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EXHIBIT 10.1   OCTOBER 2004 NON-QUALIFIED STOCK & STOCK OPTION PLAN

1.       PURPOSE OF PLAN

         1.1 This OCTOBER 2004 NON-QUALIFIED STOCK & STOCK OPTION PLAN (the
"Plan") of American IDC Corp., a Florida corporation (the "Company") for
employees, officers, directors, consultants and other persons associated with
the Company, is intended to advance the best interests of the Company by
providing those persons who have a substantial responsibility for its management
and growth with additional incentive and by increasing their proprietary
interest in the success of the Company, thereby encouraging them to maintain
their relationships with the Company. Further, the availability and offering of
stock options and common stock under the Plan supports and increases the
Company's ability to attract and retain individuals of exceptional talent upon
whom, in large measure, the sustained progress, growth and profitability of the
Company depends.

2.       DEFINITIONS

         2.1 For Plan purposes, except where the context might clearly indicate
otherwise, the following terms shall have the meanings set forth below:

         "Board" shall mean the Board of Directors of the Company.

         "Committee" shall mean the Compensation Committee, or such other
committee appointed by the Board, which shall be designated by the Board to
administer the Plan, or the Board if no committees have been established. The
Committee shall be composed of THREE OR MORE PERSONS as from time to time are
appointed to serve by the Board. Each member of the Committee, while serving as
such, shall be a disinterested person with the meaning of Rule 16b-3 promulgated
under the Securities Exchange Act of 1934.

         "Common Shares" shall mean the Company's Common Shares, $.001 par value
per share, or, in the event that the outstanding Common Shares are hereafter
changed into or exchanged for different shares of securities of the Company,
such other shares or securities.

         "Company" shall mean American IDC Corp., a Florida corporation, and any
parent or subsidiary corporation of American IDC Corp., as such terms are
defined in Sections 425(e) and 425(f), respectively, of the Code.

         "Fair Market Value" shall mean, with respect to the date a given stock
option is granted or exercised, the average of the highest and lowest reported
sales prices of the Common Shares, as reported by such responsible reporting
service as the Committee may select, or if there were not transactions in the
Common Shares on such day, then the last preceding day on which transactions
took place. The above withstanding, the Committee may determine the Fair Market
Value in such other manner as it may deem more equitable for Plan purposes or as
is required by applicable laws or regulations.

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         "Optionee" shall mean an employee of the company who has been granted
one or more Stock Options under the Plan.

         "Common Stock" shall mean shares of common stock which are issued by
the Company pursuant to Section 5, below.

         "Common Stockholder" means the employee of, consultant to, or director
of the Company or other person to whom shares of Common Stock are issued
pursuant to this Plan.

         "Common Stock Agreement" means an agreement executed by a Common
Stockholder and the Company as contemplated by Section 5, below, which imposes
on the shares of Common Stock held by the Common Stockholder such restrictions
as the Board or Committee deem appropriate.

         "Stock Option" or "Non-Qualified Stock Option" or "NQSO" shall mean a
stock option granted pursuant to the terms of the Plan.

         "Stock Option Agreement" shall mean the agreement between the Company
and the Optionee under which the Optionee may purchase Common Shares hereunder.

3.       ADMINISTRATION OF THE PLAN

         3.1 The Committee shall administer the Plan and accordingly, it shall
have full power to grant Stock Options and Common Stock, construe and interpret
the Plan, establish rules and regulations and perform all other acts, including
the delegation of administrative responsibilities, it believes reasonable and
proper.

         3.2 The determination of those eligible to receive Stock Options and
Common Stock, and the amount, type and timing of each grant and the terms and
conditions of the respective stock option agreements and Common stock agreements
shall rest in the sole discretion of the Committee, subject to the provisions of
the Plan.

         3.3 The Committee may cancel any Stock Options awarded under the Plan
if an Optionee conducts himself in a manner which the Committee determines to be
inimical to the best interest of the Company, as set forth more fully in
paragraph 8 of Article 11 of the Plan.

         3.4 The Board, or the Committee, may correct any defect, supply any
omission or reconcile any inconsistency in the Plan, or in any granted Stock
Option, in the manner and to the extent it shall deem necessary to carry it into
effect.

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         3.5 Any decision made, or action taken, by the Committee or the Board
arising out of or in connection with the interpretation and administration of
the Plan shall be final and conclusive.

         3.6 Meetings of the Committee shall be held at such times and places as
shall be determined by the Committee. A majority of the members of the Committee
shall constitute a quorum for the transaction of business, and the vote of a
majority of those members present at any meeting shall decide any question
brought before that meeting. In addition, the Committee may take any action
otherwise proper under the Plan by the affirmative vote, taken without a
meeting, of a majority of its members.

         3.7 No member of the Committee shall be liable for any act or omission
of any other member of the Committee or for any act or omission on his own part,
including, but not limited to, the exercise of any power or discretion given to
him under the Plan, except those resulting from his own gross negligence or
willful misconduct.

         3.8 The Company, through its management, shall supply full and timely
information to the Committee on all matters relating to the eligibility of
Optionees, their duties and performance, and current information on any
Optionee's death, retirement, disability or other termination of association
with the Company, and such other pertinent information as the Committee may
require. The Company shall furnish the Committee with such clerical and other
assistance as is necessary in the performance of its duties hereunder.

4.       SHARES SUBJECT TO THE PLAN

         4.1 The total number of shares of the Company available for grants of
Stock Options and Common Stock under the Plan shall be 16,500,000 Common Shares,
subject to adjustment in accordance with Article 7 of the Plan, which shares may
be either authorized but unissued or reacquired Common Shares of the Company.

         4.2 If a Stock Option or portion thereof shall expire or terminate for
any reason without having been exercised in full, the unpurchased shares covered
by such NQSO shall be available for future grants of Stock Options.

5.       AWARD OF COMMON STOCK

         5.1 The Board or Committee from time to time, in its absolute
discretion, may (a) award Common Stock to employees of, consultants to, and
directors of the Company, and such other persons as the Board or Committee may
select, and (b) permit Holders of Options to exercise such Options prior to full
vesting therein and hold the Common Shares issued upon exercise of the Option as
Common Stock. In either such event, the owner of such Common Stock shall hold
such stock subject to such vesting schedule as the Board or Committee may impose
or such vesting schedule to which the Option was subject, as determined in the
discretion of the Board or Committee.

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         5.2 Common Stock shall be issued only pursuant to a Common Stock
Agreement, which shall be executed by the Common Stockholder and the Company and
which shall contain such terms and conditions as the Board or Committee shall
determine consistent with this Plan, including such restrictions on transfer as
are imposed by the Common Stock Agreement.

         5.3 Upon delivery of the shares of Common Stock to the Common
Stockholder, below, the Common Stockholder shall have, unless otherwise provided
by the Board or Committee, all the rights of a stockholder with respect to said
shares, subject to the restrictions in the Common Stock Agreement, including the
right to receive all dividends and other distributions paid or made with respect
to the Common Stock.

         5.4. Notwithstanding anything in this Plan or any Common Stock
Agreement to the contrary, no Common Stockholders may sell or otherwise
transfer, whether or not for value, any of the Common Stock prior to the date on
which the Common Stockholder is vested therein.

         5.5 All shares of Common Stock issued under this Plan (including any
shares of Common Stock and other securities issued with respect to the shares of
Common Stock as a result of stock dividends, stock splits or similar changes in
the capital structure of the Company) shall be subject to such restrictions as
the Board or Committee shall provide, which restrictions may include, without
limitation, restrictions concerning voting rights, transferability of the Common
Stock and restrictions based on duration of employment with the Company, Company
performance and individual performance; provided that the Board or Committee
may, on such terms and conditions as it may determine to be appropriate, remove
any or all of such restrictions. Common Stock may not be sold or encumbered
until all applicable restrictions have terminated or expire. The restrictions,
if any, imposed by the Board or Committee or the Board under this Section 5 need
not be identical for all Common Stock and the imposition of any restrictions
with respect to any Common Stock shall not require the imposition of the same or
any other restrictions with respect to any other Common Stock.

         5.6 Each Common Stock Agreement shall provide that the Company shall
have the right to repurchase from the Common Stockholder the unvested Common
Stock upon a termination of employment, termination of directorship or
termination of a consultancy arrangement, as applicable, at a cash price per
share equal to the purchase price paid by the Common Stockholder for such Common
Stock.

         5.7 In the discretion of the Board or Committee, the Common Stock
Agreement may provide that the Company shall have the a right of first refusal
with respect to the Common Stock and a right to repurchase the vested Common
Stock upon a termination of the Common Stockholder's employment with the
Company, the termination of the Common Stockholder's consulting arrangement with
the Company, the termination of the Common Stockholder's service on the
Company's Board, or such other events as the Board or Committee may deem
appropriate.

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         5.8 The Board or Committee shall cause a legend or legends to be placed
on certificates representing shares of Common Stock that are subject to
restrictions under Common Stock Agreements, which legend or legends shall make
appropriate reference to the applicable restrictions.

6.       STOCK OPTION TERMS AND CONDITIONS

         6.1 Consistent with the Plan's purpose, Stock Options may be granted to
non-employee directors of the Company or other persons who are performing or who
have been engaged to perform services of special importance to the management,
operation or development of the Company.

         6.2 All Stock Options granted under the Plan shall be evidenced by
agreements which shall be subject to applicable provisions of the Plan, and such
other provisions as the Committee may adopt, including the provisions set forth
in paragraphs 2 through 11 of this Section 6.

         6.3 All Stock Options granted hereunder must be granted within ten
years from the earlier of the date of this Plan is adopted or approved by the
Company's shareholders.

         6.4 No Stock Option granted to any employee or 10% Shareholder shall be
exercisable after the expiration of ten years from the date such NQSO is
granted. The Committee, in its discretion, may provide that an Option shall be
exercisable during such ten year period or during any lesser period of time.

                  The Committee may establish installment exercise terms for a
Stock Option such that the NQSO becomes fully exercisable in a series of
cumulating portions. If an Optionee shall not, in any given installment period,
purchase all the Common Shares which such Optionee is entitled to purchase
within such installment period, such Optionee's right to purchase any Common
Shares not purchased in such installment period shall continue until the
expiration or sooner termination of such NQSO. The Committee may also accelerate
the exercise of any NQSO. However, no NQSO, or any portion thereof, may be
exercisable until thirty (30) days following date of grant ("30-Day Holding
Period.").

         6.5 A Stock Option, or portion thereof, shall be exercised by delivery
of (i) a written notice of exercise of the Company specifying the number of
common shares to be purchased, and (ii) payment of the full price of such Common
Shares, as fully set forth in paragraph 6 of this Section 6.

                  No NQSO or installment thereof shall be exercisable except
with respect to whole shares, and fractional share interests shall be
disregarded. Not less than 100 Common Shares may be purchased at one time unless
the number purchased is the total number at the time available for purchase
under the NQSO. Until the Common Shares represented by an exercised NQSO are
issued to an Optionee, he shall have none of the rights of a shareholder.

         6.6 The exercise price of a Stock Option, or portion thereof, may be
paid:

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                  A. In United States dollars, in cash or by cashier's check,
certified check, bank draft or money order, payable to the order of the Company
in an amount equal to the option price; or

                  B. At the discretion of the Committee, through the delivery of
fully paid and nonassessable Common Shares, with an aggregate Fair Market Value
on the date the NQSO is exercised equal to the option price, provided such
tendered Shares have been owned by the Optionee for at least one year prior to
such exercise; or

                  C. By a combination of both A and B above.

                  The Committee shall determine acceptable methods for tendering
Common Shares as payment upon exercise of a Stock Option and may impose such
limitations and prohibitions on the use of Common Shares to exercise an NQSO as
it deems appropriate.

         6.7 With the Optionee's consent, the Committee may cancel any Stock
Option issued under this Plan and issue a new NQSO to such Optionee.

         6.8 Except by will or the laws of descent and distribution, no right or
interest in any Stock Option granted under the Plan shall be assignable or
transferable, and no right or interest of any Optionee shall be liable for, or
subject to, any lien, obligation or liability of the Optionee. Stock Options
shall be exercisable during the Optionee's lifetime only by the Optionee or the
duly appointed legal representative of an incompetent Optionee.

         6.9 If the Optionee shall die while associated with the Company or
within three months after termination of such association, the personal
representative or administrator of the Optionee's estate or the person(s) to
whom an NQSO granted hereunder shall have been validly transferred by such
personal representative or administrator pursuant to the Optionee's will or the
laws of descent and distribution, shall have the right to exercise the NQSO for
one year after the date of the Optionee's death, to the extent (i) such NQSO was
exercisable on the date of such termination of employment by death, and (ii)
such NQSO was not exercised, and (iii) the exercise period may not be extended
beyond the expiration of the term of the Option.

                  No transfer of a Stock Option by the will of an Optionee or by
the laws of descent and distribution shall be effective to bind the Company
unless the Company shall have been furnished with written notice thereof and an
authenticated copy of the will and/or such other evidence as the Committee may
deem necessary to establish the validity of the transfer and the acceptance by
the transferee or transferee of the terms and conditions by such Stock Option.

                  In the event of death following termination of the Optionee's
association with the Company while any portion of an NQSO remains exercisable,
the Committee, in its discretion, may provide for an extension of the exercise
period of up to one year after the Optionee's death but not beyond the
expiration of the term of the Stock Option.

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         6.10 Any Optionee who disposes of Common Shares acquired on the
exercise of a NQSO by sale or exchange either (i) within two years after the
date of the grant of the NQSO under which the stock was acquired, or (ii) within
one year after the acquisition of such Shares, shall notify the Company of such
disposition and of the amount realized upon such disposition. The transfer of
Common Shares may also be Common by applicable provisions of the Securities Act
of 1933, as amended.

7.       ADJUSTMENTS OR CHANGES IN CAPITALIZATION

         7.1 In the event that the outstanding Common Shares of the Company are
hereafter changed into or exchanged for a different number or kind of shares or
other securities of the Company by reason of merger, consolidation, other
reorganization, recapitalization, reclassification, combination of shares, stock
split-up or stock dividend:

                  A. Prompt, proportionate, equitable, lawful and adequate
adjustment shall be made of the aggregate number and kind of shares subject to
Stock Options which may be granted under the Plan, such that the Optionee shall
have the right to purchase such Common Shares as may be issued in exchange for
the Common Shares purchasable on exercise of the NQSO had such merger,
consolidation, other reorganization, recapitalization, reclassification,
combination of shares, stock split-up or stock dividend not taken place;

                  B. Rights under unexercised Stock Options or portions thereof
granted prior to any such change, both as to the number or kind of shares and
the exercise price per share, shall be adjusted appropriately, provided that
such adjustments shall be made without change in the total exercise price
applicable to the unexercised portion of such NQSO's but by an adjustment in the
price for each share covered by such NQSO's; or

                  C. Upon any dissolution or liquidation of the Company or any
merger or combination in which the Company is not a surviving corporation, each
outstanding Stock Option granted hereunder shall terminate, but the Optionee
shall have the right, immediately prior to such dissolution, liquidation, merger
or combination, to exercise his NQSO in whole or in part, to the extent that it
shall not have been exercised, without regard to any installment exercise
provisions in such NQSO.

         7.2 The foregoing adjustments and the manner of application of the
foregoing provisions shall be determined solely by the Committee, whose
determination as to what adjustments shall be made and the extent thereof, shall
be final, binding and conclusive. No fractional Shares shall be issued under the
Plan on account of any such adjustments.

8.       MERGER, CONSOLIDATION OR TENDER OFFER

         8.1 If the Company shall be a party to a binding agreement to any
merger, consolidation or reorganization or sale of substantially all the assets
of the Company, each outstanding Stock Option shall pertain and apply to the
securities and/or property which a shareholder of the number of Common Shares of
the Company subject to the NQSO would be entitled to receive pursuant to such
merger, consolidation or reorganization or sale of assets.

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         8.2      In the event that:

                  A. Any person other than the Company shall acquire more than
20% of the Common Shares of the Company through a tender offer, exchange offer
or otherwise;

                  B. A change in the "control" of the Company occurs, as such
term is defined in Rule 405 under the Securities Act of 1933;

                  C. There shall be a sale of all or substantially all of the
assets of the Company;

any then outstanding Stock Option held by an Optionee, who is deemed by the
Committee to be a statutory officer ("Insider") for purposes of Section 16 of
the Securities Exchange Act of 1934 shall be entitled to receive, subject to any
action by the Committee revoking such an entitlement as provided for below, in
lieu of exercise of such Stock Option, to the extent that it is then
exercisable, a cash payment in an amount equal to the difference between the
aggregate exercise price of such NQSO, or portion thereof, and, (i) in the event
of an offer or similar event, the final offer price per share paid for Common
Shares, or such lower price as the Committee may determine to conform an option
to preserve its Stock Option status, times the number of Common Shares covered
by the NQSO or portion thereof, or (ii) in the case of an event covered by B or
C above, the aggregate Fair Market Value of the Common Shares covered by the
Stock Option, as determined by the Committee at such time.

         8.3 Any payment which the Company is required to make pursuant to
paragraph 8.2 of this Section 8 shall be made within 15 business days, following
the event which results in the Optionee's right to such payment. In the event of
a tender offer in which fewer than all the shares which are validly tendered in
compliance with such offer are purchased or exchanged, then only that portion of
the shares covered by an NQSO as results from multiplying such shares by a
fraction, the numerator of which is the number of Common Shares acquired
pursuant to the offer and the denominator of which is the number of Common
Shares tendered in compliance with such offer shall be used to determine the
payment thereupon. To the extent that all or any portion of a Stock Option shall
be affected by this provision, all or such portion of the NQSO shall be
terminated.

         8.4 Notwithstanding paragraphs 8.1 and 8.3 of this Section 8, the
Committee may, by unanimous vote and resolution, unilaterally revoke the
benefits of the above provisions; provided, however, that such vote is taken no
later than ten business days following public announcement of the intent of an
offer or the change of control, whichever occurs earlier.

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9.       AMENDMENT AND TERMINATION OF PLAN

         9.1 The Board may at any time, and from time to time, suspend or
terminate the Plan in whole or in part or amend it from time to time in such
respects as the Board may deem appropriate and in the best interest of the
Company.

         9.2 No amendment, suspension or termination of this Plan shall, without
the Optionee's consent, alter or impair any of the rights or obligations under
any Stock Option theretofore granted to him under the Plan.

         9.3 The Board may amend the Plan, subject to the limitations cited
above, in such manner as it deems necessary to permit the granting of Stock
Options meeting the requirements of future amendments or issued regulations, if
any, to the Code.

         9.4 No NQSO may be granted during any suspension of the Plan or after
termination of the Plan.

10.      GOVERNMENT AND OTHER REGULATIONS

         10.1 The obligation of the Company to issue, transfer and deliver
Common Shares for Stock Options exercised under the Plan shall be subject to all
applicable laws, regulations, rules, orders and approval which shall then be in
effect and required by the relevant stock exchanges on which the Common Shares
are traded and by government entities as set forth below or as the Committee in
its sole discretion shall deem necessary or advisable. Specifically, in
connection with the Securities Act of 1933, as amended, upon exercise of any
Stock Option, the Company shall not be required to issue Common Shares unless
the Committee has received evidence satisfactory to it to the effect that the
Optionee will not transfer such shares except pursuant to a registration
statement in effect under such Act or unless an opinion of counsel satisfactory
to the Company has been received by the Company to the effect that such
registration is not required. Any determination in this connection by the
Committee shall be final, binding and conclusive. The Company may, but shall in
no event be obligated to, take any other affirmative action in order to cause
the exercise of a Stock Option or the issuance of Common Shares pursuant thereto
to comply with any law or regulation of any government authority.

11.      MISCELLANEOUS PROVISIONS

         11.1 No person shall have any claim or right to be granted a Stock
Option or Common Stock under the Plan, and the grant of an NQSO or Common Stock
under the Plan shall not be construed as giving an Optionee or Common
Stockholder the right to be retained by the Company. Furthermore, the Company
expressly reserves the right at any time to terminate its relationship with an
Optionee with or without cause, free from any liability, or any claim under the
Plan, except as provided herein, in an option agreement, or in any agreement
between the Company and the Optionee.

         11.2 Any expenses of administering this Plan shall be borne by the
Company.

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         11.3 The payment received from Optionee from the exercise of Stock
Options under the Plan shall be used for the general corporate purposes of the
Company.

         11.4 The place of administration of the Plan shall be in the State of
Florida, and the validity, construction, interpretation, administration and
effect of the Plan and of its rules and regulations, and rights relating to the
Plan, shall be determined solely in accordance with the laws of the State of
Florida.

         11.5 Without amending the Plan, grants may be made to persons who are
foreign nationals or employed outside the United States, or both, on such terms
and conditions, consistent with the Plan's purpose, different from those
specified in the Plan as may, in the judgment of the Committee, be necessary or
desirable to create equitable opportunities given differences in tax laws in
other countries.

         11.6 In addition to such other rights of indemnification as they may
have as members of the Board or the Committee, the members of the Committee
shall be indemnified by the Company against all costs and expenses reasonably
incurred by them in connection with any action, suit or proceeding to which they
or any of them may be party by reason of any action taken or failure to act
under or in connection with the Plan or any Stock Option granted thereunder, and
against all amounts paid by them in settlement thereof (provided such settlement
is approved by independent legal counsel selected by the Company) or paid by
them in satisfaction of a judgment in any such action, suit or proceeding,
except a judgment based upon a finding of bad faith; provided that upon the
institution of any such action, suit or proceeding a Committee member shall, in
writing, give the Company notice thereof and an opportunity, at its own expense,
to handle and defend the same, with counsel acceptable to the Optionee, before
such Committee member undertakes to handle and defend it on his own behalf.

         11.7 Stock Options may be granted under this Plan from time to time, in
substitution for stock options held by employees of other corporations who are
about to become employees of the Company as the result of a merger or
consolidation of the employing corporation with the Company or the acquisition
by the Company of the assets of the employing corporation or the acquisition by
the Company of stock of the employing corporation as a result of which it
becomes a subsidiary of the Company. The terms and conditions of such substitute
stock options so granted may vary from the terms and conditions set forth in
this Plan to such extent as the Board of Directors of the Company at the time of
grant may deem appropriate to conform, in whole or in part, to the provisions of
the stock options in substitution for which they are granted, but no such
variations shall be such as to affect the status of any such substitute stock
options as a stock option under Section 422A of the Code.

         11.8 Notwithstanding anything to the contrary in the Plan, if the
Committee finds by a majority vote, after full consideration of the facts
presented on behalf of both the Company and the Optionee, that the Optionee has
been engaged in fraud, embezzlement, theft, insider trading in the Company's
stock, commission of a felony or proven dishonesty in the course of his
association with the Company or any subsidiary corporation which damaged the

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Company or any subsidiary corporation, or for disclosing trade secrets of the
Company or any subsidiary corporation, the Optionee shall forfeit all
unexercised Stock Options and all exercised NQSO's under which the Company has
not yet delivered the certificates and which have been earlier granted to the
Optionee by the Committee. The decision of the Committee as to the cause of an
Optionee's discharge and the damage done to the Company shall be final. No
decision of the Committee, however, shall affect the finality of the discharge
of such Optionee by the Company or any subsidiary corporation in any manner.

12.      WRITTEN AGREEMENT

         12.1 Each Stock Option granted hereunder shall be embodied in a written
Stock Option Agreement which shall be subject to the terms and conditions
prescribed above and shall be signed by the Optionee and by the President or any
Vice President of the Company, for and in the name and on behalf of the Company.
Such Stock Option Agreement shall contain such other provisions as the
Committee, in its discretion shall deem advisable.

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Number of Shares:                               Date of Grant:
                  -------------------------                    --------------

                  FORM OF NON-QUALIFIED STOCK OPTION AGREEMENT

         AGREEMENT made this _______ day of _______ 200_, between
_________________ (the "Optionee"), and American IDC Corp. (the "Company").

         1.       GRANT OF OPTION

                  The Company, pursuant to the provisions of the OCTOBER 2004
NON-QUALIFIED STOCK & STOCK OPTION PLAN (the "Plan"), adopted by the Board of
Directors on , 2004, the Company hereby grants to the Optionee, subject to the
terms and conditions set forth or incorporated herein, an option to purchase
from the Company all or any part of an aggregate of shares of its $.001 par
value common stock, as such common stock is now constituted, at the purchase
price of $ per share. The provisions of the Plan governing the terms and
conditions of the Option granted hereby are incorporated in full herein by
reference.

         2.       EXERCISE

                  The Option evidenced hereby shall be exercisable in whole or
in part on or after and on or before , provided that the cumulative number of
shares of common stock as to which this Option may be exercised (except in the
event of death, retirement, or permanent and total disability, as provided in
paragraph 6.9 of the Plan) shall not exceed the following amounts:

         CUMULATIVE NUMBER                        PRIOR TO DATE
             OF SHARES                         (NOTE INCLUSIVE OF)
             ---------                         -------------------

The Option evidenced hereby shall be exercisable by the delivery to and receipt
by the Company of (i) written notice of election to exercise, in the form set
forth in Attachment B hereto, specifying the number of shares to be purchased;
(ii) accompanied by payment of the full purchase price thereof in cash or
certified check payable to the order of the Company, or by fully paid and
nonassessable common stock of the Company properly endorsed over to the Company,
or by a combination thereof, and (iii) by return of this Stock Option Agreement
for endorsement of exercise by the Company on Schedule I hereof. In the event
fully paid and nonassessable common stock is submitted as whole or partial
payment for shares to be purchased hereunder, such common stock will be valued
at their Fair Market Value (as defined in the Plan) on the date such shares
received by the Company are applied to payment of the exercise price.

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         3.       TRANSFERABILITY

                  The Option evidenced hereby is not assignable or transferable
by the Optionee other than by the Optionee's will or by the laws of descent and
distribution, as provided in paragraph 6.9 of the Plan. The Option shall be
exercisable only by the Optionee during his lifetime.

                                                     American IDC Corp.

                                                     By:
                                                     Name:
ATTEST:                                              Title:

------------------------
Secretary

         Optionee hereby acknowledges receipt of a copy of the Plan, attached
hereto and accepts this Option subject to each and every term and provision of
such Plan. Optionee hereby agrees to accept as binding, conclusive and final,
all decisions or interpretations of the of the Board of Directors administering
the Plan on any questions arising under such Plan. Optionee recognizes that if
Optionee's employment with the Company or any subsidiary thereof shall be
terminated without cause, or by the Optionee, prior to completion or
satisfactory performance by Optionee (except as otherwise provided in paragraph
6 of the Plan) all of the Optionee's rights hereunder shall thereupon terminate;
and that, pursuant to paragraph 6 of the Plan, this Option may not be exercised
while there is outstanding to Optionee any unexercised Stock Option granted to
Optionee before the date of grant of this Option.

Dated:
      -----------------           ----------------------------------------------
                                  Optionee

                                  ----------------------------------------------
                                  Print Name

                                  ----------------------------------------------
                                  Address

                                  ----------------------------------------------
                                  Social Security No.

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ATTACHMENT B

                               NOTICE OF EXERCISE

To:      American IDC Corp.

         (1) The undersigned hereby elects to purchase ________ shares of Common
Shares (the "Common Shares"), of American IDC Corp. pursuant to the terms of the
attached Non-Qualified Stock Option Agreement, and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if any.

         (2) Please issue a certificate or certificates representing said shares
of Common Shares in the name of the undersigned or in such other name as is
specified below:

                  -------------------------------
                  (Name)

                  -------------------------------
                  (Address)

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

Dated:

                                                ------------------------------
                                                Signature

                                       14
<PAGE>

Optionee:                                 Date of Grant:
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                                   SCHEDULE I

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                                       15exv4w2

 

EXHIBIT 4.2

THE UNDERWRITER’S WARRANTS EVIDENCED AND REPRESENTED BY THIS CERTIFICATE (THE
“UNDERWRITER’S WARRANTS”) AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF (THE
“WARRANT SHARES”) HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, PURSUANT TO A REGISTRATION STATEMENT FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION. HOWEVER, NEITHER THE UNDERWRITER’S WARRANTS NOR SUCH
WARRANT SHARES MAY BE SOLD, TRANSFERRED, PLEDGED, OR HYPOTHECATED EXCEPT
PURSUANT TO A POST—EFFECTIVE AMENDMENT TO SUCH REGISTRATION STATEMENT, A
SEPARATE REGISTRATION STATEMENT UNDER SUCH ACT, OR AN EXEMPTION FROM
REGISTRATION UNDER SUCH ACT AND UNDER THE APPLICABLE BLUE SKY LAWS.

THIS UNDERWRITER’S WARRANT MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED EXCEPT AS
OTHERWISE PROVIDED HEREIN AND THE HOLDER OF THIS UNDERWRITER’S WARRANT, BY ITS
ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS
UNDERWRITER’S WARRANT EXCEPT AS OTHERWISE PROVIDED HEREIN.

INTEGRATED FINANCIAL SERVICES, INC.

UNDERWRITER’S WARRANT FOR THE PURCHASE OF COMMON STOCK

			
	No. UW-001
	 	170,000 Underwriter’s Warrants

     THIS CERTIFIES that, for receipt in hand of $10.00 and other value
received, J.P. TURNER & COMPANY, L.L.C. (the “Holder”), is entitled to
subscribe for and purchase from Integrated Financial Services, Inc., a Colorado
corporation (the ‘Company”), upon the terms and conditions set forth herein, at
any time, or from time to time, from             , 2004, and before 5:00 p.m.
Mountain time on
            , 2009 (the “Exercise Period”), 170,000 shares of
Common Stock (the “Warrant Shares”) , at a price of $6.00 per Warrant Share
(the “Exercise Price”), or 120% of the offering price of Common Stock sold by
the Company in a public offering (the “Public Offering”) at or prior to the
date hereof.

     The term the “Holder” as used herein shall include any transferee to whom
this Underwriter’s Warrant has been transferred in accordance with the above.
As used herein the term “this Underwriter’s Warrant” shall mean and include
this Underwriter’s Warrant and any Underwriter’s Warrant or Underwriter’s
Warrants hereafter issued as a consequence of the exercise or transfer of this
Underwriter’s Warrant in whole or in part, and the term “Common Stock” shall
mean and include the Company’s common stock with ordinary voting power, which
class at the date hereof is publicly traded.

     1. This Underwriter’s Warrant may not be sold, transferred, assigned,
pledged or hypothecated until                     , 2005 (12 months from the Effective
Pate of the Registration Statement on which it is initially registered) except
that it may be transferred, in whole or in part, (i) to one or more officers,
managers or partners of the Holder (or the officers, managers or partners of
any such partner); (ii) to a member of the underwriting syndicate and/or its
officers or

 

 

partners; or (iii) by operation of law. After                     , 2005, this
Underwriter’s Warrant may be sold, transferred, assigned or hypothecated in
accordance with applicable law.

     2. (a) This Underwriter’s Warrant may be exercised during the Exercise
Period as to the whole or any lesser number of Warrant Shares, by the surrender
of this Underwriter’s Warrant (with the election attached hereto duly executed)
to the Company at its office at 7807 E. Peakview Avenue, #300, Greenwood
Village, Colorado 80111, or such other place as is designated in writing by the
Company, together with a certified or bank cashier’s check payable to the order
of the Company in an amount equal to the Exercise Price multiplied by the
number of Warrant Shares for which this Underwriter’s Warrant is being
exercised.

     (b) Upon written request of the Holder, and in lieu of payment for the
Warrant Shares by check in accordance with paragraph 2(a) hereof, the Holder
may exercise the Underwriter’s Warrant (or any portion thereof) for and receive
the number of Warrant Shares equal to a fraction, the numerator of which equals
(i) the amount by which the Current Market Price of the Common Stock for the
ten (10) trading days preceding the date of exercise exceeds the Exercise Price
per Share, multiplied by (ii) the number of Warrant Shares to be purchased; the
denominator of which equals the Current Market Price.

     (c) For the purposes of any computation under this Underwriter’s Warrant,
the “Current Market Price” at any date shall be the closing price of the Common
Stock on the business day next preceding the event requiring an adjustment
hereunder. If the principal trading market for such securities is an exchange,
the closing price shall be the reported last sale price on such exchange on
such day provided if trading of such Common Stock is listed on any consolidated
tape, the closing price shall be the reported last sale price set forth on such
consolidated tape. If the principal trading market for such securities is the
over-the-counter market or the BBX Exchange, the closing price shall be the
last reported sale price on such date as set forth by The Nasdaq Stock Market,
Inc., or, if the security is not quoted on such market, the average of the
closing bid and asked prices as set forth in the National Quotation Bureau pink
sheets or the Electronic Bulletin Board System for such day. Notwithstanding
the foregoing, if there is no reported last sale price or average closing bid
and asked prices, as the case may be, on a date prior to the event requiring an
adjustment hereunder, then the current market price shall be determined as of
the latest date prior to such day for which such last sale price or average
closing bid and asked prices are available.

     3. Upon each exercise of this Underwriter’s Warrant, the Holder shall be
deemed to be the holder of record of the Warrant Shares issuable upon such
exercise, notwithstanding that the transfer books of the Company shall then be
closed or certificates representing such Warrant Shares shall not then have
been actually delivered to the Holder. As soon as practicable after each such
exercise of this Underwriter’s Warrant, the Company shall issue and deliver to
the Holder a certificate or certificates for the Warrant Shares issuable upon
such exercise, registered in the name of the Holder or its designee. If this
Underwriter’s Warrant should be exercised in part only, the Company shall, upon
surrender of this Underwriter’s Warrant for cancellation, execute and deliver a
new Underwriter’s Warrant evidencing the right of the Holder to purchase the
balance of the Warrant Shares (or portions thereof) subject to purchase
hereunder.

2

 

     4. The Underwriter’s Warrants shall be registered in a Underwriter’s
Warrant Register as they are issued. The Company shall be entitled to treat
the registered holder of any Underwriter’s Warrant on the Underwriter’s Warrant
Register as the owner in fact thereof for all purposes and shall not be bound
to recognize any equitable or other claim to or interest in such Underwriter’s
Warrant on the part of any other person. The Underwriter’s Warrants shall be
transferable only on the books of the Company upon delivery thereof duly
endorsed by the Holder or by its duly authorized attorney or representative, or
accompanied by proper evidence of succession, assignment or authority to
transfer. In all cases of transfer by an attorney, executor, administrator,
guardian or other legal representative, duly authenticated evidence of his or
its authority shall be produced. Upon any registration of transfer, the
Company shall deliver a new Underwriter’s Warrant or Underwriter’s Warrants to
the person entitled thereto. The Underwriter’s Warrants may be exchanged, at
the option of the Holder thereof, for another Underwriter’s Warrant, or other
Underwriter’s Warrants of different denominations, of like tenor and
representing in the aggregate the right to purchase a like number of Warrant
Shares (or portions thereof) upon surrender to the Company or its duly
authorized agent. Notwithstanding the foregoing, the Company shall have no
obligation to cause the Underwriter’s Warrants to be transferred on its books
to any person if, in the opinion of counsel to the Company, such transfer does
not comply with the provisions of the Securities Act of 1933, as amended (the
“Act”), or applicable state blue sky laws and the rules and regulations
thereunder.

     5. The Company shall at all times reserve and keep available out of its
authorized and unissued Common Stock, solely for the purpose of providing for
the exercise of this Underwriter’s Warrant, such number of shares of Common
Stock as shall, from time to time, be sufficient therefor. The Company
covenants that all Warrant Shares issuable upon exercise of this Underwriter’s
Warrant shall be validly issued, fully paid, nonassessable, and free of
preemptive rights.

     6. (a) If the Company shall at any time subdivide its outstanding Common
Stock by recapitalization, reclassification or split-up thereof, the number of
Warrant Shares subject to this Underwriter’s Warrant immediately prior to such
subdivision shall be proportionately increased, and if the Company shall at any
time combine the outstanding Common Stock by recapitalization, reclassification
or combination thereof, the number of Warrant Shares subject to this
Underwriter’s Warrant immediately prior to such combination shall be
proportionately decreased. Any corresponding adjustment to the Exercise Price
shall become effective at the close of business on the record date for such
subdivision or combination.

     (b) If the Company after the date hereof shall distribute to the holders
of its Common Stock any securities or other assets (other than a distribution
of Common Stock or a cash distribution made as a dividend payable out of
earnings or out of any earned surplus legally available for dividends under the
laws of the jurisdiction of incorporation of the Company), the Board of
Directors shall be required to make such equitable adjustment in the Exercise
Price in effect immediately prior to the record date of such distribution as
may be necessary to preserve the rights substantially proportionate to those
enjoyed hereunder by the Holder immediately prior to such distribution. Any
such adjustment made in good faith by the Board of Directors shall be final and
binding upon the Holder and shall become effective as of the record date for
such distribution.

3

 

     (c) No adjustment in the number of Warrant Shares subject to this
Underwriter’s Warrant shall be required unless such adjustment would require an
increase or decrease in such number of Warrant Shares of at least 1% of the
then adjusted number of Warrant Shares issuable upon exercise of this
Underwriter’s Warrant; provided, however, that any adjustments which by reason
of the foregoing are not required at the time to be made shall be carried
forward and taken into account and included in determining the amount of any
subsequent adjustment; and provided further, however, that in case the Company
shall at any time subdivide or combine the outstanding Common Stock or issue
any additional Common Stock as a dividend, said percentage shall forthwith be
proportionately increased in the case of a combination or decreased in the case
of a subdivision or dividend of Common Stock so as to appropriately reflect the
same. If the Company shall make a record of the holders of its Common Stock
for the purpose of entitling them to receive any dividend or distribution and
legally abandon its plan to pay or deliver such dividend or distribution then
no adjustment in the number of Warrant Shares subject to this Underwriter’s
Warrant shall be required by reason of the making of such record.

     (d) Whenever the number of Warrant Shares purchasable upon the exercise of
this Underwriter’s Warrant is adjusted as provided herein, the Exercise Price
shall be adjusted (to the nearest one tenth of a cent) by respectively
multiplying such Exercise Price immediately prior to such adjustment by a
fraction, the numerator of which shall be the number of Warrant Shares
purchasable upon the exercise of this Underwriter’s Warrant immediately prior
to such adjustment, and the denominator of which shall be the number of Warrant
Shares purchasable immediately thereafter.

     (e) In case of any reclassification of the outstanding Common Stock (other
than a change covered by (a) hereof or which solely affects the par value of
such Common Stock) or in the case of any merger or consolidation of the Company
with or into another corporation (other than a consolidation or merger in which
the Company is the continuing corporation and which does not result in any
reclassification or capital reorganization of the outstanding Common Stock), or
in the case of any sale or conveyance to another corporation of the property of
the Company as an entirety or substantially as an entirety in connection with
which the Company is dissolved, the Holder of this Underwriter’s Warrant shall
have the right thereafter (until the expiration of the right of exercise of
this Underwriter’s Warrant) to receive upon the exercise hereof, for the same
aggregate Exercise Price payable hereunder immediately prior to such event, the
kind and amount of shares of stock or other securities or property receivable
upon such reclassification, capital reorganization, merger or consolidation, or
upon the dissolution following any sale or other transfer, by a holder of the
number of Warrant Shares obtainable upon the exercise of this Underwriter’s
Warrant immediately prior to such event; and if any reclassification also
results in a change in Common Stock covered by (a) above, then such adjustment
shall be made pursuant to both this paragraph (e) and paragraph (a). The
provisions of this paragraph (e) shall similarly apply to successive
reclassifications, or capital reorganizations, mergers or consolidations, sales
or other transfers.

     If the Company after the date hereof shall issue or agree to issue Common
Stock or convertible securities, other than as described herein, and such
issuance or agreement would in the opinion of the Board of Directors of the
Company materially affect the rights of the Holders of the Underwriter’s
Warrants, the Exercise Price and the number of Warrant Shares purchasable

4

 

upon exercise of the Underwriter’s Warrants shall be adjusted in such
matter, if any, and at such time as the Board of Directors of the Company, in
good faith, may determine to be equitable in the circumstances. The minutes or
unanimous consent approving such action shall set forth the Board of Director’s
determination as to whether an adjustment is warranted and the manner of such
adjustment. In the absence of such determination, any Holder may request in
writing that the Board of Directors make such determination. Any such
determination made in good faith by the Board of Directors shall be final and
binding upon the Holders. If the Board fails, however, to make such
determination within sixty (60) days after such request, such failure shall be
deemed a determination that an adjustment is required.

     (f) (i) Upon occurrence of each event requiring an adjustment of the
Exercise Price and of the number of Warrant Shares purchasable upon exercise of
this Underwriter’s Warrant in accordance with, and as required by, the terms
hereof, the Company shall forthwith employ a firm of certified public
accountants (who may be the regular accountants for the Company) who shall
compute the adjusted Exercise Price and the adjusted number of Warrant Shares
purchasable at such adjusted Exercise Price by reason of such event in
accordance herewith. The Company shall give to each Holder of the
Underwriter’s Warrants a copy of such computation which shall be conclusive and
shall be binding upon such Holders unless contested by Holders by written
notice to the Company within thirty (30) days after receipt thereof. No such
computation shall be required in instances where the Exercise Price and the
number of Warrant Shares are adjustable in an amount of less than 5%.

          (ii) In case the Company after the date hereof shall propose (A) to pay any
dividend payable in stock to the holders of its Common Stock or to make any
other distribution (other than cash dividends) to the holders of its Common
Stock or to grant rights to subscribe to or purchase any additional shares of
any class or any other rights or options to holders of its Common Stock, (B) to
effect any reclassification involving merely the subdivision or combination of
outstanding Common Stock, or (C) any capital reorganization or any
consolidation or merger, or any sale, transfer or otter disposition of its
property, assets and business substantially as an entirety, or the liquidation,
dissolution or winding up of the Company, then in each such case, the Company
shall obtain the computation described above and if an adjustment to the
Exercise Price is required, the Company shall notify the Holders of the
Underwriter’s Warrants of such proposed action, which shall specify the record
date for any such action or if no record date is established with respect
thereto, the date on which such action shall occur or commence, or the date of
participation therein by the holders of Common Stock if any such date is to be
fixed, and shall also set forth such facts with respect thereto as shall be
reasonably necessary to indicate the effect of such action on the Exercise
Price and the number, or kind, or class of shares or other securities or
property obtainable upon exercise of this Underwriter’s Warrant after giving
effect to any adjustment which will be required as a result of such action.
Such notice shall be given at least twenty (20) days prior to the record date
for determining holders of the Common Stock for purposes of any such action,
and in the case of any action for which a record date is not established then
such notice shall be mailed at least twenty (20) days prior to the taking of
such proposed action.

     (iii) Failure to file any certificate or notice or to give any notice, or
any defect in any certificate or notice, shall not effect the legality or
validity of the adjustment in the

5

 

Exercise Price or in the number, or kind, or class of shares or other
securities or property obtainable upon exercise of the Underwriter’s Warrants
or of any transaction giving rise thereto.

     (g) The Company shall not be required to issue fractional Warrant Shares
upon any exercise of the Underwriter’s Warrants. As to any final fraction of a
Share which the Holder of a Underwriter’s Warrant would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to the same fraction of the
market price of a share of such stock on the business day preceding the day of
exercise. The Holder of a Underwriter’s Warrant, by his acceptance of a
Underwriter’s Warrant, expressly waives any right to receive any fractional
Warrant Shares.

     (h) Regardless of any adjustments pursuant to this section in the Exercise
Price or in the number, or kind, or class of shares or other securities or
other property obtainable upon exercise of a Underwriter’s Warrant, a
Underwriter’s Warrant may continue to express the Exercise Price and the number
of Warrant Shares obtainable upon exercise at the same price and number of
Warrant Shares as are stated herein.

     (i) The number of Warrant Shares, the Exercise Price and all other terms
and provisions of the Company’s agreement with the Holder of this Underwriter’s
Warrant shall be determined exclusively pursuant to the provisions hereof.

     (j) The above provisions of this section 6 shall similarly apply to
successive transactions which require adjustments.

     (k) Notwithstanding any other language to the contrary herein, (i) the
anti-dilution terms of this Underwriter’s Warrant will not be enforced so as to
provide the Holder the right to receive, or for the accrual of, cash dividends
price to the exercise of this Underwriter’s Warrant, and (ii) the anti-dilution
terms of this Underwriter’s Warrant will not be enforced in such a manner as to
provide the Holder with disproportionate rights, privileges and economic
benefits not provided to purchasers of the Common Stock in the Public Offering.

     7. The issuance of any Warrant Shares or other securities upon the
exercise of this Underwriter’s Warrant and the delivery of certificates or
other instruments representing such securities, or other securities, shall be
made without charge to the Holder for any tax or other charge in respect of
such issuance. The Company shall not, however, be required to pay any tax
which may be payable in respect of any transfer involved in the issue and
delivery of any certificate in a name other than that of the Holder and the
Company shall not be required to issue or deliver any such certificate unless
and until the person or persons requesting the issue thereof shall have paid to
the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

     8. (a) If, at any time after                     , 2004 (the Effective Date of
the Registration Statement) , and ending                      , 2011 (seven years after the
Effective Date of the Registration Statement), the Company shall file a
registration statement (other than on Form S-4,

Form S-B, or any successor
form) with the Securities and Exchange Commission (the “Commission”) while
Warrant Shares are available for purchase upon exercise of this Underwriter’s
Warrant or while any Warrant Shares (collectively, the Underwriter’s Warrants

6

 

and the underlying Warrant Shares, the “Underwriter’s Securities”) are
outstanding, the Company shall, on two occasions only, give the Holder and all
the then holders of such Underwriter’s Securities at least 30 days prior
written notice of the filing of such registration statement. If requested by
the Holder or by any such holder in writing within 20 days after receipt of any
such notice, the Company shall, at the Company’s sole expense (other than the
fees and disbursements of counsel for the Holder or such holder and the
underwriting discounts, if any, payable in respect of the securities sold by
the Holder or any such holder), register or qualify the Warrant Shares of the
Holder or any such holders who shall have made such request concurrently with
the registration of such other securities, all to the extent requisite to
permit the public offering and sale of the Warrant Shares requested to be
registered, and will use its best efforts through its officers, directors,
auditors and counsel to cause such registration statement to become effective
as promptly as practicable. Notwithstanding the foregoing, if the managing
underwriter of any such offering shall advise the Company in writing that, in
its opinion, the distribution of all or a portion of tie Warrant Shares
requested to be included in the registration concurrently with the securities
being registered by the Company would materially adversely affect the
distribution of such securities by the Company for its own account, then the
Holder or any such holder who shall have requested registration of his or its
Warrant Shares shall delay the offering and sale of such Warrant Shares (or the
portions thereof so designated by such managing underwriter) for such period,
not to exceed 90 days, as the managing underwriter shall request, provided that
no such delay shall be required as to any Warrant Shares if any securities of
the Company are included in such registration statement for the account of any
person other than the Company and the Holder unless the securities included in
such registration statement for such other person shall have been reduced pro
rata to the reduction of the Warrant Shares which were requested to be included
in such registration.

     (b) If at any time after                     , 200   (one year after the Effective
Date of the Registration Statement), and before                     , 200   (five years
after the Effective Date of the Registration Statement), the Company shall
receive a written request from holders of Underwriter’s Securities who, in the
aggregate, own (or upon exercise of all Representatives Warrants will own) a
majority of the total number of Warrant Shares, the Company shall, as promptly
as practicable, prepare and file with the Commission a registration statement
sufficient to permit the public offering and sale of the Warrant Shares, and
will use its best efforts through its officers, directors, auditors and counsel
to cause such registration statement to become effective as promptly as
practicable; provided, however, that the Company shall only be obligated to
file and obtain effectiveness of one such registration statement for which all
expenses incurred in connection with such registration (other than the fees and
disbursements of counsel for the Holder or such holders and underwriting
discounts, if any, payable in respect of the Warrant Shares, sold by the Holder
or any such holder) shall be borne by the Company.

     (c) In addition to the rights above provided, the Company will cooperate
with the then holders of the Underwriter’s Securities in preparing and signing
a registration statement, on two occasions only, in addition to the
registration statement discussed above, required in order to sell or transfer
the Warrant Shares and will supply all information required therefor, but such
additional registration statements shall be at the then holders’ cost and
expense unless the Company elects to register additional shares of the
Company’s Common Stock in which case the cost and expense of such registration
statement will be prorated between the Company and the

7

 

Holders of the Warrant Shares according to the aggregate sales prices of
the securities being issued.

     (d) In the event of a registration pursuant to the provisions of this
paragraph 8, the Company shall use its best efforts to cause the Warrant Shares
so registered to be registered or qualified for sale under the securities or
blue sky laws of such jurisdictions as the Holder or such holders may
reasonably request; provided, however, that the Company shall not be required
to qualify to do business in any state by reason of this paragraph 8(d) in
which it is not otherwise required to qualify to do business and provided
further, that the Company has no obligation to qualify the Warrant Shares where
such qualification would cause any unreasonable delay or expenditure by the
Company.

     (e) The Company shall keep effective any registration or qualification
contemplated by this paragraph 8 and shall from time to time amend or
supplement each applicable registration statement, preliminary prospectus,
final prospectus, application, document and communication for such period of
time as shall be required to permit the Holder or such holders to complete the
offer and sale of the Warrant Shares covered thereby. The Company shall in no
event be required to keep any such registration or qualification in effect for
a period in excess of nine months from the date on which the Holder and such
holders are first free to sell such Warrant Shares; provided, however, that if
the Company is required to keep any such registration or qualification in
effect with respect to securities other than the Warrant Shares beyond such
period, the Company shall keep such registration or qualification in effect as
it relates to the Warrant Shares for so long as such registration or
qualification remains or is required to remain in effect in respect of such
other securities.

     (f) In the event of a registration pursuant to the provisions of this
paragraph 8, the Company shall furnish to the Holder and to each such holder
such reasonable number of copies of the registration statement and of each
amendment and supplement thereto (in each case, including all exhibits), such
reasonable number of copies of each prospectus contained in such registration
statement and each supplement or amendment thereto (including each preliminary
prospectus), all of which shall conform to the requirements of the Act and the
rules and regulations thereunder, and such other documents as the Holder or
such holders may reasonably request in order to facilitate the disposition of
the Warrant Shares included in such registration.

     (g) In the event of a registration pursuant to the provisions of this
paragraph 8, the Company shall furnish the Holder and each holder of any
Warrant Shares so registered with an opinion of its counsel to the effect that
(i) the registration statement has become effective under the Act and no order
suspending the effectiveness of the registration statement, preventing or
suspending the use of the registration statement, any preliminary prospectus,
any final prospectus, or any amendment or supplement thereto has been issued,
nor to such counsel’s actual knowledge has the Securities and Exchange
Commission or any securities or blue sky authority of any jurisdiction
instituted or threatened to institute any proceedings with respect to such an
order, and (ii) the registration statement and each prospectus forming a part
thereof (including each preliminary prospectus), and any amendment or
supplement thereto, complies as to form with the Act and the rules and
regulations thereunder. Such counsel shall also provide a

8

 

Blue Sky Memorandum setting forth the jurisdictions in which the Warrant
Shares have been registered or qualified for sale pursuant to the provisions of
paragraph 8(c).

     (h) The Company agrees that until all the Warrant Shares have been sold
under a registration statement or pursuant to Rule 144 under the Act, it shall
keep current in filing all reports, statements and other materials required to
be filed with the Commission to permit holders of the Warrant Shares to sell
such securities under Rule 144.

     (i) The Holder and any holders who propose to register their Warrant
Shares under the Act shall execute and deliver to the Company a selling
stockholder questionnaire on a form to be provided by the Company.

     (j) The Company shall not be required by the terms hereof to file a
registration statement if, in the opinion of counsel to the holders of the
Underwriter’s Securities and counsel for the Company (or, should they not
agree, in the opinion of another counsel experienced in securities law matters
acceptable to counsel for the holders of Underwriter’s Securities and the
Company), the proposed public offering or other transfer as to which such
registration statement is requested to be filed is exempt from applicable
federal and state securities laws, rules, regulations and would result in
unaffiliated purchasers or transferees obtaining securities that are not
“restricted securities” as that term is defined in Rule 144 under the Act.

     9. (a) Subject to the conditions set forth below, the Company agrees to
indemnify and hold harmless the Holder, any holder of any of the Underwriter’s
Securities, their officers, directors, partners, employees, agents and counsel,
and each person, if any, who controls any such person within the meaning of
Section 15 of the Act or Section 20(a) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), from and against any and all loss, liability,
charge, claim, damage and expense whatsoever (which shall include, for all
purposes of this Section 9, but not be limited to, attorneys’ fees, expert
witness fees, and any and all expense whatsoever incurred in investigating,
preparing or defending against any litigation, commenced or threatened, or any
claim whatsoever, and any and all amounts paid in settlement of any claim or
litigation), as and when incurred, arising out of, based upon, or in connection
with (i) any untrue statement or alleged untrue statement of a material fact
contained (A) in any registration statement, preliminary prospectus or final
prospectus (as from time to time amended and supplemented), or any amendment or
supplement thereto, or (B) in any application or other document or
communication (in this Section 9 collectively called an “application”) executed
by or on behalf of the Company or based upon written information furnished by
or on behalf of the Company filed in any jurisdiction in order to register or
qualify any of the Underwriter’s Securities under the securities or blue sky
laws thereof or filed with the Commission or any securities exchange; or any
omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, unless such
statement or omission was made in reliance upon and in conformity with written
information furnished to the Company with respect to the Holder or any holder
of any of the Underwriter’s Securities by or on behalf of such person expressly
for inclusion in any registration statement, preliminary prospectus, or final
prospectus, or any amendment or supplement thereto, or in any application, as
the case may be, or (ii) any breach of any representation, warranty, covenant
or agreement of the Company contained in this Underwriter’s Warrant. The
foregoing agreement to indemnify

9

 

shall be in addition to any liability the Company may otherwise have,
including liabilities arising under this Underwriter’s Warrant. If any action
is brought against the Holder or any holder of any of the Underwriter’s
Securities or any of its officers, directors, partners, employees, agents or
counsel, or any controlling persons of such person (an “indemnified party”) in
respect of which indemnity may be sought against the Company pursuant to the
foregoing paragraph, such indemnified party or parties shall promptly notify
the Company in writing of the institution of such action (but the failure so to
notify shall not relieve the Company from any liability it may otherwise have
to Holder or any holder of any of the Underwriter’s Securities) and the Company
shall promptly assume the defense of such action, including the employment of
counsel (reasonably satisfactory to such indemnified party or parties) and
payment of expenses. Such indemnified party or parties shall have the right to
employ its or their own counsel in any such case, but the fees and expenses of
such counsel shall be at the expense of such indemnified party or parties
unless the employment of such counsel shall have been authorized in writing by
the Company in connection with the defense of such action or the Company shall
not have promptly employed counsel reasonably satisfactory to such indemnified
party or parties to have charge of the defense of such action or such
indemnified party or parties shall have reasonably concluded that there may be
one or more legal defenses available to it or them or to other indemnified
parties which are different from or additional to those available to the
Company, in any of which events such fees and expenses shall be borne by the
Company and the Company shall not have the right to direct the defense of such
action on behalf of the indemnified party or parties; provided, however, that
the Company shall in no event be responsible or liable for the fees and
expenses of more than two law firms in connection with any such proceeding.
Anything in this paragraph to the contrary notwithstanding, the Company shall
not be liable for any settlement of any such claim or action effected without
its written consent.

     (b) The Holder and each holder agrees to indemnify and hold harmless the
Company, each director of the Company, each officer of the Company who shall
have signed any registration statement covering the Underwriter’s Securities
held by the Holder and each holder and each other person, if any, who controls
the Company within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act, to the same extent as the foregoing indemnity from the Company to
the Holder and each holder in paragraph 9(a), but only with respect to
statements or omissions, if any, made in any registration statement,
preliminary prospectus, or final prospectus (as from time to time amended and
supplemented), or any amendment or supplement thereto, or in any application,
in reliance upon and in conformity with written information furnished to the
Company with respect to the Holder and each holder by or on behalf of the
Holder and each holder expressly for inclusion in any such registration
statement, preliminary prospectus, or final prospectus, or any amendment or
supplement thereto, or in any application, as the case may be. If any action
shall be brought against the Company or any other person so indemnified based
on any such registration statement, preliminary prospectus, or final
prospectus, or any amendment or supplement thereto, or in any application, and
in respect of which indemnity may be sought against the Molder and each holder
pursuant to this paragraph 9(b), the Holder and each holder shall have the
rights and duties given to the Company, and the Company and each other person
so indemnified shall have the rights and duties given to the indemnified
parties, by the provisions of paragraph 9(a).

     (c) To provide for just and equitable contribution, if (i) an indemnified
party makes a claim for indemnification pursuant to paragraph 9(a) or 9(b)
(subject to the limitations

10

 

thereof) but it is found in a final judicial determination, not subject to
further appeal, that such indemnification may not be enforced in such case,
even though this Agreement expressly provides for indemnification in such case,
or (ii) any indemnified or indemnifying party seeks contribution under the Act,
the Exchange Act or otherwise because the indemnification provided for in this
Section 9 is for any reason held to be unenforceable by the Company and the
Holder and any holder, then the Company (including for this purpose any
contribution made by or on behalf of any director of the Company, any officer
of the Company who signed any such registration statement and any controlling
person of the Company), as one entity, and the Holder and any holder of any of
the Underwriter’s Securities included in such registration in the aggregate
(including for this purpose any contribution by or on behalf of the Holder or
any holder), as a second entity, shall contribute to the losses, liabilities,
claims, damages and expenses whatsoever to which any of them may be subject, on
the basis of relevant equitable considerations such as the relative fault of
the Company and the Holder or any such holder in connection with the facts
which resulted in such losses, liabilities, claims, damages and expenses. The
relative fault, in the case of an untrue statement, alleged untrue statement,
omission or alleged omission, shall be determined by, among other things,
whether such statement, alleged statement, omission or alleged omission relates
to information supplied by the Company, by the Holder or by any holder of
Representatives Securities included in such registration, and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement, alleged statement, omission or alleged omission. The
Company and the Holder agree that it would be unjust and inequitable if the
respective obligations of the Company and the Holder for contribution were
determined by pro rata or per capita allocation of the aggregate losses,
liabilities, claims, damages and expenses (even if the Holder and the other
indemnified parties were treated as one entity for such purpose) or by any
other method of allocation that does not reflect the equitable considerations
referred to in this paragraph 9(c). No person guilty of a fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who is not guilty of such fraudulent
misrepresentation. For purposes of this paragraph 9(c), each person, if any,
who controls the Holder or any holder of any of the Underwriter’s Securities
within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
Act and each officer, director, partner, employee, agent and counsel of each
such person, shall have the same rights to contribution as such person and each
person, if any, who controls the Company within the meaning of Section 15 of
the Act or Section 20(a) of the Exchange Act, each officer of the Company who
shall have signed any such registration statement, and each director of the
Company shall have the same rights to contribution as the Company, subject in
each case to the provisions of this paragraph 9(c). Anything in this paragraph
9(c) to the contrary notwithstanding, no party shall be liable for contribution
with respect to the settlement of any claim or action effected without its
written consent. This paragraph 9(c) is intended to supersede any right to
contribution under the Act, the Exchange Act or otherwise.

     10. Unless the Warrant Shares have been registered or an exemption from
such registration is available, the Warrant Shares issued upon exercise of the
Underwriter’s Warrants shall be subject to a stop transfer order and the
certificate or certificates evidencing any such Warrant Shares shall bear the
following legend:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, NOR HAVE THEY BEEN REGISTERED

11

 

UNDER THE SECURITIES (“BLUE SKY”) LAWS OF ANY STATE. THESE
SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED, OR HYPOTHECATED
UNLESS THEY HAVE FIRST BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 AND UNDER THE APPLICABLE STATE SECURITIES (“BLUE SKY”) LAWS
OR UNLESS THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER
SUCH ACT AND LAWS IS ESTABLISHED TO THE SATISFACTION OF THE
COMPANY, WHICH MAY NECESSITATE A WRITTEN OPINION OF SELLER’S
COUNSEL SATISFACTORY TO COMPANY COUNSEL.

     11. Upon receipt of evidence satisfactory to the Company of the loss,
theft, destruction or mutilation of any Underwriter’s Warrant (and upon
surrender of any Underwriter’s Warrant if mutilated), and upon reimbursement of
the Company’s reasonable incidental expenses and receipt of an indemnity
agreement from any Holder seeking a new Underwriter’s Warrant, the Company
shall execute and deliver to the Holder thereof a new Underwriter’s Warrant of
like date, tenor and denomination.

     12. The Holder of any Underwriter’s Warrant shall not have, solely on
account of such status, any rights of a stockholder of the Company, either at
law or in equity, or to any notice of meetings of stockholders or of any other
proceedings of the Company, except as provided in this Underwriter’s Warrant.

     13. This Underwriter’s Warrant shall be construed in accordance with the
laws of the State of Colorado, without giving effect to conflict of laws.

Dated:                     , 200  

	 	 	 	 	 
	 	INTEGRATED FINANCIAL

SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	John C. Herbers, President 	 
	 	 	 	 
	 

12

 

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires

tto transfer the attached Underwriter’s Warrant.)

     FOR VALUE RECEIVED,                      hereby sells, assigns and
transfers unto                      Underwriter’s Warrants to purchase                     
shares of Common Stock of Integrated Financial Services, Inc. (the “Company”),
together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint                      attorney to transfer such
Underwriter’s Warrants on the books of the Company, with full power of
substitution.

     Dated:                     , 200  

	 	 	 
	 

	 	Signature:
	

	 	
 
	 

	 	Signature Guaranteed:
	

	 	
 

 

 

NOTICE

     The signature on the foregoing Assignment must correspond to the name as
written upon the face of this Underwriter’s Warrant in every particular,
without alteration or enlargement or any change whatsoever. Signature(s) must
be guaranteed by an eligible guarantor institution which is a participant in a
Securities Transfer Association recognized program.

ELECTION TO EXERCISE

(To be executed by the holder if such holder desires to

exercise the attached Underwriter’s Warrant)

     The undersigned hereby exercises his or its rights to subscribe for shares
of Common Stock covered by the within Underwriter’s Warrant (each as defined in
the within Underwriter’s Warrant) and tenders payment herewith in the amount of
$                      in accordance with the terms thereof, and requests that
certificates for such Warrants be issued in the name of, and delivered to:

(Print Name, Address and Social Security or
Tax Identification Number)

and, if such number of Warrants (or portions thereof) shall not be all the
Warrants covered by the within Underwriter’s Warrant, that a new Underwriter’s
Warrant for the balance of the Underwriter’s Warrants (or portions thereof)
covered by the within Underwriter’s Warrant be registered in the name of, and
delivered to, the undersigned at the address stated below.

	 	 	 	 	 
	Name:
	 	 	 	 
	 
	 	
 
	

	 	 	 	(Print)
	Address:
	 	 	 	 
	 
	 	
 
	Dated:
	 	 	 	 
	 
	 	
 
	Signature:
	 	 	 	 
	 
	 	
 
	Signature Guaranteed:
	 	 	 	 
	 
	 	
 

 

 

NOTICE

     The signature on the foregoing Assignment must correspond to the name as
written upon the face of this Underwriter’s Warrant in every particular,
without alteration or enlargement or any change whatsoever. Signature(s) must
be guaranteed by an eligible guarantor institution which is a participant in a
Securities Transfer Association recognized program.

2

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