Document:

Unassociated Document

     

    
      	 	101
              Hudson Street
              Suite
                3700

              Jersey
                City, NJ 07302

            

    

    

    

    April
      21,
      2006

    

    

    VIA
      FEDERAL EXPRESS 

    AND
      FAX (650) 551-5225

    

    
      	
              Wherify
                Wireless, Inc.

            
	
              2000
                Bridge Parkway, Suite 201

            
	
              Redwood
                Shores, CA 94065

            
	
              Attention: Timothy
                Neher

            

    

    

    Re: Amendment
      to Secured Convertible Debentures

    

    Dear
      Mr.
      Neher:

    

    This
      letter will memorialize the agreement by and between Wherify Wireless, Inc.,
      a
      Delaware corporation (the “Company”),
      and
      Cornell Capital Partners, LP, a Delaware Limited Partnership (the “Holder”),
      in
      connection with amendments to the March 10, 2006 7% Secured Convertible
      Debenture issued to the Holder in the original face amount of $2,500,000 and
      the
      March 14, 2006 7% Secured Convertible Debenture issued to the Holder in the
      original face amount of $2,500,000 (collectively referred to as the
“Convertible
      Debentures”).
      All
      capitalized terms herein, unless otherwise indicated, shall have the meaning
      ascribed to them in the Convertible Debentures. 

    

    The
      parties hereby amend the Convertible Debentures as follows:

    

    

    
      	1.  	
              Interest
                Payments.
                The Company shall, in its sole discretion, make any interest payment
                due
                in either (i) cash, or (ii) after the Effective Date, in common stock
                at
                the Fixed Conversion Price, provided that the effectiveness of the
                Underlying Share Registration Statement has not lapsed for any reason.
                In
                no circumstances shall the Holder have any discretion in whether
                interest
                paid by the Company is in the form of cash or in common stock.
                

            

    

    

    
      	2.  	
              Default
                Conversion Price.
                Section 3(c)(xii) of the Convertible Debentures shall be deleted
                in its
                entirety and replaced with the
                following:

            

    

    

    Section
      3(c)(xii).
      If an
      Event of Default occurs and remains uncured twelve months after the Original
      Issue Date (as defined in Section 5) of this Debenture, the Fixed Conversion
      Price shall be switched to the Default Conversion Price. The Default Conversion
      Price shall be equal to $0.65. The Obligor agrees that the date that full
      consideration was paid for this Debenture shall remain the Original Issue Date.
      The Company shall provide an opinion letter from counsel within two (2) days
      of
      written request by the Holder stating that the date full consideration was
      paid
      for this Debenture is the Original Issue Date. In the event that counsel to
      the
      Company fails or refuses to render an opinion as required to issue the
      conversion shares in accordance with this paragraph (either with or without
      restrictive legends, as applicable), then the Company irrevocably and expressly
      authorizes counsel to the Holder to render such opinion and shall authorize
      the
      Obligor’s transfer agent to accept and be entitled to rely on such opinion for
      the purposes of issuing the conversion shares.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    This
      letter agreement shall solely have the effect specifically described above
      and
      shall have no effect on any other terms or conditions of the Convertible
      Debentures. 

    

    
      	 	 	 
	 	Cornell
              Capital
              Partners, LP
	 
 	 
 	 
 
	 	
              By:

            	
              Yorkville
                Advisors, LLC

            
	 	
              Its:

            	
              General
                Partner

            
	 	 	 
	 	
              By:

            	    /s/ Mark Angelo 
	 	
            	
              

            
	
               

            	Name:	
               Mark
                Angelo

            
	
               

            	
              Title:

            	
               President
                and Portfolio
                Manager

            

    

     

    
      
        	 	 	 
	Agreed
                and
                acknowledged on this 21st
                day of April, 2006.	 
	 	 
	Wherify Wireless, Inc.	 
	 
 	 
 	 
	By:  	  /s/ Timothy Neher 	 
	
              	
                

              	 
	Name: 	 Timothy Neher	 
	
                Title: 

              	 Chief
                Executive Officer	 
	
                 

                 

              	 
	 	 	 
	 	 	 
	
                 cc:
                   Stanley
                  Rowland, Esq.

                via
                  Fax (415) 837-1516Unassociated Document

    Wherify
      Wireless, Inc.

    2000
      Bridge Parkway, Suite 201

    Redwood
      Shores CA 94065

    

    March
      27,
      2006

    

    Mr.
      Michael D. Dingman, Jr.

    2332
      Block Court

    Erie,
      CO
      80516

    

    Dear
      Michael,

     

    Wherify
      Wireless, Inc., a Delaware corporation (the “Company”),
      is
      pleased to confirm
      our understanding relating to certain matters relating to your proposed
      appointment to the Company’s Board of Directors (the “Board”).

     

    If
      you
      are appointed to the Board and you accept such appointment, the Company will
      issue you an option (the “Option”)
      pursuant to its stock option plan to purchase 50,000 shares of Common Stock
      of
      the Company (the “Shares”)
      at a
      purchase price equal to the current fair market value of such Shares as
      determined by the Board. The Option will vest in equal monthly increments over
      four years so long as you remain a member of the Board. If you serve on the
      Board for one year and are appointed for another term, you will receive an
      additional option for 10,000 Shares which will vest ratably monthly over 12
      months. You will receive additional options for 10,000 Shares for each one
      year
      term of service on the Board thereafter. The Option and any such additional
      options will be issued subject to the terms of the Company’s customary form of
      agreement for a non-statutory stock option.

     

    In
      addition to the equity compensation described above, you will be paid $3,000
      per
      calendar quarter in which you serve on the Board plus an additional $2,000
      per
      meeting for each of the first five meetings per year that you attend. We also
      reimburse you for your reasonable out-of-pocket expenses incurred in attending
      meetings of our Board or committees thereof.

     

    We
      are
      confident that you and the Company will find mutual satisfaction with your
      participation on the Board. As a reminder, your continued service on the Board
      is subject at all times to the sole discretion of the Company’s stockholders. In
      addition, all Board members should be aware that their services as directors
      to
      the Company are subject to statutory and fiduciary duties and responsibilities
      pursuant to applicable California and Delaware law. 

     

    All
      of us
      at the Company are very excited about your joining the team and look forward
      to
      a mutually beneficial and fruitful relationship.

     

    Very
      Truly Yours,

     

    /s/
      W. Douglas Hajjar

    W.
      Douglas Hajjar, Co-Chairman

    

    cc: Board
      of
      Directors

    

    AGREED
      AND ACCEPTED:

    

    
      /s/
        Michael D. Dingman, Jr.

    

    Michael
      D. Dingman, Jr.APPLICATION
      FOR SUBSCRIPTION FOR COMMON STOCK

     

    WHERIFY
      WIRELESS, INC.

     

    2000
      Bridge Parkway, Suite 201

    Redwood
      Shores, CA 94065

     

    ORIGINAL
      STOCK ISSUE: Up to 10,000,000 shares of the common stock of Wherify Wireless,
      Inc., 0.01 par value ("Common Stock"), are to be subscribed for and issued
      at
      $______ per share (the "Offering").

     

    The
      undersigned, having received and read the Prospectus of Wherify Wireless, Inc.
      ("Wherify"), dated ________, 2006 (the "Prospectus"), does hereby offer to
      purchase up to______ shares of the Common Stock at a subscription price of
      $______ per share. (For more information regarding the Common Stock, please
      refer to the Prospectus).

     

    Wherify
      can accept this Application for all or any portion of the shares applied for,
      or
      it can reject this Application in its entirety, in its sole discretion. In
      the
      event that Wherify rejects all or a portion of the requested subscription offer,
      it will refund to the subscriber all, or the appropriate portion, of the amount
      remitted with this Application without interest. Wherify will decide which
      subscription offers (or portions thereof) to accept, and all appropriate refunds
      will be mailed no later than 10 business days following
      rejection.

     

    IMPORTANT:
      THE TOP TWO COPIES OF THIS APPLICATION, COMPLETED AND SIGNED (INCLUDING THE
      COMPLETION OF THE SUBSTITUTE FORM W-9 INCLUDED IN THIS APPLICATION), AND PAYMENT
      IN FULL FOR ALL SHARES SUBSCRIBED FOR, MUST BE RECEIVED BY WHERIFY BY 5:00
      P.M.,
      PACIFIC STANDARD TIME, ON OR BEFORE______, 2007 (the "Offering Expiration
      Date"). THERE ARE NO MINIMUM PURCHASE REQUIREMENTS. WE
      URGE
      YOU TO REMIT PROMPTLY, SINCE THE OFFERING MAY CLOSE PRIOR TO THE OFFERING
      EXPIRATION DATE. PLEASE MAIL THE TOP TWO COPIES OF THE SUBSCRIPTION APPLICATION
      TO WHERIFY AT: 2000 BRIDGE PARKWAY, SUITE 201, REDWOOD SHORES, CA 94065, ATTN:
      MARK E. GITTER. Payment may be made (a) by certified check, bank check,
      personal check or money order payable to "Wherify Wireless, Inc. Offering
      Account," or (b) by wire transfer of funds to the "Wherify Wireless, Inc.
      Offering Account," ABA No. ____________, Account No. ___________,
      Attn: _______________. The subscription price will be deemed to have been
      received by Wherify only upon (i) clearance of any uncertified check; (ii)
      receipt of any certified check or cashier's check or of any postal, telegraphic
      or express money order; or (iii) receipt of collected funds in the stock
      offering account designated above. If you are paying by uncertified personal
      check, please be aware that funds paid in this manner may take at least five
      (5)
      business days to clear. Accordingly, subscribers who wish to pay the
      subscription price by means of uncertified personal check are urged to make
      payment sufficiently in advance of the expiration date of the offering to ensure
      that such payment is received and clears by the expiration date and are urged
      to
      consider payment by means of certified or cashier's check, money order or wire
      transfer of funds. 

     

    If
      you
      have questions as to how to complete the subscription agreement, you should
      contact Mark E. Gitter, our Chief Financial Officer and Treasurer, at (650)
      551-5230. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Shares
      purchased by the undersigned shall be registered as listed below. (If
      certificates for shares are to be issued in more than one name, please specify
      whether ownership is to be as tenants in common, joint tenants, etc. If
      certificates for shares are to be issued in the name of one person for the
      benefit of another, please indicate whether registration should be as trustee
      or
      custodian for such person).

     

    
      

    

     

    
      	
              Name(s)
                in which Shares are to be Registered

              (Please
                Print)

            	 	
              Number
                of Shares

              (At
                $______ Per Share)

            
	 	 	 
	 	 	 

    

     

    By
      executing this Application, the undersigned hereby acknowledge(s) and agree(s)
      to all of the terms and conditions set forth in the Prospectus as well as all
      of
      the following terms and conditions:

     

    The
      funds
      received by Wherify from the undersigned and deposited in the Offering Account
      described in the Prospectus will be held by Wherify pending acceptance of the
      subscription, rejection of the subscription or cancellation of the Offering.
      We
      intend to conduct the first closing of the sale of shares on or before
      _________, 2006 and subsequent sequential closings on approximately a bi-weekly
      and/or monthly basis. We reserve the right to reject any subscription, in whole
      or in part, in our sole discretion. If we elect not to accept a subscription,
      all funds received from the subscriber will be returned within 10 business
      days
      of the rejection, without interest. We intend to deliver certificates
      representing shares for accepted subscriptions within approximately 10 days
      after each sequential closing. 

     

    IN
      WITNESS WHEREOF, the undersigned has (have) executed this Application and
      returned the top two copies thereof to Wherify at the address set forth above,
      accompanied by payment in full in the manner set forth above. I (We) understand
      that all information submitted on this Application will be treated
      confidentially by Wherify.

     

    
      	
              Dated:_________________________,
                2006

            	 	 
	 	 	 
	 	 	 
	
              (Signature)

            	 	
              (Signature)

            
	 	 	 
	 	 	 
	
              Name
                (please print or type)

            	 	
              Name
                (please print or type)

            
	 	 	 
	 	 	 
	
              Please
                print title or capacity (if other than individual
                shareholder)

            	 	
              Please
                print title or capacity (if other than individual
                shareholder)

            
	 	 	 
	 	 	 
	
              Street
                Address

            	 	
              Street
                Address

            
	 	 	 
	 	 	 
	
              City
                and State                                            Zip

            	 	
              City
                and State                                        Zip

            
	 	 	 
	 	 	 
	
              Telephone

            	 	
              Telephone

            
	 	 	 
	 	 	 
	
              Social
                Security Number

            	 	
              Social
                Security Number

            
	 	 	 
	 	 	 
	
              Taxpayer
                Identification Number

              (if
                applicable)

            	 	
              Taxpayer
                Identification Number

              (if
                applicable)

            

    

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    
      
 

    
      	
              Broker-Dealer:
                If shares are purchased through, or upon the recommendation of a
                broker-dealer, please indicate in the space provided the name of
                the
                broker-dealer:

            

    

     

    
      	 	 	 	 	 
	 	 	 	 	 
	
              Name

            	 	
              Account
                Executive

            	 	
              Office

            

    

     

    Special
      Delivery Instructions:
      If the
      shares subscribed for are to be delivered to someone other than the above
      subscriber (such as a bank, broker, trustee, etc.), or to an address different
      than that shown above, please indicate:

     

    
      	 	 	 
	 	 	 
	
              Name

            	 	
              Address

            
	 	 	 
	 	 	 
	
              Account
                Number

            	 	
              City,
                State, Zip Code

            

    

     

    IF
      SHARES
      ARE TO BE HELD IN JOINT OWNERSHIP,

    ALL
      JOINT
      OWNERS SHOULD SIGN THIS APPLICATION

    SUBSTITUTE
      FORM W-9

     

    Each
      prospective investor is required to provide a correct Taxpayer Identification
      Number ("TIN") on the Substitute Form W-9 below, and to sign and date said
      form.
      If the prospective investor is an individual, the TIN is his or her social
      security number. Part 3 of the Substitute Form W-9 should be completed if the
      prospective investor has not been issued a TIN and has applied for a number
      or
      intends to apply for a number in the near future.

     

    
      	
              Substitute

              FORM
                W-9

            	
              Part
                I - Please provide your TIN in the box at right and certify by signing
                and
                dating below

            	
              Social
                Security Number or Employer Identification No

              .

            

    

    

    
    

     

    
      	 	 
	
              Department
                of the Treasury Internal Revenue Service

            	
              Part
                2 I
                am not subject to backup withholding because (1) I have not been
                notified
                by the Internal Revenue Service that I am subject to backup withholding
                as
                a result of failure to report all interest or dividends or (2) the
                Internal Revenue Service has notified me that I am no longer subject
                to
                backup withholding.

            

    

     

     

     

    
      	
              Payer's
                Request for Taxpayer Identification Number (TIN)

            	 CERTIFICATION:
              UNDER PENALTY OF PERJURY, I CERTIFY THAT THE
              INFORMATION PROVIDED ON THIS FORM IS TRUE, CORRECT AND COMPLETE.	 	
              Part
                3

              Awaiting
                TIN 

            
	 	 Signature:	
            	
            	 	 
	 	 Date:	 	 	 	 
	
               

            	
               

            	
            	
            	
            	
              
                (If
                  awaiting TIN write

              

              "Applied
                For" above)

            

    

    

       

       

    

    RETURN
      THE TOP TWO COPIES. THE THIRD COPY IS FOR YOUR RECORDS

    ORIGINAL
      — White [Return to Wherify]

    COPY
—
      Yellow [Return to Wherify]

    CUSTOMER
      COPY — Pink [Retain]

     

    
      
         

      

      
        -3-

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