Document:

warrantone.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THESE
SECURITIES MAY NOT BE OFFERED OR SOLD UNLESS AT THE TIME OF SUCH OFFER OR SALE,
THE PERSON MAKING SUCH OFFER OR SALE DELIVERS A PROSPECTUS MEETING THE
REQUIREMENTS OF SECTION 10 OF THE SECURITIES ACT OF 1933, AS AMENDED ("ACT"),
FORMING A PART OF A REGISTRATION STATEMENT, OR POST-EFFECTIVE AMENDMENT THERETO,
WHICH IS EFFECTIVE UNDER SAID ACT, UNLESS IN THE OPINION OF COUNSEL TO THE
CORPORATION, SUCH OFFER AND SALE IS EXEMPT FROM THE PROVISIONS OF SECTION 5 OF
SAID ACT.

     

    ECOLOGY
COATINGS, INC.

     

    WARRANT
No. 1

     

    This
Warrant (the "Warrant")
is made and entered into as of this 30th day of September, 2009 ("Grant
Date")
between ECOLOGY COATINGS,
INC., a Nevada corporation  (the "Company"),
and STROMBACK ACQUISITION
CORPORATION, an Illinois corporation (the "Holder").

     

    WHEREAS,
by this Agreement, the Company and the Holder desire to set forth terms upon
which the Company will grant to the Holder and the Holder will accept from the
Company this Warrant.

     

    NOW,
THEREFORE, in consideration of the mutual covenants contained herein, the
Company and the Holder hereby agree as follows:

     

    1. Grant and Term of the
Warrant.

     

    1.1 Grant of
Warrant.  Subject to the terms and conditions of this
Agreement, the Company grants to the Holder the right and Warrant (the "Warrant")
to purchase from the Company all or any part of an aggregate of 14,400 shares of its Common
Stock, authorized (the "Shares")
of Common Stock, par value $.001 per share, at a price of $.42 per
share  (the "Purchase
Price"),
as adjusted from time to time pursuant to the provisions hereunder set
forth.  This Warrant is not granted under any Warrant plan of the
Company.

     

    1.2 Time of
Exercise.  Subject to the provisions of Sections 1.5, "Transfer
and Assignment,"
and 3.1, "Registration
and Legends,"
this Warrant may be exercised at any time and from time to time after 9:00 a.m.,
E.S.T., on September 30, 2009 (the "Exercise
Commencement Date")
and will terminate at 5:00 p.m., E.S.T., on September 30, 2019 (the "Expiration
Date").

     

    1.3 Manner of
Exercise.

     

    1.3.1 The
Holder may exercise this Warrant, in whole or in part, upon surrender of this
Warrant with the form of subscription attached hereto duly executed to the
Company at its corporate office together with the full Purchase Price payable in
cash.

     

    1.3.2 Upon
receipt of this Warrant with the form of subscription duly executed and
accompanied by payment of the aggregate Purchase Price for the Shares for which
this Warrant is then being exercised, the Company shall cause to be issued
certificates or other evidence of ownership for the total number of whole Shares
for which this Warrant is being exercised in such denominations as are required
for delivery to the Holder, and the Company shall thereupon deliver such
documents to the Holder or its nominee.

     

    1.3.3 If the
Holder exercises this Warrant with respect to fewer than all of the Shares that
may be purchased under this Warrant, the Company shall execute a new Warrant for
the balance of the Shares that may be purchased upon exercise of this Warrant
and deliver such new Warrant to the Holder.

     

    1.3.4 The
Company covenants and agrees to pay when due and payable any and all taxes that
may be payable in respect of the issue of this Warrant, or the issue of any
Shares upon the exercise of this Warrant.  The Company shall not,
however, be required to pay any tax that may be payable in respect of any
transfer involved in the issuance or delivery of this Warrant or of the Shares
in a name other than that of the Holder at the time of surrender, and until the
payment of such tax, the Company shall not be required to issue such
Shares.

     

    1.3.5 The
Company shall, at the time of any exercise of all or part of this Warrant, upon
the request of the Holder hereof, acknowledge in writing its continuing
obligation to afford to such Holder any rights to which such Holders shall
continue to be entitled after such exercise in accordance with the provisions of
this Warrant, provided that if the Holder of this Warrant fails to make any such
request, such failure shall not affect the continuing obligations of the Company
to afford any such rights to such Holder.

     

    1.4 Exchange of
Warrant.  This Warrant may be split-up, combined or exchanged
for another Warrant or Warrants of like tenor to purchase a like aggregate
number of Shares.  If the Holder desires to split-up, combine or
exchange this Warrant, it shall make such request in writing delivered to the
Company at its corporate office and shall surrender this Warrant and any other
Warrants to be so split-up, combined or exchanged, the Company shall execute and
deliver to the person entitled thereto an Warrant or Warrants, as the case may
be, as so requested.  The Company shall not be required to effect any
split-up, combination or exchange which will result in the issuance of an
Warrant entitling the Holder to purchase upon exercise a fraction of a
Share.  The Company may require the Holder to pay a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any
split-up, combination or exchange of Warrants.  The term "Warrant" as
used herein includes any Warrants issued in substitution for or replacement of
this Warrant, or into which this Warrant may be divided or
exchanged.

     

    1.5 Holder as
Owner.  Prior to due presentment for registration of transfer
of this Warrant, the Company may deem and treat the Holder as the absolute owner
of this Warrant (notwithstanding any notation of ownership or other writing
hereon) for the purpose of any exercise hereof and for all other purposes, and
the Company shall not be affected by any notice to the
contrary.  Irrespective of the date of issue and delivery of
certificates for any Shares issuable upon the exercise of the Warrant, each
person in whose name any such certificate is issued shall be deemed to have
become the holder of record of the Shares represented thereby on the date on
which all or a portion of the Warrant surrendered in connection with the
subscription therefore was surrendered and payment of the purchase price was
tendered.  No surrender of all or a portion of the Warrant on any date
when the stock transfer books of the Company are closed, however, shall be
effective to constitute the person or persons entitled to receive Shares upon
such surrender as the record holder of such Shares on such date, but such person
or persons shall be constituted the record holder or holders of such Shares at
the close of business on the next succeeding date on which the stock transfer
books are opened.  Each person holding any Shares received upon
exercise of Warrant shall be entitled to receive only dividends or distributions
payable to holders of record on or after the date on which such person shall be
deemed to have become the holder of record of such Shares.

     

    1.6 Transfer and
Assignment.  This Warrant may not be sold, hypothecated,
exercised, assigned or transferred except in accordance with and subject to the
provisions of the Securities Act of 1933, as amended ("Act") and only upon the
consent of the Company.

     

    1.7 Method for
Assignment.  Any assignment permitted under this Warrant shall
be made by surrender of this Warrant to the Company at its principal office with
the form of assignment attached hereto duly executed and funds sufficient to pay
any transfer tax.  In such event, the Company shall, without charge,
execute and deliver a new Warrant in the name of the assignee designated in such
instrument of assignment and this Warrant shall promptly be
canceled.  This Warrant may be divided or combined with other Warrants
that carry the same rights upon presentation thereof at the corporate office of
the Company together with a written notice signed by the Holder, specifying the
names and denominations in which such new Warrants are to be
issued.

     

    1.8 Rights of
Holder.  Nothing contained in this Warrant shall be construed
as conferring upon the Holder the right to vote or consent or receive notice as
a stockholder in respect of any meetings of stockholders for the election of
directors or any other matter, or as having any rights whatsoever as a
stockholder of the Company.  If, however, at any time prior to the
expiration of this Warrant and prior to its exercise, any of the following shall
occur:

     

    1.8.1 The
Company shall take a record of the holders of its shares of Common Stock for the
purpose of entitling them to receive a dividend or distribution payable
otherwise than in cash, or a cash dividend or distribution payable otherwise
than out of current or retained earnings, as indicated by the accounting
treatment of such dividend or distribution on the books of the
Company;

     

    1.8.2 The
Company shall offer to the holders of its Common Stock any additional shares of
capital stock of the Company or securities convertible into or exchangeable for
shares of capital stock of the Company, or any Warrant, right or warrant to
subscribe therefore;

     

    1.8.3 There
shall be proposed any capital reorganization or reclassification of the Common
Stock, or a sale of all or substantially all of the assets of the Company, or a
consolidation or merger of the Company with another entity; or

     

    1.8.4 There
shall be proposed a voluntary or involuntary dissolution, liquidation or winding
up of the Company; then, in any one or more of said cases, the Company shall
cause to be mailed to the Holder, at the earliest practicable time (and, in any
event, not less than thirty (30) days before any record date or other date set
for definitive action), written notice of the date on which the books of the
Company shall close or a record shall be taken to determine the stockholders
entitled to such dividend, distribution, convertible or exchangeable securities
or subscription rights, or entitled to vote on such reorganization,
reclassification, sale, consolidation, merger, dissolution, liquidation or
winding up, as the case may be.  Such notice shall also set forth such
facts as shall indicate the effect of such action (to the extent such effect may
be known at the date of such notice) on the Purchase Price and the kind and
amount of the Common Stock and other securities and property deliverable upon
exercise of this Warrant.  Such notice shall also specify the date as
of which the holders of the Common Stock of record shall participate in said
distribution or subscription rights or shall be entitled to exchange their
Common Stock for securities or other property deliverable upon such
reorganization, reclassification, sale, consolidation, merger, dissolution,
liquidation or winding up, as the case may be (on which date, in the event of
voluntary or involuntary dissolution, liquidation or winding up of the Company,
the right to exercise this Warrant shall terminate).  Without limiting
the obligation of the Company to provide notice to the holder of actions
hereunder, it is agreed that failure of the Company to give notice shall not
invalidate such action of the Company.

     

    1.9 Lost Warrant.  Upon
receipt by the Company of evidence satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and, in the case of loss, theft or
destruction of reasonably satisfactory indemnification, including a surety bond
if required by the Company, and upon surrender and cancellation of this Warrant,
if mutilated, the Company will cause to be executed and delivered a new Warrant
of like tenor and date.  Any such new Warrant executed and delivered
shall constitute an additional contractual obligation on the part of the
Company, whether or not this Warrant so lost, stolen, destroyed, or mutilated
shall be at any time enforceable by anyone.

     

    1.10 Covenants of the
Company.  The Company covenants and agrees as
follows:

     

    1.10.1 At all
times it shall reserve and keep available for the exercise of this Warrant into
Common Stock such number of authorized shares of Common Stock as are sufficient
to permit the exercise in full of this Warrant into Common Stock;
and

     

    1.10.2 All
Shares issued upon exercise of the Warrant shall be duly authorized, validly
issued and outstanding, fully-paid and non-assessable.

     

    2. Adjustment
of Purchase Price and Number of Shares Purchasable Upon Exercise.

     

    2.1 Recapitalization.  The
number of Shares purchasable on exercise of this Warrant and the purchase price
therefore shall be subject to adjustment from time to time in the event that the
Company shall:  (i) pay a dividend in, or make a distribution of,
shares of Common Stock, (ii) subdivide its outstanding shares of Common
Stock into a greater number of shares, (iii) combine its outstanding shares
of Common Stock into a smaller number of shares, or (iv) spin-off a
subsidiary by distributing, as a dividend or otherwise, shares of the subsidiary
to its stockholders.  In any such case, the total number of shares
purchasable on exercise of this Warrant immediately prior thereto shall be
adjusted so that the Holder shall be entitled to receive, at the same aggregate
purchase price, the number of shares of Common Stock that the Holder would have
owned or would have been entitled to receive immediately following the
occurrence of any of the events described above had this Warrant been exercised
in full immediately prior to the occurrence (or applicable record date) of such
event.  An adjustment made pursuant to this Section 2 shall, in the
case of a stock dividend or distribution, be made as of the record date
and,  in the case of a subdivision or combination, be made as of the
effective date thereof.  If, as a result of any adjustment pursuant to
this Section 2, the Holder shall become entitled to receive shares of two or
more classes of series of securities of the Company, the Board of Directors of
the Company shall equitably determine the allocation of the adjusted purchase
price between or among shares or other units of such classes or series and shall
notify the Holder of such allocation.

     

    2.2 Merger or
Consolidation.  In the event of any reorganization or
recapitalization of the Company or in the event the Company consolidates with or
merges into another entity or transfers all or substantially all of its assets
to another entity, then and in each such event, the Holder, on exercise of this
Warrant as provided herein, at any time after the consummation of such
reorganization, recapitalization, consolidation, merger or
transfer,  shall be entitled, and the documents executed to effectuate
such event shall so provide, to receive the stock or other securities or
property to which the Holder would have been entitled upon such consummation if
the Holder had exercised this Warrant immediately prior thereto.  In
such case, the terms of this Warrant shall survive the consummation of any such
reorganization, recapitalization, consolidation, merger or transfer and shall be
applicable to the shares of stock or other securities or property receivable
on  the exercise of this Warrant after such consummation and as an
exchange for a larger or smaller number of shares, as the case may
be.

     

    2.3 Notice of Dissolution or
Liquidation.  Except as otherwise provided in Section 2.2,
"Merger
or Consolidation,"
in the case of any sale or conveyance of all or substantially all of the assets
of the Company in connection with a plan of complete liquidation of the Company,
or in the case of the dissolution, liquidation or winding-up of the Company, all
rights under this Warrant shall terminate on a date fixed by the Company, such
date so fixed to be not earlier than the date of the commencement of the
proceedings for such dissolution, liquidation or winding-up and not later than
thirty (30) days after such commencement date.  Notice of such
termination of purchase rights shall be given to the Holder at least thirty (30)
days prior to such termination date.

     

    2.4 Statement of
Adjustment.  Any adjustment pursuant to the provisions of this
Section 2 shall be made on the basis of the number of Shares which the Holder
would have been entitled to acquire by exercise of this Warrant immediately
prior to the event giving rise to such adjustment and as to the Purchase Price
in effect immediately prior to the rise to such adjustment.  Whenever
any such adjustment is required to be made, the Company shall forthwith
determine the new number of Shares which the Holder hereof shall be entitled to
purchase hereunder and/or such new Purchase Price and shall prepare, retain on
file and transmit to the Holder within ten (10) days after such preparation a
statement describing in reasonable detail the method used in calculating such
adjustment.

     

    2.5 No Fractional
Shares.  The Company shall not issue any fraction of a Share in
connection with the exercise of this Warrant, and in any case where the Holder
would, except for the provisions of this Section 2.5, be entitled under the
terms of this Warrant to receive a fraction of a Share upon such exercise, the
Company shall upon the exercise and receipt of the Purchase Price, issue the
largest number of whole Shares purchasable upon exercise of this
Warrant.  The Company shall not be required to make any cash or other
adjustment in respect of such fraction of a Share to which the Holder would
otherwise be entitled.  The Holder, by the acceptance of this Warrant,
expressly waives his right to receive a certificate for any fraction of a Share
upon exercise hereof.

     

    2.6 No Change in Form
Required.  The form of Warrant need not be changed because of
any change pursuant to this Section 2 in the Purchase Price or in the number of
Shares purchasable upon the exercise of a Warrant, may state the same Purchase
Price and the same number of shares of Preferred Stock as are stated in the
Warrants initially issued pursuant to the Agreement.

     

    3. Registration Under the Securities Act
of 1933.

     

    3.1 Registration and
Legends.  The Holder understands that (i) the Company has not
registered the Warrant or the Shares under the Act, or the applicable securities
laws of any state in reliance on exemptions from registration and (ii) such
exemptions depend upon the Holder's
investment intent at the time the Holder acquires the Warrant or the
Shares.  The Holder therefore represents and warrants that it is
acquiring the Warrant, and will acquire the Shares, for the Holder's
own account for investment and not with a view to distribution, assignment,
resale or other transfer of the Warrant or the Shares.  Because the
Warrant and the Shares are not registered, the Holder is aware that the Holder
must hold them indefinitely unless they are registered under the Act and any
applicable securities laws or the Holder must obtain exemptions from such
registration.  Upon exercise, in part or in whole, of this Warrant,
the Shares shall bear the following legend:

     

    The
shares of Common Stock represented by this certificate have not been registered
under the Act or any applicable state securities laws, and they may not be
offered for sale, sold, transferred, pledged or hypothecated without an
effective registration statement under the Act and under any applicable state
securities laws, or an opinion of counsel, satisfactory to the company, that an
exemption from such registration is available.

     

    3.2 No-Action
Letter.  The Company agrees that it will be satisfied that no
post-effective amendment or new registration is required for the public sale of
the Shares if it shall be presented with a letter from the Staff of the
Securities and Exchange Commission (the "Commission"), stating in effect that,
based upon stated facts which the Company shall have no reason to believe are
not true in any material respect, the Staff will not recommend any action to the
Commission if such Shares are offered and sold without delivery of a prospectus,
and that, therefore, no Registration Statement under which such Shares are to be
registered is required to be filed.

     

    3.3 Inclusion in Company Registration
Statement.

     

    3.3.1 The
Holder of this Warrant and/or Shares issued to the Holder pursuant to this
Warrant without an effective registration statement ("Restricted
Shares")
under the Act will have the right to join with the Company to register the
Restricted Shares and the Shares underlying this Warrant (the "Underlying
Shares")
in a future registration statement under the Act filed by the Company with the
Commission, which includes a public offering of equity securities for cash,
either for the account of the Company or for the account of any other
person.  This right to join with the Company in a registration
statement is not applicable to a registration statement filed by the Company
with the Commission on Form S-4, S-8 or any other inappropriate
form.  If, at any time, the Company proposes to file a registration
statement as described above with the Commission, it may, in its sole
discretion, offer to include in any such filing any proposed disposition of the
Restricted Shares or the Underlying Shares.  In such event, the
Company will, at least thirty (30) days prior to such filing, give written
notice of such proposed filing to the Holder's
address appearing on the records of the Company.  Within fifteen (15)
days of receipt of the Company's
notice of filing, the Holder may request registration of the Restricted Shares
and/or Underlying Shares pursuant to a written request setting forth the
intended method of distribution and such other data or information as the
Company or its counsel shall reasonably require and such Restricted Shares
and/or Underlying Shares shall be included in the registration statement to the
maximum extent permissible.  The Company shall supply the Holder with
copies of such registration statement and of the prospectus included therein in
such quantities as may be reasonably necessary for the purpose of the proposed
disposition.

     

    3.3.2 If at the
time of any request to register the Restricted Shares or Underlying Shares the
Company is engaged or has fixed plans to be engaged within thirty (30) days of
the date of the request in a registered public offering as to which the
Restricted Shares or the Underlying Shares may be included or is involved in an
activity, in the good faith determination of the underwriter, in the case of
such offering, or the Board, in the case of such other activity, which would be
adversely affected by the requested registration to the material detriment of
the offering or the Company's
activities, then the Company may, at its Warrant, direct that the request be
delayed for a period not in excess of six months from the effective date of such
offering or the date of commencement of such proposed offering or such other
material activity, as the case may be, unless the underwriter, in the case of
the offering, or the Board, in the case of such other material activity,
specifies a longer period.

     

    3.4 Covenants Regarding
Registration.  In connection with any registration under
Section 3.1 hereof, the Company and the Holder covenant and agree as
follows:

     

    3.4.1 The
Company shall use its best efforts to have any Registration Statement declared
effective at the earliest possible time, and shall furnish such number of
prospectuses as shall be reasonably requested.

     

    3.4.2 The
Company and the Holder shall pay their respective shares of all costs, fees, and
expenses in connection with the Registration Statement under Section 3.3, "Inclusion
in Company Registration Statement,"
in proportion to the dollar value of the securities being registered by each
party, including, without limitation, the Company's legal and accounting fees,
printing expenses, blue sky fees and expenses, except that the Company shall not
pay for any of the following costs and expenses:  (a) underwriting
discounts and commissions allocable to the Shares, (b) state transfer taxes, (c)
brokerage commissions, and (d) fees and expenses of counsel and accountants for
the holders of the Shares.

     

    3.4.3 The
Company will take all necessary action which may be required in qualifying or
registering the Shares included in any Registration Statement for offering and
sale under the securities or blue sky laws of such states as are requested by
the holders of such Shares, provided that the Company shall not be obligated to
execute or file any general consent to service or process or to qualify as a
foreign corporation to do business under the laws of any such
jurisdiction.

     

    3.5 Indemnity.

     

    3.5.1 The
Company shall indemnify and hold harmless the Holder who is registering
securities pursuant to this Section (the "Seller") and each underwriter, within
the meaning of the Act, who may purchase from or sell for any Seller any of the
Shares from and against any and all losses, claims, damages, and liabilities
caused by any untrue statement or alleged untrue statement of a material
fact  contained in any post-effective amendment or new registration
statement or any supplemented prospectus under the Act included therein required
to be filed or furnished by reason of this Section, or caused by any omission or
alleged omission to state therein or necessary to make the statements therein
not misleading, except insofar as such losses, claims, damages or liabilities
are caused by any untrue statement or alleged untrue statement or omission or
alleged omission based upon information furnished or required to be furnished in
writing to the Company by such Seller or underwriter within the meaning of such
Act; provided, however, that the indemnity agreement set forth in this Section
3.5 with respect to any prospectus which shall be subsequently amended prior to
the written confirmation of sale of any Shares shall not inure to the benefit of
any Seller or underwriter from whom the person asserting any such losses,
claims, damages or liabilities purchased such Shares which are the subject
thereof (or to the benefit of any person controlling such Seller or
underwriter), if such Seller or underwriter failed to send or give a copy of the
prospectus as amended to such person at or prior to the written confirmation of
the sale of such Shares and if such amended prospectus did not contain any
untrue statement or alleged untrue statement or omission or alleged omission
giving rise to such cause, claim, damage, or liability.

     

    3.5.2 The
Seller who uses the procedures under Section 3 shall indemnify and secure the
agreement of any underwriter which the Seller employs to indemnify the Company,
its directors, each officer signing the related post-effective amendment or
registration statement and each person, if any, who controls the Company, within
the meaning of the Act from and against any losses, claims, damages, and
liabilities caused by any untrue statement or alleged untrue statement of a
material fact contained in any post-effective amendment or registration
statement or any prospectus required to be filed or furnished by reason of this
Section or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, insofar as such losses, claims, damages, or liabilities
are caused by any untrue statement or alleged untrue statement or omission or
alleged omission based upon information furnished in writing to the Company by
any such Seller or underwriter expressly for use therein.

     

    3.6 Agreements.  The
agreements in this Section shall continue in effect regardless of the exercise
and surrender of this Warrant.

     

    4. Reservation of
Shares.  The Company shall at all times reserve, for the
purpose of issuance on exercise of this Warrant such number of shares of Common
Stock or such class or classes of capital stock or other securities as shall
from time to time be sufficient to comply with this Warrant and the Company
shall take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized and unissued Common Stock or such other
class or classes of capital stock or other securities to such number as shall be
sufficient for that purpose.

     

    5. Survival.  All
agreements, covenants, representations and warranties herein shall survive the
execution and delivery of this Warrant and any investigation at any time made by
or on behalf of any parties hereto and the exercise, sale and purchase of this
Warrant (and any other securities or property) issuable on exercise
hereof.

     

    6. Remedies.  The
Company agrees that the remedies at law of the Holder, in the event of any
default or threatened default by the Company in the performance or compliance
with any of the terms of this Warrant, may not be adequate and such terms may,
in addition to and not in lieu of any other remedy, be specifically enforced by
a decree of specific performance of any agreement contained herein or by an
injunction against a violation of any of the terms hereof or
otherwise.

     

    7. Other Matters.

     

    7.1 Binding
Effect.  All the covenants and provisions of this Warrant by or
for the benefit of the Company shall bind and inure to the benefit of its
successors and assigns hereunder.

     

    7.2 Notices.  Notices
or demands pursuant to this Warrant to be given or made by the Holder to or on
the Company shall be sufficiently given or made if sent by certified or
registered mail, return receipt requested, postage prepaid, and addressed, until
another address is designated in writing by the Company, as
follows:

     

    Ecology Coatings, Inc.

    2701 Cambridge Court

     

    Auburn Hills,
MI  48326

     

    Attn: CEO

     

    Notices
to the Holder provided for in this Warrant shall be deemed given or made by the
Company if sent by certified or registered mail, return receipt requested,
postage prepaid, and addressed to the Holder at the Holder's
last known address as it shall appear on the books of the Company.

     

    7.3 Governing Law.  The
validity, interpretation and performance of this Warrant shall be governed by
the laws of the State of Michigan.

     

    7.4 Parties Bound and
Benefited.  Nothing in this Warrant expressed and nothing that
may be implied from any of the provisions hereof is intended, or shall be
construed, to confer upon, or give to, any person or corporation other than the
Company and the Holder any right, remedy or claim under promise or agreement
hereof, and all covenants, conditions, stipulations, promises and agreements
contained in this Warrant shall be for the sole and exclusive benefit of the
Company and its successors and of the Holder, and his successors, heirs and
assignees.

     

    7.5 Headings.  The
Article headings herein are for convenience only and are not part of this
Warrant and shall not affect the interpretation thereof.

     

    7.6 Disputes or
Disagreements.  As a condition of granting of the Warrant
herein granted, the Holder agrees, on Holder's
behalf and on behalf of Holder's
personal representatives, that any disputes or disagreements which may arise
under or as a result of or pursuant to this Agreement, shall be determined by
the Board, in its sole discretion, and that any interpretation by the Board
under the terms of this Agreement shall be final, binding and
conclusive.

     

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    IN
WITNESS WHEREOF, the parties have executed this Warrant Agreement on the day and
year first above written.  This Agreement has been duly executed and
delivered by the Holder and the Company to be effective on date first above
written.

     

    ECOLOGY
COATINGS, INC.

     

    /s/ Robert G.
Crockett

    By:  Robert
G. Crockett

     

    Its:  CEO

     

    

     

    

     

    Stromback
Acquisition Corporation, Holder:

     

    /s/ Richard
Stromback

    By:  Richard
Stomback

     

    Its:  President

    

    
      	
               
      

            	
              Address:_______________________

            

    

    
      	
               
      

            	
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    Exercise Form

    Ecology
Coatings, Inc.

    2701
Cambridge Court, Suite 100

    Auburn
Hills, MI  48326

    Attn:
CEO

    

     

    The
undersigned hereby irrevocably subscribes for the purchase of
_____________________ (__________) Shares pursuant
to and in accordance with the terms and conditions of  this Warrant,
and herewith makes payment, covering the purchase of the Shares, which should be
delivered to the undersigned at the address stated below, and, if such number of
Shares shall not be all of the Shares purchasable hereunder, then a new Warrant
of like tenor for the balance of the remaining Shares purchasable under this
Warrant be delivered to the undersigned at the address stated
below.

     

    The
undersigned agrees that:  (1) the undersigned will not offer, sell,
transfer or otherwise dispose of any such Shares, unless either (a) a
registration statement, or post-effective amendment thereto, covering such
Shares have been filed with the Securities and Exchange Commission pursuant to
the Securities Act of 1933, as amended (the "Act"),
and such sale, transfer or other disposition is accompanied by a prospectus
meeting the requirements of Section 10 of the Act forming a part of such
registration statement, or post-effective amendment thereto, which is in effect
under the Act covering the Shares to be so sold, transferred or otherwise
disposed of, or (b) counsel to the Company satisfactory to the undersigned has
rendered an opinion in writing and addressed to the Company that such proposed
offer, sale, transfer or other disposition of the Shares is exempt from the
provisions of Section 5 of the Act in view of the circumstances of such proposed
offer, sale, transfer or other disposition; (2) the Company may notify the
transfer agent for its Common Stock that the certificates for the Common Stock
acquired by the undersigned are not to be transferred unless the transfer agent
receives advice from the Company that one or both of the conditions referred to
in (1)(a) and (1)(b) above have been satisfied; and (3) the Company may affix
the legend set forth in Section 3.1 of this Warrant to the certificates for
Shares hereby subscribed for, if such legend is applicable.

     

    Dated:                                                      Signed:                                                                           

     

    
      	
               
      

            	
              Address:__________________________

            

    

    
      	
               
      

            	
              __________________________

            

    

    
      	
               
      

            	
              __________________________Form of Common Stock Certificate

 Exhibit 4.1 
 

 
  
 Addus HomeCare 
 PO BOX 43004, Providence, RI 02940-3004 
 MR A SAMPLE 
 DESIGNATION (IF ANY) 
 ADD 1 
 ADD 2 
 ADD 3 
 ADD 4 
 CUSIP XXXXXX XX X 
 Holder ID XXXXXXXXXX 
 Insurance Value 1,000,000.00

 Number of Shares 123456 
 DTC 12345678 123456789012345 
 Certificate Numbers
Num/No. Denom. Total 
 1234567890/1234567890 111 
 1234567890/1234567890 222 
 1234567890/1234567890 333 
 1234567890/1234567890
444 
 1234567890/1234567890 555 
 1234567890/1234567890 666 
 Total Transaction 7

 016570| 003590|127C|RESTRICTED||4|057-423 
 COMMON STOCK 
 PAR VALUE $0.001 
 COMMON STOCK 
 THIS CERTIFICATE IS TRANSFERABLE IN CANTON, MA AND NEW YORK, NY 
 Certificate Number 
 ZQ 000000 
 Addus HomeCare 
 Shares 
 * * 6 0 0 6 2 0 * * * * * * 
 * * * 6 0 0 6 2 0 * * * * * 
 * * * * 6 0 0 6 2 0 * * * * 
 * * * * * 6 0 0 6 2 0 * * * 
 * * * * * * 6 0 0 6 2
0 * * 
 ADDUS HOMECARE CORPORATION 
 INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE 
 THIS CERTIFIES THAT 
 Alexander David Sample **** Mr. Alexander David Sample ****
Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample
**** Mr. Alexander Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. 
 David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample
**** Mr. Alexander David Sample **** David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample Alexander David Sample **** Mr. Alexander
David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David **** Mr. Alexander David Sample **** Mr. Alexander David Sample & **** Mr. Alexander David Sample ****
Mr. Alexander David Sample **** Mr. Alexander Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. 
 David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample **** Mr. Alexander David Sample
**** Mr. Alexander David Sample **** 
 CUSIP 006739 10 6 
 SEE REVERSE FOR CERTAIN DEFINITIONS 
 MR. SAMPLE & MRS. SAMPLE 
 is the owner of

 **600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares***
*600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****
600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****6
00620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****60 * * *
0620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600
620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares***600620**Shares****600620**Shares****60062
0**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620
**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620*
*Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620** * * *
Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**S
hares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Shares****600620**Sh 
 SIX HUNDRED THOUSAND SIX HUNDRED AND TWENTY 
 FULLY-PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK OF 
 Addus HomeCare Corporation
(hereinafter called the “Company”), transferable on the books of the Company in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. This Certificate and the shares represented hereby, are issued and
shall be held subject to all of the provisions of the Certificate of Incorporation, as amended, and the Bylaws, as amended, of the Company (copies of which are on file with the Company and with the Transfer Agent), to all of which each holder, by
acceptance hereof, assents. This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar. 
 Witness the facsimile seal of the Company and the facsimile signatures of its duly authorized officers. 
 President and Chief Executive Officer 
 Addus HomeCare Corporation 
 CORPORATE 
 SEAL 
 2006 
 DELAWARE 
 DATED <<Month Day, Year>> 
 COUNTERSIGNED AND REGISTERED: 
 COMPUTERSHARE TRUST COMPANY, N.A. 
 TRANSFER AGENT AND REGISTRAR, 
 Chief Financial
Officer and Secretary 
 SECURITY INSTRUCTIONS ON REVERSE 

 

 
  
 ADDUS HOMECARE CORPORATION 
 THE COMPANY WILL FURNISH WITHOUT CHARGE TO EACH SHAREHOLDER WHO SO
REQUESTS, A SUMMARY OF THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OF THE COMPANY AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND RIGHTS, AND
THE VARIATIONS IN RIGHTS, PREFERENCES AND LIMITATIONS DETERMINED FOR EACH SERIES, WHICH ARE FIXED BY THE CERTIFICATE OF INCORPORATION OF THE COMPANY, AS AMENDED, AND THE RESOLUTIONS OF THE BOARD OF DIRECTORS OF THE COMPANY, AND THE AUTHORITY OF THE
BOARD OF DIRECTORS TO DETERMINE VARIATIONS FOR FUTURE SERIES. SUCH REQUEST MAY BE MADE TO THE OFFICE OF THE SECRETARY OF THE COMPANY OR TO THE TRANSFER AGENT. THE BOARD OF DIRECTORS MAY REQUIRE THE OWNER OF A LOST OR DESTROYED STOCK CERTIFICATE, OR
HIS LEGAL REPRESENTATIVES, TO GIVE THE COMPANY A BOND TO INDEMNIFY IT AND ITS TRANSFER AGENTS AND REGISTRARS AGAINST ANY CLAIM THAT MAY BE MADE AGAINST THEM ON ACCOUNT OF THE ALLEGED LOSS OR DESTRUCTION OF ANY SUCH CERTIFICATE. 
 The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they
were written out in full according to applicable laws or regulations: 
 TEN COM - as tenants in common UNIF GIFT
MIN ACT- Custodian 
 (Cust) (Minor) 
 TEN ENT - as tenants by the entireties under Uniform Gifts to Minors Act 
 (State) 
 JT TEN - as joint tenants with right of survivorship and not as tenants in common UNIF TRF MIN ACT Custodian (until age ) 
 (Cust) (Minor) 
 under Uniform Transfers to Minors
Act (State) 
 Additional abbreviations may also be used though not in the above list. 
 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 
 For value received, hereby sell, assign and transfer unto 
 (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE) 
 Shares 
 of the common stock represented by the within Certificate, and do hereby irrevocably constitute and appoint 
 Attorney 
 to transfer the said stock on the books of the within-named Corporation with
full power of substitution in the premises. 
 Dated: 20 
 Signature(s) Guaranteed: Medallion Guarantee Stamp 
 THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan
Associations and Credit Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15. 
 Signature: 
 Signature: 
 Notice: The signature to this assignment must correspond with the name as written upon the face of the certificate, in every
particular, without alteration or enlargement, or any change whatever.

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