Disclosure Schedule), the Company hereby makes the following representations and warranties to each Purchaser</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> and the Placement Agent</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>:&nbsp;</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(a)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Subsidiaries</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; All of the direct and indirect Subsidiaries of the Company are set forth on the SEC Reports.&nbsp; The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">There are no outstanding preemptive, conversion or other rights, options, warrants or agreements granted or issued by or binding upon any Subsidiary for the purchase or acquisition of any shares of capital stock of any Subsidiary or any other securities convertible into, exchangeable for or evidencing the rights to subscribe for any shares of such capital stock.&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">&nbsp;&nbsp;&nbsp; &nbsp;</font></h2> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(b)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Organization and Qualification</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company and each of the 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, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted.&nbsp; Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.&nbsp; 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, would not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries (whether or not &#147;significant&#148;), taken as a whole, or (iii) a material adverse effect on the Company&#146;s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a &#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Material Adverse Effect</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;) and no 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.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>7</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_8> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader8> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(c)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Authorization; Enforcement</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.&nbsp; The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company&#146;s stockholders in connection herewith or therewith other than in connection with the Required Approvals.&nbsp; This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors&#146; rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(d)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>No Conflicts</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which is a party, the issuance and sale of the Securities and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company&#146;s or any Subsidiary&#146;s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining the Required Approvals, conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, 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 Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(e)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Filings, Consents and Approvals</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company is not 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 the Transaction Documents, other than: (i) the filings required pursuant to Section 4.4 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) application(s) to each applicable Trading Market for the listing of the </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Shares and Warrant Shares for trading thereon in the time and manner required thereby, (iv) such filings as are required to be made under applicable state securities laws and (v) in all other cases, where failure to obtain such consent, waiver, authorization or order, or to give such notice or make such filing or registration would not have a Material Adverse Effect (collectively, the &#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Required Approvals</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;). </font></h3> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>8</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_9> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader9> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(f)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Issuance of the Securities; Registration</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.&nbsp; The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company.&nbsp; The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement and the Warrants. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective on April 25, 2014 (the &#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Effective Date</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;), including the Prospectus, and such amendments and supplements thereto as may have been required to the date of this Agreement.&nbsp; The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission.&nbsp; The Company, if required by the rules and regulations of the Commission, proposes to file the Prospectus, with the Commission pursuant to Rule 424(b).&nbsp; At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at the Closing Date, the Registration Statement and any amendments thereto conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Prospectus and any amendments or supplements thereto, at time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, conformed and will conform in all material respects to the requirements of the Securities Act and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(g)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Capitalization</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The capitalization of the Company is as set forth in the Prospectus Supplement.&nbsp; The Company has not issued any capital stock since its most recently filed periodic or current report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company&#146;s stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company&#146;s employee stock purchase plans and pursuant to the conversion and/or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act.&nbsp; No Person has any Company-granted right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents.&nbsp; Except as a result of the purchase and sale of the Securities or as set forth in the Prospectus Supplement, there are no outstanding </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.&nbsp; 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 the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance in all material respects 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 granted by the Company.&nbsp; No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.&nbsp; There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company&#146;s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company&#146;s stockholders.</font></h3> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>9</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_10> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(h)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>SEC Reports; Financial Statements</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, since January 1, 2013 (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the &#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>SEC Reports</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.&nbsp; As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC 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 the light of the circumstances under which they were made, not misleading. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.&nbsp; Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (&#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>GAAP</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, 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, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.</font></h3> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(i)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Material Changes; Undisclosed Events, Liabilities or Developments</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; Since the date of the latest audited financial statements included within the SEC Reports, except as disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not altered its method of accounting except as required by GAAP, (iii) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (iv) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans.&nbsp; The Company does not have pending before the Commission any request for confidential treatment of information.&nbsp;</font></p> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>10</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_11> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(j)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Litigation</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; 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, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an &#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Action</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) is required to be disclosed and is not disclosed in the SEC Reports.&nbsp; Neither the Company nor any Subsidiary, nor, the Company&#146;s knowledge any director or officer thereof, is or has been within the past three (3) years the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.&nbsp; To the knowledge of the Company, there has not been and there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company.&nbsp; The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.&nbsp; The Company is not disqualified from using Regulation D under the Securities Act as a result of the &#147;bad actor&#148; disqualification under Rule 506(d) thereunder.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(k)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Labor Relations</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which would reasonably be expected to result in a Material Adverse Effect.&nbsp; None of the Company&#146;s or its Subsidiaries&#146; employees is a member of a union that relates to such employee&#146;s relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good.&nbsp; To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters that would have a Material Adverse Effect. To the knowledge of the Company, the Company and its Subsidiaries are in compliance </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.</font></h3> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>11</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_12> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader12> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(l)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Compliance</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; 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 judgment, decree or order of any court, arbitrator or other governmental authority or (iii) to the knowledge of the Company is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as would not have or reasonably be expected to result in a Material Adverse Effect.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(m)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Regulatory Permits</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; To the knowledge of the Company, the Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits would not reasonably be expected to result in a Material Adverse Effect (&#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Material Permits</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(n)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Title to Assets</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all tangible personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries, (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties, and (iii) except as would not reasonably be expected to result in a Material Adverse Effect.&nbsp; Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance except as would not reasonably be expected to result in a Material Adverse Effect.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>12</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_13> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(o)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Intellectual Property</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; Other than as disclosed </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">in the SEC Reports, t</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>he Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>copyrights, licenses and other intellectual property rights and similar rights necessary or required for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have would reasonably be expected to result in a Material Adverse Effect (collectively, the &#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Intellectual Property Rights</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>&#148;).&nbsp; None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the material Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the date of this Agreement that would reasonably be expected to result in a Material Adverse Effect.&nbsp; Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as would not reasonably be expected to have a Material Adverse Effect.&nbsp; To the knowledge of the Company, all such Intellectual Property Rights are enforceable.&nbsp; The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(p)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Insurance</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged.&nbsp; Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost. </font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(q)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Transactions With Affiliates and Employees</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>. Except as set forth in the SEC Reports, there are no transactions that are required by Item 404 to be set forth in the SEC Reports that are not set forth in such reports.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(r)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Sarbanes-Oxley; Internal Accounting Controls</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company and the Subsidiaries are in material compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all rules and regulations applicable to smaller reporting companies promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date.&nbsp; </font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(s)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Certain Fees</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; Except as set forth in the Prospectus Supplement, no brokerage or finder&#146;s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. To the Company&#146;s knowledge, the Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>13</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_14> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(t)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Investment Company</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>an &#147;investment company&#148; within the meaning of the Investment Company Act of 1940, as amended.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(u)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Listing and Maintenance Requirements</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.&nbsp; The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market, except such as has been cured. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(v)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Anti-Takeover Matters</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company has not adopted any shareholder rights agreement, rights plan, &#147;poison pill&#148; or other similar agreement or plan.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(w)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Disclosure</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might reasonably constitute material, non-public information which is not otherwise disclosed in the Prospectus Supplement.&nbsp; The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.&nbsp; None of the representations made by the Company in this Agreement, as modified by the Disclosure Schedule and the SEC Reports, taken as a whole, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.&nbsp; The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(x)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>No Integrated Offering</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>. Assuming the accuracy of the Purchasers&#146; representations and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(y)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Tax Status</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply.&nbsp; There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any such claim.</font></h3> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>14</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_15> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in">&nbsp;</h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(z)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Foreign Corrupt Practices</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of FCPA.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(aa)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Accountants</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; The Company&#146;s accounting firm is set forth on </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Schedule 3.1(cc)</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black> of the Disclosure Schedules.&nbsp; To the knowledge and belief of the Company, such accounting firm is a registered public accounting firm as required by the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(bb)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>Regulation M Compliance</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>.&nbsp; Within the past 30 days, the Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clause (iii), an agreement with a placement agent in connection with the placement of the Securities which is now terminated.</font></h3> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 0.5in; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman">(cc)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal" face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; LETTER-SPACING:-0.15pt" face="times new roman" color=black>Office of Foreign Assets Control</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; LETTER-SPACING:-0.15pt" face="times new roman" color=black>.&nbsp; Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (&#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; LETTER-SPACING:-0.15pt" face="times new roman" color=black>OFAC</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; LETTER-SPACING:-0.15pt" face="times new roman" color=black>&#148;).&nbsp;</font></h3> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>3.2</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Representations and Warranties of the Purchasers.&nbsp; Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(a)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Organization; Authority</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out his, her or its </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar corporate or shareholder action, as applicable, on the part of such Purchaser.&nbsp; Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors&#146; rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.</font></h2></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>15</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_16> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt">&nbsp;</h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(b)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Understandings or Arrangements</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Such Purchaser is acquiring the Securities as principal for his, her or its own account (this representation and warranty not limiting such Purchaser&#146;s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws).&nbsp; </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(c)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Purchaser Status</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises any Warrants, it will be an &#147;accredited investor&#148; as defined in Rule 501(a) under the Securities Act.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(d)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Experience of Such Purchaser</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Such Purchaser, either alone or together with his, her or its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.&nbsp; Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. Purchaser represents that it, he or she has had an opportunity to review the Transaction Documents (including all exhibits and schedules thereto), to ask questions of and receive answers from the Company regarding the terms and conditions of the transactions contemplated by the Transaction Documents, to ask questions of and receive answers from the Company regarding the business, properties, prospects, financial condition and results of operations of the Company and to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment..&nbsp; Such Purchaser has requested, received, reviewed and considered all information it deemed relevant in making an informed decision to purchase the Securities, and in connection with his, her or its decision to purchase the Securities, has reviewed the Prospectus and Prospectus Supplement and the documents incorporated therein by reference and is relying only upon the Prospectus and the Prospectus Supplement and the documents incorporated by reference therein and the representations and warranties of the Company contained herein.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(e)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Certain Transactions and Confidentiality</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Other than consummating the transactions contemplated hereunder, such Purchaser has not and will not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed or agreed to enter into, and will not enter into, any purchase, sale or other </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>transaction in securities of the Company, including, without limitation Short Sales, during the period commencing as of the time that such Purchaser first received information (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder, and ending immediately prior to the execution hereof.&nbsp; Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser&#146;s assets and the portfolio managers have no material knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser&#146;s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.&nbsp; Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">of non-public information </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>made to it in connection with this transaction (including the existence and terms of this transaction).</font></h2> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>16</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_17> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt">&nbsp;</h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(f)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Each Purchaser hereby acknowledges that it is acting independently from any other Purchaser (and has engaged separate legal counsel) in connection with this Agreement, and that it is not acting as a member of a &#147;group&#148; (as such term is defined in Rule 13d of the Exchange Act) with any other investor in connection with the transactions contemplated hereby.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt 21pt; TEXT-INDENT:51pt"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(g)</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Such Purchaser represents that (i) it has had no position, office or other material relationship within the past three years with the Company or persons known to it to be affiliates of the Company</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> and </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(ii) it is not, and as of the Closing will not be, a member of the Financial Industry Regulatory Authority or an &#147;associated person&#148; (as such term is defined under the rules of the Financial Industry Regulatory Authority)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">.&nbsp; &nbsp;</font></h2> <h3 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black>The Company acknowledges and agrees that the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser&#146;s right to rely on the Company&#146;s representations and warranties contained in this Agreement (except to the extent any breach of any representation or warranty by a Purchaser renders any representation or warranty of the Company untrue or incapable of being true).</font></h3> <h1 style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 12pt; TEXT-INDENT:0in"><b><font style=FONT-SIZE:12pt face="times new roman" lang=X-NONE>ARTICLE IV.</font></b><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal" face="times new roman" color=black lang=X-NONE><br></font><b><font style=FONT-SIZE:12pt face="times new roman" color=black lang=X-NONE>OTHER AGREEMENTS OF THE PARTIES</font></b></h1> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.1</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Warrant Shares</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; If all or any portion of a Warrant is exercised at a time when there is an effective registration statement to cover the issuance or resale of the Warrant Shares or if the Warrant is exercised via cashless exercise</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> subject to the terms of the Warrant</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>, the Warrant Shares issued pursuant to any such exercise shall be issued free of all legends.&nbsp; If at any time following the date hereof the Registration Statement (or any subsequent registration statement registering the sale or resale of the Warrant Shares) is not effective or is not otherwise available for the sale or resale of the Warrant Shares, the Company shall notify the holders of the Warrants in writing that such registration statement is not then effective and thereafter shall notify such holders when the registration statement is effective again and available for the sale or resale of the Warrant Shares (it being understood and agreed that the foregoing shall not limit the ability of the Company to issue, or any Purchaser to sell, any of the Warrant Shares in </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>compliance with applicable federal and state securities laws).&nbsp; The Company shall use best efforts to keep a registration statement (including the Registration Statement) registering the issuance or resale of the Warrant Shares effective during the term of the Warrants.</font></h2> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>17</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_18> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader18> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.2</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Furnishing of Information</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Until the earlier of (a) the time that no Purchaser owns Securities or (b) </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">the date that is one year after the Termination Date (as defined in the Warrants)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company pursuant to the Exchange Act even if the Company is not then subject to the reporting requirements of the Exchange Act.&nbsp;&nbsp; </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.3</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Integration</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">&#147;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>security</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">&#148;&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.4</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Securities Laws Disclosure; Publicity</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The Company shall (a) on the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange Act.&nbsp; From and after the issuance of such press release, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents.&nbsp; No Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.&nbsp; Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except (a) as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (b)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> and a resaonable opportunity to review and comment on such disclosure</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp;</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.5</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Non-Public Information</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide any Purchaser or his, her or its agents or counsel with any information </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">constituting&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> material non-public information, unless prior thereto such Purchaser shall have consented to receipt of such information</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> in writing. &nbsp;In the event of any breach of this Section 4.5, t</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>he Company </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">shall </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>promptly publicly disclose</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> all</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> such information in </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">accordance&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> with Regulation FD.&nbsp; The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</h2></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>18</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_19> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader19> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.6</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Use of Proceeds</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The Company shall use the net proceeds from the sale of the Securities hereunder consistent with the Use of Proceeds section in the Prospectus Supplement.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.7</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Indemnification of Purchasers</font></u><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> and the Placement Agent</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Subject to the provisions of this Section 4.7, the Company will indemnify and hold</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> the Placement Agent, </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>each Purchaser and </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">their respective</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> the Placement Agent or</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">n&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> &#147;</font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">Indemnified&nbsp;</font></u><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> Party</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>&#148;) 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&#146; fees and costs of investigation that any such Indemnified Party may suffer or incur as a result of or relating </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">to (i) </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> and/or (ii) </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>any untrue statement or alleged untrue statement of a material fact in any filing made in connection with the</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> registration or</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> qualification of the </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">issuance of the Securities under the securities or &#147;blue sky&#148; laws of all applicable jurisdictions of the United States</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>, or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading.&nbsp; If any action shall be brought against any Indemnified Party in respect of which indemnity may be sought pursuant to this Agreement, such Indemnified 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 reasonably acceptable to the Indemnified Party.&nbsp; Any Indemnified 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 Indemnified Party except to the extent that (i) the employment thereof at the expense of the Company 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 written opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Indemnified Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel but only to the extent necessary to comply with clauses (i), (ii) or (iii) of this sentence.&nbsp; The Company will not be liable to any Indemnified Party under this Agreement (y) for any settlement by a Indemnified Party effected without the Company&#146;s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent that a loss, claim, damage or liability is attributable to any Indemnified Party&#146;s breach of any of the representations, warranties, covenants or agreements made by such Indemnified Party in this Agreement or in the other Transaction Documents. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Indemnified Party against the Company or others and any liabilities the Company may be subject to pursuant to law.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.8</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Listing of Common Stock</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>. The Company hereby agrees concurrently with the Closing, </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">if applicable, </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>to apply to list or quote all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing of all of the Shares and Warrant Shares on such </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application all of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly as possible.&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">T</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>he Company will take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market (except in the event of any strategic transaction, company sale or other similar voluntary &#147;de-listing&#148; event) and will comply in all respects with the Company&#146;s reporting, filing and other obligations under the bylaws or rules of the Trading Market. </font></h2> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>19</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_20> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.9</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Reservation of Common Stock</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement and Warrant Shares pursuant to any exercise of the Warrants.&nbsp; </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.10</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Equal Treatment of Purchasers</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Subject to Section 5.5, no consideration (including any modification of any Transaction Document) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration is also offered to all of the parties to this Agreement.&nbsp; Subject to Section 5.5, for clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise. </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.11</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Certain Transactions and Confidentiality</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither he, she or it nor any Affiliate acting on his, her or its behalf or pursuant to any understanding with it will execute any purchases or sales, including Short Sales of any of the Company&#146;s securities during the period commencing with the execution of this Agreement and ending at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release as described in Section 4.4.</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="Times New Roman" lang=X-NONE>&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.4, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Disclosure Schedules.&nbsp; </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>4.12</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">Blue Sky</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>. &nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">&nbsp;The Company shall (i) register and qualify, unless an exemption from registration and qualification applies, the issuance of the Securities pursuant to this Agreement under the securities or &#147;blue sky&#148; laws of Connecticut, Illinois and New York, (ii) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times, and (iv) take all other actions reasonably necessary or advisable to qualify the Securities for sale in such jurisdictions.</font></h2> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>20</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_21> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader21> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h1 style="PAGE-BREAK-AFTER:avoid; TEXT-ALIGN:center; MARGIN:0in 0in 12pt; TEXT-INDENT:0in"><b><font style=FONT-SIZE:12pt face="times new roman" lang=X-NONE>ARTICLE V.</font></b><b><font style=FONT-SIZE:12pt face="times new roman" color=black lang=X-NONE><br>MISCELLANEOUS</font></b></h1> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.1</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Termination</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; This Agreement may be terminated by </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">the Company in its sole discretion</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">&nbsp; Any Purchaser may terminate this Agreement with respect to itself to the extent that the Closing Date has not occurred by the third Trading Day following the date hereof.&nbsp; </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.2</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Fees and Expenses</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of their advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.&nbsp; The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company), stamp taxes and other similar taxes and duties levied in connection with the delivery of any Securities to the Purchasers.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.3</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Entire Agreement</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.4</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Notices</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2<sup>nd</sup>)Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given.&nbsp; The address for such notices and communications shall be as set forth on the signature pages attached hereto.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.5</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Amendments; Waivers</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers holding at least a majority in interest of the Shares then outstanding and held by the original Purchasers or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought.&nbsp; No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.6</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Headings</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.</font></h2> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>21</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_22> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader22> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.7</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Successors and Assigns</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.&nbsp; The Company may assign this Agreement and any rights or obligations hereunder without the prior written consent of the Purchasers to any successor of the Company.&nbsp; Each Purchaser may assign any or all of their respective rights under this Agreement without the prior written consent of the Company to an Affiliate of such Purchaser in connection with a transfer of Securities to such Affiliate, provided that such Affiliate transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the &#147;Purchasers.&#148;&nbsp;&nbsp; Any rights of a Purchaser under this Agreement shall terminate upon a transfer by a Purchaser of their respective Securities to a person other than an Affiliate in accordance with this Section 5.7.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.8</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>No Third-Party Beneficiaries</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">Except for (i) the Placement Agent with respect to Section 2.2(a), Section 3.1, Section 4.7, Section 5.10 and (ii) as otherwise provided in Section 4.7, t</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>his Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">.&nbsp;</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.9</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Governing Law</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.&nbsp; Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or their respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.&nbsp; Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.&nbsp; Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.&nbsp; If either party shall commence an action, suit or proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under Section 4.7, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys&#146; fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.10</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Survival</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The representations and warranties contained herein shall survive the Closing and the delivery of the Securities; provided, that all &#147;non-fundamental&#148; representations shall expire on the one year anniversary of the Closing Date.&nbsp; The </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">&#147;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>non-fundamental</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">&#148;&nbsp;&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>representations are all representations made under this Agreement by the Company, except the following: Section 3.1(a), (b), (c), (d), (f)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">, </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>(g)&nbsp;</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman"> and (h)</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp;</font></h2> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>22</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_23> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.11</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Execution</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart.&nbsp; In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a &#147;.pdf&#148; format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or &#147;.pdf&#148; signature page were an original thereof.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.12</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Severability</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.13</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Replacement of Securities</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and a customary indemnity.&nbsp; The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.14</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Remedies</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents.&nbsp; The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.</font></h2></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>23</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_24> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in">&nbsp;</h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.15</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Independent Nature of Purchasers&#146; Obligations and Rights</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document.&nbsp; Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>or the transactions contemplated by the Transaction Documents.&nbsp; Each Purchaser shall be entitled to independently protect and enforce his, her or its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and (unless deemed an indispensible party under applicable law) it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose.&nbsp; Each Purchaser has been represented by his, her or its own separate legal counsel in their review and negotiation of the Transaction Documents.&nbsp; For reasons of administrative convenience only, each Purchaser and his, her or its respective counsel have chosen to communicate with the Company through </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">Haynes and Boone, LLP</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">Haynes and Boone, LLP</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE> does not represent any of the Purchasers and only represents </font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman">the Placement Agent</font><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers.&nbsp; It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.16</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Saturdays, Sundays, Holidays, etc</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp;&nbsp;&nbsp; If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.17</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>Construction</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.</font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>5.18</font><font style="FONT-SIZE:7pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>WAIVER OF JURY TRIAL</font></u><font style="FONT-SIZE:12pt; FONT-WEIGHT:normal; FONT-STYLE:normal" face="times new roman" lang=X-NONE>.&nbsp; IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY UNDER THIS AGREEMENT, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY. </font></h2> <h2 style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0in">&nbsp;</h2> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 12pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=X-NONE>(Signature Pages Follow)</font></p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>24</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_25> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader25> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 12pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=X-NONE>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <div align=center> <table bordercolor=transparent style="WIDTH:75%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr> <td width=60% valign=top> <p style="MARGIN:0in 0in 0pt"><b><font style="FONT-SIZE:12pt; TEXT-TRANSFORM:uppercase" face="Times New Roman" color=black>COPYTELE, INC.</font></b></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=40% valign=top> <p style="MARGIN:0in 0in 0pt"><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black>Address for Notice:</font></u></p></td></tr> <tr> <td width=60% valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>By:_</font><u><font style=FONT-SIZE:12pt face="Times New Roman" color=black>/s/ Robert A. Berman</font></u><font style=FONT-SIZE:12pt face="Times New Roman" color=black>_______________________&nbsp;</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp; Name: Robert A. Berman</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp; Title: President and Chief Executive Officer</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt 0.25in; TEXT-INDENT:-0.25in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp;&nbsp;Dated:</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>With a copy to (which shall not constitute notice):</font></p></td> <td width=40% valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>CopyTele. Inc.</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>900 Walt Whitman Road</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>Melville, NY 11747</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>Fax: 631-549-5974</font></p></td></tr> <tr> <td width=60% valign=top> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></td> <td width=40% valign=top> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>Ellenoff Grossman &amp; Schole LLP</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>1345 Avenue of the Americas</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>New York, NY 10105-0302</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>Attention: Barry I Grossman, Esq,</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>Sarah E. Williams, Esq.</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black>Fax: 212-370-7889</font></p></td></tr></table></div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>SIGNATURE PAGE FOR PURCHASER FOLLOWS]</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>25</font></p> <hr width=100% size=2 noshade align=center> <div style=PAGE-BREAK-BEFORE:always>&nbsp;</div>&nbsp; <a name=page_26> <div style="PADDING-LEFT:0%; PADDING-RIGHT:0%"><a name=_aciHeader26> <div> <p style="MARGIN:0in 0in 0pt">&nbsp;</p></div> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>[PURCHASER SIGNATURE PAGES TO COPYTELE SECURITIES PURCHASE AGREEMENT]</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 24pt; TEXT-INDENT:0.5in"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:200%" face="Times New Roman" color=black lang=EN-US>Name of Purchaser: ________________________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><i><font style="FONT-SIZE:12pt; LINE-HEIGHT:200%" face="Times New Roman" color=black lang=EN-US>Signature of Authorized Signatory of Purchaser</font></i><font style="FONT-SIZE:12pt; LINE-HEIGHT:200%" face="Times New Roman" color=black lang=EN-US>: _________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:200%" face="Times New Roman" color=black lang=EN-US>Name of Authorized Signatory: _______________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:200%" face="Times New Roman" color=black lang=EN-US>Title of Authorized Signatory: ________________________________________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:200%" face="Times New Roman" color=black lang=EN-US>Email Address of Authorized Signatory:_________________________________________</font></p> <p style="MARGIN:0in 0in 0pt"><font style="FONT-SIZE:12pt; LINE-HEIGHT:200%" face="Times New Roman" color=black lang=EN-US>Facsimile Number of Authorized Signatory: __________________________________________</font></p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Address for Notice to Purchaser:</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Address for Delivery of Securities to Purchaser (if not same as address for notice):</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Subscription Amount: $_________________</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Shares: _________________</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>Warrant Shares: ______________</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="MARGIN:0in 0in 0pt"><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>EIN Number: ____________________</font></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><font style=FONT-SIZE:10pt face=wingdings color=black lang=EN-US>o</font><font style=FONT-SIZE:10pt face="Times New Roman" color=black lang=EN-US>&nbsp; Notwithstanding anything contained in this Agreement to the contrary, by checking this box the above-signed agrees that the obligations of the above-signed</font><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US> </font><font style=FONT-SIZE:10pt face="Times New Roman" color=black lang=EN-US>to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed shall be unconditional and all conditions to Closing in favor of the above-signed shall be disregarded.&nbsp; Notwithstanding the foregoing, in the event the Company accepts the above-signed&#146;s subscription for the Company&#146;s securities and any conditions to Closing contemplated by this Agreement that required delivery by the Company or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) are not satisfied as of the Closing, such deliverable shall be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.</font></p> <p style="MARGIN:0in 0in 0pt">&nbsp;</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center><font style=FONT-SIZE:12pt face="Times New Roman" color=black lang=EN-US>[SIGNATURE PAGES CONTINUE]</font></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align=center>&nbsp;</p></div> <p style=TEXT-ALIGN:center><font style=FONT-SIZE:10pt>26</font></p></a></body>
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<DESCRIPTION>EXHIBIT 99.1
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<head><title>Exhibit 99.1</title> </head> <body style="FONT-SIZE:10pt; FONT-FAMILY:Times New Roman; COLOR:#000000; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:13px; FONT-SIZE:12pt; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=right><b><u>Exhibit 99.1</u></b></p> <p style="MARGIN-BOTTOM:13px; MARGIN-TOP:0px" align=center><br></p> <p style="MARGIN-BOTTOM:13px; FONT-SIZE:12pt; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=center><b><u>CopyTele Raises $4 Million in Registered Direct Offering </u></b></p> <p style=MARGIN:0px align=center><br></p> <p style="MARGIN-BOTTOM:13px; FONT-SIZE:12pt; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=justify>MELVILLE, NY &#150; July 15, 2014: CopyTele, Inc. (&#147;CTI&#147;) (OTCQB: COPY), a company that protects the rights of inventors through patent monetization and patent assertion, today announced that it has raised $4 million via a registered direct offering of its common shares. </p> <p style="MARGIN-BOTTOM:13px; FONT-SIZE:12pt; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=justify>Robert Berman, CTI&#146;s President and CEO stated, &#147;This financing will further strengthen our balance sheet, help position the company for accelerated growth, and insure that we have the resources that we need to maximize returns from our 33 lawsuits, including our upcoming arbitration trial against AU Optronics which is scheduled for November of 2014.&#148; </p> <p style="MARGIN-BOTTOM:13px; FONT-SIZE:12pt; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=justify>Alere Financial Partners, LLC, a division of Summer Street Research Partners, acted as the sole placement agent for the transaction. For more details on the registered direct offering, please refer to the Prospectus Supplement, and Form 8K filed today with the Securities and Exchange Commission. &nbsp;</p> <p style="MARGIN-BOTTOM:13px; FONT-SIZE:12pt; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=justify>CTI and its subsidiary companies currently have 33 active lawsuits across 6 patent assertion programs, including E-Paper Electrophoretic Displays, Nano Field Emission Displays, Key Based Web Conferencing Encryption, J-Channel Window Frame Construction, Loyalty Conversion Systems, and Encrypted Cellular Communications. Three of CTI&#146;s patent assertion programs have already begun to generate revenue. </p> <p style="MARGIN-BOTTOM:11px; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=justify><b>About CopyTele, Inc.</b></p> <p style="MARGIN-BOTTOM:11px; FONT-FAMILY:Arial; MARGIN-TOP:0px" align=justify>CTI develops and acquires patented technologies for the purposes of patent monetization and patent assertion. The company currently has 10 patent portfolios in the areas of Key Based Web Conferencing Encryption, Encrypted Cellular Communications, E-Paper&#174; Electrophoretic Display, Nano Field Emission Display (&#147;nFED&#148;), Micro Electro Mechanical Systems Display (&#147;MEMS&#148;), Loyalty Conversion Systems, J-Channel Window Frame Construction, VPN Multicast Communications, Internet Telephonic Gateway, and Enhanced Auction Technologies. &nbsp;Additional information is available at www.CTIpatents.com. </p> <p style="MARGIN-BOTTOM:11px; FONT-FAMILY:Calibri,Times New Roman; MARGIN-TOP:0px" align=justify># # #</p> <p style="MARGIN-BOTTOM:11px; FONT-SIZE:11pt; MARGIN-TOP:0px" align=justify><b>Forward-Looking Statements:</b> <font style=FONT-SIZE:10pt>Statements that are not historical fact may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect CopyTele's current expectations concerning future events and results. We generally use the words &#147;believes,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;anticipates,&#148; &#147;likely,&#148; &#147;will&#148; and similar expressions to identify forward-looking statements. &nbsp;Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. &nbsp;These </font></p> <p style="MARGIN-BOTTOM:11px; MARGIN-TOP:0px" align=justify><br><br></p> <hr size=1 noshade style="MARGIN-BOTTOM:9px; PADDING-TOP:9px"> <p style="MARGIN-BOTTOM:11px; PAGE-BREAK-BEFORE:always; MARGIN-TOP:0px" align=justify>risks, uncertainties and factors include, but are not limited to, those factors set forth in &#147;Item 1A &#150; Risk Factors&#148; and other sections of our Annual Report on Form 10-K for the fiscal year ended October 31, 2013 as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. &nbsp;We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. &nbsp;You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this press release. </p> <p style="MARGIN-BOTTOM:11px; MARGIN-TOP:0px" align=justify><br><br></p></body>
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