Document:

EXHIBIT

10.3

 

NEITHER THIS WARRANT NOR THE

SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER

THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE LAW AND SUCH

SECURITIES MAY NOT BE SOLD OR TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE

REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE LAW COVERING SUCH

SECURITIES, OR (B) SUCH TRANSACTION IS EXEMPT FROM, AND NOT SUBJECT TO,

THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE STATE SECURITIES LAWS

AND THE COMPANY RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE

COMPANY STATING THAT SUCH SALE OR TRANSFER IS EXEMPT FROM REGISTRATION, OR

(C) THE COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH SALE OR TRANSFER IS

EXEMPT FROM REGISTRATION.

 

	

  No. W-L-62

  Issued:  June 10, 2002

  	

   

  	

  Warrant to purchase

  100,000 shares of Common

  Stock (subject to adjustment)

  

 

CENTERSPAN

COMMUNICATIONS CORPORATION

 

COMMON

STOCK

PURCHASE WARRANT

 

THIS CERTIFIES THAT, for value received, PETER R.

KELLOGG (the “Holder”) is entitled to exercise this Warrant to purchase from

the Company One Hundred Thousand (100,000) fully paid and nonassessable shares

of the Company’s Common Stock, $0.01 par value per share (the “Common

Stock”), on the terms and subject to the conditions set forth herein.  The shares of Common Stock issuable upon the

exercise of this Warrant are referred to herein as the “Warrant Shares.”  The number of Warrant Shares issuable upon

exercise of this Warrant and the Exercise Price (as defined below) are subject

to adjustment as provided herein.  The

term “Warrant” as used herein shall include this Warrant and any warrants

delivered in substitution hereof as provided herein.

 

 

This Warrant is being issued in connection with the

transactions contemplated by the Standby Investment Agreement dated as of

June 10, 2002 between the Company and Peter R. Kellogg (the “Standby

Agreement”).

 

1.1          Term of Warrant

 

This Warrant may be exercised by the Holder at any

time after June 10, 2002 and prior to the close of business on June 10, 2005.

 

1.2          Exercise Price

 

The Exercise Price at which this Warrant may be

exercised shall be $10.67 per share of Common Stock, as adjusted from time to

time pursuant to Section 4 hereof.

 

1.3          Method of Exercise

 

This Warrant may be exercised by the Holder, in whole

or in part (but not for less than 10,000 shares at a time, or such lesser

amount then issuable upon the full exercise of this Warrant), by delivering to

the Company (a) this Warrant, (b) cash, a wire transfer of funds or a

check payable to the Company in the amount of the Exercise Price multiplied by

the number of shares for which this Warrant is being exercised (the “Purchase

Price”), and (c) the form of Election to Purchase attached hereto as

Annex A, duly completed and executed by the Holder.  This Warrant shall be deemed to have been

exercised immediately prior to the close of business on the date of its

surrender for exercise as provided above.

 

2.             Delivery

of Stock Certificates

 

Within five business days after the payment of the

Purchase Price following the exercise of this Warrant, the Company, at its

expense, shall issue in the name of the Holder (a) a certificate for the

number of fully paid and nonassessable Warrant Shares to which the Holder shall

be entitled upon such exercise and payment and (b) a new Warrant of like

tenor to purchase up to that number of Warrant Shares, if any, not previously

purchased by the Holder if this Warrant has not expired.

 

3.             Covenants

as to Warrant Shares

 

3.1          Reservation of Warrant Shares

 

The Company shall at all times have authorized and

reserve and keep available, free from preemptive rights, for the purpose of

enabling it to satisfy any obligation to issue Warrant Shares upon the exercise

of this Warrant, the number of Warrant Shares deliverable upon full exercise of

this Warrant.

 

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3.2          Issuance of Warrant Shares

 

The Company covenants that all Warrant Shares shall,

upon issuance thereof in accordance with the terms of this Warrant, be

(a) duly authorized, validly issued, fully paid and nonassessable and

(b) free from all liens, pledges, charges and security interests created

by the Company.  The Company shall pay

all taxes and other governmental charges that may be imposed in respect of the

issuance or delivery of the Warrant Shares.

 

4.             Adjustments

 

4.1          Adjustments of Exercise Price and

Number of Warrant Shares

 

The Exercise Price and the number of Warrant Shares

issuable upon the exercise of this Warrant shall be subject to adjustment from

time to time as hereinafter provided in this Section 4.

 

4.2          Adjustment of Exercise Price Upon

Extraordinary Common Stock Event

 

Upon the happening of an Extraordinary Common Stock

Event (as defined below) after the issuance date of this Warrant, the Exercise

Price shall, simultaneously with the happening of such Extraordinary Common

Stock Event, be adjusted by multiplying the then effective Exercise Price by a

fraction, the numerator of which shall be the number of shares of Common Stock

outstanding immediately prior to such Extraordinary Common Stock Event and the

denominator of which shall be the number of shares of Common Stock outstanding

immediately after such Extraordinary Common Stock Event, and the product so

obtained shall thereafter be the Exercise Price.  The Exercise Price, as so adjusted, shall be readjusted in the

same manner upon the happening of any successive Extraordinary Common Stock

Event or Events.

 

Upon each adjustment of such Exercise Price pursuant

to this Section 4.2, this Warrant shall thereafter entitle the Holder to

purchase, at the Exercise Price resulting from such adjustment, the number of

Warrant Shares obtained by multiplying the Exercise Price in effect immediately

prior to such adjustment by the number of Warrant Shares issuable upon exercise

of this Warrant immediately prior to such adjustment, and dividing the product

thereof by the Exercise Price resulting from such adjustment.

 

“Extraordinary Common Stock Event” shall mean (x) the

issuance of additional shares of Common Stock (or other securities or rights

convertible into or entitling the holder thereof to receive additional shares

of Common Stock) as a dividend or other 

 

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distribution on outstanding Common Stock of the Company, (y) a split

or subdivision of outstanding shares of Common Stock into a greater number of

shares of Common Stock, or (z) a combination of outstanding shares of

Common Stock into a smaller number of shares of Common Stock.

 

4.3          Capital Reorganization or Reclassification

 

If the Common Stock issuable upon the exercise of this

Warrant shall be changed into the same or a different number of shares of any

class or classes of stock of the Company, whether by capital reorganization,

reclassification or otherwise (other than an Extraordinary Common Stock Event),

then and in each such event the Holder shall have the right thereafter to

exercise this Warrant for the kind and amount of shares of stock and other

securities and property receivable upon such reorganization, reclassification

or other change by holders of the number of shares of Common Stock into which

this Warrant might have been converted immediately prior to such

reorganization, reclassification or change, all subject to adjustment as

provided herein.  In any such case,

appropriate adjustment shall be made in the application of the provisions of

this Section 4 with respect to the rights of the Holder after the

reorganization, recapitalization or change to the end that the provisions of

this Section 4 (including adjustment of the Exercise Price then in effect

and the number of shares issuable upon exercise of this Warrant) shall be

applicable after that event as nearly equivalent as may be practicable.

 

4.4          Merger, Sale of Assets, etc.

 

If at any time while this Warrant, or any portion

thereof, is outstanding and unexpired there shall be:

 

(a)           a

reorganization (other than a combination, split, subdivision or

reclassification of shares otherwise provided for herein);

 

(b)           a

merger or consolidation of the Company with or into another corporation in

which the Company is not the surviving entity, or a reverse triangular merger

in which the Company is the surviving entity but the shares of the Company’s

capital stock outstanding immediately prior to the merger are converted by

virtue of the merger into other property, whether in the form of securities,

cash, or otherwise; or

 

(c)           a

sale or transfer of the Company’s properties and assets as, or substantially

as, an entirety to any other person,

 

then, as a part of such reorganization, merger,

consolidation, sale or transfer, lawful provision shall be made so that the

Holder shall thereafter be entitled to receive upon exercise of this Warrant,

during the period specified herein and upon payment of the 

 

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Exercise Price then in effect, the number of shares of

stock or other securities or property of the successor corporation resulting

from such reorganization, merger, consolidation, sale or transfer that a holder

of the shares deliverable upon exercise of this Warrant would have been

entitled to receive in such reorganization, consolidation, merger, sale or

transfer if this Warrant had been exercised immediately before such

reorganization, merger, consolidation, sale or transfer, all subject to further

adjustment as provided in this Section 4. 

The foregoing provisions of this Section 4.4 shall similarly apply

to successive reorganizations, consolidations, mergers, sales and transfers and

to the stock or securities of any other corporation that are at the time

receivable upon the exercise of this Warrant. 

If the per-share consideration payable to the Holder for shares in

connection with any such transaction is in a form other than cash or marketable

securities, then the value of such consideration shall be determined in good

faith by the Company’s Board of Directors. 

In all events, appropriate adjustment (as determined in good faith by

the Company’s Board of Directors) shall be made in the application of the

provisions of this Warrant with respect to the rights and interests of the

Holder after the transaction, to the end that the provisions of this Warrant

shall be applicable after that event, as near as reasonably may be, in relation

to any shares or other property deliverable after that event upon exercise of

this Warrant.

 

4.5          Notice of Adjustment

 

Whenever the number of shares of Common Stock or other

stock or property issuable upon the exercise of this Warrant or the Exercise

Price is adjusted, then and in each such case the Company shall promptly

deliver a notice to the Holder, which notice shall state the Exercise Price

resulting from such adjustment and/or the increase or decrease, if any, in the

number of shares of Common Stock or other stock or property issuable upon the

exercise of this Warrant, setting forth in reasonable detail the method of

calculation and the facts upon which such calculation is based.

 

4.6          Other Notices

 

In the event that the Company shall propose at any

time:

 

(a)           to declare any dividend or distribution

upon its Common Stock, whether in cash, property, stock or other securities,

whether or not a regular cash dividend and whether or not out of earnings or

earned surplus;

 

(b)           to offer for subscription to the

holders of its Common Stock any additional shares of stock of any class or

series or other rights;

 

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(c)           to effect any reclassification or

recapitalization of the shares of its Common Stock outstanding involving a

change in the Common Stock; or

 

(d)           to merge or consolidate with or into

any other corporation, to sell, lease or convey all or substantially all of its

property or business, to undertake any other Corporate Transaction, or to

liquidate, dissolve or wind up;

 

then, in connection with each such event, the Company

shall send to the Holder:

 

(i)            at least 20 days’ prior written

notice of the date on which a record shall be taken for such dividend,

distribution or subscription rights (and specifying the date on which the

holders of Common Stock shall be entitled thereto) or for determining rights to

vote in respect of the matters referred to in (c) and (d) above; and

 

(ii)           in the case of the matters referred

to in (c) and (d) above, at least 20 days’ prior written notice of the date

when the same shall take place (and, if applicable, specifying the date on

which the holders of the Common Stock shall be entitled to exchange their

shares of Common Stock for securities or other property deliverable upon the

occurrence of such events).

 

5.             Fractional

Shares

 

No fractional shares shall be issued upon the exercise

of this Warrant.  If any fraction of a

Warrant Share would, except for the provisions of this Section, be issuable on

the exercise of this Warrant (or any portion hereof), the Company shall pay to

the Holder an amount of cash equal to the then fair market value of a Warrant

Share multiplied by such fraction, computed to the nearest whole cent.  For purposes of the above calculation, the

fair market value of a Warrant Share shall be deemed to be the average of the

closing bid and asked prices of the Company’s Common Stock as quoted on the

Nasdaq National Market System or on any exchange on which such Common Stock is

then listed, whichever is applicable, for the five trading days prior to the date

of exercise of this Warrant.

 

6.             Transfers

 

6.1          Restrictions on Transfer

 

No Warrant Shares or any

interest therein may be transferred unless (a) such transfer is registered

under the Securities Act of 1933, as amended (the “Securities Act”),

(b) the Company has received an opinion of legal counsel for the Holder

reasonably satisfactory to the Company stating that the transfer is exempt from

the 

 

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registration requirements of the Securities Act, or

(c) the Company otherwise satisfies itself that such transfer is exempt

from registration.

 

6.2          Transfers

 

The Company shall

register on the books of the Company maintained at its principal office the

permitted transfer of this Warrant upon surrender to the Company of this

Warrant, with the form of Assignment attached hereto as Annex B duly

completed and executed by the Holder. 

Upon any such registration of transfer, a new Warrant, in substantially

the form of this Warrant, evidencing this Warrant so transferred shall be

issued, at the Company’s expense, to the transferee, and a new Warrant, in

substantially the form of this Warrant, evidencing the portion of this Warrant,

if any, not so transferred shall be issued, at the Company’s expense, to the

Holder.

 

7.             Registration

Rights

 

(a)           Subject

to Section 10(b) below, the Holder may demand that the Company file within 60

days a registration statement on Form S-3 (or any successor form) to register

the shares of Common Stock issuable upon the exercise of this Warrant.  Any such registration statement may also

include other shares of Common Stock issued to other investors by the

Company.  The Company shall use its best

efforts to have the registration statement declared effective within 90 days

after filing and to maintain the effectiveness of such registration statement

(and maintain the current status of the prospectus or prospectuses contained

therein) until the earliest of (i) the fifth anniversary of the effective

date, (ii) the date all such shares have been disposed of pursuant to such

effective registration statement, (iii) the date the Holder could sell all such

shares under Rule 144 promulgated under the Securities Act, without limitations

on the number of shares sold.  The

Company shall respond to the Securties and Exchange Comission (the “SEC”)  within 15 days after the Company’s receipt

of any SEC comments with respect to the registration statement or any

amendments thereto, subject to timely receipt from the Holder and other holders

of shares of Common Stock to be included in such registration statement of

information required to so respond to such comments.

 

(b)           The

Company shall not be obligated to effect any such registration pursuant to

Section 7(a):

 

(1)           if the offering is deemed by the SEC

to involve a primary offering by the Company and Form S-3 is not available for

such offering; or

 

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(2)           in any particular jurisdiction in

which the Company would be required to qualify to do business or to execute a

general consent to service of process in effecting such registration.

 

(c)           The

Company shall notify the Holder in writing at least thirty (30) days prior to

filing any registration statement under the Securities Act for purposes of

effecting a public offering of securities of the Company (including, but not

limited to, registration statements relating to secondary offerings of

securities of the Company, but excluding registration statements relating to

any registration under Section 7(a) of this Warrant or to any employee

benefit plan or a corporate reorganization) and will afford the Holder an

opportunity to include in such registration statement all or any part of the

shares issuable upon the exercise of this Warrant, subject to the provisions of

Section 7(d) below.  If the Holder wants

to include in any such registration statement all or any part of the shares

issuable upon the exercise of this Warrant, the Holder shall within twenty (20)

days after receipt of the above-described notice from the Company, so notify

the Company in writing, and in such notice shall inform the Company of the

number of shares of Common Stock the Holder wishes to include in such

registration statement.

 

(d)           If

a registration statement under which the Company gives notice under Section

7(c) is for an underwritten offering, then the Company shall so advise the

Holder.  In such event, the right of the

Holder to include any of the shares issuable upon the exercise of this Warrant

in a registration pursuant to Section 7(c) shall be conditioned upon the

Holder’s participation in such underwriting and the inclusion of the Holder’s

shares of Common Stock in the underwriting on the same terms and conditions as

the other participants in such offering, including, without limitation,

entering into an underwriting agreement in customary form with the managing

underwriter or underwriters selected for such underwriting (including a market

stand-off agreement of up to 180 days if required by such underwriters).  Notwithstanding any other provision of this

Warrant, if the managing underwriter(s) determine(s) in good faith that

marketing factors require a limitation of the number of shares to be

underwritten, then the managing underwriter(s) may exclude shares from the

registration and the underwriting, and the number of shares that may be

included in the registration and the underwriting shall be allocated, first,

to the Company, second, to each holder of registration rights granted by

the Company before the issuance date of this Warrant that contractually require

the Company to include such holder’s shares on a priority basis, and, third,

to the Holder and any other holder of registration rights granted by the

Company (excluding those covered above), on a pro rata basis based on the total

number of shares of Common Stock then sought to be included by each in such

offering.  If the Holder disapproves of

the terms of any such underwriting, the Holder may elect to withdraw therefrom

by written notice to the Company and the 

 

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underwriter(s), delivered at least ten (10) business days prior to the

effective date of the registration statement. 

Any shares of Common Stock excluded or withdrawn from such underwriting

shall be excluded and withdrawn from the registration.

 

(e)           The

Holder shall have no right to obtain or seek, nor shall the Holder obtain or

seek, an injunction restraining or otherwise delaying any registration as the

result of any controversy that might arise with respect to the interpretation

or implementation of this Agreement.

 

(f)            In

the event any Registrable Shares are included in a registration statement under

this Agreement or the terms of the Warrant:

 

(i)            To

the extent permitted by law, the Company will indemnify and hold harmless the

Holder against any losses, claims, damages, or liabilities to which he may

become subject under the Securities Act, the Securities Act of 1934, as amended

(the “1934 Act”) or other federal or state law, insofar as such losses, claims,

damages, or liabilities (or actions in respect thereof) arise out of or are

based upon any of the following statements, omissions or violations

(collectively a “Violation”): (A) any untrue statement or alleged untrue

statement of a material fact contained in such registration statement,

including any preliminary prospectus or final prospectus contained therein or

any amendments or supplements thereto, (B) the omission or alleged omission to

state therein a material fact required to be stated therein, or necessary to

make the statements therein, in light of the circumstances under which they

were made, not misleading, or (C) any violation or alleged violation by the

Company of the Securities Act, the 1934 Act, any state securities law or any

rule or regulation promulgated under the Securities Act, the 1934 Act or any

state securities law in connection with such registration and sale of

securities; and the Company will pay to the Holder, as incurred, any legal or

other expenses reasonably incurred by him in connection with investigating or

defending any such loss, claim, damage, liability, or action; provided,

however, that the indemnity agreement contained in this subsection 7(f)(i)

shall not apply to amounts paid in settlement of any such loss, claim, damage,

liability, or action if such settlement is effected without the Company’s

(which consent shall not be unreasonably withheld), nor shall the Company be

liable in any such case for any such loss, claim, damage, liability, or action

to the extent that it arises out of or is based upon a Violation that occurs in

reliance upon and in conformity with written information furnished expressly

for use in connection with such registration by the Holder or any of his

agents.

 

(ii)           To

the extent permitted by law, the Holder will indemnify and hold harmless the

Company, each of its directors, each of its officers who has signed the

registration statement, each person, if any, who controls the Company within

the meaning of the Securities Act, each agent and any underwriter, any other

person or 

 

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entity selling securities in such registration statement and any

controlling person of any such underwriter or other person or entity, against

any losses, claims, damages, or liabilities (joint or several) to which any of

the foregoing persons may become subject, under the Securities Act, the 1934

Act or other federal or state law, insofar as such losses, claims, damages, or

liabilities (or actions in respect thereto) arise out of or are based upon any

Violation, in each case to the extent (and only to the extent) that such

Violation occurs in reliance upon and in conformity with written information

furnished by the Holder or his agents expressly for use in connection with such

registration; and the Holder will pay, as incurred, any legal or other expenses

reasonably incurred by any person intended to be indemnified pursuant to this

subsection 7(f)(ii), in connection with investigating or defending any

such loss, claim, damage, liability, or action; provided, however, that the

indemnity agreement contained in this subsection 7(f)(ii) shall not apply

to amounts paid in settlement of any such loss, claim, damage, liability or

action if such settlement is effected without the consent of the Holder (which

consent shall not be unreasonably withheld); and, provided further, that in no

event shall any indemnity under this subsection 7(f)(ii) exceed the net

proceeds from the offering received by the Holder.

 

(iii)          Promptly

after receipt by an indemnified party under this Section 7(f) of notice of

the commencement of any action (including any governmental action), such

indemnified party will, if a claim in respect thereof is to be made against any

indemnifying party under this Section 7(f), deliver to the indemnifying

party a written notice of the commencement thereof and the indemnifying party

shall have the right to participate in, and, to the extent the indemnifying

party so desires, jointly with any other indemnifying party similarly noticed,

to assume the defense thereof with counsel mutually satisfactory to the

parties; provided, however, that an indemnified party (together with all other

indemnified parties that may be represented without conflict by one counsel)

shall have the right to retain one separate counsel, with reasonable fees and

expenses to be paid by the indemnifying party, if representation of such

indemnified party by the counsel retained by the indemnifying party would be

inappropriate due to actual or potential differing interests between such

indemnified party and any other party represented by such counsel in such

proceeding.  The failure to deliver

written notice to the indemnifying party within a reasonable time of the

commencement of any such action, if prejudicial to its ability to defend such

action, shall relieve such indemnifying party of any liability to the

indemnified party under this Section 7(f), but the omission so to deliver

written notice to the indemnifying party will not relieve it of any liability

that it may have to any indemnified party otherwise than under this

Section 7(f).

 

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(iv)          To

the extent the indemnification provided for in this Section 7(f) is held

by a court of competent jurisdiction to be unavailable to an indemnified party

with respect to any losses, claims, damages or liabilities referred to herein,

the indemnifying party, in lieu of indemnifying such indemnified party

hereunder, shall to the extent permitted by applicable law contribute to the

amount paid or payable by such indemnified party as a result of such loss,

claim, damage or liability in such proportion as is appropriate to reflect the

relative fault of the indemnifying party on the one hand and of the indemnified

party on the other, in connection with the Violation(s) that resulted in such

loss, claim, damage or liability, as well as any other relevant equitable

considerations.  The relative fault of

the indemnifying party and of the indemnified party shall be determined by a

court of law by reference to, among other things, whether the untrue or

allegedly untrue statement of a material fact or the omission to state a

material fact relates to information supplied by the indemnifying party or by

the indemnified party and the parties’ relative intent, knowledge, access to

information and opportunity to correct or prevent such statement or omission.

 

(v)           The

obligations of the Company and the Holder under this Section 7(f) shall

survive the completion of any offering of Registrable Shares in a registration

statement under Section 7, and otherwise.

 

(g)                 With

a view to making available to the Holder the benefits of Rule 144 promulgated

under the Securities Act, the Company agrees to (i) make and keep public

information available, as those terms are understood and defined in SEC Rule

144, at all times, and (ii) file with the SEC in a timely manner, all reports

and other documents required of the Company under the Act and the 1934 Act.

 

8.             Legend

 

Legends setting forth or

referring to the applicable restrictions set forth in Section 6.1 may be

placed on this Warrant, any replacement hereof or any certificate representing

the Warrant Shares, and a stop transfer restriction or order shall be placed on

the books of the Company and with any transfer agent until such securities may

be sold or otherwise transferred in accordance with Section 6.1.

 

9.             Holder

as Owner

 

The Company may deem and

treat the holder of record of this Warrant as the absolute owner hereof for all

purposes regardless of any notice to the contrary.

 

10.          No

Shareholder Rights

 

This Warrant shall not

entitle the Holder to any voting rights or any other rights as a shareholder of

the Company or to any other rights whatsoever except the rights 

 

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stated herein; and no dividend or interest shall be

payable or shall accrue in respect of this Warrant or the Warrant Shares, until

and to the extent that this Warrant shall be exercised.

 

11.          Governing

Law; Construction

 

The validity and

interpretation of the terms and provisions of this Warrant shall be governed by

the laws of the State of Oregon.  The

descriptive headings of the several sections of this Warrant are inserted for

convenience only and shall not control or affect the meaning or construction of

any of the provisions thereof.

 

12.          Lost

Warrant Certificate

 

Upon receipt by the

Company of satisfactory evidence of the loss, theft, destruction or mutilation

of this Warrant and either (in the case of loss, theft or destruction)

indemnification reasonably satisfactory to the Company or (in the case of

mutilation) the surrender of this Warrant for cancellation, the Company will

execute and deliver to the Holder, without charge, a new Warrant of like

denomination.

 

13.          Waivers

and Amendments

 

This Warrant or any

provision hereof may be amended or waived only by a statement in writing signed

by the Company and the Holder.

 

14.          Notices

 

Any notice required by the provisions of this Warrant

to be given to the Holder shall be deemed given two days after being deposited

in the United States mail, postage prepaid and addressed to such Holder’s

address appearing on the books of the Company.

 

Any notice required by the provisions of this Warrant

to be given to the Company shall be deemed given three business days after

being deposited in the United States mail, postage prepaid and addressed to

CenterSpan Communications Corporation, 7175 NW Evergreen Parkway, Suite 400,

Hillsboro, OR 97124, Attention: Chief Financial Officer, or at such other

address as specified in a notice delivered to the Holder as set forth above.

 

15.          Binding

Effect

 

This Warrant shall be binding upon the Company and its

successors and assigns, and shall inure to the benefit of and be enforceable by

the Holder and its successors and permitted assigns.

 

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16.          Investment

Intent, etc.

 

By accepting this Warrant, the Holder represents that

(a) the Holder is acquiring this Warrant and the Warrant Shares issuable

upon exercise hereof for investment and not with a view to, or for sale in

connection with, any distribution thereof; (b) the Holder can bear the

economic risk of an investment in the Warrant Shares (including possible

complete loss of such investment) for an indefinite period of time;

(c) the Holder understands that this Warrant and the Warrant Shares have

not been registered under the Securities Act, or under the securities laws of

any jurisdiction, by reason of reliance upon certain exemptions, and that the

reliance of the Company on such exemptions is predicated upon the accuracy of

the Holder’s representations in this Section; (d) the Holder is familiar

with Rule 144 under the Securities Act, as currently in effect, and

understands the resale limitations that are or would be imposed thereby and by

the Securities Act on this Warrant and the Warrant Shares to the extent such

securities are characterized as “restricted securities” under the United States

federal securities laws inasmuch as they are acquired from the Company in a

transaction not involving a public offering; (e) the Holder has received

and reviewed a copy of each SEC Document (as defined in the Standby Agreement)

and the Holder believes the Holder has been given access to full and complete

information regarding the Company and has utilized such access to the Holder’s

satisfaction for the purpose of obtaining information about the Company,

particularly, representatives of the Holder have had adequate opportunities to

ask questions of, and receive answers from, senior executives of the Company

concerning the Company and to obtain any additional information, to the extent

reasonably available, necessary to verify the accuracy of information provided

to the Holder about the Company; (f) the Holder is an “accredited investor” as

such term is defined in Rule 501(a) under the Securities Act and as

defined pursuant to the provisions of state securities laws applicable to the

Holder providing for an exemption from registration or qualification of the

offer and sale of this Warrant and the Warrant Shares; (g) the Holder has

obtained, to the extent he or she deems necessary, his or her own professional

advice with respect to the risks inherent in the investment in this Warrant and

the Warrant Shares, the condition of the Company and the suitability of the

investment in this Warrant and the Warrant Shares in light of the Holder’s

financial condition and investment needs; and (h) the Holder is a resident

of the state (or if not a natural person, the Holder made its investment

decision with respect to this Warrant and the Warrant Shares from its office

located in such state) set forth on the signature page of this Warrant.

 

17.          Attorneys’

Fees

 

In the event any party is required to engage the

services of attorneys for the purpose of enforcing this Warrant, or any provision

hereof, the prevailing party shall be entitled to recover its reasonable

attorneys’ fees and any other costs or expenses.

 

13

 

IN WITNESS WHEREOF, the Company has executed this

Warrant as of the date first written above.

 

	

   

  	

  CENTERSPAN COMMUNICATIONS CORPORATION

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By

  	

  /s/

  
	

   

  	

  Name:  Mark

  B. Conan

  	

   

  
	

   

  	

  Title:  Vice

  President of Finance and Administration and Chief Financial Officer

  	

   

  
				

 

The undersigned hereby confirms its 

acknowledgements and representations 

in Section 16 of this Warrant.

 

HOLDER:

 

	

  /s/

  	

   

  	

   

  
	

  Peter R. Kellogg

  	

   

  
	

  Holder’s State of Residence:  New Jersey

  	

   

  

 

14

 

ANNEX A

 

FORM OF

ELECTION TO PURCHASE

 

To CenterSpan Communications Corporation:

 

The undersigned hereby elects to purchase

            shares of

Common Stock of CenterSpan Communications Corporation issuable upon the

exercise of the within Warrant, and requests that a certificate for such shares

shall be issued in the name of the undersigned holder and delivered to the

address indicated below and, if said number of shares shall not be all the

shares which may be purchased pursuant to the within Warrant, that a new

Warrant evidencing the right to purchase the balance of such shares be registered

in the name of, and delivered to, the undersigned at the undersigned’s address

stated below.

 

The undersigned hereby certifies to the Company that

the undersigned’s representations set forth in Section 16 of the within Warrant

are true and correct on the date hereof as if made by the undersigned on the

date hereof.

 

Payment enclosed in the

amount of

$                                    .

 

	

  Dated: 

  	

   

  	

   

  	 

	

   

  	

   

  	 

	

  Name of holder of

  Warrant:

  	

   

  	 

	

   

  	

  (please print)

  
	

   

  	

   

  
	

  Address:

  	

   

  	 

	

   

  	

   

  	 

	

   

  	

   

  	 

	

   

  	

   

  	 

	

  Signature:Exhibit 4.1

 

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE

OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS

AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR

TRANSFERRED UNLESS SUCH SALE OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION

REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE

REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS IS AVAILABLE WITH

RESPECT THERETO.

 

COMMON

STOCK PURCHASE WARRANT

 

	

  Warrant No. 4

  	

   

  	

  Number of Shares

  1,000,000

  

 

EXACT Sciences Corporation

 

Void

after June 26, 2005

 

1.             Issuance.

This Warrant is issued to Laboratory Corporation of America Holdings by EXACT

Sciences Corporation, a Delaware corporation (hereinafter with its successors

called the “Company”).

 

2.             Purchase

Price: Number of Shares. Subject to the terms and conditions hereinafter

set forth, the registered holder of this Warrant (the “Holder”), commencing on

the date hereof, is entitled upon surrender of this Warrant with the

subscription form annexed hereto duly executed, at the office of the Company,

63 Great Road, Maynard, Massachusetts 01754, or such other office as the

Company shall notify the Holder of in writing, to purchase from the Company at

a price per share (the “Purchase Price”) of $16.09, ONE MILLION (1,000,000)

fully paid and nonassessable shares of Common Stock, $0.01 par value, of the

Company (the “Common Stock”). Until such time as this Warrant is exercised in

full or expires, the Purchase Price and the securities issuable upon exercise

of this Warrant are subject to adjustment as hereinafter provided.

 

3.             Payment

of Purchase Price. The Purchase Price may be paid (i) in cash or by check,

(ii) by the surrender by the Holder to the Company of any promissory notes or

other obligations issued by the Company, with all such notes and obligations so

surrendered being credited against the Purchase Price in an amount equal to the

principal amount thereof plus accrued interest to the date of surrender, or

(iii) by any combination of the foregoing.

 

4.             Partial

Exercise. This Warrant may be exercised in part, and the Holder shall be

entitled to receive a new warrant, which shall be dated as of the date of this

Warrant and containing the same terms as this Warrant, covering the number of

shares in respect of which this Warrant shall not have been exercised.

 

5.             Issuance

Date. The person or persons in whose name or names any certificate

representing shares of Common Stock is issued hereunder shall be deemed to have

become the holder of record of the shares represented thereby as at the close

of business on the date this

 

1

 

Warrant is exercised with respect to such shares, whether or not the

transfer books of the Company shall be closed.

 

6.             Expiration

Date. This Warrant shall expire at the close of business on June , 2005 and

shall be void thereafter.

 

7.             Reserved

Shares: Valid Issuance. The Company covenants that it will at all times

from and after the date hereof reserve and keep available such number of its

authorized shares of Common Stock, free from all preemptive or similar rights

therein, as will be sufficient to permit the exercise of this Warrant in full.

The Company further covenants that such shares as may be issued pursuant to the

exercise of this Warrant will, upon issuance, be duly and validly issued, fully

paid and nonassessable and free from all taxes, liens and charges with respect

to the issuance thereof.

 

8.             Dividends.

If after the Original Issue Date (as defined in Section 13 hereof) the Company

shall subdivide the Common Stock, by split-up or otherwise, or combine the

Common Stock, or issue additional shares of Common Stock in payment of a stock

dividend on the Common Stock, the number of shares issuable on the exercise of

this Warrant shall forthwith be proportionately increased in the case of a

subdivision or stock dividend, or proportionately decreased in the case of a

combination, and the Purchase Price shall forthwith be proportionately decreased

in the case of a subdivision or stock dividend, or proportionately increased in

the case of a combination.

 

9.             Sale

of Assets and Mergers. Upon the sale by the Company of all or substantially

all of its assets, or the merger or consolidation of the Company with or into

another entity in a transaction where the shares of the Company’s capital stock

outstanding immediately prior to the closing of such merger or consolidation

represent or are converted into or exchanged for shares that represent less than

a majority of the shares of capital stock of the resulting or surviving entity

outstanding immediately after the closing of such merger or consolidation

(each, a “Business Event”), this Warrant shall expire and thereafter be void.

The Company shall give the Holder of this Warrant thirty (30) days (the “Merger

Exercise Period”) prior written notice of a Business Event. Holder may exercise

this Warrant, in full or in part, during the Merger Exercise Period. Upon the

expiration of the ?Merger Exercise Period, this Warrant shall expire and

thereafter be void.

 

10.           Fractional

Shares. In no event shall any fractional share of Common Stock be issued

upon any exercise of this Warrant. If, upon exercise of this Warrant as an

entirety, the Holder would, except as provided in this Section 10, be entitled

to receive a fractional share of Common Stock, then the Company shall issue the

next higher number of full shares of Common Stock, issuing a full share with

respect to such fractional share.

 

11.           Certificate

of Adjustment. Whenever the Purchase Price is adjusted, as herein provided,

the Company shall promptly deliver to the Holder a certificate setting forth

the Purchase Price after such adjustment and setting forth a brief statement of

the facts requiring such adjustment.

 

2

 

12.           Notices

of Record Date. Etc. In the event of

 

(a)           any

taking by the Company of a record of the holders of any class of securities for

the purpose of determining the holders thereof who are entitled to receive any

dividend or other distribution, or any right to subscribe for, purchase or

otherwise acquire any shares of stock of any class or any other securities or

property, or to receive any other right,

 

(b)           any

reclassification of the capital stock of the Company, capital reorganization of

the Company, consolidation or merger involving the Company, or sale or

conveyance of all or substantially all of its assets, or

 

(c)           any

voluntary or involuntary dissolution, liquidation or winding-up of the Company,

 

then and in each such event the Company will mail or cause to be mailed

to the Holder a notice specifying (i) the date on which any such record is to

be taken for the purpose of such dividend, distribution or right, and stating

the amount and character of such dividend, distribution or right, or (ii) the

date on which any such reclassification, reorganization, consolidation, merger,

sale or conveyance, dissolution, liquidation or winding-up is to take place,

and the time, if any is to be fixed, as of which the holders of record in

respect of such event are to be determined. Such notice shall be mailed at

least 20 days prior to the date specified in such notice on which any such

action is to be taken.

 

13.           Issue

Date. This Warrant is being issued by the Company on June 26, 2002 (the

“Original Issue Date”) in connection with that certain Agreement, dated as of

June 26, 2002, between the Company and Laboratory Corporation of America

Holdings.

 

14.           Amendment.

The terms of this Warrant may be amended, modified or waived only with the

written consent of the Company and the Holder of this Warrant.

 

15.           Compliance

with the Securities Act.

 

(a)           Compliance

with Securities Act. The Holder of this Warrant, by acceptance hereof,

agrees that this Warrant, and the shares of Common Stock to be issued upon

exercise hereof are being acquired for investment and that such Holder will not

offer,, sell or otherwise dispose of this Warrant, or any shares of Common

Stock to be issued upon exercise hereof except under circumstances which will

not result in a violation of the Securities Act of 1933, as amended (the

“Securities Act”) or any applicable state securities laws. Upon exercise of

this Warrant, unless the Common Stock being acquired is registered under the

Securities Act and any applicable state securities laws or an exemption from

such registration is available, the holder hereof shall confirm in writing that

the shares of Common Stock so purchased (and any shares issued upon conversion

thereof) are being acquired for investment and not with a view toward

distribution or resale in violation of the Securities Act and shall confirm

such other matters related thereto as may be reasonably requested by the

Company. This Warrant and all shares of Common Stock issued upon exercise of

this Warrant (unless registered under the

 

3

 

Securities Act and any applicable state securities laws) shall be

stamped or imprinted with a legend in substantially the following form:

 

THE SECURITIES REPRESENTED

BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,

AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION

WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE

EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN

OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH

REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE

STATE SECURITIES LAWS.

 

Said legend shall be removed by the Company, upon the request of a

holder, at such time as the restrictions on the transfer of the applicable

security shall have terminated.

 

(b)           In

addition, in connection with the issuance of this Warrant, the Holder

specifically represents to the Company by acceptance of this Warrant as

follows:

 

(i)            The

Holder is aware of the Company’s business affairs and financial condition, and

has acquired information about the Company sufficient to reach an informed and

knowledgeable decision to acquire this Warrant. The Holder is acquiring this

Warrant for its own account for investment purposes only and not with a view

to, or for the resale in connection with, any “distribution” thereof in

violation of the Securities Act or applicable state securities laws.

 

(ii)           The

Holder understands that this Warrant has not been registered under the

Securities Act in reliance upon a specific exemption therefrom, which exemption

depends upon, among other things, the bona fide nature of the Holder’s

investment intent as expressed herein.

 

(iii)          The

Holder further understands that this Warrant must be held indefinitely unless

subsequently registered under the Securities Act and qualified under any

applicable state securities laws, or unless exemptions from registration and qualification

are otherwise available. The holder is aware of the provisions of Rule 144,

promulgated under the Securities Act.

 

16.           Warrant

Register; Transfers, Etc.

 

(a)           Subject

to the provisions of Section 15 hereto, this Warrant and all rights hereunder

are transferable (but only with all related obligations) with the prior written

consent of the Company, and upon surrender of the Warrant with a properly

executed assignment (in the form attached hereto) at the principal office of

the Company, or at such other office or agency as the Company may designate.

 

(b)           Each

holder of this Warrant acknowledges that this Warrant and the Common Stock of

the Company issuable upon exercise hereof have not been registered under the

 

4

 

Securities Act, and agrees not to sell, pledge, distribute, offer for

sale, transfer or otherwise dispose of this Warrant or any Common Stock issued

upon its exercise in the absence of (i) an effective registration statement

under the Securities Act as to this Warrant or such Common Stock and

registration or qualification of this Warrant or such Common Stock under any

applicable blue sky or state securities law then in effect, or (ii) an opinion

of counsel, reasonably satisfactory to the Company, that such registration and

qualification are not required.

 

(c)           Until

any transfer of this Warrant is made in the warrant register, the Company may

treat the Holder of this Warrant as the absolute owner hereof for all purposes;

provided, however, that if and when this Warrant is properly

assigned in accordance with this Section 16, the Company may (but shall not be

required to) treat the bearer hereof as the absolute owner hereof for all

purposes, notwithstanding any notice to the contrary. Except as otherwise

expressly provided herein, the provisions hereof shall inure to the benefit of,

and be binding upon, the successors, assigns, heirs, executors and

administrators of the parties hereto, as may be appropriate.

 

(d)           The

Company will maintain a register containing the names and addresses of the

registered holders of this Warrant. Any registered holder may change such

registered holder’s address as shown on the warrant register by written notice

to the Company requesting such change.

 

17.           No

Impairment. The Company will not, by amendment of its Certificate of

Incorporation or through any reclassification, capital reorganization,

consolidation, merger, sale or conveyance of assets, dissolution, liquidation,

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 action as may be necessary or appropriate in

order to protect the rights of the Holder.

 

18.           Registration

Rights.

 

(a)           Whenever

the Company proposes to file a registration statement with the Securities and

Exchange Commission for a public offering and sale of securities of the Company

(other than a registration statement on Form S8 or Form S4, or their

successors, or any other form for a limited purpose, or any registration

statement covering only securities proposed to be issued in exchange for

securities or assets of another corporation) (a “Registration Statement”), it

will, prior to such filing, give written notice to the Holder of its intention

to do so and, upon the written request of the Holder given within 30 days after

the Company provides such notice, the Company shall use commercially reasonable

efforts to register under the Securities Act pursuant to the Registration

Statement all shares of Common Stock issued or issuable upon conversion of the

Warrant (“Registrable Shares”) for which the Holder has requested registration;

provided that the Company shall have the right to postpone or withdraw any

registration effected pursuant to this Section 18 without obligation to the

Holder; and provided further that the Company shall have no obligation to

register Registrable Shares which have already been registered under the

Securities Act pursuant to an effective registration statement or are owned by

a Holder who could immediately sell all of such Registrable Shares publicly

pursuant to Rule 144 under the Securities Act.

 

5

 

(b)           In

connection with any offering under Section 18(a) involving an underwriting, the

Company shall include in such offering all the Registrable Shares specified in

a written request or requests, mailed by the Holder within 30 days of receipt

of such written notice from the Company, provided that the Company may limit,

to the extent so advised by the underwriters as a result of market conditions,

the amount of Registrable Shares to be included in the registration by the

Holder to an amount not less than one third of the total number of securities

included in the offering. If the number of Registrable Shares to be included in

the underwriting in accordance with the foregoing is less than the total number

of Registrable Shares which the Holder has requested to be included, then the

Company may include all securities proposed to be registered by the Company to

be sold for its own account and the Holder shall participate in the

underwriting pro rata based upon its total ownership of shares of Common Stock

of the Company, together with any additional holders of shares of the Company’s

capital stock who has requested registration of any or all of such holder’s

shares pursuant to and in accordance with a grant of registration rights by the

Company (a “Selling Securityholder”). If any Selling Securityholder would thus

be entitled to include more shares than such Selling Securityholder requested

to be registered, the excess shall be allocated among other requesting Selling

Securityholders pro rata based upon their total ownership of shares.

 

(c)           If

at any time (i) the Holder requests that the, Company file a Registration

Statement on Form S3 or any successor thereto for a public offering of all or

any portion of the Registrable Shares with an aggregate proposed offering price

of at least $500,000, and (ii) the Company is a registrant entitled to use Form

S3 or any successor thereto to register such shares, then the Company shall use

its reasonable best efforts at its own expense to file a Registration Statement

on Form S3 or any successor thereto, for public sale in accordance with the

method of disposition specified in such notice, the number of Registrable

Shares specified in such notice; provided, however, that the Company shall have

no obligation to register Registrable Shares which have already been registered

under the Securities Act pursuant to an effective registration statement or are

owned by a Holder who could immediately sell all of such Registrable Shares

publicly pursuant to Rule 144 under the Securities Act. The Company shall be

entitled to include in any Registration Statement referred to in this Section

18(c) shares of Common Stock to be sold by the Company for its own account or

for the account of a Selling Securityholder, except as and to the extent that,

in the opinion of the managing underwriter, if any, such inclusion would

adversely affect the marketing of the Registrable Shares to be sold.

Notwithstanding anything to the contrary in this Section 18(c), the Company

shall not be required to effect more than one registration pursuant to this

Section 18(c) in any 12 month period.

 

(d)           A

Holder proposing to distribute its securities in an offering under this Section

18 involving an underwriting shall (together with the Company and other

shareholders of securities distributing their shares through such underwriting)

enter into an underwriting agreement in customary form with the underwriter or

underwriters selected for the underwriting.

 

(e)           The

Company shall not be obligated to register, pursuant to this Section 18, the

Registrable Shares of any Holder who fails to provide promptly to the Company

such information as the Company may reasonable request at any time to enable

the Company to

 

6

 

comply with any applicable law or regulation or to facilitate

preparation of the Registration Statement.

 

(f)            In

connection with any public offering of equity securities of the Company, the

Holder agrees not to sell, pledge, hypothecate, hedge, transfer or otherwise

dispose of, or grant any option or purchase right with respect to, any shares

of capital stock of the Company then owned by the Holder and not otherwise

offered in the public offering, or engage in any short sale, hedging

transaction or other derivative security transaction involving the Registrable

Shares or other shares of Common Stock of the Company held by the Holder, for

such period of time commencing ten (10) days prior to the proposed effective

date of such public offering and until 180 days following the effective date of

such public offering.

 

(g)           All

expenses incurred by the Company in complying with this Section 18, including,

all registration and filing fees, printing expenses, fees and disbursements of

counsel and independent public accountants for the Company, fees and expenses

incurred in connection with complying with state securities or “blue sky” laws,

fees of the National Association of Securities Dealers, Inc., transfer taxes,

fees of transfer agents and registrars and costs of insurance, but excluding

any Selling Expenses, are called “Registration Expenses”. All underwriting

discounts and selling commissions applicable to the sale of Restricted Stock

and fees and disbursements of counsel for the sellers of the Registrable Shares

are called “Selling Expenses”. The Company will pay all Registration Expenses

in connection with each registration statement under this Section 18. All

Selling Expenses in connection with each registration statement under this

Section 18 shall be borne by the participating sellers in proportion to the

number of shares sold by each, or by such participating sellers other than the

Company (except to the extent the Company shall be a seller) as they may agree.

 

19.           Rule

144 Reporting. With a view to making available the benefits of certain

rules and regulations of the Securities and Exchange Commission which may at

any time permit the sale of the Registrable Shares to the public without

registration, the Company agrees to:

 

(a)           make

and keep public information available, as those terms are understood and

defined in Rule 144 under the Securities Act;

 

(b)           use

commercially reasonable efforts to file with the Securities and Exchange

Commission in a timely manner all reports and other documents required of the

Company under the Securities Act and the Exchange Act of 1934, as amended (the

“Exchange Act”); and

 

(c)           furnish

to each holder of Registrable Shares forthwith upon request a written statement

by the Company as to its compliance with the reporting requirements of such

Rule 144 and of the Securities Act and the Exchange Act, a copy of the most recent

annual or quarterly report of the Company, and such other reports and documents

so filed by the Company as such holder may reasonably request in availing

itself of any rule or regulation of the Securities and Exchange Commission

allowing such holder to sell any Registrable Shares without registration.

 

7

 

20.           Governing

Law. The provisions and terms of this Warrant shall be governed by and

construed in accordance with the internal laws of the Commonwealth of

Massachusetts.

 

21.           Successors

and Assign. This Warrant shall be binding upon the Company’s successors and

assigns and shall inure to the benefit of the Holder’s successors, legal

representatives and permitted assigns.

 

22.           Business

Days. If the last or appointed day for the taking of any action required or

the expiration of any right granted herein shall be a Saturday or Sunday or a

legal holiday in the Commonwealth of Massachusetts, then such action may be

taken or right may be exercised on the next succeeding day which is not a

Saturday or Sunday or such a legal holiday.

 

23.           Shareholder

Rite. Except as set forth herein, no holder of this Warrant, as such, shall

be entitled to vote upon any matter submitted to shareholders at any meeting

thereof, or to receive notice of meetings, or be deemed the holder of Common

Stock until this Warrant shall have been exercised and the Shares purchasable

upon such exercise shall have become deliverable, as provided herein.

 

[Remainder of Page

Intentionally Left Blank]

 

 

8

 

	

  Dated: June 26, 2002

  	

   

  	

  EXACT SCIENCES CORPORATION

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  (Corporate Seal)

  	

   

  	

  By:

  	

   /s/ Don M.

  Hardison

  
	

   

  	

   

  	

   

  	

  Name:

  
	

   

  	

   

  	

   

  	

  Title:

  
	

   

  	

   

  	

   

  	

   

  
	

  Attest:

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   /s/ John A.

  McCarthy, Jr.

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  

 

 

9

 

Subscription

 

	

  To:

  	

   

  	

  Date:

  	

   

  

 

 

The undersigned hereby subscribes for the shares of

Common Stock covered by this Warrant. The certificates) for such shares shall

be issued in the name of the undersigned or as otherwise indicated below:

 

	

   

  
	

   

  
	

  Signature

  
	

   

  
	

   

  
	

  Name for Registration

  
	

   

  
	

   

  
	

  Mailing Address

  

 

 

10

 

Assignment

 

	

   

  	

  For value received 

  	

   

  	

  hereby sells,

  
	

   

  	

   

  	

   

  	

   

  
	

  assigns and transfers unto

  	

   

  
	

   

  
	

   

  
	

   

  
	

  Please print or typewrite name and address of

  Assignee

  
	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  the within Warrant, and does hereby irrevocably

  constitute and appoint

  	

   

  
	

   

  	

   

  
	

   

  	

  its attorney to transfer the within Warrant on the

  books of the

  
	

   

  	

   

  
	

  within named Company with full power of substitution

  on the premises.

  
	

   

  
	

  Dated:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  In the Presence of:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
									

 

 

11

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