Document:

Trilogy Warrant Assignment

EXHIBIT
10.4

ASSIGNMENT
AGREEMENT

THIS
ASSIGNMENT AGREEMENT is entered into this 7th day of
April, 2005 by and between Trilogy Capital Partners, Inc. (“Trilogy”) and
Entrada Networks, Inc. (“Entrada”).

BACKGROUND

Under the
terms of a Letter of Engagement between Trilogy and Entrada dated November 10,
2004, Entrada issued to Trilogy a warrant to purchase up to 10,000,000 shares of
Entrada’s common stock (the “Common
Stock”) at a
per share exercise price of $0.12 (the “Original
Warrant Certificate”).

Under the
terms of a Termination Agreement dated as of the date hereof, Trilogy has agreed
to assign to Entrada that portion of the Original Warrant Certificate that
evidences the right to purchase 8,500,000 shares of Common Stock, and retain
that portion of the Original Warrant Certificate evidencing the right to
purchase 1,500,000 shares of Common Stock. 

NOW,
THEREFORE, in consideration of the foregoing, the mutual promises of the parties
hereto and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

1. Trilogy
hereby assigns, transfers, sells and sets over unto Entrada all of Trilogy’s
right, title and interest in that portion of the Original Warrant Certificate
that evidences the right to purchase 8,500,000 shares of Common Stock, and
Entrada accepts such assignment.

2. The
assignment described in Section 1 above is expressly conditioned upon the
delivery by Entrada to Trilogy of a new warrant certificate evidencing the
1,500,000 share portion of the Original Warrant Certificate that is not assigned
to Entrada hereunder.

3. The
assignment described in Section 1 above is made by Trilogy without recourse or
warranty, express or implied, except that Trilogy warrants that (i) it is the
owner and holder of the Original Warrant Certificate, (ii) it has not assigned,
transferred, pledged or hypothecated any interest in the Original Warrant
Certificate, and (iii) it has the full right and authority to transfer and
convey the interests described herein.

4. This
Agreement shall be governed and construed under the laws of the State of
California.

5. This
Agreement may be signed in any number of counterparts, which counterparts shall
be treated as originals for all purposes, and all so executed shall constitute
one agreement, binding on all of the parties hereto, notwithstanding that all
parties are not signatory to the same counterpart.

6. This
Agreement and the Termination Agreement constitute the entire Agreement among
the parties, supersede all prior agreements, and may not be modified or amended
except in writing executed by all parties hereto.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement as
of the day and year first above written.

	
      ENTRADA
      NETWORKS, INC.

       

       

      By:
      /s/ Kanwar J. S. Chadha

      Kanwar
      J.S. Chadha Ph.D

      President
      and Chief Executive Officer
	
      TRILOGY
      CAPITAL PARTNERS, INC.

       

       

      By:
      /s/ Paul Karon

      Paul
      Caron, PresidentTrilogy remaining warrant

EXHIBIT
10.5

THE
SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED,
ENCUMBERED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR SUCH SHARES UNDER THE ACT OR UNLESS AN EXEMPTION FROM REGISTRATION UNDER THE
ACT IS AVAILABLE.

                                 

	 Date of Issue:  	 Warrant to
      Purchase:
	 November 10, 2004	  Up
      to 1,500,000 shares of Common
      Stock
	 	 

                          

 

ENTRADA
NETWORKS, INC.

WARRANT

Entrada
Networks, Inc., a Delaware corporation (“Entrada”),
certifies that, for value received, Trilogy Capital Partners, Inc.
(“Trilogy”), is
entitled, subject to the provisions of this Warrant (the “Warrant”) and
upon surrender of the Warrant to Entrada, to purchase from Entrada up to One
Million Five Hundred Thousand (1,500,000) shares of Common Stock of Entrada, par
value $0.001 per share (the “Shares”), at a
per share exercise price of $0.12 (the “Exercise
Price”), on
the terms and conditions set forth in the Warrant. As long as Entrada has a
class of securities registered under Section 12 of the Securities Exchange Act
of 1934, as amended, Trilogy will not be entitled to exercise the Warrant to
purchase Shares in an amount that, immediately following such purchase, would
result in Trilogy beneficially owning five percent (5%) or more of the
outstanding shares of Common Stock of Entrada. The Exercise Price and the number
of Shares issuable upon the exercise of the Warrant are subject to adjustment as
set forth below. 

1. Vesting;
Expiration Date; Exercise

1.1 .
 Vesting.
The Warrant shall become exercisable, in whole or in part, on the earlier of (a)
the effective date of the Registration Statement (as defined below) under which
any of the Shares are registered or (b) January 1, 2005 (the “Vesting
Date”).

1.2 Exercise
Period and Expiration Date. The Warrant shall expire on November 30, 2006 (the
“Expiration
Date”).

1.3 Manner of
Exercise. The Warrant is exercisable by Trilogy’s delivery to Entrada of the
following (the “Exercise
Documents”): (a)
the Warrant; (b) the Notice of Election in substantially the form attached
hereto as Exhibit
A; and (c)
payment of the Exercise Price in cash or by check. Within five (5) days
following receipt of the foregoing, Entrada shall execute and deliver to
Trilogy: (a) a certificate or certificates representing the aggregate number of
Shares purchased by Trilogy, and (b) if less than all of the Shares issuable
under the Warrant are purchased, a new Warrant representing the Shares not so
purchased.

1.4  Restrictive
Legend. Each certificate representing Shares issued to Trilogy following the
exercise of the Warrant shall bear the following restrictive legend until such
time as the transfer of such Shares is not restricted under the federal and
state securities laws:

THE
SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED,
ENCUMBERED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR SUCH SHARES UNDER THE ACT OR UNLESS AN EXEMPTION FROM REGISTRATION UNDER THE
ACT IS AVAILABLE.

2. Adjustments
of Exercise Price and Number and Kind of Conversion Shares

2.1 In the
event that Entrada shall at any time hereafter (a) pay a dividend in Common
Stock or securities convertible into Common Stock, (b) subdivide or split its
outstanding Common Stock or (c) combine its outstanding Common Stock into a
smaller number of shares, then, in each such case, the number of Shares to be
issued immediately after the occurrence of any such event shall be adjusted so
that Trilogy thereafter may receive the number of shares of Common Stock it
would have owned immediately following such event if it had exercised the
Warrant immediately prior to such action and the Exercise Price shall be
adjusted to reflect such proportionate increases or decreases in the number of
shares.

2.2  In case
of any reclassification of the outstanding shares of Common Stock of Entrada
(other than a change covered by Section 2.1 hereof or a change which solely
affects the par value of such shares) or in the case of any merger or
consolidation or merger in which Entrada is not the surviving entity and which
results in any reclassification or capital reorganization of the outstanding
shares of Common Stock of Entrada, Trilogy will have the right thereafter (until
the Expiration Date) 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 that Trilogy
would have received had it exercised the Warrant immediately prior to such
event. If any reclassification also results in a change in the shares of Entrada
covered by Section 2.1 hereof, then such adjustment shall be made pursuant to
both this Section 2.2 and Section 2.1. The provisions of this Section 2.2 shall
similarly apply to successive reclassifications, capital reorganizations,
mergers, consolidations, sales or other transfers.

3. Nontransferability.
Trilogy
may not sell or transfer all or any portion of the Warrant to any person other
than an affiliate of Trilogy without the written consent of Entrada.

4. Reservation
of Shares. Entrada
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, such number of shares of Common Stock as shall from time
to time be issuable upon exercise of the Warrant. If at any time the number of
authorized but unissued shares of Common Stock shall not be sufficient to permit
the exercise of the Warrant, Entrada shall promptly seek such corporate action
as may necessary to increase its authorized but unissued shares of Common Stock
to such number of shares as shall be sufficient for such purpose.

5. Certificate
as to Adjustments. In each
case of any adjustment in the Exercise Price, or number or type of shares
issuable upon exercise of the Warrant, the Chief Financial Officer of Entrada
shall compute such adjustment in accordance with the terms of the Warrant and
prepare a certificate setting forth such adjustment and showing in detail the
facts upon which such adjustment is based, including a statement of the adjusted
Exercise Price and the number of shares for which the Warrant is exercisable.
Entrada shall promptly send (by facsimile and by either first class mail,
postage prepaid or overnight delivery) a copy of each such certificate to
Trilogy.

6. Loss
or Mutilation. Upon
receipt of evidence reasonably satisfactory to Entrada of the ownership of and
the loss, theft, destruction or mutilation of the Warrant, and of indemnity
reasonably satisfactory to Entrada, and (in the case of mutilation) upon
surrender and cancellation of the Warrant, Entrada will execute and deliver in
lieu thereof a new warrant of like tenor as the lost, stolen, destroyed or
mutilated Warrant and the lost, stolen or destroyed Warrant will thereupon
become void.

7. Representations
and Warranties of Entrada. Entrada
hereby represents and warrants to Trilogy that:

7.1 Due
Authorization. All corporate action on the part of Entrada, its officers,
directors and stockholders necessary for (a) the authorization, execution and
delivery of, and the performance of all obligations of Entrada under the Warrant
and (b) the authorization, issuance, reservation for issuance and delivery of
all of the Shares issuable upon exercise of the Warrant, has been duly taken.
The Warrant constitutes a valid and binding obligation of Entrada enforceable in
accordance with its terms, subject, as to enforcement of remedies, to applicable
bankruptcy, insolvency, moratorium, reorganization and similar laws affecting
creditors’ rights generally and to general equitable principles.

7.2 Organization.
Entrada is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite corporate power to
own, lease and operate its property and to carry on its business as now being
conducted and as currently proposed to be conducted.

7.3 Valid
Issuance of Shares. Any Shares issued upon exercise of the Warrant will be duly
and validly issued, fully paid and non-assessable.

7.4 Governmental
Consents. All consents, approvals, orders, authorizations or registrations,
qualifications, declarations or filings with any federal or state governmental
authority on the part of Entrada required in connection with the consummation of
the transactions contemplated herein have been obtained.

8. Representations
and Warranties of Trilogy. Trilogy
hereby represents and warrants to Entrada that:

8.1 Trilogy
is acquiring the Warrant and, upon exercise of the Warrant, the Shares, for its
own account, for investment purposes only.

8.2 Trilogy
understands that an investment in the Warrant and, upon exercise of the Warrant,
the Shares, involves a high degree of risk, and Trilogy has the financial
ability to bear the economic risk of this investment in the Warrant and, upon
exercise of the Warrant, the Shares, including a complete loss of such
investment. Trilogy has adequate means for providing for its current financial
needs and has no need for liquidity with respect to this
investment.

8.3 Trilogy
has such knowledge and experience in financial and business matters that it is
capable of evaluating the merits and risks of an investment in the Warrant and,
upon exercise of the Warrant, the Shares and in protecting its own interest in
connection with such transactions.

8.4 Trilogy
understands that neither the Warrant nor the Shares to be issued upon exercise
of the Warrant have been registered under the Securities Act of 1933, as amended
(the “Securities
Act”) or
under any state securities laws. Trilogy is familiar with the provisions of the
Securities Act and Rule 144 thereunder and understands that the restrictions on
transfer on the Warrant and the Shares may result in Trilogy being required to
hold the Warrant and the Shares for an indefinite period of time.

8.5 Trilogy
agrees not to sell, transfer, assign, gift, create a security interest in, or
otherwise dispose of, with or without consideration, any of the Shares issued
upon exercise of the Warrant except pursuant to an effective registration
statement under the Securities Act or unless an exemption from registration
under the Securities Act is available. 

9. Notices
of Record Date

In the
event:

9.1 Entrada
establishes a record date for the holders of its Common Stock (or other stock or
securities at the time issuable upon the exercise of the Warrant), for the
purpose of entitling them to receive any dividend or other distribution, or any
right to subscribe for or purchase any shares of stock of any class or any other
securities or to receive any other right; or

9.2 of any
consolidation or merger of Entrada with or into another corporation, any capital
reorganization of Entrada, any reclassification of the capital stock of Entrada,
or any conveyance of all or substantially all of the assets of Entrada to
another corporation in which holders of Entrada’s stock are to receive stock,
securities or property of another corporation; 

9.3 of any
voluntary dissolution, liquidation or winding-up of Entrada; or

9.4 of any
redemption or conversion of all outstanding Common Stock of
Entrada;

then, and
in each such case, Entrada will mail or cause to be mailed to the Holder a
notice specifying, as the case may be, (a) the date on which a record is to be
taken for the purpose of such dividend, distribution or right, or (b) the date
on which such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation, winding-up, redemption or conversion is to
take place, and the time, if any is to be fixed, as of which the holders of
record of Common Stock (or such stock or securities as at the time are
receivable upon the exercise of the Warrant), shall be entitled to exchange
their shares of Common Stock (or such other stock or securities), for securities
or other property deliverable upon such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation or winding-up.
Entrada shall use all reasonable efforts to ensure such notice shall be
delivered at least 15 days prior to the date therein specified.

10.  Registration
Rights.

10.1 If
Entrada shall determine to register any shares of its Common Stock under the
Securities Act for sale in connection with a public offering of Common Stock on
any form other than Form S-4 or Form S-8, Entrada will give written notice
thereof to Trilogy and will use its reasonable best efforts to include in the
registration statement for such Common Stock (the “Registration
Statement”) any of
the Registrable Shares (as defined below) which Trilogy may request be included
by a writing delivered to Entrada within ten (10) Business Days after receipt of
the notice from Entrada ; provided, however, that if the offering is to be
underwritten, and the representative of the underwriter or underwriters of the
offering refuse in writing to include in the offering all of the shares of
Common Stock requested by Entrada and others to be included, the shares to be
included shall be allocated first to Entrada and then, to the extent the
underwriter or underwriters of the offering are willing to include additional
shares, among the others based on the respective number of shares of Common
Stock held by such persons (the shares of Common Stock held by Trilogy to be
included in such offering, the “Included
Shares”).
Entrada may, in its sole discretion, elect to delay or abandon the offering at
any time prior to the effective date of the Registration Statement. If Entrada
decides not to, and does not, file a registration statement with respect to such
registration, or after filing determines to withdraw the same before the
effective date thereof, Entrada will promptly so inform Trilogy, and Entrada
will not be obligated to complete the registration of the Included Shares.
Entrada will pay all costs and expenses of such registration, including the
reasonable fees and costs of one law firm retained by Trilogy in connection with
such registration, but excluding underwriting discounts or brokerage fees or
commissions incurred by Trilogy in connection with its sale of Shares pursuant
to the registration. For purposes of this Agreement, “Registrable
Shares” shall
mean the Shares (or such stock or securities as at the time are receivable upon
the exercise of the Warrant) issuable upon exercise of the Warrant and any
shares issued as a result of any stock split, stock dividend or reclassification
of such shares.

10.2 In
connection with the registration of the Included Shares under this Section 10,
Entrada will: 

10.2.1 furnish
to Trilogy a copy of the registration statement and each amendment to the
registration statement and such number of copies of the final prospectus
included in the registration statement as Trilogy may reasonably request in
order to facilitate the sale of the Included Shares owned by Trilogy;

10.2.2 notify
Trilogy of the issuance of any stop order by the Securities and Exchange
Commission in connection with the registration statement; and

10.2.3 require
each legal opinion and accountant’s “cold comfort” letter in connection with the
offering of the Included Shares to be rendered to Trilogy as well as Entrada
and/or its Board of Directors. 

10.3 In
connection with the registration of the Included Shares under this Section 10,
Trilogy shall: 

10.3.1 furnish
to Entrada such information regarding Trilogy, the Included Shares and the
intended method of disposition of the Included Shares as is reasonably requested
by Entrada;

10.3.2 execute
such documents and agreements in connection with such registration as Entrada
may reasonably request;

10.3.3 
cooperate with Entrada in connection with the preparation and filing of the
Registration Statement;

10.3.4 in the
event of an underwritten offering, enter into and perform its obligations under
an underwriting agreement, in usual and customary form, which may include,
without limitation, customary indemnification and contribution obligations, with
the managing underwriter of such offering and to take such other actions as are
reasonably required in order to expedite or facilitate the registration and sale
of the Included Shares; and

10.3.5 upon
receipt of any notice from Entrada of any event, as a result of which the
prospectus included in the Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances then existing, not misleading, immediately
discontinue disposition of the Included Shares pursuant to the Registration
Statement until receipt of notification from Entrada that it may resume sale of
the Included Shares or receipt of copies of a supplemented or amended prospectus
contemplated prepared by Entrada and, if so directed by Entrada, deliver to
Entrada (at the expense of Entrada) or destroy (and deliver to Entrada a
certificate of such destruction) all copies, other than permanent file copies
then in its possession, of the prospectus covering the Included Shares current
at the time of receipt of such notice.

Trilogy’s
compliance with each of the obligations set forth in this Section 10.3 shall be
a condition precedent to Entrada’s obligation to register the Included Shares
and Trilogy’s right to dispose of the Included Shares thereunder.

10.4 To the
extent any Registrable Securities are included in a Registration Statement,
Entrada agrees to indemnify and hold harmless Trilogy, and its officers,
directors and agents, and each person, if any, who controls Trilogy within the
meaning of Section 15 of the Securities Act or Section 20 of the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”) from
and against any and all losses, claims, damages and liabilities caused by (i)
any violation or alleged violation by Entrada of the Securities Act, Exchange
Act, any state securities laws or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any state securities laws, (ii) any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement or prospectus relating to the Included Shares (as amended
or supplemented if Entrada shall have furnished any amendments or supplements
thereto) or any preliminary prospectus, or (iii) any omission or alleged
omission to state in the Registration Statement, the prospectus or any
preliminary prospectus a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of the
circumstances under which they were made, except insofar as such losses, claims,
damages or liabilities are caused by any such untrue statement or omission or
alleged untrue statement or omission based upon information furnished in writing
to Entrada by Trilogy or on Trilogy’s behalf expressly for use
therein.

10.5 To the
extent any Registrable Securities are included in a Registration Statement,
Trilogy agrees to indemnify and hold harmless Entrada, its officers, directors
and agents and each person, if any, who controls Entrada within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act, to
the same extent as the foregoing indemnity from Entrada to Trilogy, from and
against any and all losses, claims, damages and liabilities caused by (i) any
untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement or prospectus relating to the Included Shares (as amended
or supplemented if Entrada shall have furnished any amendments or supplements
thereto) or any preliminary prospectus, or (ii) any omission or alleged omission
to state in the Registration Statement, the prospectus or any preliminary
prospectus a material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances under which
they were made, but only with respect to information furnished in writing by
Trilogy or on Trilogy’s behalf expressly for use in any Registration Statement
or prospectus relating to the Registrable Shares, or any amendment or supplement
thereto, or any preliminary prospectus.

10.6 In case
any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to
this Section 10, such person (an “Indemnified
Party”) shall
promptly notify the person against whom such indemnity may be sought (the
“Indemnifying
Party”) in
writing and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to such Indemnified Party, and
shall assume the payment of all fees and expenses; provided that the failure of
any Indemnified Party so to notify the Indemnifying Party shall not relieve the
Indemnifying Party of its obligations hereunder except to the extent (and only
to the extent that) that the Indemnifying Party is materially prejudiced by such
failure to notify. In any such proceeding, any Indemnified Party shall have the
right to retain its own counsel, but the fees and expenses of such counsel shall
be at the expense of such Indemnified Party unless (i) the Indemnifying Party
and the Indemnified Party shall have mutually agreed to the retention of such
counsel or (ii) in the reasonable judgment of counsel to such Indemnified Party
representation of both parties by the same counsel would be inappropriate due to
actual or potential differing interests between them. It is understood that the
Indemnifying Party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (in addition to any local
counsel) at any time for all such Indemnified Parties (including in the case of
Trilogy, all of its officers, directors and controlling persons) and that all
such fees and expenses shall be reimbursed as they are incurred. In the case of
any such separate firm for the Indemnified Parties, the Indemnified Parties
shall designate such firm in writing to the Indemnifying Party. The Indemnifying
Party shall not be liable for any settlement of any proceeding effected without
its written consent (which consent shall not be unreasonably withheld or
delayed), but if settled with such consent, or if there be a final judgment for
the plaintiff, the Indemnifying Party shall indemnify and hold harmless such
Indemnified Parties from and against any loss or liability (to the extent stated
above) by reason of such settlement or judgment. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any
settlement of any pending or threatened proceeding in respect of which any
Indemnified Party is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability arising out
of such proceeding. To the extent any indemnification by an Indemnifying Party
is prohibited or limited by law, the Indemnifying Party agrees to make the
maximum contribution with respect to any amounts for which, he, she or it would
otherwise be liable under this Section 10.6 to the fullest extent permitted by
law; provided, however, that (i) no contribution shall be made under
circumstances where a party would not have been liable for indemnification under
this Section 10.6 and (ii) no seller of Registrable Securities guilty of
fraudulent misrepresentation (within the meaning used in the Securities Act)
shall be entitled to contribution from any party who was not guilty of such
fraudulent misrepresentation.

11. Severability.
If any
term, provision, covenant or restriction in the Warrant is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions of the Warrant shall remain in
full force and effect and shall in no way be affected, impaired or
invalidated.

12.  Notices.
All
notices, requests, consents and other communications required hereunder shall be
in writing and shall be effective when delivered or, if delivered by registered
or certified mail, postage prepaid, return receipt requested, shall be effective
on the third day following deposit in United States mail: to Trilogy, at the
last address of Trilogy on the books of Entrada; and if addressed to Entrada, at
Entrada Networks, Inc., Attn: Kanwar J.S. Chadha, Ph.D., Chief Executive
Officer, 5755
Oberlin Drive, Suite 204, San Diego, California 92121 (858) 597-1102, or such
other address as Entrada may designate in writing.

13. No
Rights as Stockholder. Trilogy
shall have no rights as a stockholder of Entrada with respect to the Shares
until the receipt by Entrada of all of the Exercise Documents. Except as may be
provided by Section 2 hereof, no adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property) or
distributions or other rights for which the record date is prior to the date
Entrada receives all of the Exercise Documents.

14.  Fractional
Shares. Notwithstanding
anything to the contrary in the Warrant, Entrada shall not be required to issue
any fractional shares of Common Stock in connection with the exercise of the
Warrant. In any case where Trilogy would, except for the provisions of this
Section 14, be entitled under the terms of the Warrant to receive a
fraction of a share of Common Stock upon the exercise of the Warrant, the
Company shall, upon the exercise of the Warrant and receipt of the Exercise
Price, issue the largest number of whole shares of Common Stock purchasable upon
exercise of the Warrant. Trilogy expressly waives his, her or its right to
receive a certificate of any fraction of a share of Common Stock upon the
exercise of the Warrant. However, with respect to any fraction of a share of
Common Stock called for upon any exercise hereof, Entrada shall pay to Trilogy
an amount in cash equal to such fraction multiplied by the closing sale price of
Entrada’s Common Stock on the day Entrada receives the Exercise Documents or, if
such day is not a Business Day, the following Business Day.

15.  Governing
Law. The
validity, interpretation and performance of the Warrant shall be governed by the
laws of the State of California, without regard to its laws pertaining to
conflicts of law.

IN
WITNESS WHEREOF, Entrada
has caused the Warrant to be duly executed and delivered as of the date first
above written.

                                     ENTRADA NETWORKS,
INC.

By:
Kanwar J. S. Chadha, Ph.D.

                                  Its: President and Chief
Executive Officer

AGREED
AND ACCEPTED:

 

TRILOGY
CAPITAL PARTNERS, INC.

By:
/s/ Paul Karon

Its:
President

 

EXHIBIT
“A”

NOTICE
OF EXERCISE

(To
be signed only upon exercise of the Warrant)

To: Entrada
Networks, Inc. 

The
undersigned hereby elects to purchase ____________ shares of Common Stock (the
“Shares”) of
Entrada Networks, Inc. (“Entrada”),
pursuant to the terms of the enclosed Warrant issued by Entrada to the
undersigned on November __, 2004 (the “Warrant”). The
undersigned tenders herewith payment of the Exercise Price in the amount of
$____________. The undersigned requests that a certificate for the Shares be
registered in the name of __________________, whose address is _________________
and whose social security, federal employer identification number or other
identifying number is __________________. The undersigned requests that the
certificate representing the Shares be delivered to ________________, whose
address is __________________. If the number of Shares is less than all of the
Shares issuable upon exercise of the Warrant, the undersigned requests that a
new warrant representing the remaining Shares be registered in the name of
_____________, whose address is ________________ and whose social security,
federal employer identification number or other identifying number is
_________________. The undersigned requests that the new warrant be delivered to
_____________, whose address is _________________.

Capitalized
terms not otherwise defined herein shall have the meaning ascribed to them in
the Warrant. 

The
undersigned hereby represents and warrants to, and agrees with Entrada as
follows: 

1. The
undersigned is acquiring the Shares for its own account and for investment
purposes only.

2. The
undersigned understands that an investment in the Shares involves a high degree
of risk, and the undersigned has the financial ability to bear the economic risk
of this investment in the Shares, including a complete loss of such investment.
The undersigned has adequate means for providing for its current financial needs
and has no need for liquidity with respect to this investment.

3. The
undersigned has such knowledge and experience in financial and business matters
that it is capable of evaluating the merits and risks of an investment in the
Shares and in protecting its own interest in connection with this
transaction.

4. The
undersigned understands that the Shares have not been registered under the
Securities Act or under any state securities laws. The undersigned is familiar
with the provisions of the Securities Act and Rule 144 thereunder and
understands that the restrictions on transfer on the Shares may result in the
undersigned being required to hold the Shares for an indefinite period of
time.

5. The
undersigned agrees not to offer, sell, transfer, assign, gift, create a security
interest in, or otherwise dispose of, with or without consideration, any of the
Shares except pursuant to an effective registration statement under the
Securities Act or unless Entrada has received an opinion of counsel, reasonably
satisfactory to counsel to Entrada, that an exemption from registration under
the Securities Act is available.

Each
certificate evidencing the Shares will bear the following legend:

THE
SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED,
ENCUMBERED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR SUCH SHARES UNDER THE ACT OR UNLESS THE ISSUER HAS RECEIVED AN OPINION OF
COUNSEL, REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN EXEMPTION
FROM REGISTRATION UNDER THE ACT IS AVAILABLE.

6. Immediately
following the exercise of the Warrant, if as of the date of exercise Entrada has
a class of securities registered under Section 12 of the Securities Exchange Act
of 1934, as amended, the undersigned will not beneficially own five percent (5%)
or more of the then outstanding Common Stock of Entrada (based on the number of
shares outstanding set forth in the most recent periodic report filed by Entrada
with the Securities and Exchange Commission).

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