NEUMEDIA,
INC.
WARRANT
TO PURCHASE COMMON STOCK
THE OFFER
AND SALE OF THE SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR QUALIFIED
UNDER STATE SECURITIES LAWS, AND THEREFORE SUCH SECURITIES MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND EFFECTIVE QUALIFICATION
THEREOF UNDER APPLICABLE STATE SECURITIES LAWS, OR IF SUCH SALE, TRANSFER,
ASSIGNMENT, HYPOTHECATION OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE ACT AND THE QUALIFICATION REQUIREMENTS OF THE RELEVANT STATE
SECURITIES LAWS.
FOR VALUE
RECEIVED, ______________________
(the “Holder”)
is entitled to purchase, from time to time, from NeuMedia, Inc., a Delaware
corporation (the “Company”), fully paid
and non-assessable shares of common stock of the Company, par value $0.0001 per
share (each, a “Share” and
collectively, the “Shares”), commencing
on the date set forth on the signature page hereof (the “Commencement Date”),
on the terms and conditions set forth herein.
1. Number of Shares; Vesting;
Strike Price and Expiration Date.
(a) This
Warrant may be exercised for ____________
Shares.
(b) The
right to exercise this Warrant shall fully vest on the Commencement
Date.
(c) As
used herein, the “Strike Price” means
$0.25 per Share, as such prices may be adjusted from time to time pursuant to
the terms hereof.
(d) All
purchase rights represented by this Warrant shall terminate at 5:00 p.m. PDT on
the fifth anniversary of the Commencement Date (the “Expiration
Date”). To the extent that this Warrant has not been exercised
before the Expiration Date, this Warrant shall become null and void and all
rights hereunder and all rights in respect hereof shall cease as of the
Expiration Date.
2. Exercise and
Payment.
(a) Exercise. This
Warrant may be exercised in whole or in part, from time to time, by the Holder
by surrender of this Warrant (and the Notice of Exercise annexed hereto duly
completed and executed by the Holder) to the Company at the principal executive
office of the Company, together with payment in the amount obtained by
multiplying the Strike Price then in effect by the number of Shares to be
purchased (as designated in the Notice of Exercise). Payment must be
by wire transfer of immediately available funds.
(b) Net Issue Exercise.
In lieu of exercising this Warrant in accordance with Section 2(a), the Holder
may elect a net issue exercise in accordance with this Section
2(b). In the event the Holder elects a net issue exercise pursuant to
this Section 2(b), the Company shall deliver Shares in exchange for this
Warrant, with the amount of the number of Shares determined in accordance with
this Section 2(b). The Holder may elect a net issue exercise by
surrendering this Warrant (and the Notice of Exercise annexed hereto duly
completed and executed by the Holder) to the Company at the principal executive
office of the Company.
If in the
Notice of Exercise the Holder elects a net issue exercise, then the Company
shall issue to the Holder a number of Shares computed using the following
formula:
X = Y (A-B)
A
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Where
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X
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=
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the
number of Shares to be issued to the Holder.
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Y
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=
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the
number of Shares then purchasable under this Warrant designated
in
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the
Notice of Exercise.
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A
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=
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the then current Fair Value of
the Shares.
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B
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=
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the
then current Strike
Price.
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As used
in this Warrant, "Fair Value"
shall mean, on any date specified herein (i) in the case of cash, the dollar
amount thereof, (ii) in the case of a security listed on a national securities
exchange, the Current Market Price, and (iii) in all other cases, the fair value
thereof (as of a date which is within 20 days of the date as of which the
determination is to be made) determined in good faith by a majority of the
disinterested members of the Board of Directors of the Company; provided,
however, that if the Initial Holder (defined below) does not agree with a
majority of the disinterested members of the Board of Directors’ determination
of Fair Value, the Fair Value shall be determined in good faith, by an
independent investment banking firm selected jointly by the Company and the
Initial Holder or, if that selection cannot be made within ten days, by an
independent investment banking firm selected by the American Arbitration
Association in accordance with its rules, and provided further, that the Initial
Holder shall pay the fees and expenses of any third parties incurred in
connection with determining the Fair Value in the event the independent
investment banking firm’s determination of Fair Value is equal to or less than
the Fair Value as determined by a majority of the disinterested members of the
Board of Directors, and the Company shall pay such fees and expenses in the
event the independent investment banking firm’s determination of Fair Value is
greater than the Fair Value as determined by a majority of the disinterested
members of the Board of Directors. As used in this Section 2(b), “Current Market Price”
shall mean, the volume-weighted average closing price of the Shares for the five
trading days immediately preceding the date as of which the determination is to
be made. As used in this Warrant,
the “Initial
Holder” shall mean ________________,
who, for the avoidance of doubt, is also referred to in this Warrant as, a
“Holder.”
(c) Automatic Net Issuance
Immediately Prior to Expiration. Notwithstanding anything
herein to the contrary, if immediately prior to the Expiration Date the net
issue exercise of this Warrant pursuant to Section 2(b) would result in Shares
being due to the Holder, then to the extent not previously exercised by the
Holder, this Warrant shall be deemed automatically exercised immediately prior
to 5:00 p.m. PDT on the Expiration Date by the Holder via a net issue exercise
pursuant to Section 2(b) for the maximum number of Shares then purchasable under
this Warrant; provided, that the Holder must deliver a Notice of Exercise
(accompanied by this Warrant certificate) to the Company within two months of
the Expiration Date and, in the event such Notice of Exercise (accompanied by
this Warrant certificate) is not delivered within two months of the Expiration
Date, the automatic exercise of this Warrant pursuant to this Section 2(c) will
not occur and this Warrant shall be null and void.
3. Delivery of
Certificates. In the event the Holder exercises this Warrant
for Shares pursuant to Section 2(a), or pursuant to Section 2(b) or Section 2(c)
and the Company elects to deliver Shares, this Warrant shall be deemed to have
been exercised and the Holder shall be deemed to have become the holder of
record of such Shares as of the date of the surrender of this Warrant
certificate to the Company, and in the case of an exercise pursuant to Section
2(a), payment of the Strike Price to the Company. Within a reasonable
period of time after exercise, in whole or in part, of this Warrant pursuant to
Section 2(a), or Section 2(b) or Section 2(c) where the Company elects to
deliver Shares, the Company shall issue in the name of and deliver to the Holder
a certificate for the number of fully paid and non-assessable Shares that the
Holder shall have requested in the Notice of Exercise, or the number of Shares
calculated pursuant to Section 2(b) in the event the Holder elects a net issue
exercise in the Notice of Exercise and the Company elects to deliver Shares, up
to the maximum then available hereunder. If this Warrant is exercised in part,
the Company shall deliver to the Holder a new Warrant for the unexercised
portion of this Warrant at the time of delivery of such certificate for the
Shares.
4. No Fractional
Shares. No fractional Shares or scrip representing fractional
Shares will be issued upon exercise of this Warrant. If upon any
exercise of this Warrant a fraction of a Share results, the Company will pay the
Holder the difference between the cash value of the fractional Share and the
portion of the Strike Price allocable to the fractional Share.
5. Charges, Taxes and
Expenses. The Holder shall pay all taxes or other incidental
charges, if any, in connection with (i) the transfer from the Company to the
Holder of the Shares purchased pursuant to the exercise hereof, and (ii) the
transfer from the Initial Holder to a Permitted Transferee (or any other
transfer by the Initial Holder or a Holder to which the Company consents in
writing) of all or any portion of this Warrant in accordance with Section 14(g)
of this Warrant.
6. Loss, Theft, Destruction or
Mutilation of Warrant. Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft or destruction of this Warrant,
of indemnity or security reasonably satisfactory to the Company, and upon
reimbursement to the Company of all reasonable expenses incidental thereto, and
upon surrender and cancellation of this Warrant, if mutilated, the Company will
make and deliver a new Warrant of like tenor, dated as of such date as the
foregoing conditions have been satisfied in the event of loss, theft or
destruction, or the surrender date in the event of mutilation, in lieu of this
Warrant.
7. Saturdays, Sundays,
Holidays, Etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a
Saturday or a Sunday or a holiday observed by The New York Stock Exchange (the
“NYSE”), then
such action may be taken or such right may be exercised on the next succeeding
weekday which is not a holiday observed by the NYSE.
8. Adjustment of Strike Price
and Number of Shares. The number of and kind of securities
purchasable upon exercise of this Warrant and the Strike Price shall be subject
to adjustment from time to time as follows:
(a) Subdivisions and
Combinations. If the Company shall at any time after the date
hereof, but prior to the expiration of this Warrant, subdivide its outstanding
securities as to which purchase rights under this Warrant exist, by split-up or
otherwise, or combine its outstanding securities as to which purchase rights
under this Warrant exist, the number of Shares as to which this Warrant is
exercisable as of the date of such subdivision or combination shall forthwith be
proportionately increased in the case of a subdivision or proportionately
decreased in the case of a combination. Appropriate corresponding
adjustments shall also be made to the Strike Price, so that the aggregate
purchase price payable for the total number of Shares purchasable under this
Warrant as of such date shall remain the same.
(b) Reclassification,
Etc. Except as specifically provided for in Section 8(c)
below, if at any time after the date hereof there shall be a change,
reorganization or reclassification of the Shares into which this Warrant is
exercisable into the same or a different number of a different type or class of
securities, then the Holder shall thereafter be entitled to receive upon
exercise of this Warrant, during the period specified herein and upon payment of
the Strike Price then in effect, the number of shares of other securities or
property resulting from such change, reorganization or reclassification that
would have been received by the Holder for the Shares subject to this Warrant
had this Warrant been exercised immediately prior to the time of the
reclassification.
(c) Consolidation, Merger or
Sale. If the Company shall do any of the following (each, a
“Triggering
Event”): (i) consolidate with or merge into any other entity and the
Company shall not be the continuing or surviving corporation of such
consolidation or merger, or (ii) permit any other entity to consolidate with or
merge into the Company and the Company shall be the continuing or surviving
entity but, in connection with such consolidation or merger, the capital stock
of the Company shall be changed into or exchanged for securities of any other
entity or cash or any other property, or (iii) transfer all or substantially all
of its properties or assets to any other person or entity, then, and in the case
of each such Triggering Event, proper provision shall be made so that, upon the
basis and the terms and in the manner provided in this Warrant, the Holder of
this Warrant shall be entitled upon the exercise hereof at any time after the
consummation of such Triggering Event but prior to the Expiration Date, and to
the extent this Warrant is not exercised prior to such Triggering Event, to
receive at the Strike Price in effect at the time immediately prior to the
consummation of such Triggering Event (subject to adjustments (subsequent to
such Triggering Event) as nearly equivalent as possible to the adjustments
provided for elsewhere in this Section 8), in lieu of the Shares issuable upon
exercise of this Warrant prior to such Triggering Event, the securities, cash
and/or property to which such Holder would have been entitled upon the
consummation of such Triggering Event if such Holder had exercised the rights
represented by this Warrant immediately prior thereto (and the Company shall
select the form of consideration, to the extent applicable, received by the
Holder upon exercise of this Warrant subsequent to such Triggering Event),
subject to adjustments (subsequent to such Triggering Event) as nearly
equivalent as possible to the adjustments provided for elsewhere in this Section
8.
(d) Extraordinary
Distributions. Except as specifically provided for in Section 8(c) above,
if the Company shall distribute to all holders of its Shares: (i) any shares of
capital stock of the Company, evidence of indebtedness, or other securities or
rights convertible into shares of capital stock of the Company (but excluding
Ordinary Dividends) without receiving payment of any consideration in exchange
therefor, or (ii) cash (but excluding Ordinary Dividends), then, in each such
case:
(i) the
Strike Price in effect immediately prior to the close of business on the record
date fixed for the determination of holders of any class of securities entitled
to receive such distribution shall be reduced, effective as of the close of
business on such record date, to a price determined by multiplying such Strike
Price by a fraction
(x) the
numerator of which shall be the Fair Value of a Share in effect on such record
date or, if the Shares trade on an ex-distribution basis, on the date prior to
the commencement of ex-distribution trading, less the Fair Value of such
distribution applicable to one Share, and
(y) the
denominator of which shall be the Fair Value of a Share in effect on such record
date or, if the Shares trade on an ex-distribution basis, on the date prior to
the commencement of ex-distribution trading;
and
(ii) this
Warrant shall thereafter evidence the right to receive, at the adjusted Strike
Price, that number of Shares (calculated to the nearest Share) obtained by
dividing:
(x) the
product of the aggregate number of Shares covered by this Warrant immediately
prior to such adjustment and the Strike Price in effect immediately prior to
such adjustment of the Strike Price by,
(y) the
Strike Price in effect immediately after such adjustment of the Strike
Price.
As used
herein “Ordinary Dividends” shall mean all quarterly dividends, whether paid in
cash, shares of capital stock of the Company or other securities, or any
combination of the foregoing, except extraordinary or special
dividends.
9. Notices of Adjustments,
Etc. Whenever the Strike Price or number of Shares purchasable
hereunder shall be adjusted pursuant to Section 8 hereof, within five business
days of the event requiring the adjustment, the Company shall deliver to the
Holder (in accordance with Section 14(c)) a certificate setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated and the Strike
Price and number of shares purchasable hereunder after giving effect to such
adjustment.
10. No Rights as
Stockholder. Prior to exercise of this Warrant, the Holder
shall not be entitled to any rights as a stockholder of the Company with respect
to the Shares, including (without limitation) the right to vote such Shares,
receive distributions thereon, or be notified of stockholder meetings, and the
Holder shall not be entitled to any notice or other communication concerning the
business or affairs of the Company.
11. Shares Fully Paid,
Reservation and Listing of Shares; Covenants.
(a) Shares Fully
Paid. The Company covenants and agrees that all Shares which
may be issued upon the exercise of this Warrant or otherwise hereunder will,
upon issuance, be duly authorized, validly issued, fully paid and
non-assessable. The Company further covenants and agrees that during
the period within which this Warrant may be exercised, the Company will at all
times have authorized and reserved for the purpose of the issue upon exercise of
this Warrant a number of Shares equal to 100% of the aggregate number of Shares
exercisable hereunder to provide for the exercise of this Warrant.
(b) Covenants. The
Company shall not by any action including, without limitation, amending the
Articles of Incorporation or the Bylaws of the Company, or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant.
12. Restricted
Securities. The Holder understands that this Warrant and the
Shares purchasable hereunder constitute “restricted securities” under the
federal securities laws inasmuch as they are, or will be, acquired from the
Company in transactions not involving a public offering and accordingly may not,
under such laws and applicable regulations, be resold without registration under
the Act, or an applicable exemption from such registration. The Holder hereby
acknowledges that the securities legend on Exhibit A to the Notice of Exercise
attached hereto will be placed on any Shares issued to the Holder upon exercise
of this Warrant.
13. Certification of Investment
Purpose. Unless a current registration statement under the Act
shall be in effect with respect to the securities to be issued upon exercise of
this Warrant, in which case the Holder may be asked to provide a modified
version of the written certification attached hereto, the Holder covenants and
agrees that, at the time of exercise hereof, it will deliver to the Company a
written certification in substantially the form of Exhibit A to the Notice of
Exercise attached hereto, executed by the Holder, which certifies to the Company
that the Holder is an “accredited investor” as that term is defined in Rule 501
of Regulation D promulgated under the Act, that the securities acquired by such
Holder upon exercise hereof are for the account of such Holder and acquired for
investment purposes only and that such securities are not acquired with a view
to, or for sale or resale in connection with, any distribution
thereof.
14. Miscellaneous.
(a) Construction. Unless
the context indicates otherwise, the term “Warrant” shall
include any and all warrants outstanding pursuant to this Agreement, including
those evidenced by a certificate upon exchange or substitution pursuant to the
terms hereof.
(b) Restrictions. By
receipt of this Warrant, the Holder makes the same representations and
warranties with respect to the acquisition of this Warrant as the Holder is
required to make upon the exercise of this Warrant and acquisition of the Shares
purchasable hereunder as set forth in the Form of Investment Letter attached as
Exhibit A to the Notice of Exercise, the forms of which are attached hereto as
Exhibit
A.
(c) Notices. Unless
otherwise provided, any notice required or permitted under this Warrant shall be
given in writing and shall be deemed effectively given upon personal delivery to
the party to be notified or three days following deposit with the United States
Post Office, by registered or certified mail, postage prepaid and addressed to
the party to be notified (or one day following timely deposit with a reputable
overnight courier with next day delivery instructions), or upon confirmation of
receipt by the sender of any notice by facsimile transmission, at the address
indicated below or at such other address as such party may designate by ten
days’ advance written notice to the other party.
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To
Holder:
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________________________________
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________________________________
________________________________
________________________________
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To
the Company:
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NeuMedia,
Inc.
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2000
Avenue of the Stars, Suite 410
Los
Angeles, California 90067-5075
Attention: Chief
Financial Officer
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With
a copy to:
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Manatt,
Phelps & Phillips, LLP
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11355
West Olympic Boulevard
Los
Angeles, California 90064
Attention: Richard
J. Maire, Esq.
Facsimile:
(310) 312-4224
(d) Governing Law. Any dispute in the
meaning, effect or validity of this Warrant shall be resolved in accordance with
the laws of the State of Delaware without regard to the conflict of laws
provisions thereof.
(e) Attorneys’
Fees. In the event that any suit or action is instituted under
or in relation to this Warrant, including without limitation to enforce any
provision in this Warrant, the prevailing party in such dispute shall be
entitled to recover from the losing party all fees, costs and expenses of
enforcing any right of such prevailing party under or with respect to this
Warrant, including, without limitation, such reasonable fees and expenses of
attorneys and accountants, which shall include, without limitation, all fees,
costs and expenses of appeals.
(f) Entire
Agreement. This Warrant and the exhibits hereto constitute the
entire agreement and understanding of the parties hereto with respect to the
subject matter hereof, and supersede all prior and contemporaneous agreements
and understandings, whether oral or written, between the parties hereto with
respect to the subject matter hereof.
(g) Binding Effect; and
Assignment.
(i) This
Warrant and the various rights and obligations arising hereunder shall inure to
the benefit of and be binding upon the Company and its successors and assigns,
and the Holder and its successors and permitted assigns.
(ii) The
Holder may not sell, assign or otherwise transfer this Warrant or its rights or
obligations hereunder without the express written consent of the Company, which
consent may be withheld, delayed or conditioned in the sole and absolute
discretion of the Company.
(iii) Notwithstanding anything herein to the
contrary, the Initial Holder, and only the Initial Holder with respect to
(1) and (2) below, may assign or transfer this Warrant, without the consent of
the Company, following at least
ten business days prior written notice by the Initial Holder to the Company,
which written notice shall be accompanied by a legal opinion reasonably
satisfactory to the Company issued by legal counsel to the Initial Holder
reasonably acceptable to the Company, to the effect that such transfer or
assignment may be effected without registration or qualification under any U.S.
federal and state laws and applicable foreign laws then in effect: (1) in
whole or in part to any Affiliate of the Initial Holder and any of such
Affiliate’s respective stockholders, partners, limited partners, members or
other equity owners; or (2) in whole, and not in part, to any one unrelated
third party (each of (1) and (2), a “Permitted Transferee”). Any
Permitted Transferee shall be deemed to be a Holder for all purposes hereunder
and in no event shall a Permitted Transferee be deemed to be the “Initial
Holder” or have the power or authority to exercise any of the rights granted to
the Initial Holder. As used in this Section 14(g)(iii), “Affiliate”
shall mean, with respect to any person or entity, a person or entity that
directly, or indirectly through one or more intermediaries, controls or is
controlled by or under common control with such person or entity.
(iv) Subject
to the provisions of Section 14, this Warrant and all rights hereunder are
transferable upon surrender of this Warrant certificate with a properly executed
assignment (in the form of Exhibit B hereto) at
the principal executive office of the Company. The assignment of a Warrant to a
transferee hereof shall be deemed to be the acceptance by such transferee of all
of the rights and obligations of a “Holder” of this Warrant.
(h) Waiver;
Consent. This Warrant may not be changed, amended, terminated,
augmented, rescinded or discharged (other than by performance), in whole or in
part, except by a writing executed by the parties hereto, and no waiver of any
of the provisions or conditions of this Warrant or any of the rights of a party
hereto shall be effective or binding unless such waiver shall be in writing and
signed by the party claimed to have given or consented thereto.
(i) Company
Determinations. Any determination, selection or adjustment to
the Strike Price or the number of Shares to be issued upon exercise of the
Warrant to be made by the Company hereunder shall be made by majority of the
disinterested directors of the Board of Directors of the Company.
[Remainder
of the Page is Intentionally Left Blank]
IN
WITNESS WHEREOF, the parties hereto have executed this Warrant effective as of
the date set forth below.
DATED: ________,
2010
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COMPANY
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NeuMedia,
Inc.,
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a
Delaware corporation
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By:
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Name:
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Title:
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HOLDER
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__________________________________
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By:
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Name:
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Title:
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EXHIBIT
A
NOTICE OF
EXERCISE
To: NeuMedia,
Inc.
[EXERCISE
PURSUANT TO SECTION 2(a)][The Holder hereby elects to purchase _____________
Shares of the Company pursuant to the terms of the attached Warrant, and tenders
herewith payment of the Strike Price pursuant to the terms of the
Warrant.]
[NET
ISSUE EXERCISE PURSUANT TO SECTION 2(b)][The Holder hereby elects to surrender
_____________ of the Shares of the Company underlying the attached Warrant
pursuant to the terms of the attached Warrant, and hereby agrees to accept in
exchange therefor Shares in the amount calculated pursuant to the terms of the
Warrant.]
Defined
terms used herein and not defined herein shall have the meaning ascribed to them
in the Warrant.
Attached
as Exhibit A is
an investment representation letter addressed to the Company and executed by the
Holder as required by Section 13 of the Warrant.
Please
issue a new Warrant for the unexercised portion of the attached Warrant, if any,
in the name of the Holder.
Dated:
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HOLDER
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__________________________________
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Name:
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Title:
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Exhibit
A
To: NeuMedia,
Inc.
In
connection with the purchase by the Holder of _________ Shares of the Company,
upon exercise of that certain Warrant dated as of ________ ___, 2010, the Holder
hereby represents and warrants as follows:
The
Holder is an “accredited investor” as that term is defined in Rule 501 of
Regulation D promulgated under the Act. The Shares to be received by
the Holder upon exercise of the Warrant are being acquired for its own account,
not as a nominee or agent, and not with a view to resale (except to the extent
exempt from the registration requirements of the Act and the qualification
requirements of the relevant state securities laws) or distribution of any part
thereof, and the Holder has no present intention of selling, granting any
participation in, or otherwise distributing the same. The Holder
believes it has received all the information it considers necessary or
appropriate for deciding whether to purchase the Shares.
The
Holder understands that the Shares are characterized as “restricted securities”
under the federal securities laws inasmuch as they are being acquired from the
Company in transactions not involving a public offering, and that under such
laws and applicable regulations such securities may be resold without
registration under the Act, only in certain limited circumstances. In
this connection, the Holder represents and warrants that it is familiar with
Rule 144 of the Act, as presently in effect, and understands the resale
limitations imposed by Rule 144 and by the Act.
The
Holder understands the instruments evidencing the Shares may bear the following
legend:
THE OFFER
AND SALE OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR QUALIFIED
UNDER STATE SECURITIES LAWS, AND THEREFORE SUCH SECURITIES MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND EFFECTIVE QUALIFICATION
THEREOF UNDER APPLICABLE STATE SECURITIES LAWS, OR IF SUCH SALE, TRANSFER,
ASSIGNMENT, HYPOTHECATION OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE ACT AND THE QUALIFICATION REQUIREMENTS OF THE RELEVANT STATE
SECURITIES LAWS.
Defined
terms used herein and not defined herein shall have the meaning ascribed to them
in the Warrant.
Dated:
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HOLDER
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__________________________________
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Name:
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Title:
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EXHIBIT
B
ASSIGNMENT
FORM
FOR VALUE
RECEIVED, _________________________________________ hereby sells, assigns and
transfers all of the rights of the undersigned under the attached Warrant with
respect to the number of Shares of the Company underlying the attached Warrant
covered thereby and designated below, unto:
Name of “Assignee”
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Address
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No. of Shares
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Dated:
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Signature:
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Name:
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Title:
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(if
applicable)
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Assignee hereby agrees to be subject to
and bound by all of the provisions of the attached Warrant as the “Holder.” The
Assignee understands and hereby acknowledges that as a Holder of the Warrant the
Assignee is not entitled to those rights afforded solely to the Initial Holder
of the Warrant. The Assignee makes the same representations and warranties with
respect to the acquisition of the Warrant as the Holder is required to make upon
the exercise of a Warrant and acquisition of the Shares purchasable thereunder
as set forth in the Form of Investment Letter attached as Exhibit A to the
Notice of Exercise, the form of which is attached as Exhibit A to the
attached Warrant.
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Dated:
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Signature:
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Name:
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Title:
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(if
applicable)
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