OMNIALUO, INC. WARRANT TO PURCHASE COMMON STOCK
THESE
SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.
OMNIALUO,
INC.
WARRANT
TO PURCHASE
COMMON
STOCK
This
certifies that ______, ___________ and existing under the laws of _______ or
any
of its assigns (collectively the “Holders”), for value received, are
collectively amongst themselves entitled to purchase from Wentworth II, Inc.,
a
Delaware corporation (the “Company”) which will change its name to OmniaLuo,
Inc., having an address for receipt of notices under this Warrant at Room 101,
Building E6, Huaqiaocheng, East Industrial Park, Nanshan District, Shenzhen,
518053, The People’s Republic of China, up to __________ fully-paid shares of
common stock, $0.01 par value per share (the “Common Stock”) of the Company (the
“Warrant
Shares”),
at an
exercise price equal to $1.25 per share (as adjusted from time to time as
provided in Section 3 hereof, the “Exercise
Price”)
at any
time or from time to time commencing from the date of the initiation of
quotation of the Common Stock on the OTC Bulletin Board or listing of the Common
Stock on NASDAQ (the first such event being referred to herein as the
“Listing”),
up to
and including 5:00 p.m. (New York time) on a business day that is two
(2) years
after the Listing; such day being referred to herein as the “Expiration
Date”,
upon
surrender to the Company at its principal office (or at such other location
as
the Company may advise the Holders in writing) of this Warrant properly endorsed
with the Form of Exercise attached hereto duly filled in and signed and, if
applicable, upon payment in cash, by wire transfer or by check of the aggregate
Exercise Price for the number of shares for which this Warrant is being
exercised determined in accordance with the provisions hereof. The Company
shall
deliver notice of the Listing to the Holders at least 30 days prior to its
initiation. The Exercise Price and the number of Warrant Shares purchasable
hereunder are subject to adjustment as provided in Section 3 of this Warrant.
The result of the number of Warrant Shares purchasable hereunder at any time
multiplied by the Exercise Price in effect at such time is hereinafter referred
to as the “Exercise
Consideration.”
This
Warrant is subject to the following terms and conditions:
1. EXERCISE;
ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES. This
Warrant is exercisable at the option of the Holders of record hereof, acting
collectively, at any time or from time to time, up to the Expiration Date for
all or any part of the Warrant Shares (but not for a fraction of a share) which
may be purchased hereunder. Certificates for the Warrant Shares so purchased,
together with any other securities or property to which the Holders hereof
are
entitled upon such exercise, shall be delivered to the Holders hereof by the
Company at the Company’s expense immediately but no later than within three (3)
business days after the rights represented by this Warrant have been so
exercised. Each share certificate so delivered shall be in such denominations
of
Warrant Shares as may be requested by the Holders hereof and shall be registered
in the name of such Holders.
2. SHARES
TO BE FULLY PAID; RESERVATION OF SHARES. The
Company covenants and agrees that all Warrant Shares which may be issued upon
the exercise of the rights represented by this Warrant will, upon issuance,
be
duly authorized, validly issued, fully paid and free from all pre-emptive rights
of any stockholder and free of all taxes, liens and charges with respect to
the
issue thereof. The Company further covenants and agrees that, during the period
within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized and reserved, for the purpose of
issue
or transfer upon exercise of the subscription rights evidenced by this Warrant,
a sufficient number of authorized but unissued shares of Common Stock, or other
securities and property, when and as required to provide for the exercise of
the
rights represented by this Warrant. The Company will take all such 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
any securities exchange upon which the Common Stock may be listed.
3. ADJUSTMENT
OF EXERCISE PRICE AND NUMBER OF SHARES. The
Exercise Price and the number of shares purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the occurrence
of
certain events described in this Section 3. Upon each adjustment of the Exercise
Price, the Holders of this Warrant shall thereafter be entitled to purchase,
at
the Exercise Price resulting from such adjustment, the number of shares obtained
by dividing the Exercise Consideration by the Exercise Price resulting from
such
adjustment.
3.1 Subdivision
or Combination of Share Capital. In
case
the Company shall at any time subdivide its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior
to such subdivision shall be proportionately reduced, and conversely, in case
the outstanding of Common Stock of the Company shall be combined into a smaller
number of shares, the Exercise Price in effect immediately prior to such
combination shall be proportionately increased. If any recapitalization,
reclassification or reorganization of the share capital of the Company (other
than by way of subdivision or combination) shall be effected in such a way
that
holders of shares Common Stock shall be entitled to receive shares, securities,
or other assets or property (a “Reorganization”),
then,
as a condition of such Reorganization, lawful and adequate provisions shall
be
made by the Company whereby the Holders hereof shall thereafter have the right
to purchase and receive (in lieu of the Warrant Shares immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby)
such shares, securities or other assets or property as may be issued or payable
with respect to or in exchange for a number of outstanding shares of Common
Stock equal to the number of shares immediately theretofore purchasable and
receivable upon the exercise of the rights represented hereby. In the event
of
any Reorganization, appropriate provision shall be made by the Company with
respect to the rights and interests of the Holders of this Warrant to the end
that the provisions hereof (including, without limitation, provisions for
adjustments of the Exercise Price and of the number of shares purchasable and
receivable upon the exercise of this Warrant) shall thereafter by applicable,
in
relation to any shares, securities or assets thereafter deliverable upon the
exercise hereof.
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3.2 Consolidation,
Merger or Sale. If
any
consolidation or merger of the Company with another corporation, or the sale
of
all or substantially all of its assets or other transaction shall be effected
in
such a way that holders of Common Stock shall be entitled to receive shares,
securities, or other assets or property (an “Organic
Change”),
then,
as a condition of such Organic Change, lawful and adequate provisions shall
be
made by the Company whereby the Holders hereof shall thereafter have the right
to purchase and receive (in lieu of the Warrant Shares immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby)
such shares, securities or other assets or property as may be issued or payable
with respect to or in exchange for a number of outstanding shares of Common
Stock equal to the number of shares immediately theretofore purchasable and
receivable upon the exercise of the rights represented hereby; provided,
however, that in the event the value of the shares, securities or other assets
or property (determined in good faith by the Board of Directors of the Company)
issuable or payable with respect to one share of Common Stock of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby is in excess of the Exercise Price hereof effective
at
the time of a merger and securities received in such reorganization, then the
Exercise Price shall be adjusted to reflect the new increased share value unless
this Warrant is exercised prior to such Organic Change. In the event of any
Organic Change, appropriate provision shall be made by the Company with respect
to the rights and interests of the Holders of this Warrant to the end that
the
provisions hereof (including, without limitation, provisions for adjustments
of
the Exercise Price and of the number of shares purchasable and receivable upon
the exercise of this Warrant) shall thereafter be applicable, in relation to
any
shares, securities or assets thereafter deliverable upon the exercise hereof.
The Company will not effect any such consolidation, merger or sale unless,
prior
to the consummation thereof, the successor corporation (if other than the
Company) resulting from such consolidation or the corporation purchasing such
assets shall assume by written instrument reasonably satisfactory in form and
substance to the Holders of Warrants to purchase Common Stock then outstanding,
executed and mailed or delivered to the registered Holders hereof at the last
address of such Holders appearing on the books of the Company, the obligation
to
deliver to such Holders such shares, securities or assets as, in accordance
with
the foregoing provisions, such Holders may be entitled to purchase.
3.3 Certain
Events. If
any
change in the outstanding Common Stock of the Company or any other event occurs
as to which the other provisions of this Section 3 are not strictly applicable
or if strictly applicable would not fairly protect the purchase rights of the
Holders of the Warrant in accordance with such provisions, then the Board of
Directors of the Company shall make an adjustment in the number and class of
shares available under the Warrant, the Exercise Price or the application of
such provisions, so as to protect such purchase rights as aforesaid. The
adjustment shall be such as will give the Holders of the Warrant upon exercise
for the same aggregate Exercise Price the total number, class and kind of shares
as he would have owned had the Warrant been exercised prior to the event and
had
he continued to hold such shares until after the event requiring
adjustment.
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3.4 Notices
of Change.
(a) Immediately
upon i) any adjustment in the number or class of shares subject to this Warrant
and of the Exercise Price or ii) in the event any of the conditions in Clause
3.2 should become applicable, the Company shall give written notice thereof
to
the Holders, setting forth in reasonable detail and certifying the calculation
of such adjustment.
(b) The
Company shall give written notice to the Holders at least 10 business days
prior
to the date on which the Company closes its books or takes a record for
determining rights to receive any dividends or distributions.
(c) The
Company shall also give written notice to the Holders at least 30 business
days
prior to the date on which an Organic Change shall take place.
4. NO
VOTING OR DIVIDEND RIGHTS; LIMITATION OR LIABILITY. Nothing
contained in this Warrant shall be construed as conferring upon the Holders
hereof the right to vote or to consent or to receive notice as a stockholder
of
the Company or any other matters or any rights whatsoever as a stockholder
of
the Company. No dividends or interest shall be payable or accrued in respect
of
this Warrant or the interest represented hereby or the shares purchasable
hereunder until, and only to the extent that, this Warrant shall have been
exercised. No provisions hereof, in the absence of affirmative action by the
holder to purchase Warrant Shares, and no mere enumeration herein of the rights
or privileges of the holder hereof, shall give rise to any liability of such
Holders for the Exercise Price or as a stockholder of the Company, whether
such
liability is asserted by the Company or by its creditors.
5. WARRANTS
TRANSFERABLE. This
Warrant may be freely transferred without prior notice and without the prior
written consent of the Company, subject to compliance with applicable United
States and other jurisdiction’s securities laws.
6. RIGHTS
AND OBLIGATIONS SURVIVE EXERCISE OF WARRANT. The
rights and obligations of the Company, of the holders of this Warrant and of
the
holder of Warrant Shares issued upon exercise of this Warrant, shall survive
the
exercise of this Warrant.
7. MODIFICATION
AND WAIVER. This
Warrant and any provision hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which
enforcement of the same is sought.
8. NOTICES.
Any
notice, request or other document required or permitted to be
given
or
delivered to the holder hereof or the Company shall be delivered or shall be
sent by certified mail, postage prepaid, to each such holder at its address
as
shown on the books of the Company or to the Company at the address indicated
therefor in the first paragraph of this Warrant or such other address as either
may from time to time provide to the other.
9. BINDING
EFFECT ON SUCCESSORS. This
Warrant shall be binding upon any corporation succeeding the Company by merger,
consolidation or acquisition of all or substantially all of the Company’s
assets. All of the obligations of the Company relating to the Warrant Shares
issuable upon the exercise of this Warrant shall survive the exercise and
termination of this Warrant. All of the covenants and agreements of the Company
shall inure to the benefit of the successors and assigns of the holder
hereof.
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10. DESCRIPTIVE
HEADINGS AND GOVERNING LAW. The
description headings of the several sections and paragraphs of this Warrant
are
inserted for convenience only and do not constitute a part of this Warrant.
This
Warrant shall in all respects be construed and enforced in accordance with
and
governed by the laws of the State of New York.
11. LOST
WARRANTS. The
Company represents and warrants to the Holders hereof that upon receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction,
or mutilation of this Warrant and, in the case of any such loss, theft or
destruction, upon receipt of an indemnity reasonably satisfactory to the
Company, or in the case of any such mutilation upon surrender and cancellation
of such Warrant, the Company, at its expense, will make and deliver a new
Warrant, of like tenor, in lieu of the lost, stolen, destroyed or mutilated
Warrant.
12. FRACTIONAL
SHARES. No
fractional shares shall be issued upon exercise of this Warrant. The Company
shall, in lieu of issuing any fractional share, pay the holder entitled to
such
fraction a sum in cash equal to such fraction multiplied by the then effective
Exercise Price.
[THIS
SPACE INTENTIONALLY LEFT BLANK]
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IN
WITNESS WHEREOF,
the
Company has caused this Warrant to be duly executed by its authorized officer
as
of this ___ day of October 2007.
WENTWORTH II, INC. | ||
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FORM
OF EXERCISE
(To
be
signed only upon exercise of the Warrant)
Date:
________________
TO:
WENTWORTH II, INC.
The
undersigned hereby elect to exercise the warrant issued to them by Wentworth
II,
Inc., a Delaware corporation (the “Company”)
which
will change its name to OmniaLuo, Inc., and dated as of October_, 2007 (the
“Warrant”)
and to
collectively purchase thereunder _______________________________ shares of
Common Stock of the Company (the “Shares”)
at a
purchase price of USD $1.25 per Share or an aggregate purchase price of USD
_________________________________________________ (US$ ) (the “Purchase
Price”).
Pursuant
to the terms of the Warrant the undersigned have delivered the Purchase Price
herewith in full in cash or by certified check or wire transfer.
Very truly yours, | ||
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