exv4w5



 







Exhibit 4.5





THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES
LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
WITH RESPECT THERETO IS EFFECTIVE UNDER THE 1933 ACT AND ANY APPLICABLE STATE
SECURITIES LAWS, OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933
ACT.




IN ADDITION, A PREFERRED STOCK PURCHASE AGREEMENT DATED AS OF MARCH 24, 2006 (THE
“PURCHASE AGREEMENT”), A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY AT ITS
PRINCIPAL EXECUTIVE OFFICE, CONTAINS CERTAIN ADDITIONAL AGREEMENTS BETWEEN THE
PARTIES WITH RESPECT TO THIS WARRANT.



 






Caneum, Inc.




COMMON STOCK PURCHASE WARRANT “C”




	 	 	 	 	 
	Number of Shares:

	 	Holder:
	


 


	 
	 	 	 	 
	Original Issue Date: March 24, 2006	 	 
	 
	 	 	 	 
	Expiration Date: March 24, 2010	 	 
	 
	 	 	 	 
	Exercise Price per Share: $1.50	 	 





Caneum, Inc, a company organized and existing under the laws of the State of Nevada (the
“Company”), hereby certifies that, for value received, ___, or its registered
assigns (the “Warrant Holder”), is entitled, subject to the terms set forth below, to
purchase from the Company up to ___(___) shares (as adjusted from time to time as
provided in Section 7, the “Warrant Shares”) of common stock, $.001 par value (the
“Common Stock”), of the Company at a price of One Dollar Fifty Cents (1.50) per Warrant
Share (as adjusted from time to time as provided in Section 7, the “Exercise Price”), at
any time and from time to time from and after the date thereof and through and including 5:00 p.m.
New York City time on March 24, 2010 (or eighteen months of effectiveness of a Registration
Statement subsequent to the issuance hereof (such eighteen months to be extended by one month for
each month or portion of a month during which a Registration Statement’s effectiveness has lapsed
or been suspended, except in regard to the filing of post-effective amendments to the




 









 







Registration Statement), whichever is longer) (the “Expiration Date”), and subject to the following
terms and conditions:




     1. Registration of Warrant. The Company shall register this Warrant upon records to
be maintained by the Company for that purpose (the “Warrant Register”), in the name of the
record Warrant Holder hereof from time to time. The Company may deem and treat the registered
Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof
or any distribution to the Warrant Holder, and for all other purposes, and the Company shall not be
affected by notice to the contrary.



     2. Investment Representation. The Warrant Holder by accepting this Warrant represents
that the Warrant Holder is acquiring this Warrant for its own account or the account of an
affiliate for investment purposes and not with the view to any offering or distribution and that
the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant
Shares in violation of applicable securities laws. The Warrant Holder acknowledges that the
certificates representing any Warrant Shares will bear a legend indicating that they have not been
registered under the United States Securities Act of 1933, as amended (the “1933 Act”) and
may not be sold by the Warrant Holder except pursuant to an effective registration statement or
pursuant to an exemption from registration requirements of the 1933 Act and in accordance with
federal and state securities laws. If this Warrant was acquired by the Warrant Holder pursuant to
the exemption from the registration requirements of the 1933 Act afforded by Regulation S
thereunder, the Warrant Holder acknowledges and covenants that this Warrant may not be exercised by
or on behalf of a Person during the one year distribution compliance period (as defined in
Regulation S) following the date hereof. “Person” means an individual, partnership, firm,
limited liability company, trust, joint venture, association, corporation, or any other legal
entity.



     3. Validity of Warrant and Issue of Shares. The Company represents and warrants that
this Warrant has been duly authorized and validly issued and warrants and agrees that all of Common
Stock that may be issued upon the exercise of the rights represented by this Warrant will, when
issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges with respect to the issue thereof. The Company further
warrants and agrees that during the period within which the rights represented by this Warrant may
be exercised, the Company will at all times have authorized and reserved a sufficient number of
Common Stock to provide for the exercise of the rights represented by this Warrant.



     4. Registration of Transfers and Exchange of Warrants.



          a. Subject to compliance with the legend set forth on the face of this Warrant, the Company
shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant with the Form of Assignment attached hereto duly completed and signed, to the
Company at the office specified in or pursuant to Section 13. Upon any such registration or
transfer, a new warrant to purchase Common Stock, in substantially the form of this Warrant (any
such new warrant, a “New 




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Warrant”), evidencing the portion of this Warrant so transferred shall be issued to
the transferee and a New Warrant evidencing the remaining portion of this Warrant not so
transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the New
Warrant by the transferee thereof shall be deemed the acceptance of such transferee of all of the
rights and obligations of a Warrant Holder of a Warrant.




          b. This Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to the office
of the Company specified in or pursuant to Section 13 for one or more New Warrants, evidencing in
the aggregate the right to purchase the number of Warrant Shares which may then be purchased
hereunder. Any such New Warrant will be dated the date of such exchange.




     5. Exercise of Warrants.



          a. Upon surrender of this Warrant with the Form of Election to Purchase attached hereto duly
completed and signed to the Company, at its address set forth in Section 13, and upon payment and
delivery of the Exercise Price per Warrant Share multiplied by the number of Warrant Shares that
the Warrant Holder intends to purchase hereunder, in lawful money of the United States of America,
in cash or by certified or official bank check or checks, to the Company, all as specified by the
Warrant Holder in the Form of Election to Purchase, the Company shall promptly (but in no event
later than 7 business days after the Date of Exercise (as defined herein)) issue or cause to be
issued and cause to be delivered to or upon the written order of the Warrant Holder and in such
name or names as the Warrant Holder may designate (subject to the restrictions on transfer
described in the legend set forth on the face of this Warrant), a certificate for the Warrant
Shares issuable upon such exercise, with such restrictive legend as required by the 1933 Act. Any
person so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become
holder of record of such Warrant Shares as of the Date of Exercise of this Warrant.




          b. A “Date of Exercise” means the date on which the Company shall have received (i) this
Warrant (or any New Warrant, as applicable), with the Form of Election to Purchase attached hereto
(or attached to such New Warrant) appropriately completed and duly signed, and (ii) payment of the
Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.




          c. This Warrant shall be exercisable at any time and from time to time for such number of
Warrant Shares as is indicated in the attached Form of Election To Purchase. If less than all of
the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company
shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase
the remaining number of Warrant Shares for which no exercise has been evidenced by this Warrant.




          d. (i) Notwithstanding anything contained herein to the contrary but subject to Section 6,
the holder of this Warrant may, at its election exercised in its sole discretion, exercise this
Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be
made to the Company upon such exercise in





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payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net
Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):




Net Number = (A x (B — C))/B




          (ii) For purposes of the foregoing formula:





	 	 	 	A= the total number shares with respect to which this Warrant is then
being exercised.
	 
	 	 	 	B= the last reported sale price (as reported by Bloomberg) of the Common
Stock on the trading day immediately preceding the date of the Exercise
Notice.
	 
	 	 	 	C= the Warrant Exercise Price then in effect at the time of such exercise.





          e. The holder of this Warrant agrees not to elect a Cashless Exercise for a period of six (6)
months or during any period following the filing of a post-effective amendment to the Registration
Statement and prior to the effectiveness thereof. The holder of this Warrant also agrees not to
elect a Cashless Exercise so long as there is an effective registration statement for the Warrant
Shares.




     6. Maximum Exercise. The Warrant Holder shall not be entitled to exercise this
Warrant on a Date of Exercise in connection with that number of shares of Common Stock which would
be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the
Warrant Holder and its affiliates on an exercise date, and (ii) the number of shares of Common
Stock issuable upon the exercise of this Warrant with respect to which the determination of this
limitation is being made on an exercise date, which would result in beneficial ownership by the
Warrant Holder and its affiliates of more than 4.9% of the outstanding shares of Common Stock on
such date. This Section 6 may be waived or amended only with the consent of the Holder and the
consent of holders of a majority of the shares of outstanding Common Stock of the Company who are
not Affiliates. For the purposes of the immediately preceding sentence, the term “Affiliate” shall
mean any person: (a) that directly, or indirectly through one or more intermediaries, controls, or
is controlled by, or is under common control with, the Company; or (b) who beneficially owns (i)
any shares of the Company’s Series A Convertible Preferred Stock, (ii) the Company’s Common Stock
Purchase Warrant “B” dated March 24, 2006, or (iii) this Warrant. For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.



     7. Adjustment of Exercise Price and Number of Shares. The character of the shares of
stock or other securities at the time issuable upon exercise of this Warrant and the Exercise Price
therefore, are subject to adjustment upon the occurrence of the following events, and all such
adjustments shall be cumulative:



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          a. Adjustment for Stock Splits, Stock Dividends, Recapitalizations, Etc. The Exercise Price
of this Warrant and the number of shares of Common Stock or other securities at the time issuable
upon exercise of this Warrant shall be appropriately adjusted to reflect any stock dividend, stock
split, combination of shares, reclassification, recapitalization or other similar event affecting
the number of outstanding shares of stock or securities.




          b. Adjustment for Reorganization, Consolidation, Merger, Etc. In case of any consolidation or
merger of the Company with or into any other corporation, entity or person, or any other corporate
reorganization, in which the Company shall not be the continuing or surviving entity of such
consolidation, merger or reorganization (any such transaction being hereinafter referred to as a
“Reorganization”), then, in each case, the holder of this Warrant, on exercise hereof at
any time after the consummation or effective date of such Reorganization (the “Effective
Date”), shall receive, in lieu of the shares of stock or other securities at any time issuable
upon the exercise of the Warrant issuable on such exercise prior to the Effective Date, the stock
and other securities and property (including cash) to which such holder would have been entitled
upon the Effective Date if such holder had exercised this Warrant immediately prior thereto (all
subject to further adjustment as provided in this Warrant).




          c. Certificate as to Adjustments. In case of any adjustment or readjustment in the price or
kind of securities issuable on the exercise of this Warrant, the Company will promptly give written
notice thereof to the holder of this Warrant in the form of a certificate, certified and confirmed
by the Board of Directors of the Company, setting forth such adjustment or readjustment and showing
in reasonable detail the facts upon which such adjustment or readjustment is based.




          d. Price Adjustment. In case the Company shall, when this Warrant is outstanding, issue
shares of its Common Stock or securities upon the conversion or exercise of which or pursuant to
the terms of which shares of Common Stock may be issued (other than (A) Exempt Issuances as defined
in the Purchase Agreement, or (B) shares issuable upon exercise or conversion of convertible
securities for which an adjustment has already been made pursuant to this Section 7(d)), for a
consideration per share or having a conversion or exercise price per share less than the Exercise
Price then in effect, the Exercise Price shall be adjusted immediately thereafter so that it shall
equal the price determined by multiplying the Exercise Price in effect immediately prior thereto by
a fraction, the numerator of which shall be the sum of the number of shares of Common Stock
outstanding immediately prior to the issuance of such additional shares and the number of shares
of Common Stock which the aggregate consideration received or receivable for the issuance of such
additional shares would purchase at the Exercise Price then in effect, and the denominator of which
shall be the number of shares of Common Stock outstanding immediately after the issuance of such
additional shares (including the exercise or conversion of all options, warrants and other
convertible securities). Such adjustment shall be made successively whenever such an issuance is
made. An adjustment pursuant to this Section 7(d) shall not result in any change in the number of
shares of Common Stock issuable upon exercise of this Warrant.




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          e. [RESERVED]




     8. Call Provision. At any time that the Average Closing Sale Price of the Common Stock for a
period of twenty (20) consecutive trading days shall equal or exceed 200% of the then existing
Exercise Price of the Warrants, and provided that a Registration Statement (as defined in the
Registration Rights Agreement between the Company and the original Holder) covering the Warrant is
available for the resale of the related Warrant Shares during such twenty trading day period, the
Company shall have the right, upon twenty (20) days written notice to the Warrant Holders (the
“Automatic Exercise Notice”), to call the Warrant for cancellation in whole or in part. Unless on
or prior to the expiration of such twenty-day period, a Warrant Holder exercises its right to
purchase any of the Warrant Shares covered by the Warrant pursuant to the terms of this Warrant,
such Warrant Holder shall forfeit its right to do so, and the Warrants not so exercised shall
automatically expire without any consideration to the Warrant Holder or any further action by the
Warrant Holder or the Company and the Warrants shall be canceled on the books and records of the
Company. For purposes of this provision, the “Average Closing Sale Price” shall mean the average
of the closing sale price of the Common Stock as reported on Bloomberg over a period of twenty
consecutive trading days. In no event may the Company require the Investor to exercise any such
warrant that would force the Investor to violate the 4.9% provision in the Stock Purchase Agreement
or this Warrant Agreement; provided that so long as such limitation effectively prevents conversion
of this Warrant as required by this call provision, the Holder will not convert any shares of
preferred stock acquired pursuant to the Purchase Agreement or exercise any other warrants held by
Investor for shares of Common Stock until all of the warrants have been exercised or expired
pursuant to this provision. In addition, Investor shall use its commercially best efforts to sell
or otherwise dispose of shares of Common Stock or rights to acquire Common Stock, or take such
other action such as to result in a reduction in the Holder’s percentage ownership of the Company
to a level which would permit this Warrant to be exercised in full. The Automatic Exercise Notice
shall remain applicable and effective until exercise or expiration of all of the thes Warrants
pursuant to this provision has occurred and shall not need to be requalified.



     9. Fractional Shares. The Company shall not be required to issue or cause to be
issued fractional Warrant Shares on the exercise of this Warrant. The number of full Warrant
Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis of
the aggregate number of Warrant Shares purchasable on exercise of this Warrant so presented. If
any fraction of a Warrant Share would, except for the provisions of this Section 9, be issuable on
the exercise of this Warrant, the Company shall, at its option, (i) pay an amount in cash equal to
the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable,
up to the next whole number.



     10. Sale or Merger of the Company. Upon a Change in Control, the 4.9% restriction
contained in Section 6 shall immediately be released and the Warrant Holder will have the right to
exercise this Warrant concurrently with such Change in Control event. For purposes of this
Warrant, the term “Change in Control” shall mean a consolidation or merger of the Company with or
into another company or entity in which



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the Company is not the surviving entity or the sale of all or substantially all of the assets
of the Company to another company or entity not controlled by the then existing stockholders of the
Company in a transaction or series of transactions.




     11. Notice of Intent to Sell or Merge the Company. The Company will give Warrant
Holder ten (10) business days notice before the event of a sale of all or substantially all of the
assets of the Company or the merger or consolidation of the Company in a transaction in which the
Company is not the surviving entity.



     12. Issuance of Substitute Warrant. In the event of a merger, consolidation,
recapitalization or reorganization of the Company or a reclassification of Company shares of stock,
which results in an adjustment to the number of shares subject to this Warrant and/or the Exercise
Price hereunder, the Company agrees to issue to the Warrant Holder a substitute Warrant reflecting
the adjusted number of shares and/or Exercise Price upon the surrender of this Warrant to the
Company.



     13. Notice. All notices and other communications hereunder shall be in writing and
shall be deemed to have been given (i) on the date they are delivered if delivered in person; (ii)
on the date initially received if delivered by facsimile transmission followed by registered or
certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv)
on the third business day after it is mailed by registered or certified mail, return receipt
requested with postage and other fees prepaid as follows:



	 	 	 	 	 
	 

	 	If to the Company:	 	 
	 
	 

	 	170 Newport Center Drive	 	 
	 

	 	Suite 220	 	 
	 

	 	Newport Beach, CA 92660	 	 
	 

	 	Attn: Alan Knitowski, Chairman
	 	 
	 

	 	Facsimile No.: (949) 273-4001	 	 
	 
	 	 	 	 
	 

	 	If to the Warrant Holder:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	 
	 

	 	 	 	 
	 

	 	Facsimile No.:                                           	 	 
	 

	 	 

	 	 






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     14. Miscellaneous.



          a. This Warrant shall be binding on and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. This Warrant may be amended only by a writing signed
by the Company and the Warrant Holder.




          b. Nothing in this Warrant shall be construed to give to any person or corporation other than
the Company and the Warrant Holder any legal or equitable right, remedy or cause of action under
this Warrant; this Warrant shall be for the sole and exclusive benefit of the Company and the
Warrant Holder.




          c. This Warrant shall be governed by, construed and enforced in accordance with the internal
laws of the State of New York without regard to the principles of conflicts of law thereof.




          d. The headings herein are for convenience only, do not constitute a part of this Warrant and
shall not be deemed to limit or affect any of the provisions hereof.




          e. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable
in any respect, the validity and enforceablilty of the remaining terms and provisions of this
Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a commercially reasonably
substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this
Warrant.




          f. The Warrant Holder shall not, by virtue hereof, be entitled to any voting or other rights
of a shareholder of the Company, either at law or equity, and the rights of the Warrant Holder are
limited to those expressed in this Warrant.




[SIGNATURES ON FOLLOWING PAGE]








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     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by the authorized
officer as of the date first above stated.



Caneum, Inc., a Nevada corporation




	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Its:

	 	 

President and Chief Executive Officer
	 	 






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FORM OF ELECTION TO PURCHASE



(To be executed by the Warrant Holder to exercise the right to purchase shares of Common Stock
under the foregoing Warrant)




To: Caneum, Inc.:



In accordance with the Warrant enclosed with this Form of Election to Purchase, the undersigned
hereby irrevocably elects to purchase ___ shares of Common Stock (“Common Stock”), $.001
par value, of Caneum, Inc. and encloses the warrant and $1.50 for each Warrant Share being
purchased or an aggregate of $___in cash or certified or official bank check or
checks, which sum represents the aggregate Exercise Price (as defined in the Warrant) together with
any applicable taxes payable by the undersigned pursuant to the Warrant.



The undersigned requests that certificates for the shares of Common Stock issuable upon this
exercise be issued in the name of:




 






 




 






 




 






(Please print name and address)




 





(Please insert Social Security or Tax Identification Number)



If the number of shares of Common Stock issuable upon this exercise shall not be all of the shares
of Common Stock which the undersigned is entitled to purchase in accordance with the enclosed
Warrant, the undersigned requests that a New Warrant (as defined in the Warrant) evidencing the
right to purchase the shares of Common Stock not issuable pursuant to the exercise evidenced hereby
be issued in the name of and delivered to:




 






 




 






 




 

(Please print name and address)




	 	 	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	Name of Warrant Holder:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Print)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	(By:)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(Name:)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	(Title:)	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 	 	 	 	 	 	Signature must conform in all respects to name of	 	 
	 	 	 	 	 	 	Warrant Holder as specified on the face of the	 	 
	 	 	 	 	 	 	Warrant	 	 







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