Document:

Unassociated Document

    

    NEITHER
THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY OTHER
APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES
LAWS.  NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE
HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF
(AND THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON) EXCEPT
PURSUANT TO REGULATION S OF THE SECURITIES ACT, AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM
REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT.

    

    Date: __________, 2009

    

    WARRANT

    TO
PURCHASE

    COMMON
STOCK

    

    To
Purchase up to ______ Shares of Common Stock of

    

    Index
Oil and Gas Inc.

    

    THIS CERTIFIES that, for value
received, ___________, or permitted assigns (the “Holder”), is
entitled, upon the terms and subject to the conditions hereinafter set forth, at
any time on or after _________, 2009 (the “Initial Exercise
Date”) and on or prior to 5:00 P.M. Eastern Standard Time
on  ____________, 2014 (the “Termination Date”),
but not thereafter, to subscribe for and purchase from Index Oil and Gas Inc., a
corporation incorporated under the laws of the State of Nevada (the “Company”), up to
___________________shares (the “Warrant Shares”) of
common stock, $0.001 par value per share (the “Common Stock”), of
the Company. The per share purchase price of the Warrant Shares (the “Exercise Price”)
shall be $0.50.

    

    1.           Title to
Warrant.  Prior to the Termination Date and subject to
compliance with applicable laws, this Warrant and all rights hereunder are
transferable, in whole or in part, at the office or agency of the Company by the
Holder hereof in person or by duly authorized attorney, upon surrender of this
Warrant together with the Assignment Form annexed hereto properly
endorsed.  This Warrant is non-transferable prior to the Initial
Exercise Date.

    

    2.           Authorization of
Shares.  The Company covenants that all shares of Common Stock
which may be issued upon the exercise of rights represented by this Warrant
will, upon exercise of the rights represented by this Warrant, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such
issue).

     

     

    
      
         

      

      
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    3.           Exercise of
Warrant.

    

    (a)           This Warrant shall only be exercisable from the Initial
Exercise Date if, the Holder of the Warrant has not sold or disposed of
all of
the shares of Common Stock acquired as part of the Units that included this
Warrant under the Securities Purchase Agreement, between the Closing Date, as
defined in the Securities Purchase Agreement, and the Initial Exercise
Date.  If the Holder of this Warrant has sold or disposed of some of
the shares of Common Stock purchased under the Securities Purchase Agreement, then this Warrant shall only be exercisable for the number
of unsold shares on the Initial Exercise
Date and if all shares purchased under the
Securities Purchase Agreement, have been sold then this Warrant
shall be non-exercisable and shall be rendered null and
void.

    

    (b)           Except
as provided in Section 4 herein, exercise of the purchase rights represented by
this Warrant may be made at any time or times on or after the Initial Exercise
Date, and before 5:00 P.M. Eastern Standard Time on the Termination Date by the
surrender of this Warrant and the Notice of Exercise Form annexed hereto duly
executed, at the office of the Company (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder hereof
at the address of such Holder appearing on the books of the Company) and upon
payment of the Exercise Price for the shares thereby purchased by wire transfer
or cashier’s check drawn on a United States bank, the Holder of this Warrant
shall be entitled to receive a certificate for the number of shares of Common
Stock so purchased.  Certificates for shares purchased hereunder shall
be delivered to the Holder hereof within five (5) business days after the date
on which this Warrant shall have been exercised as aforesaid.  This
Warrant shall be deemed to have been exercised and such certificate or
certificates shall be deemed to have been issued, and the Holder or any other
person so designated to be named therein shall be deemed to have become the
holder of record of such shares for all purposes, as of the date the Warrant has
been exercised by payment to the Company of the Exercise Price and all taxes
required to be paid by the Holder, if any, pursuant to Section 5 prior to the
issuance of such shares, have been paid.  If this Warrant shall have
been exercised in part, the Company shall, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to the Holder a
new Warrant evidencing the rights of the Holder to purchase the unpurchased
shares of Common Stock called for by this Warrant, which new Warrant shall in
all other respects be identical with this Warrant.

    

    4.           No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant. As to any fraction of
a share that the Holder would otherwise be entitled to purchase upon such
exercise, the Company shall pay a cash adjustment in respect of such final
fraction in an amount equal to the Exercise Price.

    

    5.           Charges, Taxes and
Expenses.  Issuance of certificates for shares of Common Stock
upon the exercise of this Warrant shall be made without charge to the Holder
hereof for any issue or transfer tax or other incidental expense in respect of
the issuance of such certificate, all of which taxes and expenses shall be paid
by the Company, and such certificates shall be issued in the name of the Holder
of this Warrant or in such name or names as may be directed by the Holder of
this Warrant; provided, however, that in the event certificates for shares of
Common Stock are to be issued in a name other than the name of the Holder of
this Warrant, this Warrant when surrendered for exercise shall be accompanied by
the Assignment Form attached hereto duly executed by the Holder hereof; and the
Company may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto.

     

     

     

    
      
         

      

      
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    6.           Further
Assurances.  The Company will take all action that may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and nonassessable shares of stock, free from all taxes, liens and
charges with respect to the issue thereof, on the exercise of all or any portion
of this Warrant from time to time outstanding.

    

    7.           Transfer, Division and
Combination.

    

    (a)           Subject
to compliance with any applicable securities laws, transfer of this Warrant and
all rights hereunder, in whole or in part, shall be registered on the books of
the Company to be maintained for such purpose, upon surrender of this Warrant at
the principal office of the Company, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or
its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new Holder for the purchase of shares of Common Stock without
having a new Warrant issued.

    

    (b)           This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. As to any transfer which may be
involved in such division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

    

    (c)           The
Company shall prepare, issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 7.

    

    (d)           The
Company agrees to maintain, at its aforesaid office, books for the registration
and the registration of transfer of the Warrants.

    

    8.           No Rights as Shareholder
until Exercise.  This Warrant does not entitle the Holder
hereof to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof.  Upon the surrender of this Warrant and
the payment of the aggregate Exercise Price, the Warrant Shares so purchased
shall be and be deemed to be issued to such Holder as the record owner of such
shares as of the close of business on the later of the date of such surrender or
payment.

    

    9.           Loss, Theft, Destruction or
Mutilation of Warrant.  The Company covenants that upon receipt
by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant certificate or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which shall include the
posting of a bond only if required by the Company's transfer agent and if the
Holder is not the purchaser of this Warrant or an affiliate of such purchaser),
and upon surrender and cancellation of such Warrant or stock certificate, if
mutilated, the Company will make and deliver a new Warrant or stock certificate
of like tenor and dated as of such cancellation, in lieu of such Warrant or
stock certificate.

     

     

    
      
         

      

      
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    10.           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a
Saturday, Sunday or a legal holiday, then such action may be taken or such right
may be exercised on the next succeeding day not a Saturday, Sunday or legal
holiday.

    

    11.           Voluntary Adjustment by the
Company.  The Company may, at any time during the term of this
Warrant, reduce the then current Exercise Price to any amount and for any period
of time deemed appropriate by the Board of Directors of the
Company.

    

    12.           Certain Other
Adjustments. The Exercise Price and number of Warrant Shares issuable
upon exercise of this Warrant are subject to adjustment from time to time as set
forth in this Section 12.

    

    (a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding,
(i) pays a stock dividend on its Common Stock or otherwise makes a distribution
on any class of capital stock that is payable in shares of Common Stock, (ii)
subdivides outstanding shares of Common Stock into a larger number of shares, or
(iii) combines outstanding shares of Common Stock into a smaller number of
shares, then in each such case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
outstanding immediately before such event and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event.
Any adjustment made pursuant to clause (i) of this paragraph shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
effective immediately after the effective date of such subdivision or
combination.

    

    (b)           Fundamental
Transactions. If, at any time while this Warrant is outstanding there is
a Fundamental Transaction (as hereinafter defined), then the Holder shall have
the right thereafter to receive, upon exercise of this Warrant, the same amount
and kind of securities, cash or property as it would have been entitled to
receive upon the occurrence of such Fundamental Transaction if it had been,
immediately prior to such Fundamental Transaction, the holder of the number of
Warrant Shares then issuable upon exercise in full of this Warrant (the
"Alternate Consideration"). For purposes of any such exercise, the determination
of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect
of one share of Common Stock in such Fundamental Transaction, and the Company
shall apportion the Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of
the Alternate Consideration. If holders of Common Stock are given any choice as
to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental
Transaction. At the Holder's request, any successor to the Company or surviving
entity in such Fundamental Transaction shall issue to the Holder a new warrant
substantially in the form of this Warrant and consistent with the foregoing
provisions and evidencing the Holder's right to purchase the Alternate
Consideration for the aggregate Exercise Price upon exercise thereof. The terms
of any agreement pursuant to which a Fundamental Transaction is effected shall
include terms requiring any such successor or surviving entity to comply with
the provisions of this paragraph (b) and insuring that the Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.  For purposes of the
foregoing, Fundamental Transaction means any of the following: (1) the Company
effects any merger or consolidation of the Company with or into another person,
(2) the Company effects any sale of all or substantially all of its assets in
one or a series of related transactions, (3) any tender offer or exchange offer
(whether by the Company or another person) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for
other securities, cash or property, or (4) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property.

     

     

    
      
         

      

      
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    (c)           Subsequent Equity
Sales.

    

    (i)           If
at any time while this Warrant is outstanding, the Company or any subsidiary
thereof, as applicable, shall issue or enter into any agreement or understanding
to issue shares of Common Stock or Common Stock equivalents entitling any person
to acquire shares of Common Stock, at a price per share less than the Exercise
Price (if the holder of the Common Stock or Common Stock equivalent so issued
shall at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights issued in connection with such issuance, be
entitled to receive shares of Common Stock at a price less than the Exercise
Price, such issuance shall be deemed to have occurred for less than the Exercise
Price), then, the Exercise Price shall automatically be reduced to equal such
lower price. Such adjustment shall be made whenever such Common Stock or Common
Stock equivalents are issued. The Company shall notify the Holder in writing, no
later than the trading day following the issuance of any Common Stock or Common
Stock equivalent subject to this section, indicating therein the applicable
issuance price, or of applicable reset price, exchange price, conversion price
and other pricing terms, but failure to provide such notice will not delay or
affect the reduction of the Exercise Price. If, while this Warrant is
outstanding, the Company enters into any agreement or understanding to issue or
sell securities that would trigger an adjustment to the Exercise Price, then
notwithstanding the fact that such actual issuance of Common Stock or Common
Stock equivalents occurs after the term of the Warrant, such issuance will be
treated as if it had occurred prior to the expiration of the Warrant
term.

    

    (ii)           For
purposes of this subsection 12(c), the following subsections (c)(ii)(l) to
(c)(ii)(6) shall also be applicable:

    

    (1)           Issuance of Rights or
Options. If at any time the Company shall in any manner grant (directly
and not by assumption in a merger or otherwise) any warrants or other rights to
subscribe for or to purchase, or any options for the purchase of, Common Stock
or any stock or security convertible into or exchangeable for Common Stock (such
warrants, rights or options being called “Options” and such convertible or
exchangeable stock or securities being called “Convertible Securities”) whether
or not such Options or the right to convert or exchange any such Convertible
Securities are immediately exercisable, and the price per share for which Common
Stock is issuable upon the exercise of such Options or upon the conversion or
exchange of such Convertible Securities (determined by dividing (i) the sum
(which sum shall constitute the applicable consideration) of (x) the total
amount, if any, received or receivable by the Company as consideration for the
granting of such Options, plus (y) the aggregate amount of additional
consideration payable to the Company upon the exercise of all such Options, plus
(z), in the case of such Options which relate to Convertible Securities, the
aggregate amount of additional consideration, if any, payable upon the issue or
sale of such Convertible Securities and upon the conversion or exchange thereof,
by (ii) the total maximum number of shares of Common Stock issuable upon the
exercise of such Options or upon the conversion or exchange of all such
Convertible Securities issuable upon the exercise of such Options) shall be less
than the Exercise Price in effect immediately prior to the time of the granting
of such Options, then the total number of shares of Common Stock issuable upon
the exercise of such Options or upon conversion or exchange of the total amount
of such Convertible Securities issuable upon the exercise of such Options shall
be deemed to have been issued for such price per share as of the date of
granting of such Options or the issuance of such Convertible Securities and
thereafter shall be deemed to be outstanding for purposes of adjusting the
Exercise Price. Except as otherwise provided in subsection 12(c)(ii)(3), no
adjustment of the Exercise Price shall be made upon the actual issue of such
Common Stock or of such Convertible Securities upon exercise of such Options or
upon the actual issue of such Common Stock upon conversion or exchange of such
Convertible Securities.

     

     

     

    
      
         

      

      
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    (2)           Issuance of Convertible
Securities. If the Company shall in any manner issue (directly and not by
assumption in a merger or otherwise) or sell any Convertible Securities, whether
or not the rights to exchange or convert any such Convertible Securities are
immediately exercisable, and the price per share for which Common Stock is
issuable upon such conversion or exchange (determined by dividing (i) the sum
(which sum shall constitute the applicable consideration) of (x) the total
amount received or receivable by the Company as consideration for the issue or
sale of such Convertible Securities, plus (y) the aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange
thereof, by (ii) the total number of shares of Common Stock issuable upon the
conversion or exchange of all such Convertible Securities) shall be less than
the Exercise Price in effect immediately prior to the time of such issue or
sale, then the total maximum number of shares of Common Stock issuable upon
conversion or exchange of all such Convertible Securities shall be deemed to
have been issued for such price per share as of the date of the issue or sale of
such Convertible Securities and thereafter shall be deemed to be outstanding for
purposes of adjusting the Exercise Price, provided that (a) except as otherwise
provided in subsection 12(c)(ii)(3), no adjustment of the Exercise Price shall
be made upon the actual issuance of such Common Stock upon conversion or
exchange of such Convertible Securities and (b) no further adjustment of the
Exercise Price shall be made by reason of the issue or sale of Convertible
Securities upon exercise of any Options to purchase any such Convertible
Securities for which adjustments of the Exercise Price have been made pursuant
to the other provisions of subsection 12(c).

    

    (3)           Change in Option Price or
Conversion Rate. Upon the happening of any of the following events,
namely, if the purchase price provided for in any Option referred to in
subsection 12(c)(ii)(l) hereof, the additional consideration, if any, payable
upon the conversion or exchange of any Convertible Securities referred to in
subsections 12(c)(ii)(l) or 12(c)(ii)(2), or the rate at which Convertible
Securities referred to in subsections 12(c)(ii)(l) or 12(c)(ii)(2) are
convertible into or exchangeable for Common Stock shall change at any time
(including, but not limited to, changes under or by reason of provisions
designed to protect against dilution), the Exercise Price in effect at the time
of such event shall forthwith be readjusted to the Exercise Price which would
have been in effect at such time had such Options or Convertible Securities
still outstanding provided for such changed purchase price, additional
consideration or conversion rate, as the case may be, at the time initially
granted, issued or sold. On the termination of any Option for which any
adjustment was made pursuant to this subsection 12(c) or any right to convert or
exchange Convertible Securities for which any adjustment was made pursuant to
this subsection 12(c) (including without limitation upon the redemption or
purchase for consideration of such Convertible Securities by the Company), the
Exercise Price then in effect hereunder shall forthwith be changed to the
Exercise Price which would have been in effect at the time of such termination
had such Option or Convertible Securities, to the extent outstanding immediately
prior to such termination, never been issued.

    

    (4)           Stock Dividends.
Subject to the provisions of this Section 12(c), if the Company shall declare a
dividend or make any other distribution upon any stock of the Company (other
than the Common Stock) payable in Common Stock, Options or Convertible
Securities, then any Common Stock, Options or Convertible Securities, as the
case may be, issuable in payment of such dividend or distribution shall be
deemed to have been issued or sold without consideration.

    

    (5)           Consideration for
Stock. If any shares of Common Stock, Options or Convertible Securities
shall be issued or sold for cash, the consideration received therefor shall be
deemed to be the net amount received by the Company therefor, after deduction
therefrom of any expenses incurred or any underwriting commissions or
concessions paid or allowed by the Company in connection therewith. If any
shares of Common Stock, Options or Convertible Securities shall be issued or
sold for a consideration other than cash, the amount of the consideration other
than cash received by the Company shall be deemed to be the fair value of such
consideration as determined in good faith by the Board of Directors of the
Company, after deduction of any expenses incurred or any underwriting
commissions or concessions paid or allowed by the Company in connection
therewith. If any Options shall be issued in connection with the issue and sale
of other securities of the Company, together comprising one integral transaction
in which no specific consideration is allocated to such Options by the parties
thereto, such Options shall be deemed to have been issued for such consideration
as determined in good faith by the Board of Directors of the Company. If Common
Stock, Options or Convertible Securities shall be issued or sold by the Company
and, in connection therewith, other Options or Convertible Securities (the
“Additional Rights”) are issued, then the consideration received or deemed to be
received by the Company shall be reduced by the fair market value of the
Additional Rights (as determined using the Black-Scholes option pricing model or
another method mutually agreed to by the Company and the Holder). The Board of
Directors of the Company shall respond promptly, in writing, to an inquiry by
the Holder as to the fair market value of the Additional Rights. In the event
that the Board of Directors of the Company and the Holder are unable to agree
upon the fair market value of the Additional Rights, the Company and the Holder
shall jointly select an appraiser, who is experienced in such matters. The
decision of such appraiser shall be final and conclusive, and the cost of such
appraiser shall be borne evenly by the Company and the Holder.

     

     

     

    
      
         

      

      
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    (6)           Record Date. If the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them (i) to receive a dividend or other distribution payable in
Common Stock, Options or Convertible Securities or (ii) to subscribe for or
purchase Common Stock, Options or Convertible Securities, then such record date
shall be deemed to be the date of the issue or sale of the shares of Common
Stock deemed to have been issued or sold upon the declaration of such dividend
or the making of such other distribution or the date of the granting of such
right of subscription or purchase, as the case may be.

    

    (iii)           Notwithstanding
the foregoing, no adjustment will be made under this paragraph (c) in respect
of: (i) the issuance of securities upon the exercise or conversion of any Common
Stock or Common Stock equivalents issued by the Company prior to the date hereof
(but will apply to any amendments, modifications and reissuances thereof), or
(ii) the grant of options or warrants, or the issuance of additional securities,
under any duly authorized Company stock option, stock incentive plan, restricted
stock plan or stock purchase plan whether now existing or hereafter approved by
the Company and its stockholders (as applicable) in the future (but not as to
any amendments or other modifications to the exercise price set forth therein)
and the issuance of Common Stock in respect thereof.

    

    (d)           Number of Warrant
Shares. Simultaneously with any adjustment to the Exercise Price pursuant
to this Section 12, the number of Warrant Shares that may be purchased upon
exercise of this Warrant shall be increased or decreased proportionately, so
that after such adjustment the aggregate Exercise Price payable hereunder for
the adjusted number of Warrant Shares shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment.

    

    (e)           Calculations. All
calculations under this Section 12 shall be made to the nearest cent or the
nearest 1/100th of a share, as applicable. The number of shares of Common Stock
outstanding at any given time shall not include shares owned or held by or for
the account of the Company, and the disposition of any such shares shall be
considered an issue or sale of Common Stock.

    

    (f)           Notice of
Adjustments. Upon the occurrence of each adjustment pursuant to Section
11 or this Section 12, the Company at its expense will promptly compute such
adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and adjusted number or type of Warrant Shares or other securities
issuable upon exercise of this Warrant (as applicable), describing the
transactions giving rise to such adjustments and showing in detail the facts
upon which such adjustment is based. Upon written request, the Company will
promptly deliver a copy of each such certificate to the Holder and to the
Company's Transfer Agent.

    

    (g)           Notice of Corporate
Events. If the Company (i) declares a dividend or any other distribution
of cash, securities or other property in respect of its Common Stock, including
without limitation any granting of rights or warrants to subscribe for or
purchase any capital stock of the Company or any subsidiary, (ii) authorizes or
approves, enters into any agreement contemplating or solicits stockholder
approval for any Fundamental Transaction or (iii) authorizes the voluntary
dissolution, liquidation or winding up of the affairs of the Company, then the
Company shall deliver to the Holder a notice describing the material terms and
conditions of such transaction (but only to the extent such disclosure would not
result in the dissemination of material, non-public information to the Holder)
at least 10 calendar days prior to the applicable record or effective date on
which a person would need to hold Common Stock in order to participate in or
vote with respect to such transaction, provided, however, that the failure to
deliver such notice or any defect therein shall not affect the validity of the
corporate action required to be described in such notice.

    

    13.           Notice of Corporate
Action.  If at any time:

    

    (a)           the
Company shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or other distribution, or any right to
subscribe for or purchase any evidences of its indebtedness, any shares of stock
of any class or any other securities or property, or to receive any other right;
or

    

    (b)           there
shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all or
substantially all the property, assets or business of the Company to, another
corporation; or

    

    (c)           there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

    

    then, in
any one or more of such cases, the Company shall give to the Holder (i) at least
15 days’ prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 15
days’ prior written notice of the date when the same shall take
place.  Such notice in accordance with the foregoing clause also shall
specify (x) the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, (y) the date on which the holders of
Common Stock shall be entitled to any such dividend, distribution or right, and
the amount and character thereof, and (z) the date on which any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up is to take place and the
time, if any such time is to be fixed, as of which the holders of Common Stock
shall be entitled to exchange their shares of Common Stock for securities or
Other Property deliverable upon such disposition, dissolution, liquidation or
winding up. Each such written notice shall be sufficiently given if addressed to
the Holder at the last address of the Holder appearing on the books of the
Company.

     

     

    
      
         

      

      
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    14.           Authorized
Shares.

    

    (a)           The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Principal Market upon which the
Common Stock may be listed.

    

    (b)           The
Company shall not by any action, including, without limitation, amending its
articles of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of the Holder against
impairment.  Without limiting the generality of the foregoing, the
Company will (i) take all such action as may be necessary or appropriate in
order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant, and (ii)
use its best efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this
Warrant.

    

    (c)           Before
taking any action which would cause an adjustment reducing the current Exercise
Price below the then par value, if any, of the shares of Common Stock issuable
upon exercise of the Warrants, the Company shall take any and all corporate
action which may be necessary in order that the Company may validly and legally
issue fully paid and non-assessable shares of such Common Stock at such adjusted
Exercise Price.

    

    (d)           Before
taking any action which would result in an adjustment in the number of shares of
Common Stock for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

    

    15.           Miscellaneous.

    

    (a)           Jurisdiction.  This
Warrant shall be binding upon any successors or assigns of the
Company.  This Warrant shall constitute a contract and be governed by
and construed in accordance with the laws of the State of New York. Each of the
parties consents to the jurisdiction of the federal courts whose districts
encompass any part of the State of New York or the state courts of the State of
New York in connection with any dispute arising under this Warrant and hereby
waives, to the maximum extent permitted by law, any objection, including any
objection based on forum non conveniens, to the bringing of any such proceeding
in such jurisdictions

    

    (b)           Restrictions.  The
Holder hereof acknowledges that the Warrant Shares acquired upon the exercise of
this Warrant, if not registered, will have restrictions upon resale imposed by
state and federal securities laws.

    

    (c)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of the Holder shall operate as a waiver
of such right or otherwise prejudice the Holder’s rights, powers or remedies,
notwithstanding all rights hereunder terminate on the Termination
Date.  If the Company fails to comply with any  provision of
this Warrant, the Company shall pay to the Holder such amounts as shall be
sufficient to cover any costs and expenses including, but not limited to,
reasonable attorneys’ fees, including those of appellate proceedings, incurred
by the Holder in collecting any amounts due pursuant hereto or in otherwise
enforcing any of its rights, powers or remedies hereunder.

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
 

    (d)           Limitation of
Liability.  No provision hereof, in the absence of affirmative
action by the Holder to purchase shares of Common Stock, and no enumeration
herein of the rights or privileges of the Holder hereof, shall give rise to any
liability of the Holder for the purchase price of any Common Stock or as a
shareholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

    

    (e)           Remedies.  The
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive the defense
in any action for specific performance that a remedy at law would be
adequate.

    

    (f)           Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of the Holder.  The provisions of this Warrant are
intended to be for the benefit of all holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant
Shares.

    

    (g)           Indemnification.  The
Company agrees to indemnify and hold harmless the Holder from and against any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, reasonable attorneys’ fees, expenses and disbursements of any
kind which may be imposed upon, incurred by or asserted against the Holder in
any manner relating to or arising out of any failure by the Company to perform
or observe in any material respect any of its covenants, agreements,
undertakings or obligations set forth in this Warrant; provided, however, that the
Company will not be liable hereunder to the extent that any liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, attorneys’ fees, expenses or disbursements have resulted from the
Holder’s bad faith or willful misconduct in its capacity as a shareholder or
warrantholder of the Company.

    

    (h)           Amendment.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and the Holder.

    

    (i)           Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

    

    (j)           Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    

    [The
next page is the signature page.]

     

     

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

     

     

    

    IN WITNESS WHEREOF, the Company has
caused this Stock Purchase Warrant to be executed by its officer thereunto duly
authorized.

     

     

    
      
        	 	INDEX
      OIL AND GAS, INC.	 
	 	 	 	 
	
                Dated:  ____________,
      2009

              	
                By:
      

              	/s/ 	 
	 	 	Name:  Lyndon
      West	 
	 	 	Title:   Chief
      Executive Officer	 
	 	 	 	 

      

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    

    NOTICE
OF EXERCISE

    

    

    

     

    
      	To:  	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
              [name and
      address of transfer agent

              and Index
      Oil and Gas Inc.]   

            	 	 	 

    

                                                                         

    

    and

    

    Index Oil
and Gas Inc.

    

    

    (1)           The
undersigned hereby elects to purchase ________ shares of Common Stock (the
“Common Stock”), of Index Oil and Gas Inc.
pursuant to the terms of the attached Warrant and tenders herewith payment of
the exercise price in full together with all applicable transfer taxes, if
any.

    

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

    

    

     

    
      	 	 	 	 
	 	(Name)	 	 
	 	 	 	 
	 	 	 	 
	 	 (Address)	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 Dated:  	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	Signature	 

    

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    ASSIGNMENT
FORM

    

    (To
assign the foregoing Warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the Warrant.)

    

    

    

    FOR VALUE RECEIVED, the foregoing
Warrant and all rights evidenced thereby are hereby assigned to

    

     

    
      	 	whose address
      is	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Dated:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	Holder's
      Signature: 	 	 
	 	 	 	 
	 	 	 	 
	 	Holder's
      Address:  	 	 
	 	 	 	 
	 	 	 	 
	 	Signature
      Guaranteed:	 	 

    

     

    

    

    

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust company. Officers of
corporations and those acting in an fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing
Warrant.

    

    

    

    122007 FORM 10-K Refile of 2002 2Q Prudential Amendment

May 1, 2002

NU SKIN
ENTERPRISES, INC.

1 Nu Skin Plaza

75 West Centre Street

Provo, Utah  84601

        
    Re:    First Amendment to Note Purchase Agreement

Ladies and Gentlemen:

        Reference
is made to the Note Purchase Agreement (the “Agreement”) dated October
12, 2000 between Nu Skin Enterprises, Inc. (the “Company”) and The
Prudential Insurance Company of America (“Prudential”). Capitalized
terms used and not otherwise delivered herein shall have the meanings provided
in the Agreement. 

        Pursuant
to the request of the Company and Section 17 of the Agreement, Prudential and
the Company hereby agree that the defined term “Material Subsidiaries”
appearing in Schedule B of the Agreement shall be amended by deleting the
existing text of clause (b) thereof in its entirety and substituting therefor
the following: 

	 	        “(b)
each other Subsidiary of the Company which (i) had revenues during the four most
recently ended fiscal quarters equal to or greater than 5.0% of the consolidated
total revenues of the Company and its Subsidiaries during such period (provided
that if the Company and Subsidiaries collectively own not more than 30% of the
outstanding equity, by value, of Nu Skin Malaysia Holdings, then Nu Skin
Malaysia Holdings and its subsidiaries shall not be deemed Material Subsidiaries
by reason of this clause (i) unless their consolidated revenues during the four
most recently ended fiscal quarters equaled or exceeded 15.0% of the
consolidated total revenues of the Company and its Subsidiaries during such
period), or (ii) is an Obligor under any Guarantee with respect to the
Indebtedness of the Company under any Significant Credit Facility.” 

NU SKIN ENTERPRISES, INC.

May 1, 2002

Page 2

        In
order to induce Prudential to enter into this amendment, the Company has
represented and warranted that no Default or Event of Default exists under the
Agreement as of the date hereof. This amendment shall be effective when executed
on behalf of the Company and each Subsidiary Guarantor and an original
counterpart hereof has been delivered to Prudential. 

	 	THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA
	 	 
	 	 
	 	By:      /s/  Stephen J. DeMartini
             
             

           Stephen J. DeMartini
	 	Its:      Vice President
	 	 
	 	 
	Confirmed and agreed:	 
	 	 
	NU SKIN ENTERPRISES, INC.	 
	 	 
	 	 
	By:      /s/  Truman Hunt
             
             
     

           Truman Hunt	 
	Its:    Executive Vice President and Chief Legal Counsel
	 
	 	 
	 	 
	The undersigned Subsidiary Guarantors

hereby consent to the foregoing.	 
	 	 
	 	 
	NU SKIN HONG KONG, INC.

NU SKIN INTERNATIONAL, INC.

NU SKIN TAIWAN, INC.

NU SKIN UNITED STATES, INC.	 
	 	 
	 	 
	By:    /s/  Corey B. Lindley
                 
          

Name:  Corey B. Lindley

Title:  Executive Vice President and Chief Financial Officer

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