Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - L.A.M. Pharmaceutical, Corp. - Exhibit 4.4

 

 Exhibit 4.4 

 Form of Subscription Agreement to Purchase Common Stock
  and Warrants issued by the Registrant

  to the Selling Stockholders 

 

 SUBSCRIPTION AGREEMENT 

 1.          
  Subscription. I hereby agree to purchase the following securities offered
  by L.A.M. Pharmaceutical, Corp. (the "Company") in accordance with the terms
  of this Subscription Agreement.

 No
  later than *****: *** Units consisting of one thousand shares of the Company’s
  common stock, plus **** warrants, for a subscription price of $ ****per Unit
  and a total purchase price of $****; 

With respect to the warrants referred
  to above:

	 	 	• 	 Each warrant will entitle the holder
        to purchase one share of the Company’s common stock;  

	 	 	  	 
	 	 	• 	 One third of the warrants may be exercised
        at any time prior to ********** at a price of $******* per share; 
      

	 	 	  	 
	 	 	• 	 One third of the warrants may be exercised
        at any time prior to ******** at a price of $****** per share; and 
      

	 	 	  	 
	 	 	• 	 The remaining third of the warrants may
        be exercised at any time prior to ************ at a price of $ ********
        per share.  

           
  2.           Representations
  and Warranties. I warrant and represent to the Company that:   

	 	a.	The Securities are
        being purchased by me for investment only, for my own account and not
        with a view to the offer or sale in connection therewith, or the distribution
        thereof, and I am not participating, directly or indirectly, in an underwriting
        of any such undertaking. 

	 	 	 
	 	b.	I will not take, or
        cause to be taken, any action that would cause me to be deemed an underwriter
        of the Securities, as defined in Section 2(11) of the Securities Act of
        1933, as amended (the "Act"). 

	 	 	 
	 	c.	I have had an opportunity
        to review the Company’s filings with the Securities and Exchange
        Commission, including the Company’s latest reports on Form 10-KSB
        and Form 10-QSB. 

	 	 	 
	 	 d.      	 I (and my purchaser representative, if any) have
        had an opportunity to ask questions of, and receive answers from the officers
        of the Company regarding the Company’s business. 

	 
	 	 e.      	 In determining whether to make an investment in
        the Securities, I am not relying on any private offering memorandum other
        than the information referred to in c. above. 

	 
	 	 f.      	 By virtue of my net worth and by reason of my knowledge
        and experience in financial and business matters in general, and investments
        in particular, I am capable of evaluating the merits and risks of an investment
        in the Securities. 

 II-1

	 	 g.      	 I am capable of bearing the economic risks of an
        investment in the Securities. 

	 
	 	 h.      	 My present financial condition is such that I am
        under no present or contemplated future need to dispose of any portion
        of the Securities to satisfy any existing or contemplated undertaking,
        need or indebtedness. 

	 
	 	 i.      	 If required to do so, I have retained to advise
        me, as to the merits and risks of the prospective investment in the Securities,
        a purchaser representative as defined in Rule 501 of Regulation D promulgated
        under the Act, and I have previously forwarded, or am simultaneously with
        the execution of this Subscription Agreement forwarding, a completed Purchaser
        Representative Disclosure and Acknowledgment form. 

	 
	 	 j.      	 I am aware that the Securities have not been registered
        under the Securities Act of 1933, as amended, but rather are being offered
        in reliance upon an exemption from the registration requirements of that
        Act. 

	 
	 	 k.      	 I am aware that only a limited market exists for
        the Company's common stock at this time. 

	 
	 	 l.      	 I am aware that (A) that the Securities being offered
        will not be transferable unless such Securities are registered or except
        with the prior written consent of the Company, which consent may be withheld
        under certain circumstances, (B) any person to whom the investor may subsequently
        wish to sell the Securities (if the Securities are not registered) may
        have to satisfy standards of suitability at least as stringent as those
        set forth herein and (C) the subsequent sale or other disposition of such
        Securities will require, in the absence of such registration, the satisfaction
        of such conditions as the Company may require. 

	 	 	 
	 	m.	I hereby represent and warrant that all
      the representations, warranties and acknowledgments contained in this Subscription
      Agreement are true, accurate and complete as of the date hereof.

          
  3.           Accredited
  or Other Special Investors. I am (initial all applicable responses): 

           
                _______        A
  small business investment company licensed by the U.S. Small Business Administration
  under the Small Business Investment Company Act of 1958. 

           
                _______        A
  business development company as defined in the Investment Company Act of 1940.

           
                _______        A
  national or state-chartered commercial bank, whether acting in an individual
  or fiduciary capacity. 

           
                _______        An
  insurance company as defined in Section 2(13) of the Act. 

           
                _______        An
  investment company registered under the Investment Company Act of 1940. 

           
                _______        An
  employee benefit plan within the meaning of Title I of the Employee Retirement
  Income Security Act of 1974, where the investment decision is made by a plan
  fiduciary, as defined in Section 3(21) of such Act, which is either a bank,
  insurance company, or registered investment advisor, or an employee benefit
  plan which has total assets in excess of $5,000,000. 

           
                _______        A
  private business development company as defined in Section 202(a)(22) of the
  Investment Advisors Act of 1940. 

 II-2

           
                _______        An
  organization described in Section 501(c)(3) of the Internal Revenue Code, a
  corporation or a partnership with total assets in excess of $5,000,000.

           
                _______        A
  natural person (as opposed to a corporation, partnership, trust or other legal
  entity) whose net worth, or joint net work together with his/her spouse, exceeds
  $1,000,000. 

           
                _______        Any
  trust, with total assets in excess of $5,000,000, not formed for the specific
  purpose of acquiring the securities offered, whose purchase is directed by a
  sophisticated person as described in Section 506(b)(2)(ii) of Regulation D.

           
                _______        A
  natural person (as opposed to a corporation, partnership, trust or other legal
  entity) whose individual income was in excess of $200,000 in each of the
  two most recent years (or whose joint income with such person's spouse was at
  least $300,000 during such years) and who reasonably expects an income in
  excess of such amount in the current year. 

           
                _______        A
  corporation, partnership, trust or other legal entity (as opposed to a natural
  person) and all of such entity's equity owners fall into one or more
  of the categories enumerated above. 

           
  4.           Restrictions
  on Transferability. I hereby agree that the Securities being purchased by
  me may be stamped or otherwise imprinted with a conspicuous legend in substantially
  the following form: 

  
    The securities represented by this certificate may not
      be offered for sale, sold or otherwise transferred except pursuant to an
      effective registration statement under the Securities Act of 1933 (the "Act"),
      or pursuant to an exemption from registration under the Act, the availability
      of which is to be established to the satisfaction of the issuer. 

  

           
                I
  further agree that the Securities may also be stamped with any other legend(s)
  required by applicable state securities laws (the "State Acts"). 

           
                The
  Securities shall be sold, pledged, assigned, hypothecated or otherwise transferred,
  with or without consideration ("Transfer") only pursuant to an effective registration
  statement under the Act, or pursuant to an exemption from registration under
  the Act, the availability of which is established to the satisfaction of the
  Company, which may include an opinion of my counsel, which cost shall be borne
  by me, as to the availability of such an exemption. I realize that by becoming
  a holder of the Securities pursuant to the terms of the legend set forth above,
  I agree, prior to any Transfer, to give written notice to the Company expressing
  my desire to effect the Transfer and describing the proposed Transfer. 

           
                Upon
  receiving any such notice, the Company shall present copies thereof to counsel
  for the Company and the following provisions shall apply:

	 	a.	If, in the opinion
        of such counsel, the proposed Transfer may be effected without registration
        thereof under the Act and the State Acts, the Company shall promptly thereafter
        notify the holder of such Securities whereupon such holder shall be entitled
        to effect the Transfer, all in accordance with the terms of this notice
        delivered by such holder to the Company, and upon such further terms and
        conditions as shall be required by the Company in order to assure compliance
        with the Act and the State Acts, and the Company will deliver upon surrender
        of the Securities, or any part thereof, in exchange therefor, a new Certificate
        not bearing a legend of the character set forth above, if counsel to the
        Company agrees that such legend is no longer required under the Act and
        the State Acts.

	 	 	

	 	b. 	If, in the opinion
        of such counsel, the Transfer may not be effected without registration
        under the Act and/or the State Acts, a copy of such opinion shall promptly
        be delivered to the holder who had proposed the Transfer and the Transfer
        shall not be made unless registration of the Transfer is then in effect.
        

II-3

           
                By
  virtue of the provisions of certain rules respecting "restricted securities"
  promulgated under the Act, the Securities which I am agreeing to purchase must
  be held indefinitely, unless and until the Securities are subsequently registered
  under the Act and/or the State Acts or unless an exemption from such registration
  is available, in which case I may still be limited as to the amount of the Securities
  that may be sold. 

           
  5.           Registration.
  The Company agrees to include the shares of common stock and the shares issuable
  upon the exercise of the warrants in a registration statement which will be
  filed with the Securities and Exchange Commission. The Company undertakes to
  file such a registration statement within 120 days following the completion
  of the transaction pursuant to this subscription agreement. Although the Company
  will use its best efforts to cause the registration statement to be declared
  effective by the Securities and Exchange Commission as soon as possible, and
  although the Company has no reason to believe that the registration statement
  will not be declared effective following the normal review process, the Company
  cannot unconditionally guarantee that the registration statement will be declared
  effective by the Securities and Exchange Commission. 

           
  6.           Notices.
  Any notices or other communications required or permitted hereby shall be sufficiently
  given if sent by registered or certified mail, postage prepaid, return receipt
  requested, and, if to the Company, at the address to which this letter Subscription
  Agreement is addressed, and, if to me, at the address set forth below my signature
  hereto, or to such other addresses as either the Company or I shall designate
  to the other by notice in writing. 

           
  7.           Successors
  and Assigns. This Subscription Agreement shall be binding upon and shall
  inure to the benefit of the parties hereto and to the successors and assigns
  of the Company and to my personal and legal representatives, heirs, guardians,
  successors and permitted assignees. 

           
  8.           Reliance Upon
  Representations. I understand that the Company is relying upon the accuracy
  of the representations and warranties which I have made in this agreement. I
  agree to indemnify the Company (and any control persons of such entities) for
  any loss they may suffer as the result of any false or misleading warranty,
  representation or statement of facts which I have made in connection with the
  purchase of the Securities. 

           
  9.           Applicable
  Law. This Subscription Agreement shall be governed by and construed in accordance
  with the laws of the State of Delaware and, to the extent it involves any United
  States statute, in accordance with the laws of the United States. 

           
                IN
  WITNESS WHEREOF, I have executed and sealed this Subscription Agreement
  this ______ day of ________________ , 200*. 

	 	 	 
	 Typed or Printed Name  	 	 Authorized Officer  
	 	 	 
	 	 	 
	 Tax Id. #  	 	  
	 	 	 
	 	 	 
	  	 	 Address  

 II-4

 ACCEPTED this ______ day of _______________ , 200* 

 L.A.M. PHARMACEUTICAL, CORP. 

By: _______________________________________

 Dated: ___________________ , 200*. 

  

RETURN THIS SUBSCRIPTION AGREEMENT TO: 

L.A.M. PHARMACEUTICAL CORP. 

  800 Sheppard Avenue West, 

  Commercial Unit 1 

  Toronto, Ontario 

  Canada M3H 6B4 

  (416) 633-7047 

  (416) 633-2363 

 II-5EXHIBIT 4.1
                                                                     -----------

NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE
BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE OR CANADIAN PROVINCE, OR UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE SECURITIES ARE RESTRICTED
AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED EXCEPT AS PERMITTED UNDER
THE SECURITIES ACT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN
EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

                             SEMOTUS SOLUTIONS, INC.

               Incorporated Under the Laws of the State of Nevada

                                                     ____ Common Stock
                                                     Purchase Warrants

                          CERTIFICATE FOR COMMON STOCK
                                PURCHASE WARRANTS

     1. Warrants. This Warrant Certificate certifies that ___________, or
registered assigns (the "Holder"), is the registered owner of the
above-indicated number of Warrants expiring on June 23, 2015 ("Expiration
Date"). One (1) Warrant entitles the Holder to purchase one share of common
stock, $.01 par value ("Share"), from Semotus Solutions, Inc., a Nevada
corporation ("Company"), at a purchase price of $0.39 per share ("Exercise
Price"), commencing June 23, 2005, and terminating or expiring according to
Section 4 or upon surrender of this Warrant Certificate with the exercise form
hereon (or the Warrant Conversion Form in the case of a warrant conversion
pursuant to Section 3(b) below) duly completed and executed with payment of the
Exercise Price at the offices of the Company, 16400 Lark Ave., Suite 230, Los
Gatos, CA 95032.

     2. Transfer of Warrants. The Warrants represented by this Warrant
Certificate shall not be transferable except upon the death of the Holder and
then only to the estate of the Holder or pursuant to the Holder's will or the
applicable laws of descent and distribution.

     3.   (a) Exercise of Warrant. The Warrant may be exercised in whole or in
part in accordance with the vesting schedule set forth below, on or before the
Expiration Date or Termination Date upon surrender of the Warrant in conjunction
with Form of Election to Purchase and the payment at the Exercise Price
stipulated above. If the Warrant is exercised in part, then the Holder shall be
entitled to receive a new Warrant covering the remaining number of Warrant
Shares not exercised.

          (b) Vesting Schedule. The Employee will have the right, but not the
obligation, to exercise the Option shares for an amount equivalent to the
Exercise Price in accordance with the following schedule:

     Twenty Five Percent (25%) of the Shares covered by the Warrant shall vest
     immediately on the Grant Date, twenty five percent (25%) of the Shares
     covered by the Warrant shall vest after the first six months from the Grant
     Date, and 50% of the Shares covered by the Warrant shall vest on the first
     annual anniversary of the Grant Date.

          (c) Acceleration of Vesting Schedule. If the Holder's employment is
     terminated by the Company for any reason other than for Cause, then the
     vesting schedule as set forth above in Section 3(b) shall accelerate so
     that 100% of the Shares covered by the Warrant shall be vested on

<PAGE>

     the Holder's Termination Date. As used herein, "Cause" shall mean (a) a
     breach by the Holder of a covenant contained in the Holder's offer letter
     or confidentiality agreement; (b) willful misconduct or the habitual
     neglect of duties or gross misconduct materially injurious to the Parent or
     the Company; (c) a charge of any felony, a misdemeanor or a crime
     materially affecting the Company or Parent; (d) insubordination or
     continued failure to perform in a professional manner; or (e) the continued
     and habitual use of narcotics or alcohol to an extent which materially
     impairs the performance of duties.

          (c) Conversion Right. In addition to and without limiting the rights
     of the Warrantholder under the terms of the Warrant, the Holder shall have
     the right (the "Conversion Right") to convert this Warrant or any portion
     thereof into Shares as provided in this Section 3 at any time or from time
     to time prior to its expiration. ) Upon exercise of the Conversion Right
     with respect to a particular number of Warrants (the "Converted Warrants"),
     the Company shall deliver to the Holder, without payment by the Holder of
     any Exercise Price or any cash or other consideration, that number of
     Shares computed using the following formula:

     X       =    Y(A-B)
                  ------
                     A

     Where:  X =  the number of Shares and/or Warrants to be issued to the
     -----        Holder;

             Y =  the number of Shares and/or Warrants to be converted under
                  this Warrant;

             A =  the Current Market Price of one share of Common Stock; and

             B =  the Share Exercise Price.

     4. Termination and Expiration of Warrants.

          (a) Expiration of Warrant. No Warrant may be exercised or converted
     after 5:00 p.m. Pacific Time on the Expiration Date and any Warrant not
     exercised or converted by such time shall become void, unless the
     Expiration Date of this Warrant is extended by the Company.

          (b) Termination of Warrant. Except as provided below in this Section,
     this Warrant shall terminate and may not be exercised if the Holder ceases
     to be employed by the Company or any Parent or Subsidiary of the Company.
     The Holder shall be considered to be employed by the Company for all
     purposes under this Warrant if the Holder is an officer or full-time
     employee of the Company or any Parent, Subsidiary or Affiliate of the
     Company or if the board of directors of the Company determines that the
     Holder is rendering substantial services as a part-time employee,
     consultant or adviser to the Company or any Parent, Subsidiary or Affiliate
     of the Company. The board of directors of the Company shall have discretion
     to determine whether the Holder has ceased to be employed by the Company or
     any Parent, Subsidiary or Affiliate of the Company and the effective date
     on which such employment terminated (the "Termination Date").

          (i) Death. If the Holder's employment is terminated by death, the
     Holder's estate shall have the right, for a period of six (6) months
     following the date of the Holder's death, to exercise this Warrant to the
     extent it was exercisable by the Holder on the date of death. The Holder's
     estate shall mean the Holder's legal representative upon death or any
     person who acquires the right to exercise this Warrant by reason of such
     death under the Holder's will or the laws of intestate succession.

<PAGE>

          (ii) Disability. If The Holder's employment is terminated because of a
     permanent and total disability (as defined in the Internal Revenue Code
     Section 22(e)(3)), The Holder or the Holder's estate may, within six (6)
     months following such termination, exercise this Warrant to the extent it
     was exercisable by the Holder on the date of such termination.

          (iii) Other Termination. If the Holder's employment is terminated for
     any reason other than those provided in Subsections (i) and (ii) above, the
     Holder may, within one (1) month following such termination, exercise this
     Warrant to the extent it was exercisable by the Holder on the date of such
     termination. This Warrant shall terminate upon the expiration of such one
     (1) month period.

          (c) Transfer to Related Corporation. In the event the Holder leaves
     the employ of the Company to become an employee of any Parent or Subsidiary
     or if the Holder leaves the employ of any such Parent or Subsidiary to
     become an employee of the Company or of another Parent or Subsidiary, the
     Holder shall be deemed to continue as an employee of the Company for all
     purposes of this Agreement.

          (d) No Right to Employment. Nothing in this Warrant shall confer on
     the Holder any right to continue in the employ of, or other relationship
     with, the Company or any Parent, Subsidiary or Affiliate of the Company or
     limit in any way the right of the Company or any Parent, Subsidiary or
     Affiliate of the Company to terminate the Holder's employment or other
     relationship at any time, in accordance with the Holder's offer letter.

     5. Adjustment of Exercise Price. After each adjustment of the Exercise
Price pursuant to this paragraph 5, the number of shares of Common Stock
purchasable on the exercise of each Warrant shall be the number derived by
dividing such adjusted pertinent Exercise Price into the original pertinent
Exercise Price. The pertinent Exercise Price shall be subject to adjustment as
follows:

          In the event, prior to the expiration of the Warrants by exercise or
     by their terms, the Company shall issue any shares of its Common Stock as a
     share dividend or shall subdivide the number of outstanding shares of
     Common Stock into a greater number of shares, then, in either of such
     events, the Exercise Price per share of Common Stock purchasable pursuant
     to the Warrants in effect at the time of such action shall be reduced
     proportionately and the number of shares purchasable pursuant to the
     Warrants shall be increased proportionately. Conversely, in the event the
     Company shall reduce the number of shares of its outstanding Common Stock
     by combining such shares into a smaller number of shares, then, in such
     event, the Exercise Price per share purchasable pursuant to the Warrants in
     effect at the time of such action shall be increased proportionately and
     the number of shares of Common Stock at that time purchasable pursuant to
     the Warrants shall be decreased proportionately. Any dividend paid or
     distributed on the Common Stock in shares of any other class of the Company
     or securities convertible into shares of Common Stock shall be treated as a
     dividend paid in Common Stock to the extent that shares of Common Stock are
     issuable on the conversion thereof.

     6. Adjustments for Reorganization, Consolidation, Merger, or Sale of
Assets. If at any time while the Warrant, or any portion thereof, remains
outstanding and unexpired, should there occur a reorganization, merger, or
consolidation; or should there occur a sale or transfer of the Company's assets
or properties substantially in entirety as part of a reorganization, merger or
consolidation, then lawful provision shall be made so that the Holder shall
thereafter be entitled to receive upon exercise of the Warrant, or any unexpired
exercisable portion thereof, the number of shares of stock or other securities
or property of the successor

<PAGE>

corporation resulting from such reorganization, consolidation, merger, sale or
transfer that the Holder would have been entitled to if the Warrant, or portions
thereof, had been exercised immediately prior to the event. The foregoing shall
apply similarly to any successive reorganizations, consolidations, mergers,
sales or transfers that may occur while the Warrant, or any portion thereof,
remains exercisable.

     7. Reservation of Stock Underlying the Warrant. At all times until the
expiration of the Warrant, the Company will authorize, reserve, and keep
available, solely for issuance and delivery upon the exercise of the Warrant,
the shares of Common Stock of the Company that shall be receivable upon exercise
of the Warrant.

     8. Underlying Stock to be Fully Paid and Non-Assessable. The Company
covenants that the shares of Common Stock issuable upon exercise of the Warrant
shall be duly and validly issued, fully paid, non-assessable, and free of any
liens, charges, and all taxes with respect to the issue thereof.

     9. No Impairment. The Company shall not, by amendment of its Certificate of
Incorporation or other method or venue, avoid or seek to avoid the observance or
performance of any of the terms of the Warrant, but shall at all times, in good
faith, take all such actions as may be necessary or appropriate in order to
protect the rights of the Holder thereunder against impairment.

     10. Independent Tax Advice. The Holder agrees that the Holder has or will
obtain the advice of independent tax counsel regarding the federal and state
income tax consequences of the receipt and exercise of this Warrant and of the
disposition of Common Stock acquired upon exercise hereof, including advice
regarding the imposition of the alternative minimum tax on tax preferences
generated by exercise of warrants and regarding any potential holding period
requirements for preferential tax treatment. THE HOLDER ACKNOWLEDGES THAT HE OR
SHE HAS NOT RELIED AND WILL NOT RELY UPON ANY ADVICE OR REPRESENTATIONS BY THE
COMPANY OR BY ITS EMPLOYEES OR REPRESENTATIVES WITH RESPECT TO THE TAX TREATMENT
OF THIS WARRANT OR ANY SHARES ISSUED PURSUANT HERETO.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
President and by its Secretary.

     Dated: ___________, 2005

                              SEMOTUS SOLUTIONS, INC.
Attest:

__________________________    By _______________________________________
Tali Durant, Secretary           Anthony N. LaPine, President

<PAGE>

                          FORM OF ELECTION TO PURCHASE

             (To be executed by the Holder if he desires to exercise
              Warrants evidenced by the within Warrant Certificate)

To Semotus Solutions, Inc.:

     The undersigned hereby irrevocably elects to exercise ____________
Warrants, evidenced by the within Warrant Certificate for, and to purchase
thereunder, ________________ full shares of Common Stock issuable upon exercise
of said Warrants and delivery of $____________ and any applicable taxes.

     The undersigned requests that certificates for such shares be issued in the
name of:

                                            PLEASE INSERT SOCIAL SECURITY OR
                                               TAX IDENTIFICATION NUMBER

-------------------------------             --------------------------------
(Please print name and address)

-------------------------------             --------------------------------

-------------------------------             --------------------------------

     If said number of Warrants shall not be all the Warrants evidenced by the
within Warrant Certificate, the undersigned requests that a new Warrant
Certificate evidencing the Warrants not so exercised be issued in the name of
and delivered to:

                    ----------------------------------------
                    ----------------------------------------
                    ----------------------------------------
                         (Please print name and address)

Dated: ____________________         Signature: _________________________________

NOTICE:                             The above signature must correspond with the
                                    name as written upon the face of the within
                                    Warrant Certificate in every particular,
                                    without alteration or enlargement or any
                                    change whatsoever, or if signed by any other
                                    person the Form of Assignment hereon must be
                                    duly executed and if the certificate
                                    representing the shares or any Warrant
                                    Certificate representing Warrants not
                                    exercised is to be registered in a name
                                    other than that in which the within Warrant
                                    Certificate is registered, the signature of
                                    the holder hereof must be guaranteed.

Signature Guaranteed:  __________________________________________

 SIGNATURE MUST BE GUARANTEED BY A COMMERCIAL BANK OR MEMBER FIRM OF ONE OF THE
    FOLLOWING STOCK EXCHANGES: NEW YORK STOCK EXCHANGE, PACIFIC COAST STOCK
          EXCHANGE, AMERICAN STOCK EXCHANGE, OR MIDWEST STOCK EXCHANGE.

<PAGE>

                           FORM OF ELECTION TO CONVERT

             (To be executed by the Holder if he desires to exercise
              Warrants evidenced by the within Warrant Certificate)

TO:  Semotus Solutions, Inc.

     Pursuant to Section 3(b) of the Warrant, he undersigned hereby irrevocably
elects to convert ____________ Warrants, evidenced by the within Warrant
Certificate for, and to purchase thereunder, ________________ full shares of
Common Stock issuable upon conversion of said Warrants. A conversion calculation
is attached hereto.

     The undersigned requests that certificates for such shares be issued in the
name of:

                                                PLEASE INSERT SOCIAL SECURITY OR
                                                   TAX IDENTIFICATION NUMBER

-------------------------------                 --------------------------------
(Please print name and address)

-------------------------------                 --------------------------------

     If said number of Warrants shall not be all the Warrants evidenced by the
within Warrant Certificate, the undersigned requests that a new Warrant
Certificate evidencing the Warrants not so converted be issued in the name of
and delivered to:

                         _______________________________________________________
                         _______________________________________________________
                         (Please print name and address)

Dated: ____________________         Signature: _________________________________

NOTICE:                             The above signature must correspond with the
                                    name as written upon the face of the within
                                    Warrant Certificate in every particular,
                                    without alteration or enlargement or any
                                    change whatsoever, or if signed by any other
                                    person the Form of Assignment hereon must be
                                    duly executed and if the certificate
                                    representing the shares or any Warrant
                                    Certificate representing Warrants not
                                    exercised is to be registered in a name
                                    other than that in which the within Warrant
                                    Certificate is registered, the signature of
                                    the holder hereof must be guaranteed.

Signature Guaranteed:  __________________________________________

SIGNATURE MUST BE GUARANTEED BY A COMMERCIAL BANK OR MEMBER FIRM OF ONE OF THE
FOLLOWING STOCK EXCHANGES: NEW YORK STOCK EXCHANGE, PACIFIC COAST STOCK
EXCHANGE, AMERICAN STOCK EXCHANGE, OR MIDWEST STOCK EXCHANGE.

                        CALCULATION OF WARRANT CONVERSION
                        ---------------------------------

     X =                 Y(A-B)
                         ------
                           A

     Where:   X =   the number of Shares and/or Warrants to be issued to the
     -----          Holder;

              Y =   the number of Shares and/or Warrants to be converted under
                    this Warrant;

              A =   the Current Market Price of one share of Common Stock; and

              B =   the Share Exercise Price.

Fractional Converted Shares    =  ___________________________(1)

(1)  [Company] to pay for fractional Shares in cash @ $ _____________ per Share.

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