Document:

Unassociated Document

    
      

    

    EXHIBIT
      10.60

     

    Schedule
      Prepared in Accordance with Instruction 2 to Item 601 of Regulation
      S-K

     

    The
      warrants to purchase shares of Common Stock are substantially identical in
      all
      material respects except as to the warrantholder and the number of
      shares.

     

    
      	
              Name

            	
              Warrants

            
	
              Sam
                Belzberg

            	
              16,968

            
	
              Clyde
                J. Berg, as trustee of the 

              Clyde
                J. Berg Trust utd 4/4/95

            	
              13,574

            
	
              Neal
                Goldman

            	
              33,936

            
	
              Edward
                F. Heil

            	
              118,778

            
	
              Iroquois
                Master Fund Ltd.

            	
              10,181

            
	
              Kuekenhof
                Equity Fund, L.P.

            	
              16,968

            
	
              Levene
                Ass. A Partnership

            	
              8,484

            
	
              Susan
                Moffitt

            	
              1,696

            
	
              Wallace
                L. Mossop III as trustee of the 

              Wallace
                L. Mossop III Trust dtd 2/3/00

            	
              8,484

            
	
              Nite
                Capital, L.P.

            	
              13,574

            
	
              RAQ,
                LLC

            	
              16,968

            
	
              Wilson
                G. & Ellen M. Saville, JTWROS

            	
              8,484

            
	
              Martin
                Solomon 

            	
              16,968

            
	
              TCMP3
                Partners

            	
              20,100

            
	
              Thomas
                Vantine Hart, IRA

            	
              1,696.83

            
	
              Louise
                B. Sheaffer, IRA

            	
              678.73

            
	
              Elisabeth
                A. Darlington, Trustee of

              the
                Elizabeth A. Darlington Trust

            	
              1,696.83

            
	
              Foundation
                Partners I, LLC

            	
              8,376.82

            
	
              Marima
                Petroula

            	
              6,787.33

            
	
              Lester
                M. Wheeler, Jr.

            	
              203.62

            
	
              Joy
                Mease

            	
              678.73

            
	
              Kenneth
                & Bridget Mullin

            	
              678.73

            
	
              Norbet
                Stein

            	
              6,787.33

            
	
              Dolphin
                Direct Equity Partners LP

            	
              16,968.33

            
	
              Kevin
                and Denise Donohue

            	
              339.37

            
	
              Kim
                Davis

            	
              6,787.33

            
	
              Marty
                and Barbara Olsen

            	
              3,393.67

            
	
              M.
                Robert Carroll, Trustee of

              the
                Carroll Family Trust 

            	
              3,393.67

            
	
              Mark
                Mitchell

            	
              6,787.33

            
	
              Cathrine
                M. Taylor, SEP IRA

            	
              385.85

            
	
              Barry
                L. Bennett, SEP IRA

            	
              536.20

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR AN OPINION OF
      COUNSEL REASONABLY SATISFACTORY TO NESTOR, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    Right
      to
      Purchase 16,968 Shares of Common Stock of Nestor, Inc. (subject to adjustment
      as
      provided herein)

    

    COMMON
      STOCK PURCHASE WARRANT

     

    
      
        	
                No.
                  2006-1

              	
                Issue
                  Date: January 31, 2006

              

      

       

    

    NESTOR,
      INC., a corporation organized under the laws of the State of Delaware (the
      "Company"),
      hereby certifies that, for value received, Sam Belzberg, or assigns (the
“Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company
      from and after the Issue Date of this Warrant and at any time or from time
      to
      time before 5:00 p.m., New York time, through January 31, 2009 (three (3) years
      after the Issue Date) (the “Expiration
      Date”),
      up to
      16,968 fully paid and nonassessable shares of Common Stock (as hereinafter
      defined), $.01 par value per share, of the Company, at the Purchase Price (as
      defined below). The number and character of such shares of Common Stock and
      the
      Purchase Price are subject to adjustment as provided herein. Capitalized terms
      used but not otherwise defined shall have them in the Securities Purchase
      Agreement dated the date hereof by and among the Company and the Investors
      named
      therein, including Holder. 

    

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

    

    (a)   The
      term
“Company” shall include Nestor, Inc. and any corporation which shall succeed or
      assume the obligations of Nestor, Inc. hereunder. 

    

    (b)   The
      term
      "Common Stock" includes (a) the Company's Common Stock, $.01 par value per
      share, as authorized on the date of the Securities Purchase Agreement referred
      to in Section 9 hereof, and (b) any other securities into which or for which
      any
      of the securities described in (a) may be converted or exchanged pursuant to
      a
      plan of recapitalization, reorganization, merger, sale of assets or
      otherwise.

    

    (c)   The
      term
      "Other Securities" refers to any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or which at any time shall be issuable or shall have been issued in
      exchange for or in replacement of Common Stock or Other Securities pursuant
      to
      Section 4 or otherwise. 

    

    (d)   The
      term
      "Purchase Price" shall mean $4.91. 

    

    1.             
      Exercise
      of Warrant.
      

    

    1.1.   Number
      of Shares Issuable upon Exercise.
      From
      and after the date hereof through and including the Expiration Date, the holder
      hereof shall be entitled to receive, upon exercise of this Warrant in whole
      in
      accordance with the terms of subsection 1.2 or upon exercise of this Warrant
      in
      part in accordance with subsection 1.3, shares of Common Stock of the Company,
      subject to adjustment pursuant to Section 4.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    1.2.   Full
      Exercise.
      This
      Warrant may be exercised in full by the holder hereof by delivery of an original
      or fax copy of the form of subscription attached as Exhibit A hereto (the
“Subscription
      Form")
      duly
      executed by such Holder, to the Company at its principal office or at the office
      of its warrant agent (as provided hereinafter), accompanied by payment, in
      cash,
      wire transfer, or by certified or official bank check payable to the order
      of
      the Company, in the amount obtained by multiplying the number of shares of
      Common Stock for which this Warrant is then exercisable by the Purchase Price
      then in effect. 

    

    1.3.   Partial
      Exercise.
      This
      Warrant may be exercised in part (but not for a fractional share) by surrender
      of this Warrant in the manner and at the place provided in subsection 1.2 except
      that the amount payable by the holder on such partial exercise shall be the
      amount obtained by multiplying (a) the number of shares of Common Stock
      designated by the holder in the Subscription Form by (b) the Purchase Price
      then
      in effect. On any such partial exercise, the Company, at its expense, will
      forthwith issue and deliver to or upon the order of the holder hereof a new
      Warrant of like tenor, in the name of the holder hereof or as such holder (upon
      payment by such holder of any applicable transfer taxes) may request, the number
      of shares of Common Stock for which such Warrant may still be
      exercised.

    

    1.4.   Fair
      Market Value.
      Fair
      Market Value of a share of Common Stock as of a particular date (the
      "Determination
      Date")
      shall
      mean: 

    

    (a)    If
      the
      Company's Common Stock is traded on an exchange or is quoted on the National
      Association of Securities Dealers, Inc. Automated Quotation ("NASDAQ")
      National Market System or the NASDAQ SmallCap Market, then the average closing
      or last sale price, respectively, reported for the ten business days immediately
      preceding the Determination Date. 

    

    (b)    If
      the
      Company's Common Stock is not traded on an exchange or on the NASDAQ National
      Market System or the NASDAQ SmallCap Market but is traded on the NASD OTC
      Bulletin Board, then the mean of the average of the closing bid and asked prices
      reported for the ten business days immediately preceding the Determination
      Date.

    

    (c)    If
      the
      Company's Common Stock is not publicly traded, then as the Holder and the
      Company agree or in the absence of agreement by arbitration in accordance with
      the rules then standing of the American Arbitration Association, before a single
      arbitrator to be chosen from a panel of persons qualified by education and
      training to pass on the matter to be decided.

    

    1.5.   Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of the Warrant, upon the request
      of
      the holder hereof acknowledge in writing its continuing obligation to afford
      to
      such holder any rights to which such holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such holder any such rights.
      

    

    1.6.   Trustee
      for Warrant Holders.
      In the
      event that a bank or trust company shall have been appointed as trustee for
      the
      Company pursuant to Subsection 3.2, such bank or trust company shall have all
      the powers and duties of a warrant agent (as hereinafter described) and shall
      accept, in its own name for the account of the Company or such successor person
      as may be entitled thereto, all amounts otherwise payable to the Company or
      such
      successor, as the case may be, on exercise of this Warrant pursuant to this
      Section 1. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    2.1   Delivery
      of Stock Certificates, etc. on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the holder hereof as the record owner
      of
      such shares as of the close of business on the date on which this Warrant shall
      have been surrendered and payment made for such shares as aforesaid. As soon
      as
      practicable after the exercise of this Warrant in full or in part, and in any
      event within 7 days thereafter, the Company at its expense (including the
      payment by it of any applicable issue taxes) will cause to be issued in the
      name
      of and delivered to the holder hereof, or as such holder (upon payment by such
      holder of any applicable transfer taxes) may direct in compliance with
      applicable Securities Laws, a certificate or certificates for the number of
      duly
      and validly issued, fully paid and nonassessable shares of Common Stock (or
      Other Securities) to which such holder shall be entitled on such exercise,
      plus,
      in lieu of any fractional share to which such holder would otherwise be
      entitled, cash equal to such fraction multiplied by the then Fair Market Value
      of one full share, together with any other stock or other securities and
      property (including cash, where applicable) to which such holder is entitled
      upon such exercise pursuant to Section 1 or otherwise. 

     

    2.2.   Payment
      of Purchase Price.

    

    (a)    Payment
      may be made either in (i) cash or by certified or official bank check payable
      to
      the order of the Company equal to the applicable aggregate Purchase Price,
      (ii)
      by delivery of the Warrant, Common Stock and/or Common Stock receivable upon
      exercise of the Warrant in accordance with Section (b) below, or (iii) by a
      combination of any of the foregoing methods, for the number of Common Shares
      specified in such form (as such exercise number shall be adjusted to reflect
      any
      adjustment in the total number of shares of Common Stock issuable to the holder
      per the terms of this Warrant) and the holder shall thereupon be entitled to
      receive the number of duly authorized, validly issued, fully-paid and
      non-assessable shares of Common Stock (or Other Securities) determined as
      provided herein.

    

    (b)    Notwithstanding
      any provisions herein to the contrary, if the Fair Market Value of one share
      of
      Common Stock is greater than the Purchase Price (at the date of calculation
      as
      set forth below), in lieu of exercising this Warrant for cash, the holder may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being cancelled) by surrender of this Warrant at the
      principal office of the Company together with the properly endorsed Subscription
      Form in which event the Company shall issue to the holder a number of shares
      of
      Common Stock computed using the following formula:

    

    X=Y
      (A-B)

    A

     

    Where   
      X=    the
      number of shares of Common Stock to be issued to the holder

    

    Y=    the
      number of shares of Common Stock purchasable under the Warrant or, if only
      a
      portion of the Warrant is being exercised, the portion of the Warrant being
      exercised (at the date of such calculation)

     

    A=    the
      Fair
      Market Value of one share of the Company’s Common Stock (at the date of such
      calculation)

     

    B=    Purchase
      Price (as adjusted to the date of such calculation)

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    3.    Adjustment
      for Reorganization, Consolidation, Merger, etc.

    

    3.1.    Reorganization,
      Consolidation, Merger, etc.
      In case
      at any time or from time to time, the Company shall (a) effect a reorganization,
      (b) consolidate with or merge into any other person, or (c) transfer all or
      substantially all of its properties or assets to any other person under any
      plan
      or arrangement contemplating the dissolution of the Company, then, in each
      such
      case, as a condition to the consummation of such a transaction, proper and
      adequate provision shall be made by the Company whereby the holder of this
      Warrant, upon the exercise hereof as provided in Section 1 at any time after
      the
      consummation of such reorganization, consolidation or merger or the effective
      date of such dissolution, as the case may be, shall receive, in lieu of the
      Common Stock (or Other Securities) issuable on such exercise prior to such
      consummation or such effective date, the stock and other securities and property
      (including cash) to which such holder would have been entitled upon such
      consummation or in connection with such dissolution, as the case may be, if
      such
      holder had so exercised this Warrant, immediately prior thereto, all subject
      to
      further adjustment thereafter as provided in Section 4. 

    

    3.2.    Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the shares of stock and other securities and property receivable on the exercise
      of this Warrant after the consummation of such reorganization, consolidation
      or
      merger or the effective date of dissolution following any such transfer, as
      the
      case may be, and shall be binding upon the issuer of any such stock or other
      securities, including, in the case of any such transfer, the person acquiring
      all or substantially all of the properties or assets of the Company, whether
      or
      not such person shall have expressly assumed the terms of this Warrant as
      provided in Section 4. 

    

    4.    Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock, (b) subdivide
      its
      outstanding shares of Common Stock, or (c) combine its outstanding shares of
      the
      Common Stock into a smaller number of shares of the Common Stock, then, in
      each
      such event, the Purchase Price shall, simultaneously with the happening of
      such
      event, be adjusted by multiplying the then Purchase Price by a fraction, the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to such event and the denominator of which shall be the number
      of shares of Common Stock outstanding immediately after such event, and the
      product so obtained shall thereafter be the Purchase Price then in effect.
      The
      Purchase Price, as so adjusted, shall be readjusted in the same manner upon
      the
      happening of any successive event or events described herein in this Section
      4.
      The number of shares of Common Stock that the holder of this Warrant shall
      thereafter, on the exercise hereof as provided in Section 1, be entitled to
      receive shall be increased or decreased to a number determined by multiplying
      the number of shares of Common Stock that would otherwise (but for the
      provisions of this Section 4) be issuable on such exercise by a fraction of
      which (a) the numerator is the Purchase Price that would otherwise (but for
      the
      provisions of this Section 4) be in effect, and (b) the denominator is the
      Purchase Price in effect on the date of such exercise.

    

    5.    Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of the Warrant, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of the
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or receivable
      by
      the Company for any additional shares of Common Stock (or Other Securities)
      issued or sold or deemed to have been issued or sold, (b) the number of shares
      of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
      and (c) the Purchase Price and the number of shares of Common Stock to be
      received upon exercise of this Warrant, in effect immediately prior to such
      adjustment or readjustment and as adjusted or readjusted as provided in this
      Warrant. The Company will forthwith mail a copy of each such certificate to
      the
      holder of the Warrant and any Warrant agent of the Company (appointed pursuant
      to Section 10 hereof).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    6.    Reservation
      of Stock, etc. Issuable on Exercise of Warrant; Financial
      Statements.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of the Warrant, all shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of the Warrant. This
      Warrant entitles the holder hereof to receive copies of all financial and other
      information distributed or required to be distributed to the holders of the
      Company's Common Stock. 

    

    7.    Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable Securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
      "Transferor")
      with
      respect to any or all of the Shares. On the surrender for exchange of this
      Warrant, with the Transferor's endorsement in the form of Exhibit B attached
      hereto (the “Transferor
      Endorsement Form")
      and
      together with evidence reasonably satisfactory to the Company demonstrating
      compliance with applicable Securities Laws, which shall include, without
      limitation, a legal opinion from the Transferor’s counsel that such transfer is
      exempt from the registration requirements of federal securities laws, the
      Company at its expense but with payment by the Transferor of any applicable
      transfer taxes) will issue and deliver to or on the order of the Transferor
      thereof a new Warrant of like tenor, in the name of the Transferor and/or the
      transferee(s) specified in such Transferor Endorsement Form (each a
      "Transferee"),
      calling in the aggregate on the face or faces thereof for the number of shares
      of Common Stock called for on the face or faces of the Warrant so surrendered
      by
      the Transferor. 

    

    8.    Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Warrant
      of like tenor.

    

    9.    Registration
      Rights.
      The
      Holder of this Warrant has been granted certain registration rights by the
      Company. These registration rights are set forth in a Securities Purchase
      Agreement entered into by the Company and the Investors, including the Holder.
      

    

    10.   Warrant
      Agent.
      The
      Company may, by written notice to the each holder of the Warrant, appoint an
      agent for the purpose of issuing Common Stock (or Other Securities) on the
      exercise of this Warrant pursuant to Section 1, exchanging this Warrant pursuant
      to Section 7, and replacing this Warrant pursuant to Section 8, or any of the
      foregoing, and thereafter any such issuance, exchange or replacement, as the
      case may be, shall be made at such office by such agent. 

    

    11.   Transfer
      on the Company's Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary. 

    

    12.   Notices,
      etc.
      All
      notices and other communications from the Company to the holder of this Warrant
      shall be mailed by first class registered or certified mail, postage prepaid,
      at
      such address as may have been furnished to the Company in writing by such holder
      or, until any such holder furnishes to the Company an address, then to, and
      at
      the address of, the last holder of this Warrant who has so furnished an address
      to the Company. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    13.   Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. This Warrant shall
      be governed by and construed in accordance with the laws of State of Delaware
      without regard to principles of conflicts of laws. Any action brought concerning
      the transactions contemplated by this Warrant shall be brought only in the
      state
      courts of Delaware or Rhode Island or in the federal courts located in the
      State
      of Delaware or the Sate of Rhode Island. The individuals executing this Warrant
      on behalf of the Company agree to submit to the jurisdiction of such courts
      and
      waive trial by jury. The prevailing party shall be entitled to recover from
      the
      other party its reasonable attorney’s fees and costs. In the event that any
      provision of this Warrant is invalid or unenforceable under any applicable
      statute or rule of law, then such provision shall be deemed inoperative to
      the
      extent that it may conflict therewith and shall be deemed modified to conform
      with such statute or rule of law. Any such provision which may prove invalid
      or
      unenforceable under any law shall not affect the validity or enforceability
      of
      any other provision of this Warrant. The headings in this Warrant are for
      purposes of reference only, and shall not limit or otherwise affect any of
      the
      terms hereof. The invalidity or unenforceability of any provision hereof shall
      in no way affect the validity or enforceability of any other provision. The
      Company acknowledges that legal counsel participated in the preparation of
      this
      Warrant and, therefore, stipulates that the rule of construction that
      ambiguities are to be resolved against the drafting party shall not be applied
      in the interpretation of this Warrant to favor any party against the other
      party.

     

    

    [THIS
      SPACE INTENTIONALLY LEFT BLANK]

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Company has executed this Warrant under seal as of the
      date
      first written above. 

    

    
      	 	
              NESTOR,
                INC.

               

            
	 	
              By:
                

            	
              /s/
                William B. Danzell

            
	 	 	
              William
                B. Danzell

              Chief
                Executive Officer and President

            

    

     

    

    
      	
              Witness:

            	 
	 	 
	
              /s/
                Mary Ann Branin

            	 

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    to
      Warrant

    

    FORM
      OF
      SUBSCRIPTION

    (To
      be
      signed only on exercise of Warrant)

    

    TO:
      Nestor, Inc.

    

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.________), hereby irrevocably elects to purchase (check applicable
      box):

     

    
      
        	 	 	 	
                shares
                  of the Common Stock covered by such Warrant; or

              
	 	 	 	 
	 	 	
                the
                  maximum number of shares of Common Stock covered by such Warrant
                  pursuant
                  to the cashless exercise procedure set forth in Section
                  2.

              

      

       

    

    The
      undersigned herewith makes payment of the full purchase price for such shares
      at
      the price per share provided for in such Warrant, which is $_______________.
      Such payment takes the form of (check applicable box or boxes):

    

    
      	 	 	
              $

            	
              in
                lawful money of the United States;
                and/or

            

    

    

    
      	 	 	
              the
                cancellation of such portion of the attached Warrant as is exercisable
                for
                a total of ___________shares of Common Stock (using a Fair Market
                Value of
                $______ per share for purposes of this calculation);
                and/or

            

    

    

    
      	 	 	
              the
                cancellation of such number of shares of Common Stock as is necessary,
                in
                accordance with the formula set forth in Section 2, to exercise this
                Warrant with respect to the maximum number of shares of Common Stock
                purchaseable pursuant to the cashless exercise procedure set forth
                in
                Section 2.

            

    

    

    
      	
              The
                undersigned requests that the certificates for such shares be issued
                in
                the name of, and delivered to

            
	 	
              whose
                address is

            	 

    

     

    
      
        

      

       

    

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the "Securities Act") or pursuant to an exemption from registration
      under the Securities Act.

    

    
      	
              Dated:

            	 	 	 
	 	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              (Address)

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    to
      Warrant

    

    FORM
      OF
      TRANSFEROR ENDORSEMENT

    (To
      be
      signed only on transfer of Warrant)

    

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading "Transferees" the right represented
      by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of Nestor, Inc. to which the within Warrant relates specified under the
      headings "Percentage Transferred" and "Number Transferred," respectively,
      opposite the name(s) of such person(s) and appoints each such person Attorney
      to
      transfer its respective right on the books of Nestor, Inc. with full power
      of
      substitution in the premises.

     

    
      
        
          	
                  Transferees

                   

                	
                  Percentage
                    Transferred

                	
                  Number
                    Transferred

                
	 	 	 
	 	 	 
	 	 	 

        

      

    

     

    
      	
              Dated:

            	 	 	 
	 	 
	 	 
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                warrant)

            

    

     

    

    
      	
              Signed
                in the presence of:

            	 
	 	 
	 	 
	 	 	 
	 	 	 
	
              (Name)

            	 	
              (address)

            

    

     

    

    
      	
              ACCEPTED
                AND AGREED:

            	 
	
              [TRANSFEREE]

            	 
	 	 
	 	 	 
	 	 	 
	
              (Name)

            	 	 

    

    

     

     10Exhibit 10.69

    
      

    

     

    

     

    March
      1,
      2005

    

    Mr.
      Kevin
      Henderson

    655
      Davis
      Road

    League
      City, TX

    77573

    

    Dear
      Mr.
      Henderson:

    

    Constellation
      Biometrics Corporation (“the Company”) is pleased to offer you the position of
      President with an effective start date of March 1, 2005. 

    

    As
      President you will serve
      the
      Company faithfully, diligently and to the best of your ability, under the
      direction of the CEO of the Company. You will render such services during the
      term of employment from your present location in Houston, Texas, although you
      may be required to travel at company’s expense to the Company’s principal place
      of business, or at such alternate locations as may be agreed upon with the
      CEO,
      and you will devote all of your business time to the performance of your duties.
      

    

    You
      will
      have such duties and powers as
      generally pertain to the office of President for both product development and
      business development of said products, subject to the control of the CEO.
The
      precise services and duties that you are obligated to perform may from time
      to
      time be changed, amended, extended or curtailed by the CEO of the
      Company.

    

    The
      Term
      of your employment shall commence on March 1, 2005 and continue thereafter
      for a
      term of two (2) years, or earlier terminated subject to the terms and conditions
      set forth below. 

    

    The
      Company will pay you a minimum annual salary of sixty thousand dollars
      ($60,000.00), payable in equal installments at the end of such regular payroll
      accounting periods as are established by the Company. 

    

    In
      addition, the Company may adjust the salary upward from time to time, and award
      bonuses in cash, or other property and services.

    

    During
      the term of employment, you shall be entitled to participate in all medical
      and
      other employee benefit plans, including vacation, sick leave, retirement
      accounts, profit sharing, stock option plans, stock appreciation rights, and
      other employee benefits, provided by the Company to employees of the same or
      similar hierarchy, including a $300.00 per month car allowance.

    

    

    300
      Sunport Lane • Orlando, Florida 32809

    Phone:
      407.541.0773 • Fax: 407.240.1431

    www.sequiam.com•
      sales@sequiam.com

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    The
      Company shall reimburse you for reasonable and necessary expenses incurred
      by
      you on behalf of the Company in the performance of your duties provided that
      such expenses are adequately documented in accordance with the Company's written
      policies, which will be provided to you at the time they became
      effective.

    

    You
      will
      devote as much of your business and professional time and effort, attention,
      knowledge, and skill to the management, supervision and direction of the
      Company’s business and affairs as is necessary to ensure the success of the
      Company as determined solely by the CEO. You may not, during the term of
      employment be interested directly or indirectly, in any manner, as partner,
      officer, director, advisor, employee or in any other capacity in any other
      business; except that nothing shall prevent or limit your right to invest any
      of
      your surplus funds in the capital stock or other securities of any company
      or
      limited partnership, or whose stock or securities are publicly owned or are
      regularly traded on any public exchange; nor shall anything herein prevent
      you
      from investing or limit your right to invest your surplus funds in real estate;
      nor shall anything herein prevent you from serving in a volunteer capacity
      as
      officer, director, or advisor for professional or charitable organizations
      with
      which you are or may become affiliated. You will be able to provide support
      to
      prior obligations of projects sold to other companies upon disclosure to and
      agreement with the CEO, which will not be unreasonably withheld.

    

    Your
      employment can be terminated for cause. The Company shall have no obligations
      beyond thirty days notice and payment through such date of all salary, benefits,
      and bonuses (pro-rata) in the case of termination for cause. Termination for
      cause shall be defined as, and limited to gross dereliction of executive duties,
      including violation of any written company policies, violation of any federal
      or
      state laws that materially impact the company’s financial performance, its
      reputation or relationships with customers. 

    

    The
      CEO
      may, at his sole discretion, terminate for reasons other than cause at any
      time
      with thirty days notice. Such reasons may include a desire to restructure the
      management team or change the executive’s role within the Company. 

    

    You
      shall
      not, in any manner, for any reason, either directly or indirectly, divulge
      or
      communicate to any person, firm or company, any confidential information
      concerning any matters not generally known in the biometrics industry or
      otherwise made public by the Company which affects or relates to the Company’s
      business, finances, marketing and operations, research, development, inventions,
      products, designs, plans, procedures, or other data (collectively, “Confidential
      Information”) except in the ordinary course of business or as required by
      applicable law. 

    

    You
      further agree that all documents and materials furnished to you by the Company
      and relating to the Company’s business or prospective business are and shall
      remain the exclusive property of the Company as the case may be. You shall
      deliver all such documents and materials to the Company upon demand and in
      any
      event upon expiration or earlier termination of your employment. Any payment
      of
      sums due and owing to you by the Company upon such expiration or earlier
      termination shall be conditioned upon returning all such documents and
      materials.

    

    

    300
      Sunport Lane • Orlando, Florida 32809

    Phone:
      407.541.0773 • Fax: 407.240.1431

    www.sequiam.com•
      sales@sequiam.com

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    All
      ideas, inventions, and other developments or improvements conceived or reduced
      to practice by you, alone or with others, during the term of your employment,
      whether or not during working hours, that are within the scope of the business
      of the Company or that relate to or result from any of the Company’s work or
      projects or the services provided by Employee to the Company pursuant to this
      Agreement, shall be the exclusive property of the Company. Employee agrees
      to
      assist the Company during the term, at the Company’s expense, to obtain patents
      and copyrights on any such ideas, inventions, writings, and other developments,
      and agrees to execute all documents necessary to obtain such patents and
      copyrights in the name of the Company.

    

    Cash
      Bonus:

    

    A
      cash
      bonus of $35,000.00 will be extended upon successful negotiations to acquire
      Biometrics.co.za at a significantly more affordable price than originally
      offered. This bonus will be paid in 12 monthly installments beginning on the
      first day of the second calendar month after successful closing of the
      acquisition.

    

    Annual
      Cash Bonus:

    

    The
      Company will pay an annual cash bonus that is to be calculated as of the close
      of the financial books each year (the annual milestone). The bonus is expected
      to be paid within thirty days, but in any event no later than sixty days after
      the close of the books. The cash bonus will be paid in three parts: 1) Business
      Development essential for growing a new business pipeline and for sustaining
      future earnings, 2) Realized Revenue essential for meeting revenue expectations,
      and 3) Net Income essential for ensuring profitability.

    

    
      	 	
              ·

            	
              Element
                1: The cash bonus compensation payout for this element will be $14,400.00
                and will be earned when Constellation Biometrics Corporation sales
                projection is met or exceeded. For calendar year 2005, the sales
                goal
                shall be $750,000.00 for calendar year 2006, one million and thereafter,
                as agreed, or if no agreement can be reached, as is reasonable.
                

            

    

    
      	 	
              ·

            	
              Element
                2: The cash bonus compensation payout for this element will be based
                on a
                direct calculation of 3/4 of 1% of gross sales recognized in the
                calendar
                year.

            

    

    
      	 	
              ·

            	
              Element
                3: The cash bonus compensation payout for this element will be $14,400.00
                and will be earned when Constellation Biometrics Corporation net
                income
                budgets are met or exceeded. Reasonable bonus target adjustments
                may be
                made after initial budget approval to reflect subsequent changes
                corporate
                priorities or resource allocations by year as is reasonable under
                the
                circumstances.

            

    

    

    Employee
      is executing an employment contract with both Sequiam Biometrics, Inc. and
      Constellation Biometrics Corp., and employee shall not be obligated to work
      more
      than the normal work hours in the aggregate on both employment agreements.
      Furthermore, a termination or breach of one of the agreements shall be deemed
      to
      be a termination or breach of the other agreement.

    

    

    300
      Sunport Lane • Orlando, Florida 32809

    Phone:
      407.541.0773 • Fax: 407.240.1431

    www.sequiam.com•
      sales@sequiam.com

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Welcome
      to Constellation Biometrics Corporation. We look forward to many successful
      years together.

    

    

    

    Sincerely,

    

    

    

    Nick
      VandenBrekel

    CEO
      

    

    Accepted
      and agreed to:

    

    
      	
                
                

            	 	
                
                

            	 
	
              Kevin
                Henderson

            	 	
              Date

            	 

    

    

    

    300
      Sunport Lane • Orlando, Florida 32809

    Phone:
      407.541.0773 • Fax: 407.240.1431

    www.sequiam.com•
      sales@sequiam.com

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