Document:

Prepared by MERRILL CORPORATION

 

Exhibit 10.3

 

Stock Purchase Agreement with Dental Advisors

dated September 14, 2001

 

 

SECURITIES

PURCHASE AGREEMENT

 

THIS

SECURITIES PURCHASE AGREEMENT (“Agreement”), dated as of September 14, 2001, is

by and between Dental Advisors, a Nebraska corporation,

("Purchaser"), and Remedent USA, Inc., a Nevada corporation

(“Seller”) (collectively, the “Parties”).

 

W

I T N E S S E T H

 

WHEREAS,

Seller has offered for sale to Purchaser units of its securities (the “Units”),

each unit consisting of one share of common stock (the “Shares”) and one

warrant exercisable at $0.25 for a term of five years (the “Warrants”), at a

purchase price of $0.25 per Unit (the “Purchase Price”).

 

WHEREAS,

Seller desires to sell to Purchaser and Purchaser desires to purchase from Seller,

Units upon the terms and conditions set forth herein.

 

NOW THEREFORE,

in consideration of the promises and respective mutual agreements herein

contained, it is agreed by and between the Parties hereto as follows:

 

ARTICLE

1

SALE

AND PURCHASE OF THE UNITS

 

1.1           Sale of the Units.  Upon execution of this Agreement (the

"Closing"), subject to the terms and conditions herein set forth, and

on the basis of the representations, warranties and agreements herein

contained, SELLER shall sell to PURCHASER, and PURCHASER shall purchase from

SELLER, the Units.

 

1.2           Instruments of Conveyance and

Transfer.  As soon as practicable

after the Closing, SELLER shall deliver a certificate or certificates

representing the Units of SELLER to PURCHASER sufficient to transfer all right,

title and interest in the Units to PURCHASER.

 

1.3           Consideration and Payment for the

Units.  In consideration for the

Units, PURCHASER shall pay a purchase price of a total of One Hundred Ten

Thousand Five Hundred dollars ($110,500.00) ($0.25 per Unit) (“Purchase

Price”).

 

ARTICLE

2

REPRESENTATIONS

AND COVENANTS OF SELLER AND PURCHASER

 

2.1           Seller hereby represents and warrants

that:

 

(a)           This Agreement and the Units issuable

hereunder have been duly authorized by the appropriate corporate action of

Seller.

 

(b)           Seller shall transfer title, in and

to the Units to Purchaser free and clear of all liens, security interests,

pledges, encumbrances, charges, restrictions, demands and claims, of any kind

and nature whatsoever, whether direct or indirect or contingent.

 

(c)           As soon as practicable after each

Closing, Seller shall deliver to Purchaser a certificate or certificates

representing the Units subject to no liens, security interests, pledges,

encumbrances, charges, restrictions, demands or claims in any other party

whatsoever, except as set forth in the legend on the certificate, which legend

shall provide as follows:

 

THE SHARES (OR

OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933.  THE

SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN

OPINION OF COUNSEL THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS

AVAILABLE.

 

 

                        (d)           Purchaser acknowledges that the Units

will be “restricted securities” (as such term is defined in Rule 144

promulgated under the Securities Act of 1933, as amended (“Rule 144"),

that the Units will include the foregoing restrictive legend, and, except as

otherwise set forth in this Agreement, that the Units cannot be sold unless

registered with the United States Securities and Exchange Commission (“SEC”)

and qualified by appropriate state securities regulators, or unless Purchaser

obtains written consent from Seller and otherwise complies with an exemption

from such registration and qualification (including, without limitation,

compliance with Rule 144).

 

 

                        (e)           If the Company at any time proposes

to register any of its securities under the Act, except on a registration

statement on Form S-8 or Form S-4, the Company will use its best efforts to

cause the Shares,  and the shares of

common stock issuable upon exercise of the Warrants (the “Warrant Shares”)

owned by Holder to be registered under the Act (with the securities which the

Company at the time propose to register), all to the extent requisite to permit

the sale or other disposition by the Holder (Piggyback Registration Rights);

provided, however, that the Company may, as a condition precedent to its

effecting such registration, require the Holder to agree with the Company and

the managing underwriter or underwriters of the offering to be made by the

Company in connection with such registration that the Holder will not sell any

securities of the same class or convertible into the same class as those

registered by the Company (including any class into which the securities

registered by the Company are convertible) for such reasonable period after

such registration becomes effective as shall then be specified in writing by

such underwriter or underwriters if in the opinion of such underwriter or

underwriters the Company's offering would be materially adversely affected in

the absence of such an agreement (“underwriter’s lock-up”).  Additionally, the managing underwriter or

underwriters of the offering to be made by the Company in connection with such

registration may require that Holder enter into an agreement with the Company

that only a percentage of the shares of common stock underlying the Warrants

owned by Holder be registered on such registration statement if in the opinion

of such underwriter or underwriters the Company's offering would be materially

adversely affected in the absence of such an agreement (“underwriter’s

carve-out”).  All expenses incurred by

the Company in complying with this Section, including without limitation all

registration and filing fees, listing fees, printing expenses, fees and

disbursements of all independent accounts, or counsel for the Company and or

counsel for the Holder and the expense of any special audits incident to or

required by any such registration and the expenses of complying with the

securities or blue sky laws of any jurisdiction shall be paid by the

Company.  Notwithstanding the foregoing,

Holder shall pay all underwriting discounts or commissions with respect to any

securities sold by the Holder.

 

(i)    In the event of any registration of any of

its securities under the Act pursuant to this Section, the Company hereby

indemnifies and holds harmless the Holder (which phrase shall include any

underwriters of such securities), their respective directors and officers, and

each other person who participates, in the offering of such securities and each

other person, if any, who controls the Holder, or such participating persons

within the meaning of the Act, against any losses, claims, damages or liabilities,

joint or several, to which each the Holder or any such director or officer or

participating person or controlling person may become subject under the Act or

otherwise, insofar as such losses, claims, damages or liabilities (or actions

in respect thereof) arise out of or are based upon any untrue statement or

alleged untrue statement of any material fact contained, on the effective date

thereof, in any registration statement under which such securities were

registered under the Act, any preliminary prospectus or final prospectus

contained therein, or any amendment or supplement thereto, or arise out of or

are based upon any omission or alleged omission to state therein an material

fact required to be stated therein or necessary to make the statements therein

not misleading; and will reimburse each the Holder and each director, officer

or participating or controlling person for any legal or any other expenses

reasonably incurred by the Holder or such director, officer or participating or

controlling person in connection with investigating or defending any such loss,

claim, damage, liability or action; provided, however, that the Company shall

not be liable in any such case to the extent that any such loss, claim, damage

or liability arises out of is based upon an untrue statement or alleged untrue

statement or omission or alleged omission made in such registration statement,

preliminary prospectus or prospectus or amendment or supplement in reliance

upon and in conformity with written information furnished to the Company

through an instrument duly executed by the Holder specifically stating that it

is for use therein.  Such indemnity

shall remain in full force and effect regardless of any investigation made by

or on behalf of the Holder or such directors, officer or participating or

controlling person, and shall survive the transfer of such securities by the

Holder.

 

(ii)   The Holder shall by acceptance thereof,

indemnify and hold harmless the Company and its directors and officers, and

each person, if any who controls the Company, against any losses, claims,

damages or liabilities, joint or several, to which the Company or any director

or officer or any such person may become subject under the Act or otherwise,

insofar as such losses, claims, damages or liabilities (or actions in respect

thereof) arise out of or are based upon any untrue statement or alleged untrue

statement of any material fact contained, on the effective date thereof, in any

registration statement under which securities were registered under the Act at

the request of such holder, any preliminary prospectus or final prospectus

contained therein, or any amendment or supplement thereto, or arise out of or

are based upon the omission or alleged omission to state therein a material

fact required to be stated therein or necessary to make the statements therein

not misleading, in each case to the extent, but only to the extent, that such

untrue statement or alleged untrue statement or omission or alleged omission

was made in such registration statement, preliminary prospectus, prospectus,

amendment or supplement in reliance upon and in conformity with written

information furnished to the Company through an instrument duly executed by or

on behalf of such holder specifically stating that it is for use therein; and

will reimburse the Company or such director, officer or person for any legal or

any other expense reasonably incurred in connection with investigation or

defending any such loss, claim, damage, liability or action.

 

(f)    If the Company shall be subject to the

reporting requirements of the Securities Exchange Act of 1934, as amended (the

"1934 Act"), the Company will use its best efforts timely to file all

reports required to be filed from time to time with the SEC (including but not

limited to the reports under Section 13 and 15(d) of the 1934 Act referred to

in subparagraph (c)(1) of Rule 144 adopted by the SEC under the Act).  If there is a public market for any

securities of the Company at any time that the Company is not subject to the

reporting requirements of either of said Section 13 or 15(d), the Company will,

upon the request of Holder, use its best efforts to make publicly available the

information concerning the Company referred to in subparagraph (c)(2) of said

Rule 144.  The Company will furnish to

Holder, promptly upon request, (i) a written statement of the Company's

compliance with the requirements of subparagraphs (c)(1) or (c)(2), as the case

may be, of said Rule 144, and (ii) written information concerning the Company

sufficient to enable Holder to complete any Form 144 required to be filed with

the SEC pursuant to said Rule 144.

 

2.2   Purchaser represents and warrants to Seller

as follows:

 

(a)   Purchaser has adequate means of providing for

current needs and contingencies, has no need for liquidity in the investment,

and is able to bear the economic risk of an investment in the Units offered by

Seller of the size contemplated. 

Purchaser represents that Purchaser is able to bear the economic risk of

the investment and at the present time could afford a complete loss of such

investment.  Purchaser has had a full

opportunity to inspect the books and records of the Seller and to make any and

all inquiries of Seller officers and directors regarding the Seller and its

business as Purchaser has deemed appropriate.

 

(b)   Purchaser is an “Accredited Investor” as

defined in Regulation D of the Securities Act of 1933 (the “Act”) or Purchaser,

either alone or with Purchaser’s professional advisers who are unaffiliated

with, have no equity interest in and are not compensated by Seller or any

affiliate or selling agent of Seller, directly or indirectly, has sufficient

knowledge and experience in financial and business matters that Purchaser is

capable of evaluating the merits and risks of an investment in the Units

offered by Seller and of making an informed investment decision with respect

thereto and has the capacity to protect Purchaser’s own interests in connection

with Purchaser’s proposed investment in the Units.

 

(c)   Purchaser is acquiring the Units solely for

Purchaser’s own account as principal, for investment purposes only and not with

a view to the resale or distribution thereof, in whole or in part, and no other

person or entity has a direct or indirect beneficial interest in such Units.

 

(d)   Purchaser will not sell or otherwise transfer

the Units without registration under the Act or an exemption therefrom and

fully understands and agrees that Purchaser must bear the economic risk of

Purchaser’s purchase for an indefinite period of time because, among other

reasons, the Units have not been registered under the Act or under the

securities laws of any state and, therefore, cannot be resold, pledged,

assigned or other­wise disposed of unless they are subsequently registered

under the Act and under the applicable securities laws of such states or unless

an exemption from such registration is available.

 

ARTICLE 3

MISCELLANEOUS

 

3.1   Entire Agreement.  This Agreement sets forth the entire agreement and understanding

of the Parties hereto with respect to the transactions contemplated hereby, and

supersedes all prior agreements, arrangements and understandings related to the

subject matter hereof.  No

understanding, promise, inducement, statement of intention, representation,

warranty, covenant or condition, written or oral, express or implied, whether

by statute or otherwise, has been made by any party hereto which is not

embodied in this Agreement or the written statements, certificates, or other

documents delivered pursuant hereto or in connection with the transactions

contemplated hereby, and no party hereto shall be bound by or liable for any

alleged understanding, promise, inducement, statement, representation,

warranty, covenant or condition not so set forth.

 

3.2   Notices. 

Any notice, request, instruction, or other document required by the

terms of this Agreement, or deemed by any of the Parties hereto to be

desirable, to be given to any other party hereto shall be in writing and shall

be given by facsimile, personal delivery, overnight delivery, or mailed by

registered or certified mail, postage prepaid, with return receipt requested,

to the following addresses:

 

	

  To Purchaser:

  	

  Dental Advisors,

  Inc.

  
	

   

  	

   

  	

  314 North 4th

  Street

  
	

   

  	

   

  	

  Newman Grove, NE

  68758

  
	

   

  	

   

  	

  Fax: (402)

  447-6009

  
	

   

  	

   

  	

  Attn: Dr. Edward

  Quincy

  
	

   

  	

   

  	

   

  
	

  To Seller:

  	

   

  	

  Remedent USA,

  Inc.

  
	

   

  	

   

  	

  1220 Birch Way

  
	

   

  	

   

  	

  Escondido,

  CA  92027

  
	

   

  	

   

  	

  Fax:  (760) 781-3330

  
	

   

  	

   

  	

  Attn: Rebecca M.

  Inzunza, President

  
	

   

  	

   

  	

   

  
	

  With Copy To:

  	

   

  	

  Senn Palumbo

  Meulemans, LLP

  
	

   

  	

   

  	

  18301 Von

  Karman, Suite 850

  
	

   

  	

   

  	

  Irvine, CA  92612

  
	

   

  	

   

  	

  Fax: (949)

  251-1331

  
	

   

  	

   

  	

  Attn: Lynne

  Bolduc, Esq.

  

 

The persons and

addresses set forth above may be changed from time to time by a notice sent as

aforesaid.  If notice is given by

facsimile, personal delivery, or overnight delivery in accordance with the

provisions of this Section, said notice shall be conclusively deemed given at

the time of such delivery.  If notice is

given by mail in accordance with the provisions of this Section, such notice

shall be conclusively deemed given seven days after deposit thereof in the

United States mail.

 

3.3   Waiver and Amendment.  Any term, provision, covenant,

representation, warranty or condition of this Agreement may be waived, but only

by a written instrument signed by the party entitled to the benefits thereof.  The failure or delay of any party at any

time or times to require performance of any provision hereof or to exercise its

rights with respect to any provision hereof shall in no manner operate as a

waiver of or affect such party's right at a later time to enforce the same.  No waiver by any party of any condition, or

of the breach of any term, provision, covenant, representation or warranty

contained in this Agreement, in any one or more instances, shall be deemed to

be or construed as a further or continuing waiver of any such condition or

breach or waiver of any other condition or of the breach of any other term,

provision, covenant, representation or warranty.  No modification or amendment of this Agreement shall be valid and

binding unless it be in writing and signed by all Parties hereto.

3.4   Choice of Law.  This Agreement and the rights of the Parties hereunder shall be

governed by and construed in accordance with the laws of the State of

California including all matters of construction, validity, performance, and

enforcement and without giving effect to the principles of conflict of laws.

 

3.5   Jurisdiction.  The Parties submit to the jurisdiction of the Courts of the

County of Orange, State of California or a Federal Court empaneled in the State

of California for the resolution of all legal disputes arising under the terms

of this Agreement, including, but not limited to, enforcement of any

arbitration award.

 

3.6   Counterparts.  This Agreement may be executed in one or more counterparts, each

of which shall be deemed an original, but all of which shall together

constitute one and the same instrument.

 

3.7   Attorneys' Fees.  Except as otherwise provided herein, if a dispute should arise

between the Parties including, but not limited to arbitration, the prevailing

party shall be reimbursed by the non-prevailing party for all reasonable

expenses incurred in resolving such dispute, including reasonable attorneys'

fees exclusive of such amount of attorneys' fees as shall be a premium for

result or for risk of loss under a contingency fee arrangement.

 

3.8   Taxes. 

Any income taxes required to be paid in connection with the payments due

hereunder, shall be borne by the party required to make such payment.  Any withholding taxes in the nature of a tax

on income shall be deducted from payments due, and the party required to

withhold such tax shall furnish to the party receiving such payment all

documentation necessary to prove the proper amount to withhold of such taxes

and to prove payment to the tax authority of such required withholding.

 

 

IN WITNESS

WHEREOF, the Parties hereto have executed this Agreement, as of the date first

written hereinabove.

 

Seller

 

Remedent USA,

Inc.,

a Nevada

corporation

 

 

	

  /s/ Rebecca M.

  Inzunza

  
	

  By: Rebecca M.

  Inzunza

  
	

  Its: President

  and CEO

  

 

 

Purchaser

 

PLEASE

CHECK ONE:

 

I.      If

I am an individual, I certify that I am an "accredited investor"

because:

 

___X____ I had an individual income of more than $200,000 in

each of the two most recent calendar years, and I reasonably expect to have an

individual income in excess of $200,000 in the current calendar year; or my

spouse and I had joint income in excess of $300,000 in each of the two most

recent calendar years, and we reasonably expect to have a joint income in

excess of $300,000 in the current calendar year.

 

OR

_______ I have an individual net worth, or my spouse and I have a joint

net worth, in excess of $1,000,000 (including home and personal property).

 

II.     If PURCHASER is a

corporation, partnership, employee benefit plan or IRA, it certifies as follows:

 

A.    Has

the subscribing entity been formed for the specific purpose of investing in the

Securities?

 

          o   YES                                                                                 ý   NO

 

If your answer to question A is

"No" CHECK whichever of the following statements (1–5) is

applicable to you.  If your answer to

question A is "Yes" the subscribing entity must be able to

certify to statement (B) below in order to qualify as an

"accredited investor".

 

The undersigned entity certifies that it is

an "accredited investor" because it is:

 

1.     _______ an employee benefit plan within the

meaning of Title I of the Employee Retirement Income Security Act of 1974,

provided that the investment decision is made by a plan fiduciary, as defined

in section 3(21) of such Act, and the plan fiduciary is a bank, savings

and loan association, insurance company or registered investment adviser; or

 

2.     _______ an employee benefit plan within the

meaning of Title I of the Employee Retirement Income Security Act of 1974

that has total assets in excess of $5,000,000; or

 

3.     ___X___ each of its shareholders,

partners, or beneficiaries meets at least one of the following conditions

described above under Individual

Accredited Investor Status. 

Please also CHECK the appropriate space in that section; or

 

4.     _______ the plan is a self directed

employee benefit plan and the investment decision is made solely by a person

that meets at least one of the conditions described above under Individual Accredited Investor Status; or

 

 

5.     _______ a corporation, a partnership or a

Massachusetts or similar business trust with total assets in excess of

$5,000,000.

 

B.           If the

answer to Question A above is "Yes," please certify the

statement below is true and correct:

 

_______ The undersigned entity certifies that

it is an accredited investor because each of its shareholder or beneficiaries

meets at least one of the following conditions described above under Individual Accredited Investor Status.  Please also CHECK the appropriate space in

that section.

 

III.   If PURCHASER is a

Trust, it certifies as follows:

 

A. Has

the subscribing entity been formed for the specific purpose of investing in the

Securities?

 

                   YES                                                                                      NO

 

If your answer to question A is

"No" CHECK whichever of the following statements (1–3) is

applicable to the subscribing entity. 

If your answer to question A is "Yes" the subscribing

entity must be able to certify to the statement (3) below in order to qualify

as an "accredited investor".

 

The undersigned trustee certifies that the

trust is an "accredited investor" because:

 

_______1) the trust has total assets in excess of

$5,000,000 and the investment decision has been made by a "sophisticated

person"; or

 

_______2) the trustee making the investment

decision on its behalf is a bank (as defined in Section 3(a)(2) of the

Act), a saving and loan association or other institution as defined in

Section 3(a)(5)(A) of the Securities Act, acting in its fiduciary

capacity; or

 

_______3) the undersigned trustee certifies that

the trust is an accredited investor because the grantor(s) of the trust may

revoke the trust at any time and regain title to the trust assets and has

(have) retained sole investment control over the assets of the trust and the

(each) grantor(s) meets at least one of the following conditions described

above under Individual Accredited

Investor Status.  Please also

CHECK the appropriate space in that section.

 

 

 

 

 

	

  Print Name:

  	

  Dental

  Advisors, Inc.

  
	

   

  	

   

  
	

                  /s/ Edward Quincy, M.D. 

  
	

  Dr. Edward Quincy

  

 

Address:  314 North 4th Street, Newman

Grove, NE 68758

Social Security/Tax I.D. Number :  33-0962995Prepared by MERRILL CORPORATION

 

Exhibit 10.4

 

Warrant Agreement with Dental

Advisors dated September 14, 2001

 

 

 

WARRANT AGREEMENT

 

This WARRANT AGREEMENT (this

"Agreement") is made and entered into

as

of September 14, 2001, between REMEDENT USA, INC., a Nevada corporation (the

"Company") and Dental Advisors, a Nebraska corporation

("Holder").

 

R E C I T A L S

 

WHEREAS, the Company proposes to issue

to Holder 442,000 warrants (the "Warrants"), each such Warrant

entitling the holder thereof to purchase one share of Common Stock of the Company

(the "Exercise Shares," "Shares," or the "Common

Stock"); and

 

WHEREAS, the Warrants which are the subject

of this Agreement will be issued by the Company to Holder as part of

consideration payable to Holder in connection with an investment by the Holder

into the Company pursuant to a Securities Purchase Agreement on even date

herewith.

 

NOW, THEREFORE,

in consideration of the premises and the mutual agreements herein set forth,

the Parties hereto agree as follows:

 

A G R E E M E N T

 

1.             Warrant

Certificates.  The warrant certificates

to be delivered pursuant to this Agreement (the "Warrant

Certificates") shall be in the form set forth in Exhibit A, attached

hereto and made a part hereof, with such appropriate insertions, omissions,

substitutions and other variations as are required or permitted by this Warrant

Agreement.

 

2.             Right

to Exercise Warrants.  Each Warrant may

be exercised from the date of this Agreement until 5:00 P.M. (Pacific time) on

September 14, 2006 (the "Expiration Date").

 

Each Warrant not exercised on or before the

Expiration Date shall expire.  Each

Warrant shall entitle its holder to purchase from the Company one share of

Common Stock at an exercise price of $0.25 per share, subject to adjustment as

set forth below ("Exercise Price").

 

The Company shall not be required to issue

fractional shares of capital stock upon the exercise of this Warrant or to

deliver Warrant Certificates, which evidence fractional shares of capital

stock.  In the event that a fraction of

an Exercise Share would, except for the provisions of this paragraph 2, be

issuable upon the exercise of this Warrant, the Company shall pay to the

Holder

exercising the Warrant an amount in cash equal to such fraction multiplied by

the current market value of the Exercise Share.  For purposes of this Agreement, the current market value shall be

determined as follows:

 

                                (a)           if the Exercise Shares are traded in

the over-the-counter market and not on any national securities exchange and not

in the NASDAQ Reporting System, the average of the mean between the last bid

and asked prices per share, as reported by the National Quotation Bureau, Inc.,

or an equivalent generally accepted reporting service, for the last business

day prior to the date on which this Warrant is exercised, or, if not so

reported, the average of the closing bid and asked prices for an Exercise Share

as furnished to the Company by any member of the National Association of

Securities Dealers, Inc., selected by the Company for that purpose.

                                (b)           if the Exercise Shares are listed or

traded on a national securities exchange or in the NASDAQ Reporting System, the

closing price on the principal national securities exchange on which they are

so listed or traded or in the NASDAQ Reporting System, as the case may be, on

the last business day prior to the date of the exercise of this Warrant.  The closing price referred to in this Clause

(b) shall be the last reported sales price or, in case no such reported sale

takes place on such day, the average of the reported closing bid and asked

prices, in either case on the national securities exchange on which the

Exercise Shares are then listed or in the NASDAQ Reporting System; or

 

                                (c)           if no such closing price or closing

bid and asked prices are available, as determined in any reasonable manner as

may be prescribed by the Board of Directors of the Company.

 

3.             Mutilated

or Missing Warrant Certificates.  In

case any of the Warrant Certificates shall be mutilated, lost, stolen or

destroyed prior to its expiration date, the Company shall issue and deliver, in

exchange and substitution for and upon cancellation of the mutilated Warrant

Certificate, or in lieu of and in substitution for the Warrant Certificate

lost, stolen or destroyed, a new Warrant Certificate of like tenor and representing

an equivalent right or interest.

 

4.             Reservation

of Shares.  The Company will at all

times reserve and keep available, free from preemptive rights, out of the

aggregate of its authorized but unissued Shares or its authorized and issued

Shares held in its treasury for the purpose of enabling it to satisfy its

obligation to issue Shares upon exercise of Warrants, the full number of Shares

deliverable upon the exercise of all outstanding Warrants.

 

The Company covenants that all Shares which

may be issued upon exercise of Warrants will be validly issued, fully paid and

nonassessable outstanding Shares of the Company.

 

5.             Rights

of Holder.  The Holder shall not, by

virtue of anything contained in this Warrant Agreement or otherwise, prior to

exercise of this Warrant, be entitled to any right whatsoever, either in law or

equity, of a stockholder of the Company, including without limitation, the

right to receive dividends or to vote or to consent or to receive notice as a

shareholder in respect of the meetings of shareholders or the election of

directors of the Company of any other matter.

 

6.             Investment

Intent.  Holder represents and warrants

to the Company that Holder is acquiring the Warrants for investment and with no

present intention of distributing or reselling any of the Warrants.

7.             Certificates

to Bear Language.  The Warrants and the

certificate or certificates therefor shall bear the following legend by which

each holder shall be bound:

 

"THE

WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE SHARES OF COMMON STOCK (OR

OTHER SECURITIES) ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER

THE SECURITIES ACT OF 1933.  THE SHARES

MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR TRANSFERRED

IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL THAT AN EXEMPTION

FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE."

 

The Shares and the certificate or

certificates evidencing any such Shares shall bear the following legend:

 

"THE

SHARES (OR OTHER SECURITIES) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN

REGISTERED UNDER THE SECURITIES ACT OF 1933. 

THE SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH

REGISTRATION OR AN OPINION OF COUNSEL THAT AN EXEMPTION FROM REGISTRATION UNDER

SUCH ACT IS AVAILABLE."

 

Certificates for Warrants without such legend

shall be issued if such warrants or shares are sold pursuant to an effective

registration statement under the Securities Act of 1933 (the "Act")

or if the Company has received an opinion from counsel reasonably satisfactory

to counsel for the Company, that such legend is no longer required under the

Act.

 

8.             Piggyback

Registration Rights.  If the Company at

any time proposes to register any of its securities under the Act, except on a

registration statement on Form S-8 or Form S-4, the Company will use its best

efforts to cause all of the shares of common stock underlying the Warrants

owned by Holder to be registered under the Act (with the securities which the

Company at the time propose to register), all to the extent requisite to permit

the sale or other disposition by the Holder; provided, however, that the

Company may, as a condition precedent to its effecting such registration,

require the Holder to agree with the Company and the managing underwriter or

underwriters of the offering to be made by the Company in connection with such

registration that the Holder will not sell any securities of the same class or

convertible into the same class as those registered by the Company (including

any class into which the securities registered by the Company are convertible)

for such reasonable period after such registration becomes effective as shall

then be specified in writing by such underwriter or underwriters if in the

opinion of such underwriter or underwriters the Company's offering would be

materially adversely affected in the absence of such an agreement

(“underwriter’s lock-up”). 

Additionally, the managing underwriter or underwriters of the offering

to be made by the Company in connection with such registration may require that

Holder enter into an agreement with the Company that only a percentage of the

shares of common stock underlying the Warrants owned by Holder be registered on

such registration statement if in the opinion of such underwriter or

underwriters the Company's offering would be materially adversely affected in

the absence of such an agreement (“underwriter’s carve-out”).  All expenses incurred by the Company in

complying with this Section, including without limitation all registration and

filing fees, listing fees, printing expenses, fees and disbursements of all

independent accounts, or counsel for the Company and or counsel for the Holder

and the expense of any special audits incident to or required by any such

registration and the expenses of complying with the securities or blue sky laws

of any jurisdiction shall be paid by the Company.  Notwithstanding the foregoing, Holder shall pay all underwriting

discounts or commissions with respect to any securities sold by the Holder.

 

(a)           Indemnification.

 

                                                (i)            In the event of any registration of

any of its securities under the Act pursuant to this Section, the Company

hereby indemnifies and holds harmless the Holder (which phrase shall include

any underwriters of such securities), their respective directors and officers,

and each other person who participates, in the offering of such securities and

each other person, if any, who controls the Holder, or such participating

persons within the meaning of the Act, against any losses, claims, damages or

liabilities, joint or several, to which each the Holder or any such director or

officer or participating person or controlling person may become subject under

the Act or otherwise, insofar as such losses, claims, damages or liabilities

(or actions in respect thereof) arise out of or are based upon any untrue

statement or alleged untrue statement of any material fact contained, on the

effective date thereof, in any registration statement under which such

securities were registered under the Act, any preliminary prospectus or final

prospectus contained therein, or any amendment or supplement thereto, or arise

out of or are based upon any omission or alleged omission to state therein an

material fact required to be stated therein or necessary to make the statements

therein not misleading; and will reimburse each the Holder and each director,

officer or participating or controlling person for any legal or any other

expenses reasonably incurred by the Holder or such director, officer or

participating or controlling person in connection with investigating or

defending any such loss, claim, damage, liability or action; provided, however,

that the Company shall not be liable in any such case to the extent that any

such loss, claim, damage or liability arises out of is based upon an untrue

statement or alleged untrue statement or omission or alleged omission made in

such registration statement, preliminary prospectus or prospectus or amendment

or supplement in reliance upon and in conformity with written information

furnished to the Company through an instrument duly executed by the Holder

specifically stating that it is for use therein.  Such indemnity shall remain in full force and effect regardless

of any investigation made by or on behalf of the Holder or such directors,

officer or participating or controlling person, and shall survive the transfer

of such securities by the Holder.

 

                                                (ii)           The Holder shall by acceptance

thereof, indemnify and hold harmless the Company and its directors and

officers, and each person, if any who controls the Company, against any losses,

claims, damages or liabilities, joint or several, to which the Company or any

director or officer or any such person may become subject under the Act or

otherwise, insofar as such losses, claims, damages or liabilities (or actions

in respect thereof) arise out of or are based upon any untrue statement or

alleged untrue statement of any material fact contained, on the effective date

thereof, in any registration statement under which securities were registered

under the Act at the request of such holder, any preliminary prospectus or

final prospectus contained therein, or any amendment or supplement thereto, or

arise out of or are based upon the omission or alleged omission to state

therein a material fact required to be stated therein or necessary to make the

statements therein not misleading, in each case to the extent, but only to the

extent, that such untrue statement or alleged untrue statement or omission or

alleged omission was made in such registration statement, preliminary

prospectus, prospectus, amendment or supplement in reliance upon and in

conformity with written information furnished to the Company through an

instrument duly executed by or on behalf of such holder specifically stating

that it is for use therein; and will reimburse the Company or such director,

officer or person for any legal or any other expense reasonably incurred in

connection with investigation or defending any such loss, claim, damage,

liability or action.

 

                                (b)           Rule 144.  If the Company shall be subject to the reporting requirements of

the Securities Exchange Act of 1934, as amended (the "1934 Act"), the

Company will use its best efforts timely to file all reports required to be

filed from time to time with the SEC (including but not limited to the reports

under Section 13 and 15(d) of the 1934 Act referred to in subparagraph (c)(1)

of Rule 144 adopted by the SEC under the Act). 

If there is a public market for any securities of the Company at any

time that the Company is not subject to the reporting requirements of either of

said Section 13 or 15(d), the Company will, upon the request of Holder, use its

best efforts to make publicly available the information concerning the Company

referred to in subparagraph (c)(2) of said Rule 144.  The Company will furnish to Holder, promptly upon request, (i) a

written statement of the Company's compliance with the requirements of

subparagraphs (c)(1) or (c)(2), as the case may be, of said Rule 144, and (ii)

written information concerning the Company sufficient to enable Holder to

complete any Form 144 required to be filed with the SEC pursuant to said Rule

144.

 

9.             Adjustment

of Number of Shares and Class of Capital Stock Purchasable.  The Number of Shares and Class of Capital

Stock purchasable under this Warrant Agreement are subject to adjustment from

time to time as set forth in this Section.

 

(a)           Adjustment

for Change in Capital Stock.  If the

Company:

 

                                                (i)            pays a dividend or makes a

distribution on its Common Stock, in each case, in shares of its Common Stock;

 

                                                (ii)           subdivides its outstanding shares of

Common Stock into a greater number of shares;

 

                                                (iii)          combines its outstanding shares of

Common Stock into a smaller number of shares;

 

                                                (iv)          makes a distribution on its Common

Stock in shares of its capital stock other than Common Stock; or

 

                                                (v)           issues by reclassification of its

shares of Common Stock any shares of its capital stock;

 

then

the number and classes of shares purchasable upon exercise of each Warrant in

effect immediately prior to such action shall be adjusted so that the holder of

any Warrant thereafter exercised may receive the number and classes of shares

of capital stock of the Company which such holder would have owned immediately

following such action if such holder had exercised the Warrant immediately

prior to such action.

 

For a dividend or distribution the adjustment

shall become effective immediately after the record date for the dividend or

distribution.  For a subdivision,

combination or reclassification, the adjustment shall become effective

immediately after the effective date of the subdivision, combination or

reclassification.

 

If after an adjustment the holder of a

Warrant upon exercise of it may receive shares of two or more classes of

capital stock of the Company, the Board of Directors of the Company shall in

good faith determine the allocation of the adjusted Exercise Price between or

among the classes of capital stock. 

After such allocation, that portion of the Exercise Price applicable to

each share of each such class of capital stock shall thereafter be subject to

adjustment on terms comparable to those applicable to Common Stock in this

Agreement.  Notwithstanding the

allocation of the Exercise Price between or among shares of capital stock as

provided by this Section 8(a), a Warrant may only be exercised in full by

payment of the entire Exercise Price currently in effect.

 

               (b)          Consolidation, Merger or Sale of the

Company.  If the Company is a party to a

consolidation, merger or transfer of assets which reclassifies or changes its

outstanding Common Stock, the successor corporation (or corporation controlling

the successor corporation or the Company, as the case may be) shall by

operation of law assume the Company's obligations under this Warrant Agreement.  Upon consummation of such transaction the

Warrants shall automatically become exercisable for the kind and amount of

securities, cash or other assets which the holder of a Warrant would have owned

immediately after the consolidation, merger or transfer if the holder had

exercised the Warrant immediately before the effective date of such

transaction.  As a condition to the

consummation of such transaction, the Company shall arrange for the person or

entity obligated to issue securities or deliver cash or other assets upon

exercise of the Warrant to, concurrently with the consummation of such

transaction, assume the Company's obligations hereunder by executing an

instrument so providing and further providing for adjustments which shall be as

nearly equivalent as may be practical to the adjustments provided for in this

Section 8.

 

10.           Successors.  All the covenants and provisions of this

Agreement by or for the benefit of the Company or Holder shall bind and inure

to the benefit of their respective successor and assigns hereunder.

 

11.           Counterparts.  This Agreement may be executed in any number

of counterparts and each of such counterparts shall for all proposes be deemed

to be an original, and such counterparts shall together constitute by one and

the same instrument.

 

12.           Notices.  Any notice, request, instruction, or other

document required by the terms of this Agreement, or deemed by any of the

parties hereto to be desirable, to be given to any other party hereto shall be

in writing and shall be given by facsimile, personal delivery, overnight

delivery, or mailed by registered or certified mail, postage prepaid, with

return receipt requested, to the following addresses:

 

	

  To

  Purchaser:

  	

   

  	

  Dental

  Advisors, Inc.

  
	

   

  	

   

  	

  314

  North 4 th Street

  
	

   

  	

   

  	

  Newman

  Grove, NE 68758

  
	

   

  	

   

  	

  Fax

  (402) 447-6009

  
	

   

  	

   

  	

  Attn:

  Dr. Edward Quincy

  
	

   

  	

   

  	

   

  
	

  To

  Seller:

  	

   

  	

  Remedent

  USA, Inc.

  
	

   

  	

   

  	

  1220

  Birch Way

  
	

   

  	

   

  	

  Escondido,

  CA  92027

  
	

   

  	

   

  	

  Fax:  (760) 781-3330

  
	

   

  	

   

  	

  Attn:

  Rebecca M. Inzunza, President

  
	

   

  	

   

  	

   

  
	

  With Copy To:

  	

   

  	

  Senn Palumbo Meulemans, LLP

  
	

   

  	

   

  	

  18301 Von Karman, Suite 850

  
	

   

  	

   

  	

  Irvine, CA  92612

  
	

   

  	

   

  	

  Fax: (949) 251-1331

  
	

   

  	

   

  	

  Attn: Lynne Bolduc, Esq.

  

 

A

notice sent as aforesaid may change the persons and addresses set forth above

from time to time.  If notice is given

by facsimile, personal delivery, or overnight delivery in accordance with the

provisions of this Section, said notice shall be conclusively deemed given at

the time of such delivery.  If notice is

given by mail in accordance with the provisions of this Section, such notice

shall be conclusively deemed given seven days after deposit thereof in the

United States mail.

 

13.           Supplements

and Amendments.  The Company may from

time to time supplement or amend this Warrant Agreement without the approval of

any Holders of Warrants in order to cure any ambiguity or to be correct or

supplement any provision contained herein which may be defective or

inconsistent with any other provision, or to make any other provisions in

regard to matters or questions herein arising hereunder which the Company may

deem necessary or desirable and which shall not materially adversely affect the

interest of the Holder.

 

14.           Severability.  If for any reason any provision, paragraph

or term of this Warrant Agreement is held to be invalid or unenforceable, all

other valid provisions herein shall remain in full force and effect and all

terms, provisions and paragraphs of this Warrant shall be deemed to be

severable.

 

15.           Governing

Law and Venue.  This Warrant shall be

deemed to be a contract made under the laws of the State of California and for

all purposes shall be governed and construed in accordance with the laws of

said State.  Any proceeding arising

under this Warrant Agreement shall be instituted in the County of Orange, State

of California.

 

16.           Headings.  Paragraphs and subparagraph headings, used

herein are included herein for convenience of reference only and shall not

affect the construction of this Warrant Agreement nor constitute a part of this

Warrant Agreement for any other purpose.

 

IN

WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly

executed, as of the date and year first above written.

 

"COMPANY"

 

Remedent

USA, Inc.,

a

Nevada corporation

 

 

 

	

  /s/ Rebecca M. Inzunza

  
	

  By:

  Rebecca M. Inzunza

  
	

  Its:

  President and CEO

  
	

   

  
	

  "HOLDER"

  
	

   

  
	

  Dental

  Advisors Inc.,

  
	

  a

  Nebraska corporation

  
	

   

  
	

   

  
	

   

  
	

  /s/ Edward Quincy, M.D.

  
	

  By:

  Dr. Edward Quincy

  
	

  Its: President

  

 

 

 

THE

SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER

THE  SECURITIES ACT OF 1933 OR ANY STATE

SECURITIES LAWS AND MAY NOT BE SOLD, EXCHANGED, HYPOTHECATED OR TRANSFERRED IN

ANY MANNER EXCEPT PURSUANT TO A REGISTRATION OR AN EXEMPTION FROM SUCH

REGISTRATION AND IN COMPLIANCE WITH SECTION 11 OF THE AGREEMENT PURSUANT TO

WHICH THEY WERE ISSUED.

Warrant Certificate No. 9-14-01-01

 

WARRANTS TO PURCHASE 442,000 SHARES OF COMMON

STOCK

VOID AFTER 5:00 P.M.,

PACIFIC TIME, ON September 14, 2006

 

REMEDENT

USA, INC.

INCORPORATED UNDER THE LAWS

OF THE STATE OF NEVADA

 

                This certifies that, for value received,

Dental Advisors, Inc., Nebraska corporation, the registered holder hereof or

assigns (the "Warrantholder"), is entitled to purchase from Remedent

USA, Inc., a Nevada corporation (the "Company"), at any time during

the period commencing at 9:00 a.m., Pacific Time, on September 14, 2001, and

before 5:00 p.m., Pacific Time, on September 14, 2006 at the purchase price per

share of $0.25 (the "Warrant Price"), the number of Shares of Common

Stock of the Company set forth above (the "Warrant Shares").  The number of Warrant Shares issuable upon

exercise of each Warrant evidenced hereby and the Warrant Price shall be

subject to adjustment from time to time as set forth in the Warrant Agreement

referred to below.

 

                The Warrants evidenced hereby represent the

right to purchase an aggregate of up to 442,000 Shares, subject to certain

adjustments, and are issued under and in accordance with a Warrant Agreement,

dated as of September 14, 2001 (the " Warrant Agreement"), between

the Company and the Warrantholder in connection with a Securities Purchase

Agreement (the “Purchase Agreement”) and are subject to the terms and

provisions contained in the Warrant Agreement and the Purchase Agreement, to

all of which the Warrantholder by acceptance hereof consents.

 

Holders of the Warrants Shares issuable upon

exercise hereof have certain rights with respect to registration with the

Securities and Exchange Commission of the Warrant Shares.  These registration rights are set forth in

that certain Warrant Agreement of even date herewith pursuant to which this

Warrant Certificate has been issued.

 

                The

Warrants evidenced hereby may be exercised in whole or in part by presentation

of this Warrant Certificate with the Purchase Form attached hereto duly

executed (with a signature guarantee as provided thereon) and simultaneous

payment of the Warrant Price at the principal office of the Company.  Payment of such price shall be made at the

option of the Warrantholder in cash, by check, or any combination thereof.

 

                Upon any partial exercise of the Warrants

evidenced hereby, there shall be signed and issued to the Warrantholder a new

Warrant Certificate in respect of the Warrant Shares as to which the Warrants

evidenced hereby shall not have been exercised.  These Warrants may be exchanged at the office of the Company by

surrender of this Warrant Certificate properly endorsed for one or more new

Warrants of the same aggregate number of Warrant Shares as evidenced by the

Warrant or Warrants exchanged.  No

fractional Shares of Common Stock will be issued upon the exercise of rights to

purchase hereunder, but the Company shall pay the cash value of any fraction

upon the exercise of one or more Warrants. 

These Warrants are transferable at the office of the Company in the

manner and subject to the limitations set forth in the Warrant Agreement.

 

                This Warrant Certificate does not entitle any

Warrantholder to any of the rights of a stockholder of the Company unless and

until the Warrantholder exercises its rights to purchase Warrant Shares

hereunder.

 

                

	

   

  	

  REMEDENT

  USA, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

  Dated:

  September 14, 2001

  	

  /s/

  Rebecca M. Inzunza

  
	

   

  	

   

  	

  By:

  Rebecca M. Inzunza

  
	

   

  	

   

  	

  Its:

  President and CEO

  

 

 

REMEDENT USA, INC.

PURCHASE FORM

 

Remedent USA, Inc.

1220 Birch Way

Escondido,

CA  92027

 

                The undersigned hereby irrevocably elects to

exercise the right of purchase represented by the within Warrant Certificate

for, and to purchase thereunder, ____________ Warrant Shares of Common Stock

(the "Warrant Shares") provided for therein, and requests that

certificates for the Warrant Shares be issued in the name of:

 

 

	

   

  
	

  (Please Print or Type Name)

  
	

   

  
	

   

  
	

  (Address, including zip code)

  
	

   

  
	

  (Social Security No. or Tax I.D. No.)

  

 

and, if said number of

Warrant Shares shall not be all the Warrant Shares purchasable hereunder, that

a new Warrant Certificate for the balance of the Warrant Shares purchasable

under the within Warrant Certificate be registered in the name of the

undersigned Warrantholder or his Assignee as below indicated and delivered to

the address stated below.

 

	

  Name

  of Warrantholder

  	

   

  
	

  or

  Assignee:

  	

   

  
	

  (Please Print)

  
	

  Address:

  	

   

  
	

   

  
	

   

  
	

  Signature:

  	

     Dated:

  	

   

  
						

 

 

Note:  The above signature must correspond with the

name as written upon the face of this Warrant Certificate in every particular,

without alteration or enlargement or any change whatever, unless these Warrants

have been assigned.

 

	

  Signatures

  Guaranteed:

  	

   

  

(Signature

must be guaranteed by a bank or trust company having an office or correspondent

in the United States or by a member firm of a registered securities exchange or

the National Association of Securities Dealers, Inc.)

 

ASSIGNMENT

(To be signed only upon

assignment of Warrants)

 

                FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers unto the assignee named below all of the rights of

the undersigned represented by the attached Warrant with respect to the number

of Warrant Shares covered by the Warrant set forth below:

 

(Name and Address of

Assignee Must Be Printed or Typewritten)

 

	

  Name of Assignee

  	

   

  	

  Social Security No.

  	

   

  	

  Address

  	

   

  	

  No. of

  
	

   

  	

   

  	

  or Tax ID No.

  	

   

  	

   

  	

   

  	

  Warrant Shares

  
	

   

  
	

   

  

 

 

and does hereby

irrevocably constitute and appoint _________________________________ Attorney

to transfer said Warrants on the books of the Company, with full power of

substitution in the premises.

 

	

  Dated: 

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Signature

  of Registered Holder

  

 

 

Note:      The signature on this assignment must

correspond with the name as it appears upon the face of the within Warrant

Certificate in every particular, without alteration or enlargement or any

change whatever.

 

	

  Signature

  Guaranteed:

  	

   

  

 

 

(Signature must be

guaranteed by a bank or trust company having an office or correspondent in the

United States or by a member firm of a registered securities exchange or the

National Association of Securities Dealers, Inc.)

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