WARRANT AGREEMENT
WARRANT AGREEMENT ("Agreement"), dated as of May 23, 2005, by and
between Identica Corp., an Ontario, Canada corporation (the "Company"), and
eRoomSystem Technologies, Inc., a Nevada corporation ("Warrantholder"). Certain
capitalized terms used herein are defined in Section 14 hereof.
WHEREAS, simultaneously herewith, the Warrantholder is providing to
the Company a loan in the amount of USD $150,000, and in consideration
therefore, the Company is issuing to Warrantholder a secured promissory note
(the "Note"), dated of even date herewith, in the principal amount of USD
$150,000, and is entering into this Agreement.
NOW THEREFORE, in consideration of the mutual terms, conditions,
representations, warranties and agreements herein set forth, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:
Section 1. Issuance of Warrants.
The Company hereby issues and grants to Warrantholder One Million
(1,000,000) Warrants ("Warrants") to purchase one (1) share of common stock of
the Company (the "Common Stock") per each Warrant. Commencing on the date hereof
(the "Warrant Commencement Date"), and terminating five years thereafter (the
"Warrant Expiration Date"), the holder shall have the right, subject to the
satisfaction of the conditions to exercise set forth in Section 7 of this
Agreement, to purchase one (1) share of Common Stock per each Warrant (the
shares of Common Stock issuable upon exercise of the Warrants being collectively
referred to herein as the "Warrant Shares") at an exercise price of USD$0.15 per
Warrant Share (the "Exercise Price"). The number of Warrant Shares issuable on
exercise of each Warrant and the Exercise Price are all subject to adjustment
pursuant to Section 8 of this Agreement. The Warrant Shares in the aggregate are
equal to six percent (6%), calculated on a fully diluted basis, of the issued
and outstanding capital stock of the Company as of the date hereof.
Section 2. Form of Warrant Certificates.
Promptly after the execution and delivery of this Agreement by the
parties hereto, the Company shall cause to be executed and delivered to
Warrantholder one or more certificates evidencing the Warrants (the "Warrant
Certificates"). Each Warrant Certificate delivered hereunder shall be
substantially in the form set forth in Exhibit A attached hereto and may have
such letters, numbers or other identification marks and legends, summaries or
endorsements printed thereon as the Company may deem appropriate and that are
not inconsistent with the terms of this Agreement or as may be required by
applicable law, rule or regulation. Each Warrant Certificate shall be dated the
date of execution by the Company.
Section 3. Execution of Warrant Certificates.
Each Warrant Certificate delivered hereunder shall be signed on
behalf of the Company by its President and Secretary. Each such signature may be
in the form of a facsimile thereof and may be imprinted or otherwise reproduced
on the Warrant Certificates.
If any officer of the Company who signed any Warrant Certificate
ceases to be an officer of the Company before the Warrant Certificate so signed
shall have been delivered by the Company, such Warrant Certificate nevertheless
may be delivered as though such person had not ceased to be such officer of the
Company.
Section 4. Registration.
Warrant Certificates shall be issued in registered form only. The
Company will keep or cause to be kept books for registration of ownership and
transfer of each Warrant Certificate issued pursuant to this Agreement. Each
Warrant Certificate issued pursuant to this Agreement shall be numbered by the
Company and shall be registered by the Company in the name of the holder thereof
(initially the Warrantholder). The Company may deem and treat the registered
holder of any Warrant Certificate as the absolute owner thereof (notwithstanding
any notation of ownership or other writing thereon made by anyone) for the
purpose of any exercise thereof and for all other purposes, and the Company
shall not be affected by any notice to the contrary.
Section 5. No Transfers.
A. Restrictions on Transfer. No Warrant may be sold, pledged, hypothecated,
assigned, conveyed, transferred or otherwise disposed of (each a "transfer")
unless (i) the transfer complies with all applicable securities laws and (ii)
the transferee agrees in writing to be bound by the terms of this Agreement.
B. Cancellation. Warrant Certificates surrendered for transfer or exchange shall
be canceled by the Company.
Section 6. Mutilated or Missing Warrant Certificates.
If any Warrant Certificate is mutilated, lost, stolen or destroyed,
the Company shall issue, upon surrender and cancellation of any mutilated
Warrant Certificate, or in lieu of and substitution for any lost, stolen or
destroyed Warrant Certificate, a new Warrant Certificate of like tenor and
representing an equal number of Warrants. In the case of a lost, stolen or
destroyed Warrant Certificate, a new Warrant Certificate shall be issued by the
Company only upon the Company's receipt of reasonably satisfactory evidence of
such loss, theft or destruction and, if requested, an indemnity or bond
reasonably satisfactory to the Company.
Section 7. Exercise of Warrants.
A. Exercise. Subject to the terms and conditions set forth in this Section 7,
Warrants may be exercised, in whole or in part (but not as to any fractional
part of a Warrant), at any time or from time to time on and after the Warrant
Commencement Date and on or prior to 5:00 p.m., Eastern time, on the Warrant
Expiration Date.
In order to exercise any Warrant, Warrantholder shall deliver to the
Company at its office referred to in Section 15 the following: (i) a written
notice in the form of the Election to Purchase appearing at the end of the form
of Warrant Certificate attached as Exhibit A hereto of such Warrantholder's
election to exercise the Warrants, which notice shall specify the number of such
Warrantholder's Warrants being exercised; (ii) the Warrant Certificate or
Warrant Certificates evidencing the Warrants being exercised; and (iii) payment
of the aggregate Exercise Price.
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All rights of Warrantholder with respect to any Warrant that has not
been exercised, on or prior to 5:00 p.m., Eastern time, on the Warrant
Expiration Date shall immediately cease and such Warrants shall be automatically
cancelled and void.
B. Payment of Exercise Price. Payment of the Exercise Price with
respect to Warrants being exercised hereunder shall be made by either (i) the
payment to the Company, in cash, by check or wire transfer, of an amount equal
to the Exercise Price multiplied by the number of Warrants then being exercised,
or (ii) executing and delivering to the Company a release in a form to be
approved by the Company's counsel canceling the applicable outstanding balance
of the Note in an amount equal to the Exercise Price.
C. Payment of Taxes. The Company shall be responsible for paying any
and all issue, documentary, stamp or other taxes that may be payable in respect
of any issuance or delivery of Warrant Shares on exercise of a Warrant.
D. Delivery of Warrant Shares. Upon receipt of the items referred to
in Section 7A, the Company shall, as promptly as practicable, execute and
deliver or cause to be executed and delivered, to or upon the written order of
Warrantholder, and in the name of Warrantholder or Warrantholder's designee, a
stock certificate or stock certificates representing the number of Warrant
Shares to be issued on exercise of the Warrant(s). If the Warrant Shares shall
in accordance with the terms thereof have become automatically convertible into
shares of the Company's Common Stock prior to the time a Warrant is exercised,
the Company shall in lieu of issuing shares of Common Stock, issue to the
Warrantholder or its designee on exercise of such Warrant, a stock certificate
or stock certificates representing the number of shares of Common Stock into
which the Warrant Shares issuable on exercise of such Warrant are convertible.
The certificates issued to Warrantholder or its designee shall bear any
restrictive legend required under applicable law, rule or regulation. The stock
certificate or certificates so delivered shall be registered in the name of
Warrantholder or such other name as shall be designated in said notice. A
Warrant shall be deemed to have been exercised and such stock certificate or
stock certificates shall be deemed to have been issued, and such 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 that such
notice, together with payment of the aggregate Exercise Price and the Warrant
Certificate or Warrant Certificates evidencing the Warrants to be exercised, is
received by the Company as aforesaid. If the Warrants evidenced by any Warrant
Certificate are exercised in part, the Company shall, at the time of delivery of
the stock certificates, deliver to the holder thereof a new Warrant Certificate
evidencing the Warrants that were not exercised or surrendered, which shall in
all respects (other than as to the number of Warrants evidenced thereby) be
identical to the Warrant Certificate being exercised. Any Warrant Certificates
surrendered upon exercise of Warrants shall be canceled by the Company.
Section 8. Adjustment of Number of Warrant Shares Issuable Upon Exercise of
a Warrant and Adjustment of Exercise Price.
A. Adjustment for Stock Splits, Stock Dividends, Recapitalizations. The number
of Warrant Shares issuable upon exercise of each Warrant and the Exercise Price
shall each be proportionately adjusted to reflect any stock dividend, stock
split, reverse stock split, recapitalization or the like affecting the number of
outstanding shares of Common Stock that occurs after the date hereof.
B. Adjustments for Reorganization, Consolidation, Merger. If after the date
hereof, the Company (or any other entity, the stock or other securities of which
are at the time receivable on the exercise of the Warrants), consolidates with
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or merges into another entity or conveys all or substantially all of its assets
to another entity, then, in each such case, Warrantholder, upon any permitted
exercise of a Warrant (as provided in Section 7), at any time after the
consummation of such reorganization, consolidation, merger or conveyance, shall
be entitled to receive, in lieu of the stock or other securities and property
receivable upon the exercise of the Warrant prior to such consummation, the
stock or other securities or property to which such Warrantholder would have
been entitled upon the consummation of such reorganization, consolidation,
merger or conveyance if such Warrantholder had exercised the Warrant immediately
prior thereto, all subject to further adjustment as provided in this Section 8.
The successor or purchasing entity in any such reorganization, consolidation,
merger or conveyance (if other than the Company) shall duly execute and deliver
to Warrantholder a written acknowledgment of such entity's obligations under the
Warrants and this Agreement.
C. Notice of Certain Events.
Upon the occurrence of any event resulting in an adjustment in the
number of Warrant Shares (or other stock or securities or property) receivable
upon the exercise of the Warrants or the Exercise Price, the Company shall
promptly thereafter (i) compute such adjustment in accordance with the terms of
the Warrants, (ii) prepare a certificate setting forth such adjustment and
showing in detail the facts upon which such adjustment is based, and (iii) mail
copies of such certificate to Warrantholder.
Section 9. Reservation of Shares; Inclusion of Warrant Shares in a
Registration Statement.
A. The Company shall at all times reserve and keep available, free from
preemptive rights, out of the aggregate of its authorized but unissued Common
Stock, or its authorized and issued Common Stock held in its treasury, the
aggregate number of the Warrant Shares deliverable upon the exercise of all
outstanding Warrants, for the purpose of enabling it to satisfy any obligation
to issue the Warrant Shares upon the due and punctual exercise of the Warrants,
through 5:00 p.m., Eastern time, on the Warrant Expiration Date.
B. The Warrant Shares shall be included in the registration
statement to be filed by the Company with the U.S. Securities and Exchange
Commission, pursuant to the Securities Act of 1933, as amended.
Section 10. No Impairment.
The Company shall not, by amendment of its certificate of
incorporation or bylaws, or through reorganization, consolidation, merger,
dissolution, issuance or sale of securities, sale of assets or any other
voluntary action, willfully avoid or seek to avoid the observance or performance
of any of the terms of the Warrants or this Agreement, and shall 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 in order to protect the rights
of Warrantholder under the Warrants and this Agreement against wrongful
impairment. Without limiting the generality of the foregoing, the Company: (i)
shall not set or increase the par value of any Warrant Shares above the amount
payable therefor upon exercise, and (ii) shall take all actions that are
necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable Warrant Shares upon the exercise of the Warrants.
Section 11. Representations and Warranties of Warrantholder.
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Warrantholder represents and warrants to the Company that, on the
date hereof and on the date the Warrantholder exercises the Warrant pursuant to
the terms of this Agreement:
(i) Warrantholder is an "accredited investor", as such term is defined in Rule
501(a) of Regulation D promulgated under the Securities Act.
(ii) Warrantholder understands that the Warrants and the Warrant Shares have not
been registered under the Securities Act and acknowledges that the Warrants and
the Warrant Shares must be held indefinitely unless they are subsequently
registered under the Securities Act or an exemption from such registration
becomes available.
(iii) Warrantholder is acquiring the Warrants for Warrantholder's own account
for investment and not with a view to, or for sale in connection with, any
distribution thereof.
Section 12. No Rights or Liabilities as Stockholder.
No holder, as such, of any Warrant Certificate shall be entitled to
vote, receive dividends or be deemed the holder of Common Stock which may at any
time be issuable on the exercise of the Warrants represented thereby for any
purpose whatever, nor shall anything contained herein or in any Warrant
Certificate be construed to confer upon the holder of any Warrant Certificate,
as such, any of the rights of a stockholder of the Company or any right to vote
for the election of directors or upon any matter submitted to stockholders at
any meeting thereof, or to give or withhold consent to any corporate action
(whether upon any recapitalization, issuance of stock, reclassification of
stock, change of par value or change of stock to no par value, consolidation,
merger, conveyance or otherwise), or to receive notice of meetings or other
actions affecting stockholders or to receive dividend or subscription rights, or
otherwise, until such Warrant Certificate shall have been exercised in
accordance with the provisions hereof and the receipt and collection of the
Exercise Price and any other amounts payable upon such exercise by the Company.
No provision hereof, in the absence of affirmative action by Warrantholder to
purchase Warrant Shares shall give rise to any liability of such holder for the
Exercise Price or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company.
Section 13. Fractional Interests.
The Company shall not be required to issue fractional shares of
Common Stock upon exercise of the Warrants or to distribute certificates that
evidence fractional shares of Common Stock. If any fraction of a Warrant Share
would, except for the provisions of this Section 13, be issuable on the exercise
of a Warrant, the number of Warrant Shares to be issued by the Company shall be
rounded to the nearest whole number, with one-half or greater being rounded up.
Section 14. Definitions.
Unless the context otherwise requires, the terms defined in this
Section 14, whenever used in this Agreement shall have the respective meanings
hereinafter specified and words in the singular or in the plural shall each
include the singular and the plural and the use of any gender shall include all
genders.
"Business Day" shall mean any day on which banking institutions are
generally open for business in New York.
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"Common Stock" means the common stock of the Company.
"Exercise Price" shall be the price per Warrant Share at which
Warrantholder is entitled to purchase Warrant Shares upon exercise of any
Warrant determined in accordance with Section 7 and subject to adjustment as
provided in Section 8 hereof.
"Person" shall mean any corporation, association, partnership, joint
venture, trust, organization, business, individual, government or political
subdivision thereof or governmental body.
"Securities Act" shall mean the Securities Act of 1933, as amended,
or any similar federal statute as at the time in effect, and any reference to a
particular section of such Act shall include a reference to the comparable
section, if any, of such successor federal statute.
Section 15. Notices.
All notices, consents, requests, waivers or other communications
required or permitted under this Agreement (each a "Notice") shall be in writing
and shall be sufficiently given (a) if hand delivered, (b) if sent by nationally
recognized overnight courier, or (c) if sent by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:
if to the Company:
Identica Corp.
000 Xxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxx X0X 0X0
Attn: President
if to Warrantholder:
eRoomSystem Technologies, Inc.
0000 Xxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Attn: President
or such other address as shall be furnished by any of the parties hereto in a
Notice. Any Notice shall be deemed given upon receipt.
Section 16. Supplements, Amendments and Waivers.
This Agreement may be supplemented or amended only by a subsequent
writing signed by each of the parties hereto (or their successors or permitted
assigns), and any provision hereof may be waived only by a written instrument
signed by the party charged therewith.
Section 17. Successors and Assigns.
Except as otherwise provided herein, the provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the successors and permitted assigns of the parties hereto. Warrants issued
under this Agreement may be assigned by Warrantholder only to the extent such
assignment satisfies the restrictions on transfer set forth in this Agreement;
any attempted assignment of Warrants in violation of the terms hereof shall be
void ab initio.
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Section 18. Termination.
This Agreement (other than Sections 7C, 11, and Sections 15 through
26, inclusive, and all related definitions, all of which shall survive such
termination) shall terminate on the earlier of (i) the Warrant Expiration Date
and (ii) the date on which all Warrants have been exercised.
Section 19. Governing Law; Jurisdiction.
A. Governing Law. This Agreement and each Warrant Certificate issued hereunder
shall be governed by and construed in accordance with the laws of the state of
New York and the federal laws of the United States applicable herein.
B. Submission to Jurisdiction. Each party to this Agreement hereby irrevocably
and unconditionally submits, for itself and its property, to the jurisdiction of
the state of New York, and any appellate court from any thereof, in respect of
actions brought against it as a defendant, in any action, suit or proceeding
arising out of or relating to this Agreement or the Warrant Certificates and
Warrants to be issued pursuant hereto, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action, suit or proceeding may be
heard and determined in such courts. Each of the parties hereto agrees that a
final judgment in any such action, suit or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.
C. Venue. Each party hereto irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any action, suit or proceeding
arising out of or relating to this Agreement, or the Warrant Certificates and
Warrants to be issued pursuant hereto, in any court referred to in this
Subsection B. Each of the parties hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action, suit proceeding in any such court and waives any other right to
which it may be entitled on account of its place of residence or domicile.
Section 20. Third Party Beneficiaries.
Each party intends that this Agreement shall not benefit or create
any right or cause of action in or on behalf of any Person other than the
parties hereto and their successors and permitted assigns.
Section 21. Headings.
The headings in this Agreement are for convenience only and shall
not affect the construction or interpretation of this Agreement.
Section 22. Entire Agreement.
This Agreement, together with the Warrant Certificates and Exhibits,
and the Note constitute the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and shall supersede any
prior agreements and understandings between the parties hereto with respect to
such subject matter.
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Section 23. Expenses.
Each of the parties hereto shall pay its own expenses and costs
incurred or to be incurred in negotiating, closing and carrying out this
Agreement and in consummating the transactions contemplated herein, except as
otherwise expressly provided for herein.
Section 24. Neutral Construction.
The parties to this Agreement agree that this Agreement was
negotiated fairly between them at arm's length and that the final terms of this
Agreement are the product of the parties' negotiations. Each party represents
and warrants that it has sought and received legal counsel of its own choosing
with regard to the contents of this Agreement and the rights and obligations
affected hereby. The parties agree that this Agreement shall be deemed to have
been jointly and equally drafting by them, and that the provisions of this
Agreement therefore should not be construed against a party or parties on the
grounds that such party or parties drafted or was more responsible for the
drafting of any such provision(s).
Section 25. Representations and Warranties.
The Company hereby represents and warrants to the Warrantholder
that:
(a) the Company has all requisite corporate power and authority to (i) execute
and deliver this Agreement and (ii) issue and sell the Common Stock upon the
conversion thereof and carry out provisions of this Agreement. All corporate
action on the part of the Company, its officers, directors and stockholders
necessary for the authorization, execution and delivery of this Agreement, the
performance of all obligations of the Company hereunder, and the authorization
(or reservation for issuance), sale and issuance of the Common Stock to be sold
hereunder has been taken or will be taken prior to the date hereof;
(b) this Agreement constitutes a valid and legally binding obligation of the
Company, enforceable in accordance with its terms, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws
relating to application affecting enforcement of creditor's rights generally and
(ii) as limited by laws relating to the availability of specific performance,
injunctive relief of other equitable remedies;
(c) the Common Stock issuable upon the conversion thereof that is being
purchased hereunder, when issued, sold and delivered in accordance with the
terms of this Agreement for the consideration expressed herein, will be duly and
validly issued, fully paid and nonassessable and will be free of restrictions on
transfer, other than restrictions on transfer under applicable state and federal
securities laws;
(d) subject in part to the truth and accuracy of Warrantholder's representations
set forth in Section 11 of this Agreement, the offer, sale and issuance of the
Common Stock issuable upon the conversion thereof as contemplated by this
Agreement are exempt from the registration requirements of the Securities Act
and the qualification or registration requirements of any state securities or
other applicable blue sky laws; and
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(e) the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby will not result in any such
violation, or be in conflict with or constitute, with or without the passage of
time and giving of notice, either a default under any such provision or an event
that results in creation of any lien, charge or encumbrance upon any assets of
the Company or the suspension, revocation, impairment, forfeiture or nonremoval
of any material permit, license, authorization or approval applicable to the
Company, its business or operations or any of its assets or properties.
Section 26. Counterparts.
This Agreement may be executed in counterparts and by facsimile and
each such counterpart shall for all purposes be deemed to be an original, and
all such counterparts shall together constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.
IDENTICA CORP.
By: /s/ Xxxxx Xxxxxxx
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Name: Xxxxx Xxxxxxx
Title: President
By: /s/ Xxxxxxxx Xxxxxx
--------------------------------------
Name: Xxxxxxxx Xxxxxx
Title: Secretary
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EXHIBIT A
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE. THE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE
DISPOSED OF EXCEPT IN COMPLIANCE WITH SUCH ACT AND LAWS. THE
SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS
AND CONDITIONS OF, AND MAY ONLY BE TRANSFERRED IN ACCORDANCE WITH, A
WARRANT AGREEMENT BETWEEN IDENTICA CORP. AND THE HOLDER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE. COPIES OF SUCH AGREEMENT
MAY BE OBTAINED UPON WRITTEN REQUEST TO THE COMPANY.
NO. ____ _______ WARRANTS
FORM OF
Warrant Certificate
IDENTICA CORP.
This Warrant Certificate certifies that _____________, a
____________________, is the registered holder of _______ Warrants (the
"Warrantholder") to purchase shares (the "Warrant Shares") of Common Stock of
Identica Corp. (the "Company"). Each Warrant entitles the holder, subject to the
satisfaction of the conditions to exercise set forth in Section 7 of the Warrant
Agreement referred to below, to purchase from the Company at any time or from
time to time on and after the date hereof (the "Warrant Commencement Date") and
terminate on or prior to 5:00 p.m., Eastern time, one year thereafter (the
"Warrant Expiration Date") one fully paid and nonassessable Warrant Share at the
Exercise Price set forth in the Warrant Agreement. The number of Warrant Shares
for which each Warrant is exercisable and the Exercise Price are subject to
adjustment as provided in the Warrant Agreement.
The Warrants evidenced by this Warrant Certificate are part of a
duly authorized issue of Warrants to purchase Warrant Shares and are issued
pursuant to a Warrant Agreement, dated as of ________, 2005 (the "Warrant
Agreement"), between the Company and ___________, which Warrant Agreement is
hereby incorporated by reference in and made a part of this instrument and is
hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Company and Warrantholder.
Warrantholder may exercise vested Warrants by surrendering this
Warrant Certificate, with the Election to Purchase attached hereto properly
completed and executed, together with payment of the aggregate Exercise Price,
at the offices of the Company specified in Section 15 of the Warrant Agreement.
If upon any exercise of Warrants evidenced hereby the number of Warrants
exercised shall be less than the total number of Warrants evidenced hereby,
there shall be issued to the holder hereof or its assignee a new Warrant
Certificate evidencing the number of Warrants not exercised.
This Warrant Certificate, when surrendered at the offices of the
Company specified in Section 15 of the Warrant Agreement, by the registered
holder thereof in person, by legal representative or by attorney duly authorized
in writing, may be exchanged, in the manner and subject to the limitations
provided in the Warrant Agreement, for one or more other Warrant Certificates of
like tenor evidencing in the aggregate a like number of Warrants.
Warrantholder may transfer the Warrants evidenced by this Warrant
Certificate, in whole or in part, only in accordance with Section 5 of the
Warrant Agreement.
The Company may deem and treat the registered holder hereof as the
absolute owner of this Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof and for all other purposes, and the Company shall not be
affected by any notice to the contrary.
WITNESS the signatures of the duly authorized officers of the
Company.
Dated: ___________ ___, 2005
IDENTICA CORP.
By:
-----------------------------------------
Name:
Title:
By:
-----------------------------------------
Name:
Title:
1-ii
FORM OF
Election to Purchase
The undersigned hereby irrevocably elects to exercise _________ of
the Warrants evidenced by the attached Warrant Certificate to purchase Warrant
Shares, and herewith tenders (or is concurrently tendering) payment for such
Warrant Shares in an amount determined in accordance with the terms of the
Warrant Agreement. The undersigned requests that a certificate representing such
Warrant Shares be registered in the name of_____________________, whose address
is _______________________________and that such certificate be delivered to
_________________________, whose address is __________________________. If said
number of Warrants is less than the number of Warrants evidenced by the Warrant
Certificate (as calculated pursuant to the Warrant Agreement), the undersigned
requests that a new Warrant Certificate evidencing the number of Warrants
evidenced by this Warrant Certificate that are not being exercised be registered
in the name of ____________________, whose address is ________________________
and that such Warrant Certificate be delivered to _____________, whose address
is ______________________________.
Dated: _______________________________, _____________
Name of holder of Warrant Certificate:
______________________________________
______________________________________
(Please Print)
Address:______________________________
______________________________
Federal Tax ID No.: _________________
Signature: __________________________
Note: The above signature must correspond with the name
as written in the first sentence of the attached
Warrant Certificate in every particular, without
alteration or enlargement or any change whatever,
and if the certificate evidencing the Warrant
Shares or any Warrant Certificate representing
Warrants not exercised is to be registered in a
name other than that in which this Warrant
Certificate is registered, the signature above must
be guaranteed.
Signature Guaranteed: _________________________
Dated: _________, ________
