Document:

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                                                EXHIBIT 10.18

                                 AUGUST 1, 2003

                            TOYOTA MOTOR CORPORATION

                                       and

                               [NAME OF EMPLOYEE]

                    =========================================

                      AGREEMENT FOR THE GRANT OF OPTIONS TO
                            ACQUIRE COMMON SHARES OF
                            TOYOTA MOTOR CORPORATION

                            UNITED STATES OF AMERICA

                    =========================================

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                                    CONTENTS

CLAUSE                                                                      PAGE

1.   INTERPRETATION............................................................1

2.   GRANT OF OPTIONS..........................................................2

3.   INCENTIVE STOCK OPTIONS...................................................2

4.   EXERCISE, LAPSE AND REFUSAL OF OPTIONS....................................3
     Exercise..................................................................3
     Lapse.....................................................................3
     Refusal...................................................................4

5.   MANNER OF EXERCISE OF OPTIONS.............................................5

6.   ADJUSTMENTS TO THE NUMBER OF COMMON SHARES................................6

7.   SECURITIES AND RELEVANT LEGISLATION.......................................6

8.   NO GUARANTEE OF CONTINUING EMPLOYMENT OR OFFICE...........................6

9.   EMPLOYEE UNDERTAKING......................................................7

10.  DATA PROCESSING CONSENT...................................................7

11.  COSTS AND TAXES...........................................................7

12.  SECURITIES ACCOUNTS.......................................................8

13.  GENERAL...................................................................9

14.  TERMINATION OF THIS AGREEMENT.............................................9

15.  CLAIMS AGAINST THE COMPANY...............................................10

16.  NOTICES..................................................................10
     To the Grantee...........................................................10
     To the Company...........................................................11
     Receipt of Notice........................................................11

17.  AMENDMENTS AND WAIVERS...................................................11

18.  GOVERNING LAW............................................................11

19.  ENTIRE AGREEMENT.........................................................12

20.  SEVERABILITY.............................................................12

APPENDIX 1  ADJUSTMENTS (ENGLISH TRANSLATION).................................14

1.   SHARE SPLIT OR SHARE CONSOLIDATION.......................................14

2.   ISSUE OF NEW COMMON SHARES OR DISPOSAL OF TREASURY SHARES................15

3.   GENERAL..................................................................16

APPENDIX 2  FORM OF EXERCISE NOTICE -- 2003 STOCK OPTION......................18

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1.   WARRANTY.................................................................18

2.   EXERCISE OF STOCK OPTIONS................................................18

APPENDIX 3  FORMS OF NOTICE OF TERMINATION OF 2003 STOCK OPTION AGREEMENT.....20

     Termination of Agreement pursuant to Clause 14.1.........................20

     Termination of Agreement pursuant to Clause 14.2.........................21

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THIS OPTION AGREEMENT is made with effect from August 1, 2003

BETWEEN

(1)  TOYOTA MOTOR CORPORATION a company registered in Japan and whose registered
     office is at 1, Toyota-Cho, Toyota, Aichi, 471-8571 Japan (the COMPANY);
     and

(2)  [NAME AND ADDRESS OF EMPLOYEE] (the GRANTEE) and currently employed by
     Toyota Motor Credit Corporation (the EMPLOYING COMPANY).

WHEREAS the Company intends to grant the Grantee options to acquire common
shares of the Company and set out the exercise conditions thereof.

IT IS AGREED as follows:

1. INTERPRETATION

1.1 In this Agreement, unless the context otherwise requires, the following
words and expressions shall have the following meanings:

AGREEMENT means this Option Agreement;

APPOINTED BANK has the meaning set forth in Clause 5.1(c);

BOARD means the board of directors of the Company from time to time or a duly
appointed committee thereof;

BANK BUSINESS DAY means any day on which the Appointed Bank is open for business
in Japan;

COMMON SHARES means the ordinary shares of the Company from time to time;

COMPANY BUSINESS DAY means any day on which the Company is open for business in
Japan;

EXERCISE PERIOD means the period commencing on August 1, 2005 and ending on July
31, 2009, provided that if July 31, 2009 is not a Company Business Day, then the
final day of the Exercise Period shall be the Company Business Day immediately
preceding July 31, 2009;

GRANT DATE means, August 1, 2003, the date on which the Company grants the
Options to the Grantee;

GROUP means the Company and its Subsidiaries;

OPTION means a right to acquire 100 Common Shares under this Agreement (or such
number as may be increased or decreased pursuant to Clause 6) and Options shall
be construed accordingly; and

REORGANIZATION means any capitalization or rights issue, split, consolidation,
or other reorganization or reduction of the share capital of the Company;

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SUBSIDIARY means any entity in which the Company owns, directly or indirectly,
at least 50% of the issued share capital thereof; and

YEN means the lawful currency of Japan.

1.2 Any reference herein to the provisions of any statute or subordinate
legislation shall be deemed to refer to the same as in force from time to time
including any modification, amendment or re-enactment thereof.

1.3 Clause headings are inserted for ease of reference only and shall not affect
the construction of this Agreement.

1.4 Where the context permits the singular shall include the plural and vice
versa and the masculine shall include the feminine. Words importing individuals
shall be treated as importing bodies corporate, corporations, unincorporated
associations and partnerships and vice-versa.

1.5 References to Clauses, and Appendices 1, 2 and 3 are to the clauses and the
appendices of this Agreement. Appendices 1, 2 and 3 form part of this Agreement.

2. GRANT OF OPTIONS

2.1 The Company hereby grants to the Grantee on the Grant Date ___ [NUMBER OF
OPTIONS TO BE GRANTED] Options subject to the terms and conditions of this
Agreement.

2.2 No consideration shall be payable by the Grantee on the grant of the
Options.

2.3 This Agreement represents the Grantee's right to the Options. The Grantee
shall not request the Company to issue any certificates representing the
Options.

2.4 The Options are personal to the Grantee and may not be transferred,
assigned, pledged, charged to or otherwise alienated or exercised by any other
person without the approval of the board of directors of the Company and any
attempt to do so without the approval of the board of directors of the Company
will result in the Options lapsing.

2.5 The benefit of the Options does not constitute part of the Grantee's base
salary or remuneration and will not be taken into account in determining any
other employment-related rights that the Grantee may have, such as for the
purpose of calculating any pension entitlements, severance pay or notice for
termination of employment.

3. INCENTIVE STOCK OPTIONS

3.1 It is intended that the Options constitute incentive stock options as
defined in Section 422 of the United States Internal Revenue Code of 1986, as
amended and any regulations promulgated thereunder (the CODE); provided,
however, that to the extent the Options do not satisfy one or more provisions of
Section 422 of the Code, they shall be treated as non-qualified stock options.

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4. EXERCISE, LAPSE AND REFUSAL OF OPTIONS

EXERCISE

4.1 The Grantee may exercise all or some of the Options during the Exercise
Period in the manner set forth in Clause 5.

4.2 Each Option must be exercised in full and no Option may be partially
exercised.

4.3 Subject to Clause 6, the price to be paid for each Common Share to be issued
or transferred to the Grantee upon exercise of each Option shall be Yen (in
words, three-thousand, one-hundred and sixteen Yen), such amount having been
calculated by multiplying the closing price of the Common Shares listed on the
Tokyo Stock Exchange on the Grant Date by 1.025 (rounded up to the nearest whole
Yen) (the EXERCISE PRICE).

4.4 Options may only be exercised on a Company Business Day.

LAPSE

4.5 Notwithstanding any other provision in this Agreement, the Options shall
lapse automatically and become of no effect on the earlier of:

(a)  the expiry of the Exercise Period;

(b)  the death of the Grantee;

(c)  the Grantee being declared bankrupt or entering into any general
     composition with or for the benefit of his creditors;

(d)  a shareholders' meeting approving a merger agreement, a share-for-share
     agreement (kabushiki kokan) or a statutory share transfer (kabushiki iten),
     as a result of which the Company decides to invalidate the Options on the
     basis that the Company will cease as a legal entity or it will become a
     wholly-owned subsidiary of another company;

(e)  the Grantee becoming an officer or an employee of any company which
     competes with the Company or any of its Subsidiaries;

(f)  the dismissal of the Grantee for disciplinary reasons from his office or
     employment at the Employing Company or other member of the Group;

(g)  any date prior to the first day of the Exercise Period when the Grantee
     ceases to be employed by, or hold office with, the Employing Company or any
     other member of the Group; or

(h)  the termination of this Agreement in accordance with Clause 14.

4.6 The Options shall lapse automatically and become of no effect if, on any
date on or after the beginning of the Exercise Period, the Grantee ceases to be
an officer or an employee of a member of the Group for any reason other than:

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(a)  injury, disability or ill-health (as determined by the Board);

(b)  retirement at or after the date on which he is bound or entitled to retire
     under his contract of employment or otherwise;

(c) resignation;

(d)  the company of which he is an officer or an employee ceasing to be a member
     of the Group;

(e)  the business (or part of a business) in which he is employed or of which he
     is an officer being transferred to a transferee which is not a member of
     the Group; or

(f)  any other reason at the Board's absolute discretion.

For the avoidance of doubt, the Grantee shall not be treated for such purposes
as ceasing to be an officer or an employee of a member of the Group if the
Grantee remains or simultaneously becomes an officer or an employee of another
member of the Group.

4.7 For the purposes of Clause 4.5(g) and Clause 4.6, a Grantee shall not be
treated as ceasing to be an officer or an employee of a member of the Group if
he is absent from work solely as a result of an authorized leave of absence
until such Grantee ceases to be entitled to exercise any statutory or
contractual right to return to work.

REFUSAL

4.8 The Company may refuse to accept exercise by the Grantee of the Options
within 30 days of the date of the Exercise Notice (as defined in Clause 5.1(a)
below) for any of the following reasons:

(a)  the Company determines in good faith that the exercise impedes the intended
     issuance by the Company of new securities regardless of the type or class,
     including, without limitation, shares or bonds with warrants;

(b)  the Company determines that the Options have lapsed pursuant to Clauses 4.5
     or 4.6;

(c)  there has been insufficient time to confirm the Adjusted Exercise Price
     stipulated in Appendix 1; or

(d)  the Company determines in good faith that the exercise of the Options may
     materially impede the business of the Company;

provided, however that the Company shall not refuse to accept exercise by the
Grantee of the Options on the final Company Business Day of the Exercise Period.

4.9 If the Company refuses to accept the exercise by the Grantee of the Options
for any one of Clauses 4.8(a) to 4.8(d)above:

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(a)  the Company shall give written notice to the Grantee of such refusal,
     provided, however, that the Company is not obliged to disclose the reasons
     for such refusal; and

(b)  the Options shall remain outstanding until the earlier of:

     (i)  the Grantee's exercise of such Options pursuant to Clause 5; or

     (ii) lapse of the Options pursuant to Clauses 4.5 and 4.6.

5. MANNER OF EXERCISE OF OPTIONS

5.1 Subject to Clause 4.2, the Grantee may exercise one or more of the Options
in whole, but not in part, during the Exercise Period in accordance with the
following procedure:

(a)  the Grantee is required to send to the Company a notice of its intention to
     exercise the Options (the EXERCISE NOTICE) in the form attached as Appendix
     2 (or in such other form as prescribed by the Company from time to time);

(b)  within five (5) Company Business Days the Company shall send to the Grantee
     an acknowledgement that such Exercise Notice has been received;

(c)  the Grantee shall, within four (4) Bank Business Days from the date on
     which the Company notifies the Grantee that the Company has received the
     Exercise Notice, pay an amount calculated by multiplying the Exercise Price
     by the number of Common Shares to be obtained upon exercise of the
     Option(s) (the EXERCISING PURCHASE PRICE) to UFJ Bank Limited or such other
     bank as shall be appointed by the Company from time to time (the APPOINTED
     BANK); provided, however, that if the last Bank Business Day is not also a
     Company Business Day, then the date for payment shall be the next Company
     Business Day which is also a Bank Business Day. The date of exercise shall
     be the date of receipt by the Company of payment of the Exercising Purchase
     Price.

(d)  Upon confirmation by the Company that the Grantee has fully paid the
     Exercising Purchase Price pursuant to this Clause 5.1 and any Tax
     Liabilities pursuant to Clause 11, the Company shall promptly issue or
     transfer (as the case may be) the relevant number of Common Shares to the
     Grantee's securities account in accordance with Clause 12. Upon payment of
     the Exercising Purchase Price by the Grantee to the Appointed Bank, the
     Grantee shall legally own the Common Shares acquired upon the exercise of
     the Options.

5.2 The Grantee may withdraw the Exercise Notice up until such time as the
Grantee pays the Exercising Purchase Price by giving written notice to the
Company to that effect; provided, however, that once the Grantee has paid the
Exercising Purchase Price in full, the Grantee cannot withdraw the Exercise
Notice.

5.3 Notwithstanding Clause 5.2 above, following payment by the Grantee of the
Exercising Purchase Price, the Exercise Notice shall be deemed withdrawn if the
Company notifies the Grantee of its refusal to accept the exercise of the
Options pursuant to Clauses 4.8 and 4.9. In such circumstances, the Company
shall repay the

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Exercising Purchase Price to the Grantee, provided, however, that the Company
shall not pay any interest with respect to any repayment to the Grantee.

6. ADJUSTMENTS TO THE NUMBER OF COMMON SHARES

6.1 In the event of a Reorganization of the share capital of the Company, the
Exercise Price and the total number of Common Shares underlying an Option may be
adjusted in accordance with the formulae set out in Appendix 1.

7. SECURITIES AND RELEVANT LEGISLATION

7.1 The Options may not be exercised if the exercise of the Options or the issue
of Common Shares thereafter would be contrary to any enactment or regulation at
the time being in force in any country having jurisdiction in relation thereto.
In particular, the Options shall not be exercisable unless the offer and sale of
the Common Shares subject to the Options have been registered under the United
States Securities Act of 1933, as amended and qualified under applicable state
"blue sky" laws, or the Company has determined that an exemption from
registration under the Securities Act of 1933 and from qualification under such
state "blue sky" laws is available. Neither the Employing Company nor the
Company shall be bound to take any action or obtain the consent of any
governmental authority to such acquisition, exercise or issue or to take any
action to ensure that any such acquisition, exercise or issue is in accordance
with any such enactment or regulation if such action would, in the opinion of
the Employing Company or the Company (as the case may be), be unduly onerous and
neither the Employing Company nor the Company shall have any liability in
respect thereof to the Grantee.

7.2 The Grantee hereby agrees to abide by the Securities and Exchange Law of
Japan, and all relevant securities laws, insider trading legislation, commercial
codes, tax laws, any other relevant laws, rules and regulations (including
relevant foreign, state and local laws) and relevant internal rules of the
Company and the Employing Company (including, without limitation, all insider
information and trading prohibition rules and the rules on buying and selling
Common Shares in relation to the exercise of any Options and the subsequent sale
of the Common Shares acquired upon exercise). The Company may, at its
discretion, impose such conditions on the exercise of the Options as it shall
deem necessary in order for such exercise to comply with any applicable
enactments or regulations, including but not limited to, the requirement that an
investment representation be given by the Grantee or that certificates for
shares of Common Stock be subject to a legend describing restrictions on
transfer. If the Grantee has any questions about the application of relevant
laws and rules, the Grantee shall immediately contact the Company to discuss
them; provided, however, that the Grantee is solely responsible for obtaining
his own legal advice in connection with the grant and exercise of the Options.

8. NO GUARANTEE OF CONTINUING EMPLOYMENT OR OFFICE

8.1 The rights, obligations and status of the Grantee under the terms and
conditions of his office or employment with the Employing Company shall not be
affected by this Agreement. Neither this Agreement nor any action taken or
omitted to be taken hereunder shall be construed as in any way:

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(a)  guaranteeing the Grantee's continued office or employment with the Company,
     Employing Company or any member of the Group; or

(b)  giving the Grantee the right to continue or be re-instated in his office or
     the employ of the Company, the Employing Company or any member of the Group
     whether before during or after the Exercise Period.

8.2 The Grantee hereby waives any and all rights to compensation or damages in
consequence of the termination of his office or employment with the Company, the
Employing Company or any member of the Group for any reason whatsoever insofar
as those rights arise, or may arise, from his ceasing to have rights under or
being entitled to exercise the Options pursuant to this Agreement as a result of
such termination or from the loss or diminution in value of such rights or
entitlements. If necessary, the Grantee's terms of employment shall be varied
accordingly.

9. EMPLOYEE UNDERTAKING

In accordance with the purpose of this Agreement, the Grantee shall devote
himself to his work with integrity as an officer or an employee (as appropriate)
of the relevant member(s) of the Group.

10. DATA PROCESSING CONSENT

10.1 The Company and the Employing Company may hold personal information
relating to the Grantee, including, without limitation, payroll, address,
service period, demographics and similar information in connection with this
Agreement and may at any time process and use such personal information in order
to perform and facilitate the implementation, management and administration of
the matters contemplated and set out in this Agreement provided that such use is
not prohibited by law. Subject to any applicable prohibitions, the Company may,
at any time to the extent required, make the Grantee's personal information
available to other persons within or outside the Group for such purposes,
including, but not limited, in connection with the exercise of the Options. The
Grantee hereby irrevocably consents to the processing, use, transfer and
registration of such personal information within or outside the Group. Before
transferring any data to a person or entity outside the Group, the Company or
the Employing Company (as the case may be) undertakes to inform the Grantee of:

(a)  the identity of any recipient or category of recipients of such personal
     information, the relevant data categories; and

(b)  the Grantee's rights to consult and to the extent necessary rectify and
     complete the registered personal information.

11. COSTS AND TAXES

11.1 The Company shall have the right to require the Grantee to remit to the
Company, prior to the delivery of any certificates evidencing Common Shares
acquired upon exercise of an Option, an amount sufficient to satisfy any
applicable income tax, capital gains tax, social security contributions or other
tax charge or duty (the TAX LIABILITIES) which may be assessed or chargeable in
connection with the

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grant or exercise of the Options. In addition, prior to the Company's
determination of such Tax Liabilities, the Grantee may make an irrevocable
election to satisfy, in whole or in part, such obligation to remit taxes, by
directing the Company to cause Common Shares to be withheld (but not in excess
of a rate that the Company determines is necessary to avoid unfavorable
accounting treatment) that would otherwise be received by such Grantee. Such
election may be denied by the Board at its discretion, or may be made subject to
certain conditions specified by the Board, including, without limitation,
conditions intended to avoid the imposition of liability against the individual
under applicable laws. The Grantee shall indemnify the Company in respect of any
Tax Liabilities payable in respect of the Options and for which the Company is
liable whether pursuant to any withholding obligations or otherwise.

11.2 Except as provided for in Clause 11.1, the Grantee is responsible for:

(a)  the cost of opening an account at the Securities Company (as defined in
     Clause 12.1 below);

(b)  the relevant charges payable in connection with any money transfers;

(c)  all other charges of the Appointed Bank and/or Securities Company which may
     be imposed from time to time; and

(d)  all other expenses that are imposed on the exercise of Options.

11.3 The Company shall have the right to require the Grantee to remit to the
Company an amount sufficient to satisfy any such costs and expenses prior to the
delivery of any certificate evidencing Common Shares acquired upon exercise of
an Option. Such amount may be satisfied by directing the Company to withhold
Common Shares in the manner set forth in Clause 11.1.

12. SECURITIES ACCOUNTS

12.1 Pursuant to Japanese laws and regulations, the Grantee is required to
appoint an agent and maintain a non-resident offshore account in Japan with
respect to the Common Shares to be acquired upon exercise of the Options. The
Grantee hereby agrees that it shall, through the Company, entrust the custody,
management and disposal of such Common Shares (the SERVICES) to a securities
company or bank (the SECURITIES COMPANY); provided, however, that the Grantee
shall retain the right to determine and direct the Securities Company to sell,
transfer or dispose of all or any portion of the Common Shares on the Grantee's
behalf and the Securities Company may not sell, transfer or otherwise dispose of
the Common Shares without the Grantee's prior approval. The Company shall
determine and appoint such Securities Company (or change such appointment) in
its absolute discretion and notify the Grantee of such appointment (or change in
such appointment) in accordance with Clause 16.

12.2 Following the Grant Date and prior to the exercise of the Options the
Grantee is required to open an account in the Grantee's name at the Securities
Company and follow the necessary procedures set out separately by the Company in
order to enable the Securities Company to perform the Services.

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13. GENERAL

13.1 The existence of the Options shall not affect in any way the right or power
of the Company or its shareholders to make or authorize any Reorganization or
other adjustment, recapitalization, reorganization or change in the Company's
capital structure, or any merger, corporate split, share-for-share exchange or
consolidation of the Company, or any issue of shares, bonds, debentures,
preferred or prior preference stocks ahead of or convertible into, or otherwise
affecting the Common Shares of the Company or the rights attaching thereto or
any other securities, or the dissolution or liquidation of the Company or any
sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding, whether of a similar character or otherwise.

13.2 The grant of options under this Agreement or future agreement is a
discretionary benefit and does not create any entitlement to options or shares
in the future, even in the case of repeated grants of options.

13.3 The Grantee shall have no rights as a stockholder with respect to any
Common Shares issuable upon exercise of an Option until payment of the
Exercising Purchase Price for such Common Shares as provided in Clause 5.1(d),
and no adjustment shall be made for dividends or distributions or other rights
in respect of any Common Share for which the record date is prior to the date on
which the Grantee pays the Exercising Purchase Price therefor. The Grantee
acknowledges that the Group has no duty to disclose confidential information to
the Grantee that is not generally available to holders of Common Shares.

13.4 The Board shall have the right to interpret the provisions of this
Agreement and to make all rules and determinations which it deems necessary or
desirable for the administration of this Agreement. The decisions of the Board
or, in the case of matters requiring shareholder approval, resolutions of the
shareholders meeting (whichever is applicable), including without limitation all
calculations required hereunder, shall be final and binding with respect to all
matters relating to this Agreement and the Options.

13.5 Clauses 7.2, 8, 9, 10, 15, 16, 18 and 20 shall continue and remain in full
force and effect notwithstanding the exercise of all of the Options by the
Grantee.

14. TERMINATION OF THIS AGREEMENT

14.1 If, by reason of imposition of Taxation Liabilities or a change in the
applicable laws or regulations, this Agreement is rendered illegal or otherwise
unenforceable, the Grantee may, before the Grantee has paid the Exercising
Purchase Price in respect of the first exercise of the Options, terminate this
Agreement with retroactive effect from the Grant Date by giving written notice
in the appropriate form attached in Appendix 3 (or as otherwise prescribed by
the Company from time to time); provided that Clauses 8, 10, 11, 15.1 16, 18 and
20 shall continue and remain in full force and effect notwithstanding the
termination of this Agreement.

14.2 The Grantee may only retroactively terminate this Agreement if he has not
exercised any of the Options. If the Grantee has exercised one or more Options
then the Grantee may at any time during the Exercise Period, in respect of any
outstanding

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Options, terminate this Agreement without retroactive application by giving
written notice in the form attached in Appendix 3 (or as otherwise prescribed by
the Company from time to time); provided that Clauses 7.2, 8, 9, 10, 11, 15 and
16 shall continue and remain in full force and effect notwithstanding the
termination of this Agreement.

15. CLAIMS AGAINST THE COMPANY

15.1 The Grantee shall not make any claim against the Company, the Employing
Company or their respective directors, shareholders, affiliates,
representatives, auditors or employees for any compensation whatsoever in
connection with this Agreement.

15.2 If, following delivery by the Grantee to the Company of an Exercise Notice,
the Company fails or delays, due to its willful or gross negligence, to deliver
the Common Shares to the Grantee within 30 Company Business Days, and as a
direct result of such failure or delay the Grantee suffers damage or loss, the
Grantee may claim compensation limited to the difference between the Exercising
Purchase Price, which was paid by the Grantee to the Company, and the aggregate
market price of the Common Shares at the time of acquisition by the Grantee, if
the Exercising Purchase Price is higher than the aggregate market price of the
Common Shares. For the avoidance of doubt, refusal by the Company to accept the
exercise by the Grantee of the Options pursuant to Clause 4 shall not be grounds
for compensation under this Clause 15.

15.3 Nothing in this Clause 15 shall prohibit the Grantee from making a claim
against the Company, the Employing Company or their respective directors,
shareholders, affiliates, representatives, auditors or employees enforcing
rights expressly provided for under the provisions of this Agreement.

15.4 If the Grantee exercises Options or disposes of Common Shares in breach of
any provisions of this Agreement, the Grantee shall, upon the Company's request,
refund the greater of:

(a)  the difference between the Exercising Purchase Price, which was paid by the
     Grantee to the Company, and the aggregate market price of the Common Shares
     at the time of acquisition by the Grantee; or

(b)  the entire profit which the Grantee makes by the disposal of the Common
     Shares.

In either (a) or (b), the Grantee shall make such refund promptly in accordance
with the Company's instructions.

16. NOTICES

TO THE GRANTEE

16.1 Any communication or notice to be given under or in connection with this
Agreement shall be in the English language and may be communicated by letter,
telex, facsimile transmission or email to the home address set out as first
written above or to such other address, telex or facsimile number or email
address as the

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Grantee may from time to time have notified (in accordance with this Clause
16.1) to the Company.

TO THE COMPANY

16.2 Any communication or notice to be given under or in connection with this
Agreement shall be in the English language and may be communicated by letter,
telex, facsimile transmission or email to the business address set out as first
written above or to such other address, telex or facsimile number or email
address as the Company may from time to time have notified (in accordance with
this Clause 16.2) to the Grantee and should be addressed to the "Global Human
Resources Division".

RECEIPT OF NOTICE

16.3 Any notice so served by letter, telex, facsimile transmission or email
shall be deemed to have been received:

(a)  in the case of telex, facsimile transmission or email, twelve (12) hours
     after the time of dispatch; and

(b)  in the case of post, special delivery or registered post, twelve (12)
     Company Business Days from the date of posting.

17. AMENDMENTS AND WAIVERS

17.1 No amendment to the provisions of this Agreement shall be effective unless
such amendments are:

(a)  consistent with the terms of the resolution of the Company's general
     shareholders meeting and Board meeting dated June 26, 2003, to grant
     options, as such resolutions may be modified or amended from time to time;
     and

(b)  made in writing and signed by the parties hereto or their duly authorized
     representatives.

17.2 All rights, remedies and powers conferred upon the parties hereto are
cumulative and shall not be deemed or construed to be exclusive of any other
rights, remedies or powers now or hereafter conferred upon the parties hereto or
either of them by law or otherwise.

17.3 Any failure at any time to insist upon or enforce any such right, remedy or
power shall not be construed as a waiver thereof.

18. GOVERNING LAW

18.1 This Agreement shall be governed by and construed in all respects in
accordance with the laws of Japan.

18.2 Each of the parties hereto hereby irrevocably submits to the jurisdiction
of the courts of Japan.

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19. ENTIRE AGREEMENT

19.1 This Agreement constitutes the entire agreement between the parties
relating to the subject matter of this Agreement and supersedes all prior
representations, writings, negotiations and understandings with respect hereto.

19.2 The parties acting in good faith will determine any matter not set out
herein.

20. SEVERABILITY

Any provision of this Agreement that is invalid, illegal or unenforceable in any
jurisdiction shall as to that jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability, without affecting in any way the
remaining provisions hereof in such jurisdiction or rendering that or any other
provision of this Agreement invalid, illegal or unenforceable in any other
jurisdiction.

                                                                         Page 12
<PAGE>

IN WITNESS whereof this Agreement with effective date of August 1, 2003 has been
executed in two originals, each party acknowledging receipt of one duly executed
original.

By: TOYOTA MOTOR CORPORATION

                                                     ---------------------------
                                                     By: FUJIO CHO
                                                     Title: President
                                                     Date:

By: [NAME OF EMPLOYEE]

                                                     ---------------------------
                                                     [NAME OF EMPLOYEE]

                                                     Date:

Page 13
<PAGE>

                                   APPENDIX 1
                        ADJUSTMENTS (ENGLISH TRANSLATION)

Note: The following is an English translation of the terms and conditions
applying to the treatment of the Options in the event of a share split, share
consolidation, issue of new Common Shares or disposal of Common Shares held in
treasury by the Company, which were approved at the Company's shareholders'
meeting and the Board meeting on June 26, 2003. This is not a literal
translation and it is provided for reference only. The original of such terms
and conditions in the Japanese language will prevail in all circumstances. All
references to dates in the following translation are to Tokyo time.

1. SHARE SPLIT OR SHARE CONSOLIDATION

1.1 If the Company splits or consolidates its Common Shares, the number of
Common Shares to be issued/transferred in satisfaction of the exercise of an
Option (the ADJUSTED NUMBER OF SHARES) shall be adjusted in accordance with the
following formula, provided, however, that such adjustment shall be made only
with respect to Options that have not yet been exercised at the time of such
share split or share consolidation. The Adjusted Number of Shares shall be
rounded down to the nearest whole Common Share.

                     Number of Common Shares required
Adjusted Number   =    to satisfy the exercise of an   X  Ratio of share split/
   of Shares             Option prior to adjustment         consolidation

The Company shall promptly notify the Grantee in writing of the Adjusted Number
of Shares in the event of a share split or share consolidation by the Company.

1.2 If the Company splits or consolidates its Common Shares, the Exercise Price
shall be adjusted in accordance with the following formula:

                                                                  1
 Adjusted Exercise  =  Pre-adjusted Exercise Price  x  -------------------------
       Price                                                 Ratio of share
                                                           split/consolidation

The Adjusted Exercise Price shall be rounded up to the nearest whole Yen.

1.3 The "Pre-adjusted Exercise Price" used in the formula in Clause 1.2 above
shall be the Exercise Price effective on the day prior to the date on which the
Adjusted Exercise Price is applied pursuant to 1.4 below.

1.4 The Adjusted Exercise Price shall be applied as follows:

(a)  if the Company splits its Common Shares, the Adjusted Exercise Price shall
     be applied from the date following the allotment date (wariate-bi) of the
     split shares; or

Page 14
<PAGE>

(b)  if the Company consolidates its Common Shares, the Adjusted Exercise Price
     shall be applied from the date following the expiry of the period provided
     for in Paragraph 1 of Article 215 of the Commercial Code (Law No. 48 of
     1899).

1.5 Where the Board decides that Common Shares will be issued pursuant to a
share split in exchange for a capitalization of distributable profits, and the
allotment date of the split shares is specified as being a date prior to the
date of the shareholders' meeting at which such capitalization is approved, from
the day following such shareholders' meeting, the Adjusted Exercise Price shall
be applied retroactively with effect from the day following the date of
allotment of the split shares. In such case, a number of additional Common
Shares calculated in accordance with the following formula shall be
issued/transferred to any Grantee who exercises an Option during the period
between the date following the allotment date of the split shares and the date
of the shareholders' meeting at which the capitalization of distributable
profits is approved:

                                                             Number of shares
                                                           which were issued or
                                                           transferred upon the
                  (  Pre-Adjusted   -     Adjusted    ) X     exercise of the
                  ( Exercise Price     Exercise Price )      Option without the
  Number of                                                  adjustment of the
 additional                                                   Exercise Price
Common Shares  =  --------------------------------------------------------------
                                     Adjusted Exercise Price

The number of additional Common Shares accordingly issued or transferred to the
Grantee shall be rounded down to the nearest whole Common Share.

2. ISSUE OF NEW COMMON SHARES OR DISPOSAL OF TREASURY SHARES

2.1 If the Company disposes of Common Shares held in treasury (TREASURY SHARES)
or issues new Common Shares for an amount which is less than the then current
market price from and including August 1, 2003 (excluding all instances where
options, warrants or other rights to acquire shares of the Company are exercised
or where the Company transfers its Treasury Shares in accordance with a
resolution of a shareholders' meeting pursuant to paragraph 2 of Article 210-2
of the former Commercial Code), the Exercise Price shall be adjusted in
accordance with the following formula:

<TABLE>
 <CAPTION>
<S>           <C>                 <C>                    <C>                      <C>
                                                           Number of new           Amount to be paid
                                     Number of            Common Shares to          per new Common
                                     issued and             be issued or          Share to be issued
                                    outstanding      +    Treasury Shares    X     or Treasury Share
                                   Common Shares           to be disposed           to be disposed
                                                         ---------------------------------------------
 Adjusted      Pre-adjusted                                  Current market price per Common Share
 Exercise  =    Exercise     X    --------------------------------------------------------------------
   Price          Price           Number of issued and          +          Number of new Common
                                   outstanding Common                     Shares to be issued or
                                         Shares                            Treasury Shares to be
                                                                                  disposed
</TABLE>

                                                                         Page 15
<PAGE>

The Adjusted Exercise Price shall be rounded up to the nearest whole Yen.

2.2 The "Pre-adjusted Exercise Price" used in the formula in Clause 2.1 above
shall be the Exercise Price on the day prior to the date on which the Adjusted
Exercise Price is applied.

2.3 The "Number of issued and outstanding Common Shares" used in the formula in
Clause 2.1 above shall be the total number of issued and outstanding Common
Shares on the allotment date of the new Common Shares being issued or the date
on which the Treasury Shares are disposed, whichever is applicable (for the
avoidance of doubt, it does not include Treasury Shares). If such date is not
specified, the "Number of issued and outstanding Common Shares" shall be the
total number of issued and outstanding Common Shares on the date one month prior
to the date on which the Adjusted Exercise Price is applied; provided that where
two or more events, which require the adjustment of the Exercise Price, occur
within a short period of time of each other and the number of issued and
outstanding Common Shares which is used in calculating the Adjusted Exercise
Price triggered by one of those events can be calculated appropriately, such
number of issued and outstanding shares shall be used.

2.4 The "Current market price per Common Share" used in the formula in Clause
2.1 above shall be the average daily closing price (including the trend
quotations) of the Company's Common Shares on the Tokyo Stock Exchange for the
30 day period starting on the 45th dealing day before the date on which the
Adjusted Exercise Price is applied, excluding any days on which the closing
price is not reported. The average daily closing price shall be calculated by
disregarding the third and successive decimal places of such number and then
correcting the resulting number to one decimal place.

2.5 The Adjusted Exercise Price calculated in accordance with the formula in
Clause 2.1 above shall be applied from the date following the date of disposal
of Treasury Shares or the allotment date of the Common Shares to be issued if
such date is specified, or from the date following the payment date for the
Common Shares to be issued or Treasury Shares to be disposed.

2.6 When calculating the Adjusted Exercise Price in accordance with the formula
in Clause 2.1, each of the numbers to be inserted in the formula shall be
calculated by disregarding the third and successive decimal places of such
number and then correcting the resulting number to one decimal place.

3. GENERAL

3.1 If the difference between the Adjusted Exercise Price and the Pre-adjusted
Exercise Price is less than one Yen, the Exercise Price shall not be adjusted on
that occasion; provided, however, that the exact Adjusted Exercise Price
originally calculated in accordance with the formula set out in Clause 1 or 2
above shall be used as the Pre-adjusted Exercise Price on the subsequent
occasion that an adjustment occurs.

                                                                         Page 16
<PAGE>

3.2 Except as otherwise provided in Clauses 1 or 2 above, the Company shall
adjust the Exercise Price, as the Company considers appropriate:

(a)  in the event of capital decrease, merger or demerger of the Company; or

(b)  if an event occurs which otherwise causes a change (or potential change) in
     the number of issued shares of the Company.

3.3 If the Exercise Price is adjusted, the Company shall issue an individual
notice to the Grantee prior to the date that the Adjusted Exercise Price is
applied as specified in Clause 1 or 2 above; provided, however, that in the
event of a share split as set out in Clause 1.5 above or where the Company is
unable to issue an individual notice prior to the date that the Adjusted
Exercise Price is applied, the Company shall issue an individual notice to the
Grantee promptly after such date.

                                                                         Page 17
<PAGE>

                                   APPENDIX 2
                   FORM OF EXERCISE NOTICE - 2003 STOCK OPTION

[Date]

To:   Toyota Motor Corporation (the COMPANY)

From: [Employee name] (the GRANTEE)

Pursuant to Clauses 4 and 5 of the Agreement for the Grant of Options to Acquire
Common Shares of Toyota Motor Corporation, executed with effect from August 1,
2003 (the AGREEMENT), I warrant and claim for the issue or transfer (at the
Company's discretion) of the Common Shares as follows:

1.   WARRANTY

I warrant that, as of June 26, 2003, the date on which the general shareholders'
meeting resolved to grant options, I was neither:

(a)  a "major shareholder" (oguchi kabunushi); nor

(b)  a "special related person" (tokubetsu kankeisya) to any "major
     shareholder",

as those terms are defined under Japanese laws and regulations.(1)

2.   EXERCISE OF STOCK OPTIONS

I hereby exercise the following Options in accordance with the terms of the
Agreement:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
<S>                         <C>                  <C>

THE GRANTEE                 Address              [GRANTEE TO COMPLETE]

--------------------------------------------------------------------------------

                            Name,
                            Employing            [GRANTEE TO COMPLETE]
                            Company and
                            position
--------------------------------------------------------------------------------

DATE OF THE GENERAL
SHAREHOLDER MEETING AT      June, 26 2003     Exercise      From: August 1, 2005
WHICH THE GRANT OF                            Period        To: July 31, 2009
OPTIONS WAS APPROVED                                        (inclusive)
--------------------------------------------------------------------------------
GRANT DATE                  August 1, 2003
--------------------------------------------------------------------------------
</TABLE>

------------------
(1)  Special Taxation Measures Law (Law No. 26 of 1957) Paragraph 1 of Article
     29-2; and Enforcement Regulation of the Special Taxation Measures Law
     Paragraphs 1 and 2 of Article 19-3.

                                                                         Page 18
<PAGE>

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------
<S>                    <C>         <C>               <C>                   <C>
                                                     Aggregate Number of
                                   Class of          shares underlying
TERMS OF THE           Right       underlying        all Options granted   Exercise Price
OPTIONS                            Shares            under 2003 Stock      per share
                                                     Option Plan
                  ----------------------------------------------------------------------------
                       Option      Common Shares     1,958,000 Common      [insert price] Yen
                                                     Shares
----------------------------------------------------------------------------------------------

                                                                    Total Exercising
DETAILS OF THE         Number of shares to be acquired upon this    Purchase Price
PROPOSED EXERCISE      exercise of Option(s)
OF OPTIONS        ----------------------------------------------------------------------------
                       [ ] Common Shares                            [insert price] Yen
                       [GRANTEE TO INSERT NUMBER]                   [GRANTEE TO
                                                                    COMPLETE]

----------------------------------------------------------------------------------------------
COMPANY                Address      1 Toyota-machi, Toyota-shi, Aichi-ken
(GRANTING
COMPANY)
                  ----------------------------------------------------------------------------
                       Name         Toyota Motor Corporation

----------------------------------------------------------------------------------------------

</TABLE>

-----------------------
[Grantee's Name]

                                                                         Page 19
<PAGE>

                                   APPENDIX 3
                         FORMS OF NOTICE OF TERMINATION
                         OF 2003 STOCK OPTION AGREEMENT

                TERMINATION OF AGREEMENT PURSUANT TO CLAUSE 14.1

[Date]

To:       Toyota Motor Corporation (the COMPANY)

From:     [Employee's name] (the GRANTEE)

Pursuant to Clause 14.1 of the Agreement for the Grant of Options to Acquire
Common Shares of Toyota Motor Corporation, executed with effect from 1 August,
2003 (the AGREEMENT), I notify you that I hereby retroactively terminate the
Agreement, such termination to be effective from the date of execution of the
Agreement.

I hereby acknowledge and agree that:

(a) I shall continue to be bound by and to comply with Clauses 8, 10, 11, 15.1,
16, 18 and 20 of the Agreement; and

(b) pursuant to Clause 15.1 of the Agreement, I have no claim, whether present
or future against the the Company, the Employing Company (as defined in the
Agreement) or their respective directors, shareholders, affiliates,
representatives, auditors or employees for any compensation whatsoever in
connection with this Agreement or the termination thereof.

----------------------
[Grantee's Name]

                                                                         Page 20
<PAGE>

                TERMINATION OF AGREEMENT PURSUANT TO CLAUSE 14.2

[Date]

To:               Toyota Motor Corporation (the COMPANY)

From:             [Employee's name] (the GRANTEE)

Pursuant to Clause 14.2 of the Agreement for the Grant of Options to Acquire
Common Shares of Toyota Motor Corporation, executed with effect from 1 August,
2003, I notify you that I hereby terminate the Agreement effective as of the
date of this notice.

I hereby acknowledge and agree that:

(a) I shall continue to be bound by and to comply with Clauses 7.2, 8, 9, 10,
11, 15, 16, 18 and 20 of the Agreement; and

(b) pursuant to Clause 15.1 of the Agreement, I have no claim, whether present
or future, against the the Company, the Employing Company (as defined in the
Agreement) or their respective directors, shareholders, affiliates,
representatives, auditors or employees for any compensation whatsoever in
connection with this Agreement or the termination thereof.

-----------------------
[Grantee's Name]

                                                                         Page 21
<PAGE>Warrant Agreement

Exhibit 4.1

 

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAW. NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE MAY BE SOLD, OFFERED FOR SALE, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT THERETO UNDER THE SECURITIES ACT OR A WRITTEN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION FOR SUCH SALE, OFFER, TRANSFER OR OTHER ASSIGNMENT IS AVAILABLE UNDER THE SECURITIES ACT AND SUCH STATE LAWS. THE SECURITIES AND THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES IN A MANNER THAT COMPLIES WITH THE SECURITIES ACT.

VINEYARD NATIONAL BANCORP

WARRANT

         

	Warrant No. __	
Dated: June 21, 2004

 

Vineyard National Bancorp, a California corporation (the “Company”), hereby certifies that, for value received, _______ or its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of ______ shares of common stock, no par value per share (the “Common Stock”), of the Company (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at an exercise price equal to $50.00 per share (as adjusted from time to time as provided in Section 9, the “Exercise Price”), at any time and from time to time from and after the date hereof and through and including the date that is seven (7) years from the date of issuance hereof (the “Expiration Date”), and subject to the following terms and conditions. This Warrant (this “Warrant”) is one of a series of similar warrants issued pursuant to that certain Securities Purchase Agreement, dated as of the date hereof, by and among the Company and the Purchasers identified therein (the “Purchase Agreement”). All such warrants are referred to herein, collectively, as the “Warrants.”

1. Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Purchase Agreement.

2. 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 Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

	 
	 	 	 
	

	 

 

3. Registration of Transfers. 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 Transfer Agent or to the Company at its address specified herein. 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 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 Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

4. Exercise and Duration of Warrants.

(a) This Warrant shall be exercisable by the registered Holder at any time and from time to time on or after the date hereof to and including the Expiration Date. At 6:30 P.M., New York City time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value; provided that, if the average of the Closing Prices for the five Trading Days immediately prior to (but not including) the Expiration Date exceeds the Exercise Price on the Expiration Date, then this Warrant shall be deemed to have been exercised in full (to the extent not previously exercised) on a “cashless exercise” basis at 6:30 P.M. New York City time on the Expiration Date if a “cashless exercise” may occur at such time pursuant to Section 10 below. Notwithstanding anything to the contrary herein, the Expiration Date shall be extended for each day following the Effective Date that the Registration Statement is not effective. 

(b) A Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached hereto (the “Exercise Notice”), appropriately completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form of a “cashless exercise” if so indicated in the Exercise Notice), and the date such items are delivered to the Company (as determined in accordance with the notice provisions hereof) is an “Exercise Date.” The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares.

5. Delivery of Warrant Shares. 

(a) Upon exercise of this Warrant, the Company shall promptly (but in no event later than three Trading Days after the Exercise Date) issue or cause to be issued and cause to be delivered to or upon the written order of the Holder and in such name or names as the Holder may designate, a certificate for the Warrant Shares issuable upon such exercise, free of restrictive legends unless a registration statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder thereunder is not then effective and the Warrant Shares are not freely transferable without volume restrictions pursuant to Rule 144 under the Securities Act. The Holder, or any Person so designated by the Holder to receive Warrant Shares, shall be deemed to have become holder of record of such Warrant Shares as of the Exercise Date. The Company shall, upon request of the Holder, use its best efforts to deliver Warrant Shares hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing similar functions.

	 
	 	 	 
	

	 

 

(b) This Warrant is exercisable, either in its entirety or, from time to time, for a portion of the number of Warrant Shares. Upon surrender of this Warrant following one or more partial exercises, 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.

(c) In addition to any other rights available to a Holder, if the Company fails to deliver to the Holder a certificate representing Warrant Shares by the third Trading Day after the date on which delivery of such certificate is required by this Warrant, and if after such third Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares that the Holder anticipated receiving from the Company (a “Buy-In”), then the Company shall, within three Trading Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Price on the date of the event giving rise to the Company’s obligation to deliver such certificate.

(d) The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

6. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

	 
	 	 	 
	

	 

 

7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable bond or indemnity, if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe.

8. Reservation of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (after giving effect to the adjustments and restrictions of Section 9, if any). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable. The Company will take all such action as may be necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common Stock may be listed.

9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 9.

(a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, distributes to holders of Common Stock (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding paragraph), (iii) rights or warrants to subscribe for or purchase any security, or (iv) any other asset (in each case, “Distributed Property”), then in each such case the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution shall be adjusted (effective on such record date) to equal the product of such Exercise Price times a fraction of which the denominator shall be the average of the Closing Prices for the five Trading Days immediately prior to (but not including) such record date and of which the numerator shall be such average less the then fair market value of the Distributed Property distributed in respect of 

 

	 
	 	 	 
	

	 

 

one outstanding share of Common Stock, as determined by the Company's independent certified public accountants that regularly examine the financial statements of the Company (an “Appraiser”). In such event, the Holder, after receipt of the determination by the Appraiser, shall have the right to select an additional appraiser (which shall be a nationally recognized accounting firm), in which case such fair market value shall be deemed to equal the average of the values determined by each of the Appraiser and such appraiser. As an alternative to the foregoing adjustment to the Exercise Price, at the request of the Holder delivered before the 90th day after such record date, the Company will deliver to such Holder, within five Trading Days after such request (or, if later, on the effective date of such distribution), the Distributed Property that such Holder would have been entitled to receive in respect of the Warrant Shares for which this Warrant could have been exercised immediately prior to such record date. If such Distributed Property is not delivered to a Holder pursuant to the preceding sentence, then upon expiration of or any exercise of the Warrant that occurs after such record date, such Holder shall remain entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), such Distributed Property.

 

(c) Fundamental Transactions. If, at any time while this Warrant is outstanding, (i) the Company effects any merger or consolidation of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 9(a) above) (in any such case, a “Fundamental Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate Consideration”). The aggregate Exercise Price for this Warrant will not be affected by any such Fundamental Transaction, but the Company shall apportion such aggregate Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder’s request, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (c) and insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. If any Fundamental Transaction constitutes or results in a Change of Control, then at the request of the Holder delivered before the 90th day after such Fundamental Transaction, the Company (or any such successor or surviving entity) will purchase the Warrant from the Holder for a purchase price, payable in cash within five Trading Days after such request (or, if later, on the effective date of the Fundamental Transaction), equal to the Black-Scholes value of the remaining unexercised portion of this Warrant on the date of such request.

	 
	 	 	 
	

	 

 

For the purpose of this Section 9, “Change of Control” means the occurrence of any of the following in one or a series of related transactions: (i) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) under the Exchange Act) of more than one-half of the voting rights or equity interests in the Company; (ii) a replacement of more than one-half of the members of the Company's board of directors that is not approved by those individuals who are members of the board of directors on the date hereof (or other directors previously approved by such individuals); (iii) a merger or consolidation of the Company or any significant Subsidiary or a sale of more than one-half of the assets of the Company in one or a series of related transactions, unless following such transaction or series of transactions, the holders of the Company's securities prior to the first such transaction continue to hold at least two-thirds of the voting rights and equity interests in the surviving entity or acquirer of such assets; (iv) a recapitalization, reorganization or other transaction involving the Company or any significant Subsidiary that constitutes or results in a transfer of more than one-half of the voting rights or equity interests in the Company; (v) consummation of a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act with respect to the Company, or (vi) the execution by the Company or its controlling shareholders of a definitive agreement providing for any of the foregoing events.

(d) Subsequent Equity Sales.

(i) If, at any time while this Warrant is outstanding, the Company or any Subsidiary issues additional shares of Common Stock or rights, warrants, options or other securities or debt convertible, exercisable or exchangeable for shares of Common Stock or otherwise entitling any Person to acquire shares of Common Stock (collectively, “Common Stock Equivalents”) at an effective net price to the Company per share of Common Stock (the “Effective Price”) less than the Exercise Price (as adjusted hereunder to such date), then the Exercise Price shall be reduced to equal the product of (A) the Exercise Price in effect immediately prior to such issuance of shares of Common Stock or Common Stock Equivalents times (B) a fraction, the numerator of which is the sum of (1) the number of shares of Common Stock outstanding immediately prior to such issuance, plus (2) the number of shares of Common Stock which the aggregate Effective Price of the shares of Common Stock issued (or deemed to be issued) would purchase at the Exercise Price, and the denominator of which is the aggregate number of shares of Common Stock outstanding or deemed to be outstanding immediately after such issuance. For purposes of this paragraph, in connection with any issuance of any Common Stock Equivalents, (A) the maximum number of shares of Common Stock potentially issuable at any time upon conversion, exercise or exchange of such Common Stock Equivalents (the “Deemed Number”) shall be deemed to be outstanding upon issuance of such Common Stock Equivalents, (B) the Effective Price applicable to such Common Stock shall equal the minimum dollar value of consideration payable to the Company to purchase such Common Stock Equivalents and to convert, exercise or exchange them into Common Stock (net of any discounts, fees, commissions and other expenses), divided by the Deemed Number, and (C) no further adjustment shall be made to the Exercise Price upon the actual issuance of Common Stock upon conversion, exercise or exchange of such Common Stock Equivalents.

	 
	 	 	 
	

	 

 

(ii) If, at any time while this Warrant is outstanding, the Company or any Subsidiary issues Common Stock Equivalents with an Effective Price or a number of underlying shares that floats or resets or otherwise varies or is subject to adjustment based (directly or indirectly) on market prices of the Common Stock (a “Floating Price Security”), then for purposes of applying the preceding paragraph in connection with any subsequent exercise, the Effective Price will be determined separately on each Exercise Date and will be deemed to equal the lowest Effective Price at which any holder of such Floating Price Security is entitled to acquire Common Stock on such Exercise Date (regardless of whether any such holder actually acquires any shares on such date).

(iii) Notwithstanding the foregoing, no adjustment will be made under this paragraph (d) in respect of actions set forth in clauses (D) and (E) in the definition of Excluded Stock.

(e) Number of Warrant Shares. Simultaneously with any adjustments to the Exercise Price pursuant to paragraphs (a), (b) or (d) of this Section, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

(f) Calculations. All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

(g) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s Transfer Agent.

 

(h) Notice of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction, at least 20 calendar days prior to the applicable record or effective date on which a Person would need to hold Common Stock 

 

	 
	 	 	 
	

	 

 

in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice. 

10. Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately available funds; provided, however, that the Holder may satisfy its obligation to pay the Exercise Price through a “cashless exercise,” in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

	
 
	
X = Y [(A-B)/A]

	
where:
	
 

	
 
	
X = the number of Warrant Shares to be issued to the Holder.

	
 
	
 

	
 
	
Y = the number of Warrant Shares with respect to which this Warrant is being exercised.

	
 
	
 

	
 
	
A = the VWAP for the five Trading Days immediately prior to (but not including) the Exercise Date.

	
 
	
 

	
 
	
B = the Exercise Price.

   For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Purchase Agreement.

For the purposes of this Section 10, “VWAP” means the daily volume weighted average price (as reported by Bloomberg Financial L.P. using the “VAP” function for the date in question (it being understood that the average of the VWAPs for a certain number of Trading Days shall be obtained by using the “HP” function)) of the Common Stock on the date in question, or if there is no such price on such date, then the daily volume weighted average price on the date nearest preceding such date.

11. Limitation on Exercise. Notwithstanding anything to the contrary contained herein, the number of shares of Common Stock that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed 4.99% (the “Maximum Percentage”) of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and 

 

	 
	 	 	 
	

	 

 

regulations promulgated thereunder. Each delivery of an Exercise Notice hereunder will constitute a representation by the Holder that it has evaluated the limitation set forth in this paragraph and determined that issuance of the full number of Warrant Shares requested in such Exercise Notice is permitted under this paragraph. The Company’s obligation to issue shares of Common Stock in excess of the limitation referred to in this Section shall be suspended (and shall not terminate or expire notwithstanding any contrary provisions hereof) until such time, if any, as such shares of Common Stock may be issued in compliance with such limitation, but in no event later than the Expiration Date. By written notice to the Company, the Holder may waive the provisions of this Section or increase or decrease the Maximum Percentage to any other percentage specified in such notice, but (i) any such waiver or increase will not be effective until the 61st day after such notice is delivered to the Company, and (ii) any such waiver or increase or decrease will apply only to the Holder and not to any other holder of Warrants.

 

(b)   Notwithstanding anything to the contrary contained herein, if the Trading Market is the New York Stock Exchange or any other market or exchange with similar applicable rules, then the maximum number of shares of Common Stock that the Company may issue pursuant to the Transaction Documents at an effective purchase price less than the Closing Price on the Trading Day immediately preceding the Closing Date equals 19.99% of the outstanding shares of Common Stock immediately preceding the Closing Date (the “Issuable Maximum”), unless the Company obtains stockholder approval in accordance with the rules and regulations of such Trading Market. If, at the time any Holder requests an exercise of any of the Warrants, the Actual Minimum (excluding any shares issued or issuable at an effective purchase price in excess of the Closing Price on the Trading Day immediately preceding the Closing Date) exceeds the Issuable Maximum (and if the Company has not previously obtained the required stockholder approval), then the Company shall issue to the Holder requesting such exercise a number of shares of Common Stock not exceeding such Holder’s pro-rata portion of the Issuable Maximum (based on such Holder’s share (vis-à-vis other Holders) of the aggregate purchase price paid under the Purchase Agreement and taking into account any Warrant Shares previously issued to such Holder). For the purposes hereof, “Actual Minimum” shall mean, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon exercise in full of all Warrants, without giving effect to (x) any limits on the number of shares of Common Stock that may be owned by a Holder at any one time, or (y) any additional Underlying Shares that could be issuable as a result of any future possible adjustments made under Section 9(d).

12. Fractional Shares. The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant. If any fraction of a Warrant Share would, except for the provisions of this Section, be issuable upon exercise of this Warrant, the number of Warrant Shares to be issued will be rounded up to the nearest whole share.

	 
	 	 	 
	

	 

 

13. Notices. Any and all notices or other communications or deliveries hereunder (including without limitation any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified the Purchase Agreement prior to 6:30 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in the Purchase Agreement on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given. The address for such notices or communications shall be as set forth in the Purchase Agreement.

 

14. Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 30 days' notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or stockholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder's last address as shown on the Warrant Register.

15. Miscellaneous.

(a) Subject to the restrictions on transfer set forth on the first page hereof, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company except to a successor in the event of a Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder and their successors and assigns.

(b) The Company will not, by amendment of its governing documents 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 action as may be necessary or appropriate in order to protect the rights of the Holder against impairment. Without limiting the generality of the foregoing, the Company (i) will not increase the par value of any Warrant Shares above the amount payable therefor on such exercise, (ii) will take all such action as may be reasonably necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares on the exercise of this Warrant, and (iii) will not close its stockholder books or records in any manner which interferes with the timely exercise of this Warrant.

 

	 
	 	 	 
	

	 

 

(c) GOVERNING LAW; VENUE; WAIVER OF JURY TRIAL. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.

 

(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 enforceability 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 reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,
SIGNATURE PAGE FOLLOWS]

	 
	 	 	 
	

	 

 

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

	
 

	
                                    VINEYARD NATIONAL BANCORP

	
 

	
 

	
                                By:  _______________________________ 

	
                                Name: _____________________________ 

	
                                Title:  ______________________________

	

	 	 	 
	

	

FORM OF EXERCISE NOTICE

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

To: VINEYARD NATIONAL BANCORP

The undersigned is the Holder of Warrant No. _______ (the “Warrant”) issued by VINEYARD NATIONAL BANCORP, a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined have the respective meanings set forth in the Warrant.

1. The Warrant is currently exercisable to purchase a total of ______________ Warrant Shares.

2. The undersigned Holder hereby exercises its right to purchase _________________ Warrant Shares pursuant to the Warrant.

3. The Holder intends that payment of the Exercise Price shall be made as (check one):

____   “Cash Exercise” under Section 10

____   “Cashless Exercise” under Section 10

4. If the holder has elected a Cash Exercise, the holder shall pay the sum of $____________ to the Company in accordance with the terms of the    Warrant.

5. Pursuant to this exercise, the Company shall deliver to the holder _______________ Warrant Shares in accordance with the terms of the Warrant.

6. Following this exercise, the Warrant shall be exercisable to purchase a total of ______________ Warrant Shares.

	
 
	
 
	
 

	
 
	
 
	
 

	
Dated: ________________, ______ 
	
 
	
Name of Holder:

	
 
	
 
	
 

	
 
	
 
	
(Print) __________________________

	
 
	
 
	
 

	
 
	
 
	
By:  ____________________________

	
 
	
 
	
Name: __________________________

	
 
	
 
	
Title:  ___________________________

	
 
	
 
	
 

	
 
	
 
	
(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

 

 

	 
	 	 	 
	

	 

 

FORM OF ASSIGNMENT

 

[To be completed and signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the within Warrant to purchase ____________ shares of Common Stock of VINEYARD NATIONAL BANCORP to which the within Warrant relates and appoints ________________ attorney to transfer said right on the books of VINEYARD NATIONAL BANCORP with full power of substitution in the premises.

	
 
	
 

	
 
	
 

	
Dated: ________________, ______ 
	
 

	
 
	
 

	
 
	
___________________________________

	
 
	
(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

	
 
	
 

	
 
	
___________________________________

	
 
	
Address of Transferee

	
 
	
 

	
 
	
___________________________________

	
 
	
___________________________________

	
 
	

	
 
	
 

	
 
	
 

	
In the presence of:
	
 

	
____________________________

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