Common use of Capital Stock of DFTS Clause in Contracts

Capital Stock of DFTS. The authorized capital stock of DFTS consists of 40,000,000 shares of common stock, par value $.001 per share of which approximately 36,000,000 are issued and outstanding and 5,000,000 shares of preferred stock, par value $.01 per share, of which -0- shares of Class A preferred stock and 1192 shares of Class B stock are issued and outstanding. No shares of such capital stock are held in the treasury of DFTS. DFTS does not own stock in and does not control, directly or indirectly, any corporation, association or business organization. DFTS is not a party to any joint venture or partnership agreement. All shares of the Class C and Class D preferred stock that will be issued to NMKT hereunder will, when issued, be duly authorized, validly issued and outstanding, fully paid, and nonassessable, and no person shall have any preemptive rights in respect thereof. Except as set forth in Schedule 3.5 to this Agreement, there is outstanding no security, option, warrant, right, call, subscription, agreement, commitment, or understanding, fixed or contingent, that directly or indirectly (i) calls for the issuance of, or the granting of rights to acquire, any common or preferred stock of DFTS, or any securities convertible into any such stock of DFTS, (ii) obligates DFTS to grant, offer or enter into any of the foregoing, or (iii) relates to the voting or control of such capital stock, securities or rights.

Capital Stock of DFTS. The authorized capital stock of DFTS consists of 40,000,000 shares of common stock, par value $.001 per share of which approximately 36,000,000 are issued and outstanding and 5,000,000 shares of preferred stock, par value $.01 per share, of which -0- _________ shares of Class A preferred stock and 1192 _______ shares of Class B stock are issued and outstanding. No shares of such capital stock are held in the treasury of DFTS. DFTS does not own stock in and does not control, directly or indirectly, any corporation, association or business organization. DFTS is not a party to any joint venture or partnership agreement. All shares of the Class C and Class D preferred stock that will be issued to NMKT hereunder will, when issued, be duly authorized, validly issued and outstanding, fully paid, and nonassessable, and no person shall have any preemptive rights in respect thereof. Except as set forth in Schedule 3.5 ___ to this Agreement, there is outstanding no security, option, warrant, right, call, subscription, agreement, commitment, or understanding, fixed or contingent, that directly or indirectly (i) calls for the issuance of, or the granting of rights to acquire, any common or preferred stock of DFTS, or any securities convertible into any such stock of DFTS, (ii) obligates DFTS to grant, offer or enter into any of the foregoing, or (iii) relates to the voting or control of such capital stock, securities or rights.