THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE (COLLECTIVELY, THE “ACTS”). NEITHER THIS WARRANT NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE...
THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
THE SECURITIES LAWS OF ANY STATE (COLLECTIVELY, THE “ACTS”). NEITHER
THIS WARRANT NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED
OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
WITH RESPECT HERETO UNDER ALL OF THE APPLICABLE ACTS,
OR AN OPINION OF COUNSEL SATISFACTORY TO REMOTE KNOWLEDGE, INC. TO THE EFFECT
THAT SUCH REGISTRATIONS ARE NOT REQUIRED.
WARRANT
to
Purchase Common Stock of
REMOTE
KNOWLEDGE, INC.
Expiring
on August 21,
2018
THIS IS
TO CERTIFY THAT, for value received, ________________ or its permitted assignees
(the “Holder”), is entitled to purchase from REMOTE KNOWLEDGE, INC., a Delaware
corporation (the “Company”), at the place where the Warrant Office designated
pursuant to Section 2.1 is located, at an initial purchase price per share of
$0.04 (“Exercise Price”), of 2,312,500 duly authorized, validly issued, fully
paid and nonassessable shares of common stock, par value $.001 per share, of the
Company (the “Common Stock”), and is entitled also to exercise the other
appurtenant rights, powers and privileges hereinafter set forth. The number of
shares of the Common Stock purchasable hereunder and the Exercise Price are
subject to adjustment in accordance with Article III
hereof. This Warrant shall expire at 5:00 p.m., C.S.T., on August 21,
2018 (the “Expiration Date”).
Certain
capitalized terms used in this Warrant are defined in Article
IV.
ARTICLE
I
Exercise of
Warrant
1.1 Method of
Exercise. This Warrant may be exercised upon not less than
seventy-five (75) days notice to the Company, in whole or in part from time to
time until the Expiration Date, at which time this Warrant shall expire and be
of no further force or effect. To exercise this Warrant, Holder shall
deliver to the Company, at the Warrant Office designated in Section 2.1: (a) a
written notice in the form of the Subscription Notice attached as Exhibit “A” (the
“Notice”), stating therein the election of such Holder to exercise this Warrant
in the manner provided in the Notice, (b) a specified exercise date (the
“Exercise Date”), which shall be not less than seventy-five (75) days from the
date of the Notice, (c) confirmation that payment in full of the Exercise Price
(in the manner described below) for all Warrant Shares to be purchased hereunder
will be made on or prior to the Exercise Date, and (d) confirmation that this
Warrant will be surrendered on or prior to the Exercise Date. This
Warrant shall be deemed to be exercised on the Exercise Date, subject to the
receipt by the Company of the Notice, the payment for the Warrant shares to
be
purchased and the surrender of this Warrant, as aforesaid. Any such
Notice may be revoked by the Holder until the date ten (10) days prior to the
Exercise Date. Upon such exercise, the Company shall issue and
deliver to such Holder a certificate for the full number of the Warrant Shares
purchased by such Holder hereunder and pursuant to the Notice, against the
receipt by the Company of the total Exercise Price payable hereunder for all
such Warrant Shares, in cash or by certified or cashier’s check. The
Person in whose name the certificate(s) for Common Stock is to be issued shall
be deemed to have become a holder of record of such Common Stock on the Exercise
Date.
1
1.2 Net
Exercise. Notwithstanding any provisions herein to the
contrary, if the Current Market Price of one share of Common Stock is greater
than the Exercise Price (at the date of exercise), in lieu of exercising this
Warrant by payment of cash, the Holder may elect to receive the Warrant Shares
equal to the value (as determined below) of this Warrant (or portion thereof
being canceled) by surrender of this Warrant at the Warrant Office together with
the properly endorsed Notice in which event the Company will issue the Holder
(or its designee) a number of shares of Common Stock computed as
follows:
X = Y (A -
B)
A
Where: X
= the number of shares of Common Stock to be issued to the Holder.
Y = the number of Warrant Shares being surrendered under the Warrant and
pursuant to the Notice (whether a full or partial exercise
thereof).
A = the
Current Market Price of one share of Common Stock (at the date of
exercise).
B = Exercise
Price (as adjusted to the date of exercise).
1.3
Fractional
Shares. In lieu of any fractional shares of Common Stock which would
otherwise be issuable upon exercise of this Warrant, the Company shall in lieu
thereof pay to the Person entitled thereto an amount in cash equal to the
Current Market Price of such fraction of a share.
ARTICLE
II
Warrant Office;
Transfer
2.1 Warrant Office. The
Company shall maintain an office for certain purposes specified herein (the
“Warrant Office”), which office shall initially be the Company’s office at 0000
Xxxxxxxxx, Xxxxx 000, Xxxxxxx, Xxxxx 00000, and may subsequently be such other
office of the Company or of any transfer agent of the Common Stock in the
continental United States of which written notice has previously been given to
the Holder. The Company shall maintain, at the Warrant Office, a
register for the Warrant in which the Company shall record the name and address
of the person in whose name this Warrant has been issued, as well as the name
and address of each permitted assignee of the rights of the registered owner
hereof
2.2 Ownership of Warrant.
The Company may deem and treat the person in whose name this Warrant is
registered as the holder and owner hereof (notwithstanding any notations of
ownership or writing hereon made by anyone other than the Company) for all
purposes and shall not be affected by any notice to the contrary, until
presentation of this Warrant for registration of transfer as provided in this
Article
II.
2
2.3 Transfer of
Warrants. The Company agrees to maintain at the Warrant Office
books for the registration and transfer of this Warrant. This Warrant may be
freely transferred, in whole or in part, by the Holder pursuant to the form of
Assignment attached as Exhibit “B”, so long
as any such transfer is in compliance with the Acts and any other applicable
law. The Company, from time to time, shall register the transfer of
this Warrant in such books upon surrender of this Warrant at the Warrant Office,
properly endorsed or accompanied by appropriate instruments of transfer and
written instructions for transfer satisfactory to the Company. Upon
any such transfer, a new Warrant shall be issued to the transferee, and the
surrendered Warrant shall be canceled by the Company. The Holder of
this Warrant shall pay all taxes and all other expenses and charges payable in
connection with the transfer of Warrants pursuant to this Section
2.3.
2.4 Registration
Rights. The Company agrees to register on behalf of Xxxxxx the
issuance or resale of all of the Warrant Shares by Holder or any of its
affiliates pursuant to the terms and conditions of that certain Credit Agreement
entered into between the Holder, the Company and others of even date herewith
concerning the Warrant Shares.
2.5 Acknowledgment of
Rights. The Company will, at the time of the exercise of this Warrant in
accordance with the terms hereof, upon the request of the Holder, acknowledge in
writing its continuing obligation to afford to such Holder any rights
(including, without limitation, any right to registration of the Warrant Shares)
to which such Holder shall continue to be entitled after such exercise in
accordance with the provisions of this Warrant, provided that if the Holder
shall fail to make any such request, such failure shall not affect the
continuing obligation of the Company to afford to such Holder any such
rights.
2.6 Expenses of Delivery of
Warrants. Except as provided in Section 2.3 above, the Company
shall pay all reasonable expenses, taxes (other than transfer taxes) and other
charges payable in connection with the preparation, issuance and delivery of
Warrants and related Warrant Shares hereunder.
2.7 Compliance with Securities
Laws. The Holder understands and agrees that the following
restrictions and limitations shall be applicable to all Warrant Shares and
resales or other transfers thereof pursuant to the Securities Act:
(a) The
Holder agrees that the Warrant Shares shall not be sold or otherwise transferred
unless the Warrant Shares are registered under the Securities Act and state
securities laws or are exempt therefrom.
(b) Until
such time as the registration of the Warrant Shares as provided pursuant to
Section 2.4 becomes effective, a legend in substantially the following form has
been or will be placed on the certificate(s) evidencing the Warrant
Shares:
“THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE
(COLLECTIVELY, THE “ACTS”). NEITHER THE SHARES NOR ANY INTEREST
THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED, OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THE SHARES
UNDER ALL OF THE APPLICABLE ACTS, OR AN OPINION OF COUNSEL SATISFACTORY TO
REMOTE KNOWLEDGE, INC. TO THE EFFECT THAT SUCH REGISTRATIONS ARE NOT
REQUIRED.”
3
ARTICLE
III
Anti-Dilution
Provisions
3.1 Adjustment of Exercise Price
and Number of Warrant Shares. The Exercise Price shall be subject to
adjustment from time to time as hereinafter provided in this Article
III. Upon each adjustment of the Exercise Price, except
pursuant to Sections 3.1(a)(iii), (iv) and (v), the Holder shall thereafter be
entitled to purchase, at the Exercise Price resulting from such adjustment, the
number of shares of the Common Stock (calculated to the nearest whole share
pursuant to Section 1.3) obtained by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of shares of the Common Stock
purchasable pursuant hereto immediately prior to such adjustment and dividing
the product thereof by the Exercise Price resulting from such
adjustment.
(a) Exercise Price
Adjustments. The Exercise Price shall be subject to adjustment from time
to time as follows:
(i) Adjustment for Stock Splits
and Combinations. If the Company shall at any time or from time to time
after the date hereof (the “Original Issue Date”) effect a subdivision of the
outstanding Common Stock, the Exercise Price in effect immediately before such
subdivision shall be proportionately decreased. Conversely, if the
Company shall at any time or from time to time after the Original Issue Date
combine the outstanding shares of Common Stock into a smaller number of shares,
the Exercise Price in effect immediately before such combination shall be
proportionately increased. Any adjustment under this Section
3.1(a)(i) shall become effective at the close of business on the date the
subdivision or combination becomes effective.
(ii) Adjustment for Common Stock
Dividends and Distributions. If the Company at any time or from time to
time after the Original Issue Date makes, or fixes a record date for the
determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in additional shares of Common Stock, in each such
event the Exercise Price that is then in effect shall be decreased as of the
time of such issuance or, in the event such record date is fixed, as of the
close of business on such record date, by multiplying the Exercise Price then in
effect by a fraction (i) the numerator of which is the total number of shares of
Common Stock issued and outstanding immediately prior to the time of such
issuance or the close of business on such record date, and (ii) the denominator
of which is the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or the close of business on such
record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution; provided, however, that if such record date is
fixed and such dividend is not fully paid or if such distribution is not fully
made on the date fixed therefor, the Exercise Price shall be recomputed
accordingly as of the close of business on such record date, and thereafter the
Exercise Price shall be adjusted pursuant to this Section 3.l(a)(ii) to reflect
the actual payment of such dividend or distribution.
4
(iii) Adjustment for
Reclassification; Exchange and Substitution. If at any time or
from time to time after the Original Issue Date, the Common Stock is changed
into the same or a different number of shares of any class or classes of stock,
whether by recapitalization, reclassification or otherwise (other than an
Acquisition, Asset Transfer, subdivision or combination of shares, stock
dividend, reorganization, merger, consolidation, or sale of assets provided for
elsewhere in this Section 3.1(a)), in any such event, the Holder shall have the
right thereafter to convert such stock into the kind and amount of stock and
other securities and property receivable upon such recapitalization,
reclassification or other change by holders of the maximum number of shares of
Common Stock into which such shares of Common Stock could have been converted
immediately prior to such recapitalization, reclassification or change, all
subject to further adjustment as provided herein or with respect to such other
securities or property by the terms thereof.
(iv) Reorganizations, Mergers,
Consolidations or Sales of Assets. If at any time or from time
to time after the Original Issue Date, there is a capital reorganization of the
Common Stock (other than a recapitalization or subdivision, combination,
reclassification, exchange, or substitution of shares provided for elsewhere in
this Section 3.1(a), as a part of such capital reorganization, provision shall
be made so that the Holder shall thereafter be entitled to receive upon exercise
hereof the number of shares of stock or other securities or property of the
Company to which a holder of the number of shares of Common Stock deliverable
upon exercise immediately prior to such event would have been entitled as a
result of such capital reorganization, subject to adjustment in respect of such
stock or securities by the terms thereof In any such case, appropriate
adjustment shall be made in the application of the provisions of this Section
3.1(a) with respect to the rights of the Holder after the capital reorganization
to the end that the provisions of this Section 3.1(a) (including adjustment of
the Exercise Price then in effect and the number of shares issuable upon
exercise) shall be applicable after that event and be as nearly equivalent as
practicable.
(v) Rounding of Calculations -
Minimum Adjustment. All calculations under this Section 3.1(a)
and under the definition of Current Market Price shall be made to the nearest
cent or to the nearest whole share (as provided in Section 1.2), as the case may
be. Any provision of this Section 3.1 to the contrary notwithstanding, no
adjustment in the Exercise Price shall be made if the amount of such adjustment
would be less than one percent, but any such amount shall be carried forward and
an adjustment with respect thereto shall be made at the time of and together
with any subsequent adjustment which, together with such amount and any other
amount or amounts so carried forward, shall aggregate one percent or
more.
(b) Adjustment by Board of
Directors. If any event occurs as to which, in the opinion of
the Board of Directors, the provisions of this Section 3.1 are not strictly
applicable or if strictly applicable would not fairly protect the rights of the
Holder in accordance with the essential intent and principles of such
provisions, then the Board of Directors shall make an adjustment in the
application of such provisions, in accordance with such essential intent and
principles, so as to protect such rights of the Holder as aforesaid, but in no
event shall any adjustment have the effect of increasing the Exercise Price as
otherwise determined pursuant to any of the provisions of this Section 3.1,
except in the case of a combination of shares of a type contemplated in Section
3.l(a)(i), and then in no event to an amount larger than the Exercise Price as
adjusted pursuant to Section 3.l(a)(i).
5
(c) Statement Regarding
Adjustments. Whenever the Exercise Price shall be adjusted as
provided in Section 3.1(a), and upon each change in the number of shares of the
Common Stock issuable upon exercise of this Warrant, the Company shall forthwith
file, at the office of any transfer agent for this Warrant and at the principal
office of the Company, a statement showing in detail the facts requiring such
adjustment and the Exercise Price and new number of shares issuable that shall
be in effect after such adjustment, and the Company shall also cause a copy of
such statement to be given to the Holder. Each such statement shall
be signed by the Company’s chief financial or accounting
officer. Where appropriate, such copy may be given in advance and may
be included as part of a notice required to be mailed under the provisions of
Section 3.1(d).
(d) Notice to
Holders. In the event the Company shall propose to take any
action of the type described in clause (i) through (v) of Section 3.1(a), the
Company shall give notice to the Holder, in the manner set forth in Section 6.6,
which notice shall specific the record date, if any, with respect to any such
action and the approximate date on which such action is to take
place. Such notice shall also set forth such facts with respect
thereto as shall be reasonably necessary to indicate the effect of such action
(to the extent such effect may be known at the date of such notice) on the
Exercise Price and the number, kind or class of shares or other securities or
property which shall be deliverable upon exercise of this Warrant. In
the case of any action which would require the fixing of a record date, such
notice shall be given at least ten days prior to the date so fixed, and in case
of all other action, such notice shall be given at least 15 days prior to the
taking of such proposed action. Failure to give such notice, or any
defect therein, shall not affect the legality or validity of any such
action.
(e) Treasury
Stock. For the purposes of this Section 3.1, the sale or other
disposition of any Common Stock of the Company theretofore held in its treasury
shall be deemed to be an issuance thereof.
3.2 Costs. The
Holder shall pay all documentary, stamp, transfer or other transactional taxes
attributable to the issuance or delivery of shares of Common Stock of the
Company upon exercise of this Warrant. Additionally, the Company
shall not be required to pay any taxes which may be payable in respect of any
transfer involved in the issuance or delivery of any certificate for such
shares. The Holder shall reimburse the Company for any such taxes
assessed against the Company.
3.3 Reservations of
Shares. The Company shall reserve at all times so long as this
Warrant remains outstanding, free from preemptive rights, out of its treasury
Common Stock or its authorized but unissued shares of Common Stock, or both,
solely for the purpose of effecting the exercise of this Warrant, sufficient
shares of Common Stock to provide for the exercise hereof.
6
3.4 Valid
Issuance. All shares of Common Stock which may be issued upon
exercise of this Warrant will upon issuance by the Company be duly and validly
issued, fully paid and nonassessable, and free from all taxes, liens and charges
with respect to the issuance thereof attributable to any act or omission by the
Company, and the Company shall take no action which will cause a contrary result
(including, without limitation, any action which would cause the Exercise Price
to be less than the par value, if any, of the Common Stock).
ARTICLE
IV
Terms
Defined
As used
in this Warrant, unless the context otherwise requires, the following terms have
the respective meanings set forth below or in the Section
indicated:
“Acquisition” shall
mean any consolidation or merger of the Company with or into any other
corporation or other entity or Person, or any other corporate reorganization, in
which the stockholders of the Company immediately prior to such consolidation,
merger or reorganization, own less than 50% of the Company’s voting power
immediately after such consolidation, merger or reorganization, or any
transaction or series of related transactions to which the Company is a party in
which in excess of 50% of the Company’s voting power is
transferred.
“Asset Transfer” shall
mean a sale, lease or other disposition of all or substantially all of the
assets of the Company.
“Board of Directors”
shall mean the Board of Directors of the Company.
“Common Stock” shall
mean the Company’s authorized common stock, par value $.001 per
share.
“Company” shall mean
Remote Knowledge, Inc., a Delaware corporation, and any other Person assuming or
required to assume the obligations undertaken in connection with this
Warrant.
“Current Market Price”
shall mean, as of any date, 5% of the sum of the average, for each of the 20
consecutive Trading Days immediately prior to such date, of either: (i) the high
and low sales prices of the Common Stock on such Trading Day as reported on the
composite tape for the principal national securities exchange on which the
Common Stock may then be listed, or (ii) if the Common Stock shall not be so
listed on any such Trading Day, the high and low sales prices of Common Stock in
the over-the-counter market as reported by the Nasdaq Stock Market or (iii) if
there be no such representative prices reported by the Nasdaq Stock Market, the
lowest bid and highest asked prices at the end of such Trading Day in the
over-the-counter market or “pink sheets” as reported by the OTC Electronic
Bulletin Board or National Quotation Bureau, Inc., or any successor
organization.
7
“Outstanding” when
used with reference to Common Stock at any date, shall mean all issued shares of
Common Stock (including, but without duplication, shares deemed issued pursuant
to Article III)
at such date, except shares then held in the treasury of the
Company.
“Person” shall mean
any individual, corporation, partnership, trust, organization, association or
other entity.
“Securities Act” shall
mean the Securities Act of 1933 and the rules and regulations promulgated
thereunder, all as the same shall be in effect at the time.
The term
“Trading Day,”
for purposes of determining Current Market Price, shall mean a day on which an
amount greater than zero can be calculated with respect to the Common Stock
under any one or more of the foregoing categories (i), (ii), and (iii),
specified under the definition of “Current Market Price”, and the “end” thereof,
for the purposes of category (iii), shall mean the exact time at which trading
shall end on the New York Stock Exchange. If the Current Market Price
cannot be determined under any of the foregoing methods, Current Market Price
shall mean the fair value per share of Common Stock on such date as determined
by the Board of Directors in good faith, irrespective of any accounting
treatment.
“Warrant” shall mean
this Warrant and any successor or replacement Warrant delivered in accordance
with Section 2.3 or Section 6.8.
“Warrant Office” is
defined in Section 2.1.
“Warrant Shares” shall
mean the shares of Common Stock purchased or purchasable by the Holder upon
exercise of this Warrant pursuant to Article I
hereof.
ARTICLE
V
Covenant of the
Company
The
Company covenants and agrees that this Warrant shall be binding upon any
corporation succeeding to the Company by merger, consolidation, or acquisition
of all or substantially all of the Company’s assets.
ARTICLE
VI
Miscellaneous
6.1 Entire Agreement.
This Warrant contains the entire agreement between the Holder and the Company
with respect to the Warrant Shares that it can purchase upon exercise hereof and
the related transactions and supersedes all prior arrangements or understanding
with respect thereto.
6.2 Governing
Law. This Warrant shall be governed by and construed in
accordance with the internal laws of the State of Delaware, without regard to
its conflict of law provisions.
8
6.3 Waiver and
Amendment. Any term or provision of this Warrant may be waived
at any time by the party which is entitled to the benefits thereof, and any term
or provision of this Warrant may be amended or supplemented at any time by
agreement of the Holder and the Company, except that any waiver of any term or
condition, or any amendment or supplementation, of this Warrant must be in
writing. A waiver of any breach or failure to enforce any of the
terms or conditions of this Warrant shall not in any way affect, limit or waive
a party’s rights hereunder at any time to enforce strict compliance thereafter
with every term or condition of this Warrant.
6.4 Illegality. In
the event that any one or more of the provisions contained in this Warrant shall
be determined to be invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision in any
other respect and the remaining provisions of this Warrant shall not, at the
election of the party for whom the benefit of the provision exists, be in any
way impaired.
6.5 Copy of
Warrant. A copy of this Warrant shall be filed among the
records of the Company.
6.6 Notice. Any
notice or other document required or permitted to be given or delivered to the
Holder shall be delivered at, or sent by certified or registered mail to such
Holder at, the last address shown on the books of the Company maintained at the
Warrant Office for the registration of this Warrant or at any more recent
address of which the Holder shall have notified the Company in
writing. Any notice or other document required or permitted to be
given or delivered to the Company, other than such notice or documents required
to be delivered to the Warrant Office, shall be delivered at, or sent by
certified or registered mail to, the office of the Company or any other address
within the continental United States of America as shall have been furnished by
the Company to the Holder.
6.7 Limitation of Liability; Not
Stockholders. No provision of this Warrant shall be construed
as conferring upon the Holder the right to vote, consent, receive dividends or
receive notices other than as herein expressly provided in respect of meetings
of stockholders for the election of directors of the Company or any other matter
whatsoever as a stockholder of the Company. No provision hereof, in
the absence of affirmative action by the Holder to purchase shares of Common
Stock, and no mere enumeration herein of the rights or privileges of the Holder,
shall give rise to any liability of such Holder for the purchase price of any
shares of Common Stock or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the
Company.
6.8 Exchange; Loss or
Destruction of Warrant. Upon receipt of evidence satisfactory
to the Company of the loss, theft, mutilation or destruction of this Warrant,
and in the case of any such loss, theft or destruction upon delivery of a bond
of indemnity in such form and amount as shall be reasonably satisfactory to the
Company, or in the event of such mutilation upon surrender and cancellation of
this Warrant, the Company will make and deliver a new Warrant of like tenor, in
lieu of such lost, stolen, destroyed or mutilated Warrant; provided, however,
that the original recipient of this Warrant shall not be required to provide any
such bond of indemnity and may in lieu thereof provide his agreement of
indemnity. Any Warrant issued under the provisions of this Section
6.8 in lieu of any Warrant alleged to be lost, destroyed or stolen, or in lieu
of any mutilated Warrant, shall constitute an original contractual obligation on
the part of the Company. This Warrant shall be promptly canceled by
the Company upon the surrender hereof in connection with any exchange or
replacement. The Holder shall pay all taxes (including securities
transfer taxes) and all other expenses and charges payable in connection with
the preparation, execution and delivery of Warrants pursuant to this Section
6.8.
9
6.9 Headings. The
Article and Section and other headings herein are for convenience only and are
not a part of this Warrant and shall not affect the interpretation
thereof.
[Remainder
of Page Intentionally Left Blank]
10
IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed in its
name.
|
Dated:
August 21, 2008.
|
REMOTE
KNOWLEDGE, INC.
By___________________________________
|
Name: Xxxxx
X. Xxxxx
|
|
Title: President
|
[SIGNATURE
PAGE TO WARRANT ________________]
EXHIBIT
“A”
WARRANT
SUBSCRIPTION
NOTICE
The
undersigned, the Holder of the foregoing Warrant, hereby elects to exercise
purchase rights represented by said Warrant for, and to purchase thereunder the
number of shares of the Common Stock covered by said Warrant specified below and
confirms its intention to make payment in full therefor pursuant to Section 1.1
of such Warrant and surrender of the foregoing Warrant prior to the Exercise
Date specified below, and requests (a) that certificates for such shares (and
any securities or other property issuable upon such exercise) be issued in the
name of, and delivered the recipient specified below, and (b) if such shares
shall not include all of the shares issuable as provided in said Warrant, that a
new Warrant of like tenor and date for the balance of the shares issuable
thereunder be delivered to the undersigned. The Exercise Date shall
be not less than seventy-five (75) days from the date of this
Notice.
The
undersigned represents that (1) the aforesaid shares of Common Stock are being
acquired for the account of the undersigned for investment not with view to, or
for resale in connection with, the distribution thereof and that the undersigned
has no present intention of distributing or reselling such shares; (2) the
undersigned is aware of the Company’s business affairs and financial condition
and has acquired sufficient information about the Company to reach an informed
and knowledgeable decision regarding its investment in the Company; (3) the
undersigned is experienced in making investments of this type and has such
knowledge and background in financial and business matters that the undersigned
is capable of evaluating the merits and risks of this investment and protecting
the undersigned’s own interests; (4) the undersigned understands that the shares
of Common Stock issuable upon exercise of this Warrant have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”), by reason
of a specific exemption from the registration provisions of the Securities Act,
which exemption depends upon, among other things, the bona fide nature of the
investment intent as expressed herein, and, because such securities have not
been registered under the Securities Act, they must be held indefinitely unless
subsequently registered under the Securities Act or an exemption from such
registration is available; (5) the undersigned is aware that the aforesaid
shares of Common Stock may not be sold pursuant to Rule 144 adopted under the
Securities Act unless certain conditions are met and until the undersigned has
held the shares for the number of years prescribed by Rule 144, that among the
conditions for use of the Rule is the availability of current information to the
public about the Company, and the Company has not made such information
available and has no present plans to do so; and (6) the undersigned agrees not
to make any disposition of all or any part of the aforesaid shares of Common
Stock unless and until there is then in effect a registration statement under
the Securities Act covering such proposed disposition and such disposition is
made in accordance with said registration statement, or the undersigned has
provided the Company with an opinion of counsel satisfactory to the Company,
stating that such registration is not required.
Dated:
______________, 20___
Exercise
Date: _________________
Shares:
______________ SUBSCRIBER:
Recipient:
________________________ ______________________________________
________________________ ______________________________________
________________________ ______________________________________
EXHIBIT
“B”
WARRANT
ASSIGNMENT
For value
received, the undersigned warrant holder (“Assignor”), hereby sells, assigns and
transfers unto the recipient specified below, the right to purchase the number
of shares specified below pursuant to the terms and conditions of the Warrant to
purchase common shares of Remote Knowledge, Inc. (the “Company”) at an initial
exercise price of $0.04 and expiring August 21, 2018 (the “Warrant”) and does
hereby irrevocably constitute and appoint such specified recipient or its
designee, attorney to transfer said Warrant on the books of the Company, with
full power of substitution.
Dated:
_______________, 20___.
Shares:
_______________ ASSIGNOR:
Recipient:
________________________ ______________________________________
________________________ ______________________________________
________________________ ______________________________________