SUBSCRIPTION AGREEMENT
Gentlemen:
The
undersigned has received and read the Confidential Private Placement Memorandum,
dated April 2, 2007, this Subscription Agreement, the Form of Debenture attached
as Exhibit A and Form of Stock Purchase Warrants attached as Exhibit B. (the
“Offering Documents”), which offers to the undersigned subscriptions to the
Notes XIOM Corp., (the “Notes”) a Delaware Corporation (the “Company”). Terms
used and not defined herein have the same meanings as in the Offering
Documents.
1.
Subscription.
Subject
to the terms and conditions of this Subscription Agreement, the provisions
of
this Offering Documents and the attached as Exhibits to the Offering Documents,
the undersigned hereby subscribes to common shares in the Company equal to
the
number of Shares and dollar amount set forth below, and the undersigned hereby
agrees that this subscription shall be irrevocable and shall survive the death
or disability of the undersigned. Payment of the dollar amount so subscribed
for
is due upon subscription, and represents the undersigned's capital contribution
to the Company. In addition, all funds tendered as capital contributions to
the
Company will be deposited into the Company's operating account.
2.
Acceptance
of Subscription.
The
undersigned acknowledges that the Company has the right to accept or reject
this
subscription, in whole or in part, and that this subscription shall be deemed
to
be accepted by the Company only when it is signed by the designated officer
of
Xiom Corp. (“The Management”). The undersigned agrees that subscriptions need
not be accepted in the order they are received.
4.
Representations.
Warranties and Covenants of the Undersigned. The undersigned hereby represents
and warrants to and covenants with the Company, the management, their respective
agents and employees and the Representative or Broker-Dealer who has solicited
this subscription as follows:
(a)
The
undersigned has adequate means of providing for his current needs and possible
personal contingencies, and he has no need, and anticipates no need in the
foreseeable future, to sell the Securities for which he hereby subscribes.
The
undersigned is able to bear the economic risks of this investment and,
consequently, without limiting the generality of the foregoing, he is able
to
hold his Securities for an indefinite period of time and has a sufficient net
worth to sustain a loss of his entire investment in the Company if such loss
should occur.
(b)
The
undersigned has a net worth, or joint net worth with that person's spouse,
at
the time of purchase that exceeds $1,000,000; or he has an individual income
in
excess of $200,000 in each of the two most recent years or joint income with
that person's spouse in excess of $300,000 in each of those years and who
reasonably expects to reach the same income level in the current year; or is
otherwise an “Accredited Investor”. The undersigned understands that he must
also meet additional suitability standards and/or financial requirements in
the
jurisdiction in which he resides, or is purchasing in a fiduciary capacity
for a
person or account meeting such suitability standards and/or financial
requirements, and he is not a minor.
1
(c)
The
undersigned has such knowledge and experience in financial and business matters
that he is capable of evaluating the merits and risks of an investment in the
Company.
(d)
The
undersigned has received, read and is familiar with the Offering Documents,
and
confirms that all documents, records and books pertaining to his proposed
investment in the Company have been made available to him.
(e)
The
undersigned has had an opportunity to ask questions of and receive satisfactory
answers from the Company, or any person or persons acting on the Company's
behalf, concerning the terms and conditions of this investment, and all such
questions have been answered to the full satisfaction of the
undersigned.
(f)
The
Securities for which the undersigned hereby subscribes will be acquired for
his
own account for investment in a manner that would not require registration
under
the Securities Act, and he does not now have any reason to anticipate any change
in his circumstances or other particular occasion or event that would cause
him
to sell his Securities. In addition, the undersing represent and warrants that
the Securities will only be sold pursuant ot the requirements of the exemption
under which they are sold, including sales only to other “Accredited
Investors”.
(g)
The
undersigned represents that: (i) it has been called to his attention, both
in
the Offering Documents and by those individuals with whom he has dealt in
connection with his investment in the Company, that his investment in the
Company involves a high degree of risk which may result in the loss of the
total
amount of his investment; and (ii) that any projections in the Offering
Documents are mere estimates and may not reflect the actual results of the
Company's operations.
(h)
The
undersigned has received no representations or warranties (other than any
contained in the Offering Documents) from the Company, the management or their
respective Affiliates, employees or agents and, in making his investment
decision, he is relying solely on the information made available to
him,
(i) The
undersigned is now a bona fide citizen of the United States of America and
a
bona fide resident of the state set forth below and the address and Social
Security number or federal tax identification number set forth below are his
true and correct residence and Social Security number or federal tax
identification number. The undersigned has no current intention of becoming
a
resident of any other state or jurisdiction. If the undersigned is a
corporation, partnership, trust or other form of business organization, it
represents and warrants that it was formed under the laws of, and its principal
place of business is within, such state and that it was not organized for the
purpose of acquiring the Shares.
(k) The
undersigned understands that no securities administrator of any state has made
any finding or determination relating to the fairness for investment of the
Securities and that no securities administrator of any state has or will
recommend or endorse any offering of Securities.
2
5.
Indemnification. The
undersigned acknowledges that he understands the meaning and legal consequences
of the representations, warranties, and covenants in Paragraph 4 hereof and
the
Company has relied upon such representations, warranties and covenants and
he
hereby agrees to indemnify and hold harmless the Company, and its respective
offices, directors, controlling person, agents and employees, and the
Representative or Selling Dealer who has solicited this subscription, from
and
against any and all loss, damage or liability due to or arising out of a breach
of any such representation, warranty or covenant. Notwithstanding, the
foregoing, however, no representation, warranty, acknowledgment or agreement
made herein by the undersigned shall in any manner be deemed to constitute
a
waiver of any rights granted to him under federal or state securities laws.
All
representations, warranties and covenants contained in this Subscription
Agreement, and the indemnification contained in this Paragraph 4, shall survive
the acceptance of this subscription and the formation of the
Company.
6.
Arbitration. ANY
AND
ALL CONTROVERSIES, DISPUTES OR CLAIMS BETWEEN THE UNDERSIGNED AND THE COMPANY,
OR THE SELLING BROKER, OR THE AGENTS, REPRESENTATIVES, EMPLOYEES, DIRECTORS,
OFFICERS OR CONTROL PERSONS OF THE COMPANY OR THE SELLING BROKER ARISING OUT
OF,
IN CONNECTION WITH, OR WITH RESPECT TO (a) ANY CONTROVERSY ARISING OF OR THE
VALIDITY OF THIS AGREEMENT OR ANY RELATED AGREEMENTS (b) THE RELATIONSHIP OF
THE
PARTIES HERETO, OR (c) ANY CONTROVERSY ARISING OUT OF YOUR BUSINESS, THE SELLING
BROKER’S BUSINESS OR THE UNDERSIGNED ACCOUNTS, SHALL BE CONDUCTED PURSUANT TO
THE CODE OF ARBITRATION PROCEDURE OF THE NASD. ARBITRATION MUST BE COMMENCED
BY
SERVICE OF A WRITTEN DEMAND FOR ARBITRATION OR A WRITTEN NOTICE OF INTENTION
TO
ARBITRATE. THE DECISION AND AWARD OF THE ARBITRATOR(S) SHALL BE CONCLUSIVE
AND
BINDING UPON ALL PARTIES, AND ANY OTHER JUDGMENT UPON ANY AWARD RENDERED MAY
BE
ENTERED IN A COURT HAVING JURISDICTION THEREOF, AND NEITHER PARTY SHALL OPPOSE
SUCH ENTRY. No person shall bring a putative or certified class action to
arbitration, nor seek to enforce any pre-dispute arbitration agreement against
any person who has initiated in court a putative class action or who is a member
of a putative class who has opted out of the class with respect to any claims
encompassed by the putative class until (i) the class certificate is denied,
or
(ii) the class is de-certified, or (iii) the existence is excluded from the
class by the courts. Such forbearance to enforce an agreement to arbitrate
shall
not constitute a waiver of any rights under this agreement except to the extent
stated herein
7.
Waiver
of Right to Jury Trial; Punitive Damages. Each
party hereby waives such party's respective right to a jury trial of any claim
or cause of action based upon or arising out of this Agreement. Further, the
undersigned waives any claim to punitive damages. Each party acknowledges that
this waiver is a material inducement to each other party hereto to enter into
the transaction contemplated hereby, that each other party has already relied
upon this waiver in entering into this Agreement, and that each other party
will
continue to rely on this waiver in its future dealings. Each party warrants
and
represents that such party has reviewed this waiver with such party's legal
counsel, and that such party has knowingly and voluntarily waived its jury
trial
rights and any potential claim to punitive damages following consultation with
legal counsel. This provision does not apply to disputes arising out of fraud
or
other claims under the Pennsylvania Securities Act of 1972.
3
___________________________
INSTRUCTIONS
FOR SUBSCRIPTION
To
Subscribe:
1.
Subscription Agreement: Please complete and execute the Signature
Page.
2.
Mail
the check along with all completed Subscription Documents to:
Basic
Investors, Inc.
000
Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxx,
Xxx Xxxx 00000
Attention:
Xxxxxx Xxxxxxxx
Telephone:
(000) 000-0000, Extension 101
4
GENERAL
INSTRUCTIONS FOR INVESTORS
INDIVIDUAL
PURCHASERS.
Any
person over twenty-one years of age, regardless of citizenship or marital
status, may purchase Notes in his own right. A minor may only purchase Notes
through a qualified legal guardian. A person who is single, separated, divorced
or a surviving spouse may purchase as an individual and need only complete
the
documents for himself or herself (Married persons living in community property
states - Arizona, California, Idaho, Louisiana, Florida, New Mexico, Texas,
Washington and Wisconsin - should note that even if they purchase as
individuals, the Notes purchased may be considered community property, i.e.
all
property acquired by a husband and wife during their marriage is presumed to
belong equally to each of the marriage partners.)
MARRIED
COUPLES.
A
married person may purchase as an individual or as co-owner with his or her
spouse. An individual purchaser should complete these forms only for himself
or
herself A married couple purchasing as joint owners should provide information
for both spouses, and both spouses must sign all applicable
documents.
JOINT
TENANTS OR CO-TENANTS (Other Than Married Couples).
Two or
more friends, relatives, business associates or others may purchase as joint
tenants or co-tenants. Each joint tenant or co-tenant must qualify individually
as being suitable for this investment and each must sign all applicable
documents.
CORPORATIONS.
A
corporate investor must provide a copy of its corporate charter and by-laws.
A
corporate resolution authorizing an investment in the Company must also be
provided.
PARTNERSHIPS.
A
partnership must provide a copy of its partnership agreement. A general partner
must complete and sign all subscription documents on behalf of the
partnership.
TRUSTS.
A trust
investor must provide a copy of its trust agreement.
NOTE: For
trust investors that are not the taxpaying entities, information should be
provided for the trust and not for any individuals. A trustee must sign for
the
trust in a manner similar to the following: “ABC Trust, DTD July 1, 1987, Xxxx
Xxx, Trustee.” Each person or entity that will be the taxpayer for this
investment should provide the taxpayer identification number. If the trust
is
not the taxpayer for this investment, do not use the trust's taxpayer
number.
For
trust investors that are the taxpaying entities, information should be provided
for the trust and not for any individuals. A trustee must sign for the trust
in
a manner similar to the following: “ABC Trust, DTD July 1, 1987, Xxxx Xxx,
Trustee.” The trust's taxpayer identification number must be
provided.
5
SUBSCRIPTION
PROCEDURE
PLEASE
COMPLETE THIS SIGNATURE PAGE
IN
WITNESS WHEREOF,
the
undersigned has executed this Subscription Agreement as of this _______
day of
_____________,
2007.
TOTAL
SUBSCRIPTION:
Note
Amount $____________
For
joint
ownership BOTH
PARTIES
must
sign and provide a social security number.
________________ ______________________ _______________
S.S.
or
Tax ID
No.
Investor
Signature
Date
________________ ______________________ _______________
S.S.
or
Tax ID
No.
Investor
Signature Date
REGISTRATION:
Please
print names under which your Shares are to be registered.
___Mr.
______________________________________
___Mrs.
______________________________________
___Ms.
______________________________________
___Dr.
______________________________________
___Other_____________________________________
RESIDENT
ADDRESS:
Investors must complete resident address for registration purposes.
____________________________________________________________________
Street
Address
____________________________________________________________________
City State Zip
Mailing
Address:
If
different from resident address.
___________________________________________________________________
Company Name (if applicable)
____________________________________________________________________
Street
or
P.O. Box
____________________________________________________________________
City State Zip
Home
Telephone:
(
)_____________
E-Mail:_____________________
Address:________________________________________
Business
Telephone:
(
)_____________________
Home
FAX:
(
)______________________________
6
CHECK
ONE:
Please
indicate if investor is a non-resident alien:
_______Yes
______No
CHECK
ONE:
Are
you
subject to back up withholding under the provisions of Section 3406 (a)(1)(c)
of
the Internal Revenue Code?
_______Yes
______No
Under
the
penalties of perjury, I certify the information with respect to the
aforementioned IRS Code is correct and complete.
Date:
__________
Signature:______________________________________
CHECK
ONE:
_________
Individual
Ownership
_____ Partnership
Ownership
_________ Corporate
Ownership
__________ Tenants
in Entirety
_________ Tenants
in
Common
__________
Trust
_________ Joint
Tenants
with __________________________
Right
of
Survivorship
Date
Trust Established
_________ Community
Property
__________________________
Names
of
Trustee / Administrator
_________ XXX
or
Pension Plan
_______________________
_________ Custodian
for a
Minor
Name
of
Trustor
Tax
Id Number: ________________
Signature
of Entity: _________________________________________________
Printed
name of Signer:
__________________________________________
Date: _________________
7
NOTICE
TO BROKER/DEALER:
Please
return the investor's Signature Page, the Purchaser Questionnaire, the check
and
all other applicable documents referred to in the Confidential Offering
Documents to: Basic Investors, Inc.
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Office
Use Only:
AGREED
TO AND ACCEPTED
BY:
BY:
______________________
Date:
_______________________
Duly Authorized Officer
8
PURCHASER
QUESTIONNAIRE
Investor:
The
information contained herein is being furnished to you in order to assure you
that the undersigned meets the standards of an “Accredited Investor” imposed by
Rule 504 promulgated under the Securities Act of 1933 (the “Securities Act”).
The undersigned understands that (i) you will rely upon the information
contained herein for purposes of such determination, (ii) the securities will
not be registered under the Securities Act in reliance upon the exemption from
registration provided by Section 4(2) and of the Securities Act and Rule 504,
and (iii) this Questionnaire is not an offer to sell securities to the
undersigned.
The
undersigned further represents to you that (i) the information contained herein
is complete and accurate and may be relied upon by you for the foregoing and
related purposes, and (ii) the undersigned will notify you immediately of any
material change in any of such information occurring prior to the purchase
of
such securities, if any purchase is made, by the undersigned.
THE
UNDERSIGNED UNDERSTANDS AND AGREES THAT ALTHOUGH THIS QUESTIONNAIRE WILL BE
KEPT
STRICTLY CONFIDENTIAL, THE COMPANY MAY PRESENT THIS QUESTIONNAIRE TO SUCH
PARTIES AS IT DEEMS ADVISABLE IF CALLED UPON TO ESTABLISH THE AVAILABILITY
UNDER
ANY FEDERAL OR STATE SECURITIES LAWS OF AN EXEMPTION FROM REGISTRATION OF THIS
OFFERING.
THIS
QUESTIONNAIRE IS NOT AN OFFER TO SELL SECURITIES BUT MERELY A REQUEST FOR
INFORMATION PURSUANT TO REGULATION D OF THE SECURITIES AND EXCHANGE
COMMISSION.
Please
complete, sign, date and return this Questionnaire as soon as possible, as
follows:
Basic
Investors, Inc.
000
Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxx,
Xxx Xxxx 00000
Attention:
Xxxxxx Xxxxxxxx
Telephone:
(000) 000-0000, Extension 101
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remainder of this page intentionally left blank)
9
Section
A
Employer(s)
|
|
Business
Address
|
|
Business
Telephone
|
|
Occupation
|
|
Send
Mail to
|
_____
Home _____ Office
|
Joint
tenants or tenants-in-common, indicate relationship among
tenants
|
Complete
for Tenants-In-Common and Joint Tenants (if the information differs from
above).
Home
Address
|
|
Home
Telephone
|
|
Employer
(s)
|
|
Business
Address
|
|
Business
Telephone
|
|
Occupation
|
10
Section
B
THIS
SECTION IS TO BE COMPLETED BY ALL ACCREDITED INVESTORS
ITEM
I. ALL ACCREDITED INVESTORS MUST INITIAL
THE FOLLOWING LINE:
_____
(Initial) I understand that the representations contained in this Section B
are
made for the purpose of qualifying me as an accredited investor as that term
is
defined by the Securities and Exchange Commission for the purpose of inducing
a
sale of securities to me. I hereby represent that the statement or statements
initialed below are true and correct in all respects. I understand that a false
representation may constitute a violation of law, and that any person who
suffers damage as a result of a false representation may have a claim against
me
for damages.
ITEM
II. INDIVIDUAL ACCREDITED INVESTORS MUST INITIAL
ONE OR MORE OF THE FOLLOWING TWO STATEMENTS WHICH ARE
TRUE:
_____
(Initial) A. I certify that I am an accredited investor because I had individual
income (exclusive of any income attributable to my spouse) of more than $200,000
in each of the most recent two years, or joint income with my spouse of more
than $300,000 in each of those years, and I reasonably expect to reach the
same
income level for the current year. For purposes of this Questionnaire,
individual or joint income means adjusted gross income, as reported for federal
income tax purposes, less any income attributable to a spouse or to property
owned by a spouse, increased by the following amounts (but not including any
amounts attributable to a spouse or property owned by a spouse): (i) the amount
of any tax exempt interest income received; (ii) the amount of losses claimed
as
a limited partner in a limited liability Company; (iii) any deduction claimed
for depletion; (iv) amounts contributed to an XXX or Xxxxx retirement plan;
(v)
alimony paid; and (vi) any amount for which income from long-term capital gains
has been reduced in arriving to adjusted gross income pursuant to the provisions
of Section 1202 of the Internal Revenue Code.
_____
(Initial) B. I certify that I am an accredited investor because I have an
individual net worth, or my spouse and I have a combined individual net worth,
in excess of $1,000,000. For purposes of this paragraph, “individual net worth”
means the excess of total assets at fair market value, including home and
personal property, over total liabilities.
ITEM
III. ACCREDITED PARTNERSHIP, CORPORATION, OR OTHER ENTITIES WHICH ARE NOT TRUSTS
MUST INITIAL
AT LEAST ONE OF THE FOLLOWING STATEMENTS:
______
(Initial) A. On behalf of the investor, I hereby certify that the investor
has a
net worth of at least $5,000,000. On behalf of the investor, I also certify
that
the investor was not formed for the specific purpose of investing in the
Company.
______
(Initial) B. On behalf of the investor, I hereby certify that all of the
beneficial owners of equity in the investor qualify as accredited individual
investors under either Item II. A or B above. Investors attempting to qualify
under this Section must also initial Item II. A or II. B above and may be
required to furnish additional information.
11
ITEM
IV. ACCREDITED TRUSTS MUST INITIAL
AT LEAST ONE OF THE FOLLOWING STATEMENTS:
_____
(Initial) A. On behalf of the investor, I hereby certify that the investor
is a
trust with total assets in excess of $5,000,000 not formed for the specific
purpose of investing in the Company, whose purchase is directed by sophisticated
person having such knowledge and experience in financial matters that he is
capable of evaluating the merits and risks of an investment in the
Company.
_____
(Initial) B. On behalf of the investor, I hereby certify that all of the
beneficial owners of equity in the investor qualify as accredited individual
investors under either Item II. A or II. B above. Investors attempting to
qualify under this Section must also initial Item II. A or II. B above and
may
be required to furnish additional information.
(The
remainder of this page intentionally left blank)
12
Section
C
ALL
INVESTORS MUST COMPLETE THIS SECTION
The
following information is to be provided by prospective purchasers who are
individuals, or by the person making the investment decision on behalf of
corporations, partnership, trust or other entities, or by the persons making
the
investment decision on behalf of individuals investing as joint
tenants.
1. Business
or professional education:
Dates
of
Field
of
School
Attendance
Study
Attended
Degree
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
2. Current
and prior employment, positions or occupations: (Please set forth employment
history during at least the past five years).
Principal Dates
of
Employer
Title Responsibilities
Employment
___________________________________________________________________
____________________________________________________________________
____________________________________________________________________
3. Details
of any training or experience in financial, business or tax matters not
disclosed in Items I and 2 immediately above.
____________________________________________________________________
____________________________________________________________________
4. Prior
investments of purchaser: (Please itemize each investment
separately):
Type
of
Prior Investments
(Stocks,
bonds, mutual
funds,
Year
of Amount
limited
partnerships, LLC’s,
etc,)
Investment Invested
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
13
____________________________________________________________________
5. I
have
made the following additional investments that may reflect my knowledge and
experience in financial and business matters and in private placements of
restricted securities:
___________________________________________________________________
____________________________________________________________________
___________________________________________________________________
6. I
have
previously purchased restricted securities that were sold in reliance on the
private offering exemption from registration under the Securities Act of 1933,
as amended, or other similar state exemptions:
______
Yes ________
No
7.
I have
such knowledge and experience in financial, tax and business matters that I
am
capable of utilizing the information made available to me in connection with
offering of the Notes, of evaluating the merits and risks of an investment
in
the Notes, and of making an informed investment decision with respect to the
Notes.
_________
Initial Here
(The
remainder of this page intentionally left blank)
14
Section
D
ALL
INVESTORS REPRESENT THAT:
(a)
The
information contained herein is complete and accurate and may be relied upon,
and
(b) I
will
notify you immediately of any material change in any of such information
occurring prior to the acceptance of my subscription.
IN
WITNESS WHEREOF,
the
undersigned has initialed the foregoing statements and executed this
questionnaire this ______________
day of
________________________,
2007.
FOR
INDIVIDUALS:
___________________________________________
Signature
___________________________________________
Print
Name
FOR
JOINT TENANTS (Both Parties Must Sign):
___________________________________________
Signature
___________________________________________
Print
Name
___________________________________________
Signature
___________________________________________
Print
Name
FOR
TRUSTS, CORPORATIONS, PARTNERSHIPS:
___________________________________________
Print
Name of Entity
By:
________________________________________
(Print
Name and Title of Authorized Person(s)
___________________________________________
Signature(s)
15
Exhibit
A
THIS
DEBENTURE, AND THE SECURITIES INTO WHICH IT IS CONVERTIBLE (COLLECTIVELY, THE
“SECURITIES”),
HAVE NOT BEEN REGISTERED WITH THE NOTEED STATES SECURITIES EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE. THE SECURITIES ARE BEING OFFERED
PURSUANT TO A SAFE HARBOR FROM REGISTRATION UNDER REGULATION S AND/OR REGULATION
D PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMEMDED (THE “ACT”). THE
SECURITIES ARE “RESTRICTED”
AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS (AS
SUCH
TERM IS DEFINED IN REGULATION S PROMULGATED UNDER THE ACT) UNLESS THE SECURITIES
ARE REGISTERED UNDER THE ACT, PURSUANT TO REGULATION S AND/OR REGULATION D
OR
PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE
ACT
AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL OR OTHER SUCH
INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE
AVAILABLE. FURTHER HEDGING TRANSACTION INVOLVING THE SECURITIES MAY NOT BE
MADE
EXCEPT IN COMPLIANCE WITH THE ACT.
DEBENTURE
7%
Convertible Exchange Notes
Due:
April 1, 2012
No.
$30,000
This
Debenture is issued by, XIOM CORP., a Nevada corporation (the Company”), to
(together with its permitted successors and assigns, the “Holder”) pursuant to
exemptions from registration under the Securities Act of 1933, as
amended.
ARTICLE
I.
Section
1.01 Principal
and Interest.
For
value received on April __, 2007, the Company hereby promises to pay to the
order of Holder in lawful money of the United States of America and in
immediately available funds the principal sum of $30,000, together with interest
on the unpaid principal of this Debenture at the rate of seven percent (7%)
per
year (computed on the basis of the 365-day year and the actual days elapsed)
from the date of this Debenture until paid. All interest shall be paid
semi-annually or (b) converted in accordance with Section 1.02
herein.
Section
1.02 Mandatory
Conversion.
Each
whole Note will be convertible into 20,000 shares automatically at the
effectiveness of the SEC Registration Statement registering the underlying
common shares of the Notes and the Warrants. If said Registration Statement
is
not declared effective within one year from the final closing date of the
Offering then the Note
1
Holders
may elect to accelerate the maturity date and in default pf payment, the
Convertible Notes shall bear the default interest rate of 15% per
annum.
Section
1.03 Reservation
of Common Stock.
The
Company shall reserve and keep available out of its authorized but unissued
shares of Common Stock, solely for the purpose of effecting the conversion
of
this Debenture, such number of shares of Common Stock as shall from time to
time
be sufficient to effect such conversion, based on the Conversion Price. If
at
any time the Company does not have a sufficient number of Conversion Shares
authorized and available, then the Company shall call and hold a special meeting
of its stockholders within sixty (60) days of that time for the sole purpose
of
increasing the number of authorized shares of Common Stock.
Section
1.04 Registration
Rights.
The
Company is obligated to begin registration for the resale of the Conversion
Shares within 90 days.
Section
1.05 Interest
Payments.
The
interest so payable will be paid at the time semi-annually or conversion to
the
person in whose name this Debenture is registered.
ARTICLE
II.
Section
2.01 Amendments
and Waiver of Default.
The
Debenture may be amended with the consent of Holder. Without the consent of
Holder, the Debenture may be amended to cure any ambiguity, defect or
inconsistency, to provide assumption of the Company obligations to the Holder
or
to make any change that does not adversely affect the rights of the
Holder.
ARTICLE
III.
Section
3.01 Events
of Default.
An Event
of Default is defined as follows: (a) failure by the Company to pay amounts
due
hereunder within fifteen (15) days of the date of maturity of this Debenture;
(b) failure by the Company for thirty (30) days after notice to it to comply
with any of its other agreements in the Debenture; (c) events of bankruptcy
or
insolvency; (d) a beach by the Company of its obligations under the Registration
Rights Agreement which is not cured by the Company within ten (10) days after
receipt of written notice thereof. The Holder may not enforce the Debenture
except as provided herein. If said Registration Statement is not declared
effective within one year from the final closing date of the Offering then
the
Note Holders may elect to accelerate the maturity date and in default of
payment, the Convertible Notes shall bear the default interest rate of 15%
per
annum.
Section
3.02 Failure
to Issue Unrestricted Common Stock.
As
indicated above, a breach by the Company of its obligation to register the
shares underlying the Notes and Warrants shall be deemed an Event of Default,
which if not cured with ten (10) days, shall entitle the Holder accelerated
full
payment of all debentures outstanding. The Company acknowledges that failure
to
honor a Notice of Conversion shall cause hardship to the
Holder.
2
ARTICLE
IV.
Section
4.01 Anti-dilution.
In the
event that the Company shall at any time subdivide the outstanding shares of
Common Stock, or shall issue a stock dividend on the outstanding Common Stock,
the Conversion Price in effect immediately prior to such subdivision of the
issuance of such dividend shall be proportionately decreased and, in the event
that the Company shall at any time combine the outstanding shares of Common
stock, the Conversion price in effect immediately prior to such combination
shall be proportionally increased, effective at the close of business on the
date of such subdivision, dividend or combination as the case may
be.
ARTICLE
V.
Section
5.01 Notice.
Notices
regarding this debenture shall send to the parties, as indicated on each
subscription agreement or such other address as such holder provides to the
Company in writing:
Section
5.02 Governing
Law.
This
Debenture shall be deemed to be made under and shall be construed in accordance
with the laws of the State of New York without giving effect to the principals
of conflict of the laws thereof. Each of the parties consents to the
jurisdiction of the U.S. District Court sitting in the Eastern District of
the
State of New York, in connection with any dispute arising under this debenture
and hereby waives, to the maximum extent permitted by law, any objection,
including the objection based on forum
non conveniens
to the
bringing of any such proceeding in such jurisdictions.
Section
5.03 Severability.
The
invalidity of any of the provisions of this Debenture shall not invalidate
or
otherwise affect any of the other provisions of this Debenture, which shall
remain in full force effect.
Section
5.04 Amendments.
This
Debenture may be amended only by an instrument in writing executed by the
parties hereto.
Section
5.05 Counterparts.
This
Debenture may be executed in multiple counterparts, each of which shall be
an
original, but all of which shall be deemed to constitute and
instrument.
IN
WITNESS WHEREOF,
with
the intent to legally bound hereby, the Company has executed this Debenture
as
of the date first written above.
By:___________________________
Name: Xxxxxx
X.
Xxxxxxx
Title: President/Chief
Executive Officer
3
Exhibit
B
NEITHER
THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY OTHER
APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS. NEITHER
THIS
WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED,
TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION WHICH IS
EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT.
STOCK
PURCHASE WARRANT
THIS
CERTIFIES that, for value received, ___________________ (the “Holder”), shall
have the right to purchase from Xiom Corp., a Delaware corporation (the
“Company”), ________________________________________ number fully paid and
non-assessable shares of the Company’s Common Stock (the “Common Stock”) at an
exercise price of $2.00 US per share and an equal number at $2.50 US per share
(the “Exercise Price”), subject to further adjustment as set forth in Section 3
hereof, at any time until 5:00 P.M., Eastern time, on the end of the __, day
of
________, 2012 which is 60 months from the date of issuance (the “Termination
Date”) or callable by the Company in the event the Company’s common stock trades
at a $5.00 bid or above for 20 consecutive trading days.
Title
to
Warrant. Prior to the Termination Date and subject to compliance with applicable
laws, this Warrant and all rights hereunder are transferable, in whole or in
part, at the office or agency of the Company by the holder hereof in person
or
by duly authorized attorney, upon surrender of this Warrant together with the
Assignment Form annexed hereto properly endorsed.
Authorization
of Shares. The Company covenants that all shares of Common Stock which may
be
issued upon the exercise of rights represented by this Warrant will, upon
exercise of the rights represented by this Warrant, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).
Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may
be
made at any time or times on or after the closing of the offering, and before
the close of business on the Termination Date by the surrender of this Warrant
and the Notice of Exercise Form annexed hereto duly executed, at the office
of
the Company (or such other office or agency of the Company as it may designate
by notice in writing to the registered holder hereof at the address of such
holder appearing on the books of the Company) and upon payment of
the
1
Exercise
Price of the shares thereby purchased by wire transfer or cashier’s check drawn
on a United States bank, the holder of this Warrant shall be entitled to receive
a certificate for the number of shares of Common Stock so purchased.
Certificates for shares purchased hereunder shall be delivered to the holder
hereof within twenty (20) Trading Days after the date on which this Warrant
shall have been exercised as aforesaid. This Warrant shall be deemed to have
been exercised and such certificate or certificates shall be deemed to have
been
issued, and Holder or any other person 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 by payment to the Company of the
Exercise Price and all taxes required to be paid by Holder, if any, pursuant
to
Section 4 prior to the issuance of such shares, have been paid. The Company
will
not close its shareholder books or records in any manner which prevents the
timely exercise of this Warrant. Each Warrant is callable by the Company in
the
event the Company’s common stock trades at a $5.00 bid or above for 20
consecutive trading days.
Charges,
Taxes and Expenses. Issuance of certificates for shares of Common Stock upon
the
exercise of this Warrant shall be made without charge to the holder hereof
for
any issue or transfer tax or other incidental expense in respect of the issuance
of such certificate, and such certificates shall be issued in the name of the
holder of this Warrant or in such name or names as may be directed by the holder
of this Warrant; provided, however, that in the event certificates for shares
of
Common Stock are to be issued in a name other than the name of the holder of
this Warrant, this Warrant when surrendered for exercise shall be accompanied
by
the Assignment Form attached hereto duly executed by the holder hereof; and
the
Company may require, as a condition thereto, the payment of a sum sufficient
to
reimburse it for any transfer tax incidental thereto.
Registration
Rights. If at any time the Company proposes to register any of its common stock
under the Act, whether as a result of an offering for its own account or the
account of others, excluding any registrations to be effected on Forms S-4
or
S-8 or other applicable successor Forms, the Company shall, at such time,
promptly give Holder written notice of such proposed registration and offer
Holder the opportunity to include the shares of common stock issued as interest
and the shares of Common Stock issuable upon exercise of this Warrant in such
registration statement (each, a “Piggy Back Registration”). The Company shall
include in any such registration statement all or part of the underlying common
stock that Holder requests to be registered. In addition, the
Company shall prepare, and, as soon as practicable but in no event later than
45
days after the date that Holder first provides a Notice of Exercise to the
Company (the “Filing Deadline”), file with the SEC a Registration Statement on
Form SB-2 covering the resale of all of the Common Stock issuable upon exercise
of this Warrant by the Holder (each, a “Demand Registration”). The Company shall
not be obligated to honor more than one Demand Registration by Holder during
any
calendar year. In the event that Form SB-2 is unavailable for a Demand
Registration, the Company shall use such other form as is available for such
a
registration. The Company shall use its best efforts to have the Registration
Statement declared effective by the SEC as soon as practicable prior to the
90th
day following the Filing Deadline. All
expenses incurred in connection with registrations, filings or qualifications,
including, without limitation, all registration, listing and qualifications
fees, printers and accounting fees, and fees and disbursements of counsel for
the Company shall be paid by the
2
Company.
The
Company will also pay the registration expenses and the reasonable fees and
disbursements of one counsel for the selling Holder selected by
Holder.
Transfer,
Division and Combination. (a) Subject to compliance with any applicable
securities laws, transfer of this Warrant and all rights hereunder, in whole
or
in part, shall be registered on the books of the Company to be maintained for
such purpose, upon surrender of this Warrant at the principal office of the
Company, together with a written assignment of this Warrant substantially in
the
form attached hereto duly executed by Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such transfer.
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
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.
A
Warrant, if properly assigned, may be exercised by a new holder for the purchase
of shares of Common Stock without having a new Warrant issued.
(b) 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 Holder or its agent or attorney. Subject to compliance with Section
6(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.
(c) The
Company shall prepare issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 6.
(d) The
Company agrees to maintain, at its aforesaid office, books for the registration
and the registration of transfer of the Warrants.
No
Rights
as Shareholder until Exercise. This Warrant does not entitle the holder hereof
to any voting rights or other rights as a shareholder of the Company prior
to
the exercise hereof. Upon the surrender of this Warrant and the payment of
the
aggregate Exercise Price, the Warrant Shares so purchased shall be and be deemed
to be issued to such holder as the record owner of such shares as of the close
of business on the later of the date of such surrender or payment.
Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant certificate 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
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.
3
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, Sunday or a legal holiday, then such action may be taken or such
right
may be exercised on the next succeeding day not a Saturday, Sunday or legal
holiday.
Adjustments
of Exercise Price and Number of Warrant Shares.
Stock
Splits, etc. The number and kind of securities purchasable upon the exercise
of
this Warrant and the Exercise Price shall be subject to adjustment from time
to
time upon the happening of any of the following. In case the Company shall:
(i)
pay a dividend in shares of Common Stock or make a distribution in shares of
Common Stock to holders of its outstanding Common Stock, (ii) subdivide its
outstanding shares of Common Stock into a greater number of shares of Common
Stock, (iii) combine its outstanding shares of Common Stock into a smaller
number of shares of Common Stock, or (iv) issue any shares of its capital stock
in a reclassification of the Common Stock, then the number of Warrant Shares
purchasable upon exercise of this Warrant immediately prior thereto shall be
adjusted so that the holder of this Warrant shall be entitled to receive the
kind and number of Warrant Shares or other securities of the Company which
he
would have owned or have been entitled to receive had such Warrant been
exercised in advance thereof. Upon
each
such adjustment of the kind and number of Warrant Shares or other securities
of
the Company which are purchasable hereunder, the holder of this Warrant shall
thereafter be entitled to purchase the number of Warrant Shares or other
securities resulting from such adjustment at an Exercise Price per Warrant
Share
or other security obtained by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares purchasable
pursuant hereto immediately prior to such adjustment and dividing by the number
of Warrant Shares or other securities of the Company resulting from such
adjustment. An
adjustment made pursuant to this paragraph shall become effective immediately
after the effective date of such event retroactive to the record date, if any,
for such event.
Reorganization,
Reclassification, Merger, Consolidation or Disposition of Assets. In case the
Company shall reorganize its capital, reclassify its capital stock, consolidate
or merge with or into another corporation (where the Company is not the
surviving corporation or where there is a change in or distribution with respect
to the Common Stock of the Company), or sell, transfer or otherwise dispose
of
all or substantially all its property, assets or business to another corporation
and, pursuant to the terms of such reorganization, reclassification, merger,
consolidation or disposition of assets, shares of common stock of the successor
or acquiring corporation, or any cash, shares of stock or other securities
or
property of any nature whatsoever (including warrants or other subscription
or
purchase rights) in addition to or in lieu of common stock of the successor
or
acquiring corporation (“Other Property”), are to be received by or distributed
to the holders of Common Stock of the Company, then Holder shall have the right
thereafter to receive, upon 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 Other Property receivable upon or as a result
of such reorganization, reclassification, merger, consolidation or disposition
of assets by a holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to such event. In case of any such
reorganization, reclassification, merger, consolidation or disposition of
assets, the successor or acquiring corporation (if other than the Company)
shall
expressly assume the due and punctual observance and performance of each and
every covenant and condition of this Warrant to be
4
performed
and observed by the Company and all the obligations and liabilities hereunder,
subject to such modifications as may be deemed appropriate (as determined in
good faith by resolution of the Board of Directors of the Company) in order
to
provide for adjustments of shares of Common Stock for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 10. For purposes of this Section 10,
“common stock of the successor or acquiring corporation” shall include stock of
such corporation of any class which is not preferred as to dividends or assets
over any other class of stock of such corporation and which is not subject
to
redemption and shall also include any evidences of indebtedness, shares of
stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe
for
or purchase any such stock. The foregoing provisions of this Section 10 shall
similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.
Notice
of
Adjustment. Whenever the number of Warrant Shares or number or kind of
securities or other property purchasable upon the exercise of this Warrant
or
the Exercise Price is adjusted, as herein provided, the Company shall promptly
mail by registered or certified mail, return receipt requested, to the holder
of
this Warrant notice of such adjustment or adjustments setting forth the number
of Warrant Shares (and other securities or property) purchasable upon the
exercise of this Warrant and the Exercise Price of such Warrant Shares (and
other securities or property) after such adjustment, setting forth a brief
statement of the facts requiring such adjustment and setting forth the
computation by which such adjustment was made. Such notice, in the absence
of
manifest error, shall be conclusive evidence of the correctness of such
adjustment.
Notice
of
Corporate Action. If at any time:
(a) the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or other distribution, or any right
to
subscribe for or purchase any evidences of its indebtedness, any shares of
stock
of any class or any other securities or property, or to receive any other right,
or
(b) there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all
or
substantially all the property, assets or business of the Company to, another
corporation or,
(c) there
shall be a voluntary or involuntary dissolution, liquidation or winding up
of
the Company;
then,
in
any one or more of such cases, the Company shall give to Holder (i) at least
3
days’ prior written notice of the date on which a record date shall be selected
for such dividend, distribution or right or for determining rights to vote
in
respect of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, liquidation or winding up, and (ii) in the case
of
any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up, at least 3 days’
prior written notice of the date when the same shall take place. Such notice
in
accordance with the foregoing clause also shall specify (i)
5
the
date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall
be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such disposition, dissolution, liquidation or winding
up. Each such written notice shall be sufficiently given if addressed to Holder
at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 14(d).
Authorized
Shares. 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. 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 certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant. 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 Principal Market upon which the Common
Stock may be listed.
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 against impairment.
Without limiting the generality of the foregoing, the Company will (a) not
increase the par value of any shares of Common Stock receivable upon the
exercise of this Warrant above the amount payable therefore upon such exercise
immediately prior to such increase in par value, (b) take all such action as
may
be necessary or appropriate in order that the Company may validly and legally
issue fully paid and non-assessable shares of Common Stock upon the exercise
of
this Warrant, and (c) use its best 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.
Upon
the
request of Holder, the Company will at any time during the period this Warrant
is outstanding acknowledge in writing, in form reasonably satisfactory to
Holder, the continuing validity of this Warrant and the obligations of the
Company hereunder.
Before
taking any action which would cause an adjustment reducing the current Exercise
Price below the then par value, if any, of the shares of Common Stock issuable
upon exercise of the Warrants, the Company shall take any corporate action
which
may be necessary in order that the Company may validly and legally issue fully
paid and non-assessable shares of such Common Stock at such adjusted Exercise
Price.
6
Before
taking any action which would result in an adjustment in the number of shares
of
Common Stock 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.
Miscellaneous.
Jurisdiction.
This Warrant shall be binding upon any successors or assigns of the Company.
This Warrant shall constitute a contract under the laws of Delaware without
regard to its conflict of law, principles or rules.
Restrictions.
The holder hereof 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.
Non-waiver
and Expenses. 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 Holder’s rights, powers or remedies, notwithstanding all
rights hereunder terminate on the Termination Date. If the Company fails to
comply with any provision of this Warrant, the Company shall pay to Holder
such
amounts as shall be sufficient to cover any costs and expenses including, but
not limited to, reasonable attorneys’ fees, including those of appellate
proceedings, incurred by Holder in collecting any amounts due pursuant hereto
or
in otherwise enforcing any of its rights, powers or remedies
hereunder.
Notices.
Any notice, request or other document required or permitted to be given or
delivered to the holder hereof by the Company shall be delivered in accordance
with the notice provisions of the Purchase Agreement.
Limitation
of Liability. No provision hereof, in the absence of affirmative action by
Holder to purchase shares of Common Stock, and no enumeration herein of the
rights or privileges of Holder hereof, shall give rise to any liability of
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.
Remedies.
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of
its
rights under this Warrant. 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 the defense in any action
for specific performance that a remedy at law would be adequate.
Successors
and Assigns. 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 of the Company and the successors and permitted assigns
of
Holder.
7
The
provisions of this Warrant are intended to be for the benefit of all Holders
from time to time of this Warrant and shall be enforceable by any such Holder
or
holder of Warrant Shares.
Indemnification.
The Company agrees to indemnify and hold harmless Holder from and against any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, attorneys’ fees, expenses and disbursements of any kind which may
be imposed upon, incurred by or asserted against Holder in any manner relating
to or arising out of any failure by the Company to perform or observe in any
material respect any of its covenants, agreements, undertakings or obligations
set forth in this Warrant; provided, however, that the Company will not be
liable hereunder to the extent that any liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, attorneys’ fees,
expenses or disbursements are found in a final non-appealable judgment by a
court to have resulted from Holder’s negligence, bad faith or willful misconduct
in its capacity as a stockholder or warrant holder of the Company.
Amendment.
This Warrant may be modified or amended or the provisions hereof waived with
the
written consent of the Company and the Holder.
Severability.
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.
Headings.
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.
IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized.
Dated
this ___ day of _________, 2007.
By: _______________________
Xxxxxx
X.
Xxxxxxx, President
8
NOTICE
OF
EXERCISE
To: Xiom
Corp.
(1) The
undersigned hereby elects to purchase ________ shares of Common Stock (the
“Common Stock”), of Xiom Corp. pursuant to the terms of the attached Warrant,
and tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.
(2) Please
issue a certificate or certificates representing said shares of Common Stock
in
the name of the undersigned or in such other name as is specified
below:
_______________________________
(Name)
_______________________________
(Address)
_______________________________
_______________________________
Social
Security or Tax Identification Number
Dated:
______________________
______________________________
Signature
______________________________
Print
Name
ASSIGNMENT
FORM
(To
assign the foregoing warrant, execute
this
form
and supply required information.
Do
not
use this form to exercise the warrant.)
FOR
VALUE
RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to
_______________________________________________
whose address is
_______________________________________________________________.
_______________________________________________________________
Dated:
______________, _______
Holder's
Signature: _____________________________
Holder's
Address: _____________________________
_____________________________
Signature
Guaranteed: ___________________________________________
NOTE:
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. Officers of
corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing
Warrant.