Document:

EXHIBIT
10.3

    

    FORM
OF WARRANT

    

    NEITHER
THIS SECURITY NOR THE SECURITIES UNDERLYING THIS SECURITY HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE
144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S
COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR APPLICABLE STATE SECURITIES LAWS.

    

    COMMON
STOCK PURCHASE WARRANT

    

     ONSTREAM
MEDIA CORPORATION

     

    
      	
              Warrant
      Shares: 540,000

            	 
      	
              Initial
      Exercise Date: _____,
      201_            

            

    

    

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, Lincoln Park Capital Fund, LLC, an Illinois limited
liability company (the “Holder”), is
entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after [SIX MONTHS FROM
COMMENCEMENT DATE], 2011 (the “Initial Exercise
Date”) and on or prior to the close of business on the fifth anniversary
of the date hereof (the “Termination Date”)
but not thereafter, to subscribe for and purchase from ONSTREAM MEDIA CORPORATION, a
Florida corporation (the “Company”), up to
540,000 shares (the “Warrant Shares”) of
the Company’s common stock, $0.0001 par value per share (the “Common Stock”). Notwithstanding the
foregoing, the Termination Date shall be extended for the number of days during
such period in which (i) trading in the Common Stock is suspended by the
Principal Market, or (ii) the Registration Statement is not effective but in no
event later than _____, 20__.   The purchase
price of one (1) share of Common Stock under this Warrant shall be equal to the
Exercise Price, as defined in Section 2(b).

    

    Section
1.          Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Purchase Agreement (the “Purchase Agreement”),
dated September 17, 2010, between the Company and the Holder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Section
2.           Exercise.

    

    a)           Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of the Holder
appearing on the books of the Company) of a duly executed facsimile copy of the
Notice of Exercise Form annexed hereto; and, within three (3) Business Days of
the date said Notice of Exercise is delivered to the Company, the Company shall
have received payment of the aggregate Exercise Price of the shares thereby
purchased by wire transfer or cashier’s check drawn on a United States bank or,
if available, pursuant to the cashless exercise procedure specified in Section 2(c)
below.  Notwithstanding anything herein to the contrary, the Holder
shall not be required to physically surrender this Warrant to the Company until
the Holder has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full, in which case, the Holder shall surrender
this Warrant to the Company for cancellation within three (3) Business Days of
the date the final Notice of Exercise is delivered to the
Company.  Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have
the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares
purchased.  The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such
purchases.  The Company shall deliver any objection to any Notice of
Exercise Form within one (1) Business Day of receipt of such
notice.  In the event of any dispute or discrepancy, the records of
the Holder shall be controlling and determinative in the absence of manifest
error.

    

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $2.00, subject to adjustment
hereunder (the “Exercise
Price”).

    

    c)           Cashless
Exercise.  If at the time of exercise hereof there is no effective
registration statement registering, or the prospectus contained therein is not
available for the issuance of, the Warrant Shares to the Holder and all of the
Warrant Shares are not then registered for sale by the Holder (or the prospectus
contained therein is not available for use), then this Warrant may also be
exercised, in whole or in part, at such time by means of a “cashless exercise”
in which the Holder shall be entitled to receive a certificate for the number of
Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

     

    
      
        
          	 
      	
                  (A)
      =

                	
                  the
      VWAP on the Business Day immediately preceding the date on which Holder
      elects to exercise this Warrant by means of a “cashless exercise,” as set
      forth in the applicable Notice of Exercise;

                
	 
      	 
      	 
      
	 
      	
                  (B)
      =

                	
                  the
      Exercise Price of this Warrant, as adjusted hereunder;
  and

                
	 
      	 
      	 
      
	 
      	
                  (X)
      =

                	
                  the
      number of Warrant Shares that would be issuable upon exercise of this
      Warrant in accordance with the terms of this Warrant if such exercise were
      by means of a cash exercise rather than a cashless
    exercise.

                

        

      

    

    
      
         

      

      
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    “VWAP” means, for any
date, the price determined by the first of the following clauses that applies:
(a) if the Common Stock is then listed or quoted on the Principal Market, the
daily volume weighted average price of the Common Stock for such date (or the
nearest preceding date) on the Principal Market as reported by Bloomberg L.P.
(based on a Business Day from 8:30 a.m. (Central Standard Time) to 3:02 p.m.
(Central Standard Time), (b)  if the Common Stock is not then listed or
quoted for trading on the Principal Market and if prices for the Common Stock
are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a
similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of the Common Stock so reported, or
(c) in all other cases, the fair market value of a share of Common Stock as
determined by an independent appraiser selected in good faith by the Holder and
reasonably acceptable to the Company, the fees and expenses of which shall be
paid by the Company.

    

    Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section
2(c).

    

    d)      
     Mechanics of
Exercise.

    

    i.      
     Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with the Depository Trust Company through
its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is then a participant in such system, and otherwise by physical delivery
to the address specified by the Holder in the Notice of Exercise by the date
that is three (3) Business Days after the latest of (A) the delivery to the
Company of the Notice of Exercise Form, (B) surrender of this Warrant (if
required) and (C) payment of the aggregate Exercise Price as set forth above
(including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the first date on which each of (A) and (C) of the foregoing sentence have been
delivered to the Company.  The Warrant Shares shall be deemed to have
been issued, and Holder or any other person so designated to be named therein
shall be deemed to have become a holder of record of such shares for all
purposes, as of the date the Warrant has been exercised, with payment to the
Company of the Exercise Price (or by cashless exercise, if permitted) and all
taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi)
prior to the issuance of such shares, having been paid. If the Company fails for
any reason to deliver to the Holder certificates evidencing the Warrant Shares
subject to a Notice of Exercise by the Warrant Share Delivery Date, and such
lack of delivery continues one (1) business day after written notice from Holder
to the Company of such lack of delivery, the Company shall pay to the Holder, in
cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant
Shares subject to such exercise (based on the VWAP of the Common Stock on the
date of the applicable Notice of Exercise), $10 per Business Day (increasing to
$20 per Business Day on the fifth Business Day after such liquidated damages
begin to accrue) for each Business Day after such Warrant Share Delivery Date
until such certificates are delivered or Holder rescinds such
exercise.

    

    ii.           Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

    
      
         

      

      
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    iii.          Rescission
Rights.  If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates representing the
Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date,
then, at any time until such certificate is delivered to the Holder, the Holder
will have the right to rescind such exercise.

    

    iv.          Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise.  In
addition to any other rights available to the Holder, if the Company fails to
cause the Transfer Agent to transmit to the Holder a certificate or the
certificates representing the Warrant Shares pursuant to an exercise on or
before the Warrant Share Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction or otherwise)
or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to
deliver in satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated receiving upon such exercise (a “Buy-In”), then the
Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (1) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue times (2) the
price at which the sell order giving rise to such purchase obligation was
executed, and (B) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant Shares for which such exercise was
not honored (in which case such exercise shall be deemed rescinded) or deliver
to the Holder the number of shares of Common Stock that would have been issued
had the Company timely complied with its exercise and delivery obligations
hereunder.  For example, if the Holder purchases Common Stock having a
total purchase price of $11,000 to cover a Buy-In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss.  Nothing herein shall limit a
Holder’s right to pursue any other remedies available to it hereunder, at law or
in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of the Warrant as
required pursuant to the terms hereof.

    

    v.           No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which the Holder would otherwise be entitled to purchase
upon such exercise, the Company shall, at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole
share.

    
      
         

      

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

    

    vii.         Closing of
Books.  The Company will not close its shareholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

    

    e)           Holder’s Exercise
Limitations.  The Company shall not effect any exercise of this
Warrant, and a Holder shall not have the right to exercise any portion of this
Warrant, pursuant to Section 2 or
otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, the Holder (together
with the Holder’s Affiliates (as defined below), and any other Persons acting as
a group together with the Holder or any of the Holder’s Affiliates), would
beneficially own in excess of the Beneficial Ownership Limitation (as defined
below).  For purposes of the foregoing sentence, the number of shares of
Common Stock beneficially owned by the Holder and its Affiliates shall include
the number of shares of Common Stock issuable upon exercise of this Warrant with
respect to which such determination is being made, but shall exclude the number
of shares of Common Stock which would be issuable upon (i) exercise of the
remaining, nonexercised portion of this Warrant beneficially owned by the Holder
or any of its Affiliates and (ii) exercise or conversion of the unexercised or
nonconverted portion of any other securities of the Company (including, without
limitation, any other  Common Stock Equivalents) subject to a
limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by the Holder or any of its Affiliates.  Except
as set forth in the preceding sentence, for purposes of this Section 2(e),
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated
thereunder.   To the extent that the limitation contained in this
Section 2(e)
applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates) and of
which portion of this Warrant is exercisable shall be in the sole discretion of
the Holder, and the submission of a Notice of Exercise shall be deemed to be the
Holder’s determination of whether this Warrant is exercisable (in relation to
other securities owned by the Holder together with any Affiliates) and of which
portion of this Warrant is exercisable, in each case subject to the Beneficial
Ownership Limitation.   In addition, a determination as to any
group status as contemplated above shall be determined in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder.  For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of
outstanding shares of Common Stock as reflected in (A) the Company’s most recent
periodic or annual report filed with the SEC, as the case may be, (B) a more
recent public announcement by the Company or (C) a more recent written notice by
the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding.  Upon the written or oral request of a Holder, the
Company shall within two (2) Business Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding.  In any case,
the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by the Holder or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was
reported.  The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant.  The Holder, upon not
less than Sixty-One (61) days’ prior notice to the Company, may increase or
decrease the Beneficial Ownership Limitation provisions of this Section 2(e),
provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of
the number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock upon exercise of this Warrant
held by the Holder and the provisions of this Section 2(e) shall
continue to apply.  Any such increase or decrease will not be
effective until the 61st day after such notice is delivered to the
Company.  The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of
this Section
2(e) to correct this paragraph (or any portion hereof) which may be
defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this
paragraph shall apply to a successor holder of this Warrant.  For
purposes of the Warrant, “Affiliate” has the
meaning set forth in Rule 12b-2 of the regulations promulgated under the
Exchange Act.

    
      
         

      

      
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    Section
3.           Certain
Adjustments.

    

    a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(i) pays a stock dividend or otherwise makes a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares, or (iv)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event, and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged.  Any
adjustment made pursuant to this Section 3(a) shall
become effective immediately after the record date for the determination of
shareholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

    
      
         

      

      
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    b)           Subsequent Rights
Offerings/Sales of Equity.  If the Company, at any time while
the Warrant is outstanding, shall issue rights, options or warrants to all
holders of Common Stock (and not to the Holder) entitling them to subscribe for
or purchase shares of Common Stock at a price per share less than the VWAP on
the record date mentioned below, then, the Exercise Price shall be multiplied by
a fraction, of which the denominator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of additional shares of Common Stock offered for subscription or
purchase, and of which the numerator shall be the number of shares of the Common
Stock outstanding on the date of issuance of such rights, options or warrants
plus the number of shares which the aggregate offering price of the total number
of shares so offered (assuming receipt by the Company in full of all
consideration payable upon exercise of such rights, options or warrants) would
purchase at such VWAP.  Such adjustment shall be made whenever such
rights, options or warrants are issued, and shall become effective immediately
after the record date for the determination of shareholders entitled to receive
such rights, options or warrants.  If the Company or any Subsidiary
thereof, as applicable, at any time while this Warrant is outstanding, shall
sell or grant any option to purchase, or sell or grant any right to reprice, or
otherwise dispose of or issue (or announce any offer, sale, grant or any option
to purchase or other disposition) any Common Stock or Common Stock Equivalents
entitling any Person (other than the Investor or an affiliate of the Investor)
to acquire shares of Common Stock, at an effective price per share less than the
then Exercise Price (such lower price, the “Base Share Price” and
such issuances collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall
at any time, whether by operation of purchase price adjustments, reset
provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with
such issuance, be entitled to receive shares of Common Stock at an effective
price per share that is less than the Exercise Price, such issuance shall be
deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then, the Exercise Price shall be reduced and only reduced
to equal the Base Share Price and the number of Warrant Shares issuable
hereunder shall be increased such that the aggregate Exercise Price payable
hereunder, after taking into account the decrease in the Exercise Price, shall
be equal to the aggregate Exercise Price prior to such adjustment, provided,
however that in no event shall the Exercise Price be less than $1.72, subject to
adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.  Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are
issued.  Notwithstanding the foregoing, no adjustments shall be made,
paid or issued under this Section 3(b) in
respect of (i) an Exempt Issuance, (ii) with respect to the issuance of not more
than 100,000 shares of Common Stock or shares of Common Stock issuable upon
exercise or conversion of Common Stock Equivalents or (iii) the issuance of
Common Stock at any time after the Purchase Agreement is terminated solely because Investor has failed to
perform its purchase obligations thereunder.  Defined Debt
shall mean (a) that certain equipment debt issued during June and July 2008 and
in the original amount of approximately $1 million, (b) certain debt identified
as the Wilmington Notes issued during February 2010 in the original amount of
$500,000 and (c) certain debt identified as the Lehmann Note issued during May
2010 in the original amount of $250,000 of which an aggregate total of
approximately $1,396,000 (after deducting certain cash repayments expected to be
made against the Wilmington Notes within thirty (30) days after the Commencement
Date) is presently outstanding (all three collectively, the “Defined
Debt”).   Upon the conversion of any amount of the Defined Debt that
results in a Dilutive Issuance, the Exercise Price then in effect shall be
adjusted for the excess of the Exercise Price over the Base Share Price, after
such excess is multiplied by (i) the quotient resulting from the number of
shares of Common Stock outstanding immediately upon conversion of the Defined
Debt divided by the number of shares of Common Stock outstanding immediately
prior to the conversion of the Defined Debt such quotient reduced by one
(1).  Notwithstanding anything to the contrary and in addition to any
other adjustments to be made hereunder, with respect to any Dilutive Issuance in
which the Base Share Price is less than $1.72, the number of Warrant Shares
issuable hereunder shall be increased by 12,000 Warrant Shares for each $.01
below $1.72 with respect to such Dilutive Issuance, but in no event shall the
number of additional Warrant Shares issuable under this Section 3(b) be
increased after the Base Share Price reaches $1.25 and the resulting additional
Warrant Shares issuable hereunder have been increased by 564,000.  For
example, if the Base Share Price from a Dilutive Issuance is $1.00, the number
of Warrant Shares issuable hereunder shall be increased by 564,000 and no
additional adjustments with respect to the number of Warrant Shares issuable
shall be made under this Section 3(b). If the Base Share Price from a Dilutive
Issuance is $1.52, then the number of Warrant Share issuable hereunder would
increase by 240,000. If a subsequent Dilutive Issuance occurred with a Base
Share Price of $1.42, an additional 120,000 Warrant Shares would be issuable
under this Warrant.  If a subsequent Dilutive Issuance occurred with a
Base Share Price of $1.20, an additional 204,000 Warrant Shares would be
issuable under this Warrant and no additional increases with respect to the
number of Warrant Shares issuable shall be made under this Section
3(b).  The Company shall notify the Holder, in writing, no later than
the Business Day following the issuance of any Common Stock or Common Stock
Equivalents subject to this Section 3(b),
indicating therein the applicable issuance price, or applicable reset price,
exchange price, conversion price and other pricing terms (such notice, the
“Dilutive Issuance
Notice”).  For purposes of clarification, whether or not the
Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon
the occurrence of any Dilutive Issuance, after the date of such Dilutive
Issuance the Holder is entitled to receive a number of Warrant Shares based upon
the Base Share Price regardless of whether the Holder accurately refers to the
Base Share Price in the Notice of Exercise.

    
      
         

      

      
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    c)           Pro Rata
Distributions.  If the Company, at any time while this Warrant
is outstanding, shall distribute to all holders of Common Stock (and not to the
Holder) evidences of its indebtedness or assets (including cash and cash
dividends) or rights or warrants to subscribe for or purchase any security other
than the Common Stock), then in each such case the Exercise Price shall be
adjusted by multiplying the Exercise Price in effect immediately prior to the
record date fixed for determination of shareholders entitled to receive such
distribution by a fraction of which the denominator shall be the VWAP determined
as of the record date mentioned above, and of which the numerator shall be such
VWAP on such record date less the then per share fair market value at such
record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of the Common Stock as
determined by the Board of Directors in good faith.  In either case
the adjustments shall be described in a statement provided to the Holder of the
portion of assets or evidences of indebtedness so distributed or such
subscription rights applicable to one share of Common Stock.  Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

    
      
         

      

      
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    d)          Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company, directly or indirectly, in one or more related transactions effects any
merger or consolidation of the Company with or into another Person, (ii) the
Company, directly or indirectly, effects any sale, lease, license, assignment,
transfer, conveyance or other disposition of all or substantially all of its
assets in one or a series of related transactions, (iii) any, direct or
indirect, purchase offer, tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are
permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of fifty percent (50%) or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one
or more related transactions effects any reclassification, reorganization or
recapitalization of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property, (v) the Company, directly or indirectly, in one or
more related transactions consummates a stock or share purchase agreement or
other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby
such other Person acquires more than fifty percent (50%) of the outstanding
shares of Common Stock (not including any shares of Common Stock held by the
other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase
agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder, the number of shares of
Common Stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation (without regard to any limitation in Section 2(e) on the
exercise of this Warrant in such instance where the Company is not the surviving
corporation and subject to the limitations of Section 2(e) should the Company be
the surviving corporation), and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by
a holder of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the
exercise of this Warrant).

    

    e)           Calculations. All
calculations under this Section 3 shall be
made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number
of shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

    

    f)           Voluntary Adjustment By
Company. The Company may at any time during the term of this Warrant
reduce the then current Exercise Price to any amount not less than $1.72 and for
any period of time deemed appropriate by the Board of Directors of the
Company.

    

    g)      
    Notice to
Holder.

    

    i.      
     Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section
3, the Company shall promptly mail to the Holder a notice setting forth
the Exercise Price after such adjustment and setting forth a brief statement of
the facts requiring such adjustment.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any shareholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least twenty (20) calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of such dividend, distribution, redemption, rights
or warrants, or if a record is not to be taken, the date as of which the holders
of the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  To the extent that
any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any of the Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K.  The Holder shall remain entitled to exercise this
Warrant during the period commencing on the date of such notice to the effective
date of the event triggering such notice except as may otherwise be expressly
set forth herein.

    

    Section
4.          Transfer of
Warrant.

    

    a)           Transferability.  This
Warrant and all rights hereunder (including, without limitation, any
registration rights) are transferable, in whole or in part, upon surrender of
this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled.  The Warrant, if properly
assigned in accordance herewith, may be exercised by a new holder for the
purchase of Warrant Shares without having a new Warrant issued.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section
4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the initial issuance date set forth on the first page of this Warrant and shall
be identical with this Warrant except as to the number of Warrant Shares
issuable pursuant thereto.

    

    c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

    

    Section
5.          Miscellaneous.

    

    a)           No Rights as Shareholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights, dividends or other rights as a shareholder of the Company
prior to the exercise hereof as set forth in Section 2(d)(i).

    

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

    

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

    

    d)           Authorized
Shares.

    

    The
Company covenants that, during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the
Common Stock may be listed.  The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant and payment for such Warrant Shares in accordance herewith, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with
such issue).

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its Articles of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be,
necessary to enable the Company to perform its obligations under this
Warrant.

    

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

    

    e)           Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

    

    f)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or
remedies.  Without limiting any other provision of this Warrant or the
Purchase Agreement, if the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the
Holder, the Company shall pay to Holder such amounts as shall be sufficient to
cover any costs and expenses including, but not limited to, reasonable
attorneys’ fees, including those of appellate proceedings, incurred by Holder in
collecting any amounts due pursuant hereto or in otherwise enforcing any of its
rights, powers or remedies hereunder.

    

    g)           Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

    

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

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

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

    

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

    

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

    

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

    

    ********************

    

    (Signature
Pages Follow)

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

    

    
      
        	
                ONSTREAM
      MEDIA CORPORATION

              
	 
      	 
      
	
                By:

              	
                  

              
	 
      	
                Name:

              
	 
      	
                Title:

              

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    NOTICE
OF EXERCISE

    

    TO:           __________[COMPANY]

    

    (1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

    

    (2) Payment
shall take the form of (check applicable box):

    

     ̈ in
lawful money of the United States; or

    

     ̈ the
cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 2(c), to
exercise this Warrant with respect to the maximum number of Warrant Shares
purchasable pursuant to the cashless exercise procedure set forth in subsection
2(c).

    

    (3) The
Exercise Price is $_____ per share and the total amount due to the Company in
connection with this exercise is $______________.

    

    (4) Please
issue a certificate or certificates representing said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

    

    _______________________________

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
________________________________________________________

    Signature of Authorized Signatory of
Investing Entity: __________________________________

    Name of
Authorized Signatory: ____________________________________________________

    Title of
Authorized Signatory: _____________________________________________________

    Date:
________________________________________________________________________

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:  ______________,
_______

    

    
      	
              Holder’s
      Signature:

            	
              _____________________________

            
	 
      	 
      
	
              Holder’s
      Address:

            	
              _____________________________

            
	 
      	 
      
	 
      	
              _____________________________

            

    

    

    Signature
Guaranteed:  ___________________________________________

    

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

    EXHIBIT
10.33

    

     

    AMENDMENT
NO. 1 TO FIRST FIT-CROWN DISTRIBUTION AND LICENSE AGREEMENT

     

    THIS AMENDMENT NO. 1 TO FIRST
FIT-CROWN DISTRIBUTION AND LICENSE AGREEMENT (this “Agreement”) is made
as of February 16, 2010 (the “Amendment No. 1 Effective
Date”) by and among Remedent, Inc., a Nevada corporation (“Remedent Nevada”),
Remedent N.V., a Belgian corporation (“Remedent Belgium”,
and together with Remedent Nevada, “Remedent”), and
Den-Mat Holdings, LLC, a Delaware limited liability company (“Den-Mat”).

     

    WHEREAS, Den-Mat and Remedent
have entered into that certain First Fit-Crown Distribution and License
Agreement dated as of June 3, 2009 (the “2009 Agreement”) relating to the
marketing, distribution, licensing and sale of the First Fit-Crown Products (as
such term is defined in the 2009 Agreement); and

     

    WHEREAS, Den-Mat wishes to
purchase from Remedent, and Remedent wishes to sell to Den-Mat, all of the
Intellectual Property (as defined in the 2009 Agreement) previously licensed to
Den-Mat pursuant to the 2009 Agreement; and

     

    WHEREAS, Den-Mat and Remedent
wish to amend the 2009 Agreement as hereinafter provided;

     

    NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Remedent and
Den-Mat hereby agree as follows.

     

    1.           Defined
Terms.

     

    Capitalized
terms used herein without definition shall have the respective meanings given to
them in the 2009 Agreement.

     

    2.           Purchase
of Intellectual Property.

     

    2.1             Purchase and
Sale.  Notwithstanding anything contained in the 2009 Agreement
to the contrary, Remedent hereby sells, assigns and transfers to Den-Mat (the
“IP Sale”),
free and clear of any debts, mortgages, security interests or other liens and/or
encumbrances, all claims, rights, title and interest that Remedent has or may
have in the Intellectual Property owned or used by Remedent that is related to
the Products, including, without limitation, the “First Fit” trade name, and all
registration documents relating thereto, if any (collectively, the “IP”), as set forth in
Schedule 14.1.5 to the 2009 Agreement.  The Parties agree that the IP
Sale includes all rights that Remedent may have or obtain with respect to
Intellectual Property that relates to the Products and which was developed after
the Effective Date of the 2009 Agreement or is developed after the Amendment No.
1 Effective Date.

     

    
      
         

      

      
        - 1
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    2.2             Transfer of
IP.  Remedent represents and warrants that it owns all rights,
title and interest in and to the IP, free and clear of all debts, mortgages,
security interests or other liens and/or encumbrances, and that it has not
entered into any prior agreements with third parties that would preclude it from
conveying the rights granted herein.  Remedent will cooperate with
Den-Mat and take all steps necessary to effectuate the transfer of the IP to
Den-Mat, including without limitation, executing and delivering such assignment
and other documents as Den-Mat or its counsel may reasonably request to
effectuate the IP Sale.  Remedent agrees to cooperate with Den-Mat in
executing all documents and doing all things that Den-Mat considers necessary or
desirable to further the assignment of the IP to Den-Mat, including executing
any other assignments or other instruments required by the USPTO or other
registries.  Remedent’s obligation hereunder shall survive the closing
of the IP Sale.

     

    2.3             Purchase
Price.  In consideration of the transfer and assignment of the
IP, and of Remedent’s other undertakings and obligations hereunder, Den-Mat
shall pay Remedent the sum of Two Million Eight Hundred Fifty Thousand
($2,850,000.00) Dollars (the “Cash Component”) and
contingent capital payments in accordance with Section 2.4 below (the “Contingent Payments”
and, together with the Cash Component, the “Purchase
Price”).  An advance of $75,000.00 against the Cash Component
shall be paid to Remedent upon execution of this Amendment, which amount shall
be promptly refunded to Den-Mat if the IP Sale is not consummated by March 15,
2010.  Provided that the IP Sale is consummated, the balance of the
Cash Component shall be paid as follows:

     

    (a)  $50,000.00 upon delivery
by Remedent to Den-Mat of a working prototype of the First Fit
crown;

     

    (b)  $525,000.00 on or before
March 15, 2010;

     

    (c)   $700,000.00 on
June 30, 2010;

     

    (d)   $500,000.00 on
December 31, 2010;

     

    (e)   $500,000.00 on
June 30, 2011;

     

    (f)    $500,000.00
on December 31, 2011.

     

    2.4             Contingent
Payments.  For each sale of Products, Den-Mat shall pay to
Remedent a contingent capital payment (each, a “Contingent Payment”) equal to
five (5%) percent of Den-Mat’s Net Revenues generated by the sale of the
Products.  For purposes hereof, “Net Revenues” shall mean all revenues
received by Den-Mat from sales of the Products, net of any returns and
allowances, freight, sales taxes, rebates and customary trade
discounts.  A sale shall be deemed to have been made by Den-Mat at the
time the related revenue is recognized by Den-Mat for its internal accounting
purposes (in accordance with GAAP).  Within thirty (30) days after the
end of each calendar quarter, Den-Mat shall deliver to Remedent a certified
statement from an officer of Den-Mat setting forth (a) the total amount of
Den-Mat’s Net Revenues generated by the sale of the Products during such
quarter, and (b) a calculation of the Contingent Payment payable to Remedent
hereunder.  Concurrently with delivering such statement Den-Mat shall
pay to Remedent, the amount of the Contingent Payment set forth on such
statement.

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    2.5             Representations and
Warranties.  Remedent hereby certifies to Den-Mat that each of
the representations and warranties made by Remedent in Section 14.1 of the 2009
Agreement is true and correct in all material respects as if made on the date
hereof and as if the transactions contemplated by this Amendment No. 1 were part
of the 2009 Agreement.  In addition, Remedent hereby represents and
warrants to Den-Mat that: (a) Remedent has not sold, assigned, transferred,
encumbered or granted to any Person any rights to the IP, and (b) any rights to
IP that are licensed to Remedent by a third party can be transferred and
assigned to Den-Mat without the consent or approval of any third party or, if
such consent or approval is required, Remedent will have obtained it prior to
payment of the first installment of the Purchase Price.  Den-Mat
hereby certifies to Remedent that each of the representations and warranties
made by Den-Mat in Section 14.2 of the 2009 Agreement is true and correct in all
material respects as if made on the date hereof and as if the transactions
contemplated by this Amendment No. 1 were part of the 2009
Agreement.

     

    3.           Additional Amendments to 2009
Agreement.  The following provisions of the 2009 Agreement are
hereby amended as follows:

     

    3.1             Sections
2, 3.1, 3.4, 3.5.2, 4, 5, 6, 7, 9, 10.1, 16.1.3, 16.1.4, 16.1.5, 16.2.4, 18.4
and 18.6 are hereby deleted in their entirety.

     

    3.2             Section
3.3 is hereby amended to delete the words “In connection with the licenses
granted to Den-Mat pursuant to Section 3.1” in the
1st
and 2nd lines and to substitute, in lieu thereof, the words “In connection with
the IP Sale”.

     

    3.3             Section
3.5.1 is hereby amended and restated in its entirety to read as
follows:

     

    “Ownership of Intellectual
Property.  Den-Mat shall have the sole and exclusive right to
apply for, prosecute, obtain and enforce all rights, grants, registrations,
orders or proprietary interests of any nature, including, without limitation,
patents, copyrights, industrial design and trademark and service mark
registrations and any other registrations or grants of rights that are analogous
thereto in any and all countries throughout the world in respect of the IP,
including, without limitation, any Intellectual Property related to the Products
developed by Remedent after the Amendment No. 1 Effective Date, which shall be
promptly transferred to Den-Mat.   At Den-Mat’s request and cost,
and for the benefit of Den-Mat, Remedent  shall apply for, prosecute,
obtain and enforce all rights, grants, registrations, orders or proprietary
interests of any nature, including, without limitation, patents, copyrights,
industrial design and trademark and service mark registrations and any other
registrations or grants of rights that are analogous thereto in any and all
countries throughout the world, and take such other actions as Den-Mat may
reasonably request to protect such Intellectual Property.  In the
event Remedent fails to take any action reasonably requested by Den-Mat as
described in the preceding sentence (a) Den-Mat may take such action, (b)
Remedent hereby authorizes Den-Mat to take any such action in its name, and (c)
Remedent shall provide such assistance as Den-Mat may reasonably request in
connection therewith.  Each of Den-Mat and Remedent shall take such
actions as the other may reasonably request to implement the provisions of this
Section 3.5.1 with respect to any particular Intellectual
Property.”

     

    
      
         

      

      
        - 3
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    3.4             The
introductory paragraph of Section 8.1 is hereby amended and restated to read as
follows:

     

    “Remedent’s Marketing
Support.  Remedent shall develop and implement commercially
reasonable sales and marketing support to the Den-Mat sales
effort.  Any materials developed by Remedent will be the sole and
exclusive property of Den-Mat.  Remedent shall use its commercially
reasonable efforts to provide the following support (all of which, including the
selection of vendors utilized, shall be subject to Den-Mat’s reasonable
approval) for Den-Mat’s sales and marketing efforts:”

    

    The
remainder of Section 8.1 (clauses (a) – (p)) shall remain
unchanged.

    

     

    3.5             Section
13.2.1 is hereby amended to delete clause (c) thereof.

     

    3.6             Section
16.2.5 is hereby amended to provide that, concurrently with the execution of
this Amendment, Remendent shall deliver to Den-Mat revised Non-Competition
Agreements in the form approved by Den-Mat duly executed by Guy De Vreese and
Evelyne Jacquemyns.

     

    3.7             Section
18.3 is hereby amended by adding the phrase “occurring prior to the Amendment
No. 1 Effective Date” at the end of the first sentence thereof and again in the
second sentence thereof after the phrase “Intellectual Property claim or
judgment,” and prior to the phrase “then Remedent...”

     

    3.8             Section
20.14 is hereby amended to add at the end thereof, after the words “First-Fit
Technology,” the following: “unless Den-Mat agrees to include the Net Revenues
generated by the sale of such competing products in the calculation of the
Contingent Payment.”

     

    3.9             The
definition of “Confidential Information” in Schedule 1 is hereby amended to
provide that all confidential or proprietary information relating to the First
Fit Technology shall be treated as being Den-Mat’s Confidential Information for
purposes of the 2009 Agreement, notwithstanding the exclusions contained in
clauses (b), (c) and (d) of Section 17.1.2.

     

    4.           Miscellaneous.

     

    4.1             Binding
Effect.  This Amendment shall be binding upon and inure to the
benefit of the Parties and their respective successors and permitted
assigns.  Except as modified hereby, the 2009 Agreement shall remain
in full force and effect.  

     

    4.2             Headings.  The
headings contained in this Amendment are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Agreement.

     

    4.3             Counterparts.  This
Amendment may be executed in one or more counterparts, all of which will be
considered one and the same agreement and will become effective when one or more
counterparts have been signed by each of the Parties and delivered to the other
Parties, regardless of whether all of the Parties have executed the same
counterpart.  Counterparts may be delivered via facsimile, electronic
mail (including pdf) or other transmission method and any counterpart so
delivered shall be deemed to have been duly and validly delivered and be valid
and effective for all purposes. 

     

    
      
         

      

      
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    4.4             Governing
Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW
RULE THAT WOULD CAUSE THE APPLICATION OR THE LAWS OF ANY JURISDICTION OTHER THAN
THE INTERNAL LAWS OF THE STATE OF NEW YORK TO THE RIGHTS AND DUTIES OF THE
PARTIES.

     

    4.5             Den-Mat
Option.  In consideration of the advance being made by Den-Mat
to Remedent concurrently herewith, in accordance with Section 2.3(a) of this
Amendment, and other good and valuable consideration, the receipt and
sufficiency whereof are hereby acknowledged, Remedent hereby grants to Den-Mat
an option to enter into this Amendment at any time during the thirty (30) day
period beginning on the Amendment No. 1 Effective Date (the “Option
Period”).  Remedent agrees that it may not revoke or rescind its
execution and delivery of this Amendment prior to the end of the Option Period,
and that if Den-Mat delivers (by fax, email or personal delivery) a
counter-signed copy of this Amendment on or before the last day of the Option
Period, this Amendment shall then become fully binding upon and enforceable
against the parties hereto with effect from the Amendment No. 1 Effective
Date.     

     

     

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        - 5
-

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, Remedent Nevada, Remedent Belgium and Den-Mat, by their
respective authorized representatives set forth below, have signed this
Amendment No. 1 as of the Amendment No. 1 Effective Date.

     

    
      	
              REMEDENT,
      INC.

              “Remedent
      Nevada”

            	
              REMEDENT,
      N.V.

              “Remedent
      Belgium”

            
	 	 
	
              By:               
                                                                

            	
              By:                             
                                               

            
	
              Name:    
                                                                      

            	
              Name:   
                                                                     

            
	
              Title:     
                                                                       

            	
              Title:    
                                                                      

            

    

     

    

    
      	
              DEN-MAT
      HOLDINGS, LLC

              “Den-Mat”

            
	 
	
              By:          
       
                                                                

            
	
              Name:      
                                                                  

            
	
              Title:   
                                                                       

            
	 
	 

    

    - 6 -

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