Document:

EX-10.29 Amended and Restated Common Stock Purchas

 

Exhibit 10.29

EXECUTION COPY

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO 180 CONNECT INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

Right to Purchase 150,000 Shares of Common Stock of

180 Connect Inc.

(subject to adjustment as provided herein)

AMENDED AND RESTATED COMMON STOCK PURCHASE WARRANT

			
	No. 002
	 	Issue Date: as of July 2, 2007

     180 Connect Inc., a Delaware corporation (“180 Connect”), hereby certifies that, for value
received, LAURUS MASTER FUND, LTD. or assigns (the “Holder”), is entitled, subject to the terms set
forth below, to purchase from the Company (as defined herein) from and after the Issue Date of this
Warrant and at any time or from time to time before 5:00 p.m., New York time, on July 2, 2012 (the
“Expiration Date”), up to 150,000 fully paid and nonassessable shares of Common Stock (as
hereinafter defined), at the applicable Exercise Price (as defined below) per share. The number
and character of such shares of Common Stock and the applicable Exercise Price per share are
subject to adjustment as provided herein. The Company (as defined herein) will have no obligation
to pay the Holder any cash or other consideration or otherwise “net cash settle” the Warrant.
Accordingly, the Warrant may expire or be redeemed unexercised and may be deprived of any value.

     As used herein the following terms, unless the context otherwise requires, have the following
respective meanings:

     (a) The term “Company” shall include 180 Connect and any corporation which shall
succeed, or assume the obligations of, 180 Connect hereunder.

     (b) The term “Common Stock” includes (i) the issued and outstanding common shares in
the capital of the Company and (ii) any other securities into which or for which any of the
securities described in the preceding clause (i) may be converted or exchanged pursuant to a
plan of recapitalization, reorganization, merger, sale of assets or otherwise.

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     (c) The term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise)
which the Holder of the Warrant at any time shall be entitled to receive, or shall have
received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or
which at any time shall be issuable or shall have been issued in exchange for or in
replacement of Common Stock or Other Securities pursuant to Section 4 or otherwise.

     (d) The “Exercise Price” applicable under this Warrant shall be a price of US$3.00 per
share.

     (e) The term “Purchase Agreement” means that certain Security and Purchase Agreement
dated as of July 31, 2006 between 180 Connect Inc., Mountain Center, Inc., JJ&V
Communications, Inc., Tumbleweed HS Inc., Piedmont Telecommunications, Inc., 180 Digital
Interiors, Inc., HD Complete, Inc., Ironwood Communications Inc., and Queens Cable
Contractors, Inc. and the Holder, as such may be amended, supplemented, modified or restated
from time to time.

     (f) The term “Exchange Rate” means, in relation to any amount of currency to be
converted into US dollars pursuant to this Warrant, the US dollar exchange rate as published
in the Wall Street Journal from time to time.

     All other defined terms have the meaning attributed to them in the Purchase Agreement.

     All amounts owing under this Warrant, the Purchase Agreement or any related agreement shall be
paid in US dollars. All amounts denominated in other currencies shall be converted in the US
dollar equivalent amount in accordance with the Exchange Rate on the relevant date of calculation.

     1. Exercise of Warrant. 

     1.1 Number of Shares Issuable upon Exercise. From and after the date hereof through
and including the Expiration Date, the Holder shall be entitled to receive, upon exercise of this
Warrant in whole or in part, by delivery of an original or fax copy of an exercise notice in the
form attached hereto as Exhibit A (the “Exercise Notice”), shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4.

     1.2 Fair Market Value. For purposes hereof, the “Fair Market Value” of a share of
Common Stock as of a particular date (the “Determination Date”) shall mean:

     (a) If the Company’s Common Stock is traded on a stock exchange, then the volume
weighted average of the closing or last sale price reported for the twenty (20) trading days
immediately preceding the Determination Date.

     (b) If the Company’s Common Stock is not traded on a stock exchange but is quoted on
the NASD OTC Bulletin Board, then the mean of (i) the average of the closing bid price and
(ii) the average of the closing ask price, in each case reported for the twenty (20) trading
days immediately preceding the Determination Date.

     (c) Except as provided in clause (d) below, if the Company’s Common Stock is not
publicly traded, then as the Holder and the Company agree or in the absence of agreement by
arbitration in accordance with the rules then in effect of the American
Arbitration Association before a single arbitrator to be chosen from a panel of persons
qualified by education and training to pass on the matter to be decided.

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     (d) If the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to the Company’s
charter, then all amounts to be payable per share to holders of the Common Stock pursuant to
the charter in the event of such liquidation, dissolution or winding up, plus all other
amounts to be payable per share in respect of the Common Stock in liquidation under the
charter, assuming for the purposes of this clause (d) that all of the shares of Common Stock
then issuable upon exercise of the Warrant are outstanding at the Determination Date.

     1.3 Company Acknowledgment. The Company will, at the time of the exercise of the
Warrant, upon the request of the Holder hereof acknowledge in writing its continuing obligation to
afford to such Holder any rights to which such Holder shall continue to be entitled after such
exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any
such request, such failure shall not affect the continuing obligation of the Company to afford to
such Holder any such rights.

     1.4 Limitation on Sale of Common Stock. Holder shall not on or before July 2, 2008
sell any of the Common Stock issuable upon exercise of this Warrant.

2. Procedure for Exercise.

     2.1 Delivery of Stock Certificates, Etc., on Exercise. The Company agrees that the
shares of Common Stock purchased upon exercise of this Warrant shall be deemed to be issued to the
Holder as the owner of record of such shares as of the close of business on the date on which this
Warrant shall have been surrendered and payment made for such shares in accordance herewith. As
soon as practicable after the exercise of this Warrant in full or in part, and in any event within
three (3) business days thereafter, the Company at its expense (including the payment by it of any
applicable issue taxes) shall instruct its transfer agent for the Common Stock to issue in the name
of and deliver to the Holder, or as such Holder (upon payment by such Holder of any applicable
transfer taxes) may direct in compliance with applicable securities laws, a certificate or
certificates for the number of duly and validly issued, fully paid and non-assessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise bearing
a legend substantially in the form of the legend set forth on the first page of this Warrant, plus,
in lieu of any fractional share to which such Holder would otherwise be entitled, cash equal to
such fraction multiplied by the then Fair Market Value of one full share, together with any other
stock or other securities and property (including cash, where applicable) to which such Holder is
entitled upon such exercise pursuant to Section 1 or otherwise.

     2.2 Exercise. Payment may be made either (i) in cash or by certified or official bank
cheque payable to the order of the Company equal to the applicable aggregate Exercise Price, (ii)
by surrender of all or a portion of this Warrant in accordance with the formula set forth below in
this Section 2.2, or (iii) by a combination of any of the foregoing methods, for the number of
Common Shares specified in such Exercise Notice (as such exercise number shall be adjusted to
reflect any adjustment in the total number of shares of Common Stock issuable to the Holder in
accordance with the terms of this Warrant) and the Holder shall thereupon be entitled to receive

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the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common
Stock (or Other Securities) determined as provided herein. Notwithstanding any provisions herein
to the contrary, if the Fair Market Value of one share of Common Stock is greater than the Exercise
Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash,
the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or
the portion thereof being exercised) by surrender of this Warrant at the principal office of the
Company together with the properly endorsed Exercise Notice in which event the Company shall issue
to the Holder a number of shares of Common Stock computed using the following formula:

	 	 	 
	X=Y x

	 	(A-B)

   A

	 	 	 
	Where X =

	 	the number of shares of Common Stock to be issued to the Holder
	 
	 	 
	Y =

	 	the number of shares of Common Stock purchasable under the Warrant or, if
only a portion of the Warrant is being exercised, the portion of the Warrant being
exercised (at the date of such calculation)
	 
	 	 
	A =

	 	the Fair Market Value of one share of the Company’s Common Stock (at the date
of such calculation)
	 
	 	 
	B =

	 	Exercise Price (as adjusted to the date of such calculation)

3. Effect of Reorganization, Etc.; Adjustment of Exercise Price.

     3.1 Reorganization, Consolidation, Merger, Etc. In case at any time or from time to
time, the Company shall (a) effect a reorganization, (b) consolidate with or merge into any other
person, or (c) transfer all or substantially all of its properties or assets to any other person
under any plan or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition to the consummation of such a transaction, proper and adequate provision shall
be made by the Company whereby the Holder of this Warrant, on the exercise hereof as provided in
Section 1 at any time after the consummation of such reorganization, consolidation or merger or the
effective date of such dissolution, as the case may be, the Holder shall receive, in lieu of the
Common Stock (or Other Securities) issuable on such exercise prior to such consummation or such
effective date, the stock and other securities and property (including cash) to which such Holder
would have been entitled upon such consummation or in connection with such dissolution, as the case
may be, if such Holder had so exercised this Warrant, immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.

     3.2 Dissolution. In the event of any dissolution of the Company following the
transfer of all or substantially all of its properties or assets, the Company, concurrently with
any distributions made to holders of its Common Stock, shall at its expense deliver or cause to be
delivered to the holder the stock and other securities and property (including cash, where
applicable) receivable by the Holder of the Warrant pursuant to Section 3.1, net of the aggregate
Exercise Price.

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     3.3 Continuation of Terms. Upon any reorganization, consolidation, merger or transfer
(and any dissolution following any transfer) referred to in this Section 3, this Warrant
shall continue in full force and effect and the terms hereof shall be applicable to the shares
of stock and other securities and property receivable on the exercise of this Warrant after the
consummation of such reorganization, consolidation or merger or the effective date of dissolution
following any such transfer, as the case may be, and shall be binding upon the issuer of any such
stock or other securities, including, in the case of any such transfer, the person acquiring all or
substantially all of the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4. In the event this Warrant
does not continue in full force and effect after the consummation of the transactions described in
this Section 3, then the Company’s securities and property (including cash, where applicable)
receivable by the Holders of the Warrant will be delivered to the Holder as contemplated by Section
3.2.

4. Extraordinary Events Regarding Common Stock. 

     In the event that the Company shall (a) issue additional shares of the Common Stock as a
dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of
Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of
shares of the Common Stock, then, in each such event, the Exercise Price shall, simultaneously with
the happening of such event, be adjusted by multiplying the then Exercise Price by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding immediately prior to
such event and the denominator of which shall be the number of shares of Common Stock outstanding
immediately after such event, and the product so obtained shall thereafter be the Exercise Price
then in effect. The Exercise Price, as so adjusted, shall be readjusted in the same manner upon the
happening of any successive event or events described herein in this Section 4. The number of
shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof as
provided in Section 1, be entitled to receive shall be adjusted to a number determined by
multiplying the number of shares of Common Stock that would otherwise (but for the provisions of
this Section 4) be issuable on such exercise by a fraction of which (a) the numerator is the
Exercise Price that would otherwise (but for the provisions of this Section 4) be in effect, and
(b) the denominator is the Exercise Price in effect immediately after the adjustment referred to in
the first sentence of this Section 4.

5. Certificate as to Adjustments.

In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities)
issuable on the exercise of the Warrant, the Company at its expense will promptly cause its Chief
Financial Officer or other appropriate designee to compute such adjustment or readjustment in
accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or readjustment is based,
including a statement of (a) stock, securities and other property to be received or received by
holders of Common Stock upon a transaction contemplated by Section 3.1 or a dissolution
contemplated by Section 3.2 in the ratio of subdivision or combination contemplated by Section 4
or the number of shares and Common Stock issued as a dividend or distribution as contemplated by
Section 4, (a) the number of shares of Common Stock (or Other Securities) outstanding or deemed to
be outstanding, and (b) the Exercise Price and the number of shares of Common Stock to be received
upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and
as adjusted or readjusted as provided in this
Warrant. The Company will forthwith mail a copy of each such certificate to the Holder of the
Warrant.

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6. Reservation of Stock, Etc. Issuable on Exercise of Warrant.

The Company is authorized to issue an unlimited number of shares of Common Stock. If after the
Closing Date, the Company amends its articles or certificate of incorporation or similar charter
document to limit the number of shares of Common Stock that the Company is authorized to issue, it
shall at all times reserve and keep available, solely for issuance and delivery on the exercise of
the Warrant, shares of Common Stock (or Other Securities) from time to time issuable on the
exercise of the Warrant.

7. Assignment; Exchange of Warrant.

Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced
hereby, may be transferred by any registered Holder hereof (a “Transferor”) in whole or in part.
On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of
Exhibit B attached hereto (the “Transferor Endorsement Form”), together with evidence reasonably
satisfactory to the Company demonstrating compliance with applicable securities laws (which shall
include, without limitation, the provision of a legal opinion from the Transferor’s counsel
reasonably acceptable to the Company’s counsel that such transfer is exempt from the prospectus and
registration or equivalent requirements of applicable securities laws) and with payment by the
Transferor of any applicable transfer taxes, the Company will issue and deliver to or on the order
of the Transferor thereof a new Warrant of like tenor, in the name of the Transferor and/or the
transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the
aggregate on the face or faces thereof for the number of shares of Common Stock called for on the
face or faces of the Warrant so surrendered by the Transferor. Each new Warrant evidencing this
Warrant so transferred shall bear a legend substantially in the form of the legend set forth on the
first page of this Warrant unless such legend has, by its terms, expired.

8. Replacement of Warrant.

On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant,
on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the
Company or, in the case of any such mutilation, on surrender and cancellation of this Warrant, the
Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

     9. Maximum Exercise.

Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to
convert pursuant to the terms of this Warrant an amount that would be convertible into that number
of shares of Common Stock which, when added to the number of shares of Common Stock otherwise
beneficially owned by the Holder including those issuable upon exercise of convertible securities,
warrants or options held by the Holder, would exceed 9.99% of the outstanding shares of Common
Stock of the Company at the time of exercise. For the purposes of the immediately preceding
sentence, beneficial ownership shall be determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Regulation 13d-3
thereunder.

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10. Transfer on the Company’s Books.

Until this Warrant is transferred on the books of the Company, the Company may treat the registered
holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

11. Notices, Etc.

     All notices and other communications from the Company to the Holder of this Warrant shall be
personally delivered, sent by confirmed telex or facsimile or delivered by nationally recognized
overnight courier at such address as may have been furnished to the Company in writing by such
Holder or, until any such Holder furnishes to the Company an address, then to, and at the address
of, the last Holder of this Warrant who has so furnished an address to the Company.

12. Miscellaneous.

     This Warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver,
discharge or termination is sought and, if registered, with the approval of the stock exchange on
which the Common Stock is listed for trading. This Warrant shall be governed by and construed in
accordance with the laws of the State of New York without regard to principles of conflicts of
laws. Any action brought concerning the transactions contemplated by this Warrant may be brought
in the state courts of New York or in the federal courts located in the state of New York. The
individuals executing this Warrant on behalf of the Company agree to submit to the non-exclusive
jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to
recover from the other party its reasonable attorney’s fees and costs. In the event that any
provision of this Warrant is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any
other provision of this Warrant. The headings in this Warrant are for purposes of reference only,
and shall not limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or enforceability of
any other provision hereof. Nothing contained herein shall be deemed or operate to preclude the
Holder from bringing suit or taking other legal action against the Company in any other
jurisdiction to collect on the Company’s obligations to the Holder or to enter a judgment or other
court ruling in favour of the Holder. The Company acknowledges that legal counsel participated in
the preparation of this Warrant and, therefore, stipulates that the rule of construction that
ambiguities are to be resolved against the drafting party shall not be applied in the
interpretation of this Warrant to favour any party against the other party.

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     13. Rights of the Holder

     Prior to the exercise of this Warrant, the Holder shall not, by virtue hereof, be entitled to
any rights of a shareholder of the Company, including, without limitation, the right to vote, to
receive dividends or other distributions or to receive any notice of meeting of shareholders
or any notice of any proceedings of the Company except as may be specifically provided for herein.

     14. Amendment and Restatement

     This Amended and Restated Common Stock Purchase Warrant amends and restates in its entirety,
and is given in substitution for and not in satisfaction of, that certain Common Stock Purchase
Warrant No. 002, dated July 2, 2007 issued by the Company in favor of Laurus Master Fund, Ltd.

[BALANCE OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOLLOWS.]

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     IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

	 	 	 	 	 
	 	180 Connect Inc., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Common Stock Purchase Warrant Signature Page

9

 

EXHIBIT A

FORM OF SUBSCRIPTION

(To Be Signed Only On Exercise Of Warrant)

TO:     180 Connect Inc.

           Attention:     Chief Financial Officer

          The undersigned, pursuant to the provisions set forth in the attached Warrant (No.___),
hereby irrevocably elects to purchase (check applicable box):

	 	 	 
	_________

	 	_________shares of the Common Stock covered by such Warrant; or
	 
	 	 
	_________

	 	the maximum number of shares of Common Stock covered by such Warrant pursuant
to the cashless exercise procedure set forth in Section 2.

     The undersigned herewith makes payment of the full Exercise Price for such shares at the price
per share provided for in such Warrant, which is US$______. Such payment takes the form of
(check applicable box or boxes):

	 	 	 
	_________

	 	US$______in lawful money of the United States; and/or
	 
	 	 
	_________

	 	the cancellation of such portion of the attached Warrant as is exercisable for
a total of _________shares of Common Stock (using a Fair Market Value of
US$_________ per share for purposes of this calculation); and/or
	 
	 	 
	_________

	 	the cancellation of such number of shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2.2, to exercise this Warrant
with respect to the maximum number of shares of Common Stock purchasable
pursuant to the cashless exercise procedure set forth in Section 2.

     The undersigned requests that the certificates for such shares be issued in the name of, and
delivered to _________whose address is _________.

     The undersigned represents and warrants that all offers and sales by the undersigned of the
securities issuable upon exercise of the within Warrant shall be made in reliance upon available
exemptions from the prospectus and registration or equivalent requirements of applicable securities
legislation.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Signature must conform to name of Holder as specified on the face of the Warrant)
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

A-1

 

EXHIBIT B

FORM OF TRANSFEROR ENDORSEMENT

(To Be Signed Only On Transfer Of Warrant)

     For value received, the undersigned hereby sells, assigns, and transfers unto the person(s)
named below under the heading “Transferees” the right represented by the within Warrant to purchase
the percentage and number of shares of Common Stock of 180 Connect Inc. into which the within
Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to
transfer its respective right on the books of 180 Connect Inc. with full power of substitution in
the premises.

	 	 	 	 	 	 	 
	 	 	 	 	Percentage	 	Number
	Transferees	 	Address	 	Transferred	 	Transferred
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Signature must conform to name of Holder as specified on the face of the Warrant)
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	SIGNED IN THE PRESENCE OF:
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	(Name)
	 
	 	 	 	 	 	 
	ACCEPTED AND AGREED:	 	 	 	 
	[TRANSFEREE]	 	 	 	 
	 
	 	 	 	 	 	 
	 

(Name)
	 	 	 	 

B-1EX-10.30 Amended and Restated Warrant Certificate

 

Exhibit 10.30

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

AMENDED AND RESTATED WARRANT CERTIFICATE

Warrant Certificate evidencing

Warrants to Purchase

Common Stock, par value $.0001

As described herein.

180 Connect Inc.

			
	No. W-3
	 	CUSIP No. 682343 116

VOID AFTER 5:00 P.M., NEW YORK TIME,

ON AUGUST 24, 2012, OR UPON EARLIER REDEMPTION

     This certifies that Laurus Master Fund, Ltd. (“Laurus”) or registered assigns is the
registered holder of 250,000 warrants to purchase certain securities (each a “Warrant”). Each
Warrant entitles the holder thereof, subject to the provisions contained herein, to purchase from
180 Connect Inc., a Delaware corporation (the “Company”), one share of the Company’s Common Stock
(each, a “Share”), at the Exercise Price set forth below. The exercise price of each Warrant (the
“Exercise Price”) shall be equal to US$3.00.

 

 

     Each Warrant evidenced hereby may be exercised at any time, as specified herein, on any
Business Day (as defined below) on or prior to the fifth anniversary of the closing of the
arrangement (the “Expiration Date”) pursuant to that certain Arrangement Agreement dated as of
March 13, 2007 by and among the Company, 6732097 Canada Inc., and 180 Connect Inc., as amended (the
“Arrangement”). Each Warrant remaining unexercised after 5:00 P.M., New York time, on the
Expiration Date shall become void, and all rights of the holder of this Warrant Certificate
evidencing such Warrant shall cease.

     In no event will the Company be obligated to pay holders of Warrants any cash or other
consideration or otherwise “net cash settle” any Warrants.

     The holder of the Warrants represented by this Warrant Certificate may exercise any Warrant
evidenced hereby by delivering, not later than 5:00 P.M., New York time, on any Business Day on or
prior to the Expiration Date (the “Exercise Date”) to the Company, (i) this Warrant Certificate,
(ii) an election to purchase (“Election to Purchase”), properly executed by the holder hereof on
the reverse of this Warrant Certificate, and substantially in the form included on the reverse of
hereof and (iii) the Exercise Price for each Warrant to be exercised in lawful money of the United
States of America by certified or official bank check or by bank wire transfer in immediately
available funds. If any of (a) this Warrant Certificate, (b) the Election to Purchase, or (c) the
Exercise Price therefor, is received by the Company after 5:00 P.M., New York time, on the
specified Exercise Date, the Warrants will be deemed to be received and exercised on the Business
Day next succeeding the Exercise Date. If the date specified as the Exercise Date is not a
Business Day, the Warrants will be deemed to be received and exercised on the next succeeding day
which is a Business Day. If the Warrants to be exercised are received or deemed to be received
after the Expiration Date, the exercise thereof will be null and void and any funds delivered to
the Company will be returned to the holder as soon as practicable. In no event will interest
accrue on funds deposited with the Company in respect of an exercise or attempted exercise of
Warrants.

     As used herein, the term “Business Day” means any day that is not a Saturday or Sunday and is
not a United States federal holiday or a day on which banking institutions generally are authorized
or obligated by law or regulation to close in New York.

     Warrants may be exercised only in whole numbers of Warrants. No fractional shares of Common
Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common
Stock to be issued shall be rounded up to the nearest whole number. If fewer than all of the
Warrants evidenced by this Warrant Certificate are exercised, a new Warrant Certificate for the
number of Warrants remaining unexercised shall be executed by
the Company and delivered to the holder of this Warrant Certificate at the address specified
on the books of the Company or as otherwise specified by such Registered Holder.

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     Laurus hereby agrees that Laurus shall not sell, transfer, make any short sale of, grant any
option for the purchase of, or enter into any hedging or similar transaction with the same economic
effect as a sale, the Warrants or the Shares issuable upon exercise of the Warrants until the first
anniversary of the closing of the Arrangement.

     The accrual of dividends, if any, on the Shares issued upon the valid exercise of any Warrant
will be governed by the terms generally applicable to such Shares. From and after the issuance of
such Shares, the former holder of the Warrants exercised will be entitled to the benefits generally
available to other holders of Shares and such former holder’s right to receive payments of
dividends and any other amounts payable in respect of the Shares shall be governed by, and shall be
subject to, the terms and provisions generally applicable to such Shares.

     The Exercise Price and the number of Shares purchasable upon the exercise of each Warrant
shall be subject to adjustment as follows: (1) if after the date hereof, and otherwise subject to
the terms of this Warrant Certificate, the number of outstanding shares of Common Stock is
increased by a stock dividend payable in shares of Common Stock, or by a split-up of shares of
Common Stock, or other similar event, then, on the effective date of such stock dividend, split-up
or similar event, the number of shares of Common Stock issuable on exercise of each Warrant shall
be increased in proportion to such increase in outstanding shares of Common Stock; and (2) if after
the date hereof, and otherwise subject to the terms of this Warrant Certificate, the number of
outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock
split or reclassification of shares of Common Stock or other similar event, then, on the effective
date of such consolidation, combination, reverse stock split, reclassification or similar event,
the number of shares of Common Stock issuable on exercise of each Warrant shall be decreased in
proportion to such decrease in outstanding shares of Common Stock. Whenever the number of shares
of Common Stock purchasable upon the exercise of the Warrants is adjusted, as provided in items (1)
and (2) above, the Exercise Price shall be adjusted (to the nearest cent) by multiplying such
Exercise Price immediately prior to such adjustment by a fraction (x) the numerator of which shall
be the number of shares of Common Stock purchasable upon the exercise of the Warrants immediately
prior to such adjustment, and (y) the denominator of which shall be the number of shares of Common
Stock so purchasable immediately thereafter. Upon the occurrence of any event specified in this
paragraph, the Company shall give written notice to the Warrant holder, at the last address set
forth for such holder in the warrant register, of the record date or the effective date of the
event.
Failure to give such notice, or any defect therein, shall not affect the legality or validity of
such event.

3

 

     Upon due presentment for registration of transfer or exchange of this Warrant Certificate the
Company shall execute, in the name of the designated transferee one or more new Warrant
Certificates of any authorized denomination evidencing in the aggregate a like number of
unexercised Warrants.

     Notwithstanding anything herein to the contrary, in no event shall the holder of the Warrants
be entitled to exercise any portion of this Warrant Certificate in excess of that portion of this
Warrant Certificate upon exercise of which the sum of (1) the number of Shares beneficially owned
by the holder of the Warrants and its Affiliates (other than Shares which may be deemed
beneficially owned through the ownership of the unexercised portion of this Warrant Certificate or
the unexercised or unconverted portion of any other security of the holder of the Warrants subject
to a limitation on conversion analogous to the limitations contained herein) and (2) the number of
Shares issuable upon the exercise of the portion of this Warrant Certificate with respect to which
the determination of this proviso is being made, would result in beneficial ownership by the holder
of the Warrants and its Affiliates of any amount greater than 9.99% of the then outstanding Shares
(whether or not, at the time of such exercise, the holder of the Warrants and its Affiliates
beneficially own more than 9.99% of the then outstanding Shares). As used herein, the term
“Affiliate” means any person or entity that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a person or entity, as
such terms are used in and construed under Rule 144 under the Securities Act. For purposes of the
second preceding sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder, except
as otherwise provided in clause (1) of such sentence. For any reason at any time, upon written or
oral request of the holder of the Warrants, the Company shall within one (1) business day confirm
orally and in writing to the holder of the Warrants the number of Shares outstanding as of any
given date. The limitations set forth herein (x) may be waived by the holder of the Warrants upon
provision of no less than sixty-one (61) days prior written notice to the Company and (y) shall
automatically become null and void following notice to the Company upon the occurrence and during
the continuance of an Event of Default (as defined in the Security and Purchase Agreement dated as
of July 31, 2006 among 180 Connect Inc., a Nevada corporation, and the other parties signatory
thereto and Laurus).

     Neither this Warrant Certificate nor the Warrants evidenced hereby shall entitle the holder
hereof or thereof to any of the rights of a holder of the Shares, including, without
limitation, the right to receive dividends, if any, or payments upon the liquidation,
dissolution or winding up of the Company or to exercise voting rights, if any.

4

 

     The Company shall at all times reserve and keep available a number of its authorized but
unissued shares of Common Stock that will be sufficient to permit the exercise in full of all
outstanding Warrants issued pursuant to this Warrant Certificate.

     This Warrant Certificate may not be amended without the consent of the holder of this Warrant
Certificate or the Warrants evidenced thereby.

     The Warrants have been issued in a private placement and are “restricted securities” within
the meaning of the Securities Act of 1933.

     THIS WARRANT CERTIFICATE AND ALL RIGHTS HEREUNDER SHALL BE GOVERNED BY AND INTERPRETED AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS FORMED AND
TO BE PERFORMED ENTIRELY WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW
PROVISIONS THEREOF TO THE EXTENT SUCH PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION
OF THE LAWS OF ANOTHER JURISDICTION.

     This Amended and Restated Warrant Certificate amends and restates in its entirety, and is
given in substitution for and not in satisfaction of, that certain Warrant Certificate No. W-3,
CUSIP No. 682343 116 dated August 24, 2007 by the Company in favor of Laurus.

5

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

Dated as of October __, 2007

	 	 	 	 	 
	 	180 Connect Inc., a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Peter Giacalone, Chief Executive Officer 	 
	 	 	 	 
	 

6

 

[REVERSE]

Instructions for Exercise of Warrant

     To exercise the Warrants evidenced hereby, the holder must, by 5:00 P.M., New York time, on
the specified Exercise Date, deliver to the Company, a certified or official bank check or a wire
transfer in immediately available funds, in each case payable to the Company, in an amount equal to
the Exercise Price in full for the Warrants exercised. In addition, the Warrant holder must provide
the information required below and deliver this Warrant Certificate to the Company at the address
set forth below. The Warrant Certificate and this Election to Purchase must be received by the
Company by 5:00 P.M., New York time, on the specified Exercise Date.

ELECTION TO PURCHASE

TO BE EXECUTED IF WARRANT HOLDER DESIRES

TO EXERCISE THE WARRANTS EVIDENCED HEREBY

     The undersigned hereby irrevocably elects to exercise, on ___, ___(the “Exercise
Date”), ___Warrants, evidenced by this Warrant Certificate, to purchase,
___of the shares of Common Stock (each, a “Share”) of 180 Connect Inc., a Delaware
corporation (the “Company”), and represents that on or before the Exercise Date such holder has
tendered payment for such Shares by certified or official bank check or bank wire transfer in
immediately available funds to the order of the Company, in the amount of $___in
accordance with the terms hereof. The undersigned requests that said number of Shares be in fully
registered form, registered in such names and delivered, all as specified in accordance with the
instructions set forth below.

     If said number of Shares is less than all of the Shares purchasable hereunder, the undersigned
requests that a new Warrant Certificate evidencing the remaining balance of the Warrants evidenced
hereby be issued and delivered to the holder of the Warrant Certificate unless otherwise specified
in the instructions below.

7

 

Dated: ______________ __, ____

     Name__________________________

________________ (Please Print)

/ / / /
— / / /- / / / / /

(Insert Social Security

or Other Identifying

Number of Holder)                                                                 Address_______________________

 

   
                                                                       
                 ____________________________________

     Signature________________________

     This Warrant may only be exercised by presentation to the Company at one of the following
locations:

     By hand at:

     By mail at:

     The method of delivery of this Warrant Certificate is at the option and risk of the exercising
holder and the delivery of this Warrant Certificate will be deemed to be made only when actually
received by the Company. If delivery is by mail, registered mail with return receipt requested,
properly insured, is recommended. In all cases, sufficient time should be allowed to assure timely
delivery.

(Instructions as to form and delivery of Shares and/or Warrant Certificates)

	 	 	 
	Name in which Shares 

are to be registered if other than

in the name of the registered holder 

of this Warrant Certificate:
	 	 
	 

	 	 
	 
	 	 
	Address to which Shares 

are to be mailed if other than to the 

address of the registered holder of 

this Warrant Certificate as shown on 

the books of the Company:
	 	 
	 

	 	 
	 

	 	(Street Address)
	 
	 	 

8

 

	 	 	 
	 

	 	 
	 

	 	(City and State) (Zip Code)
	 
	 	 
	Name in which Warrant Certificate 

evidencing unexercised Warrants, if any, 

are to be registered if other than in the 

name of the registered holder of this
	 	 
	Warrant Certificate:
	 	 
	 

	 	 
	 
	 	 
	Address to which certificate representing 

unexercised Warrants, if any, are to be 

mailed if other than to the address of 

the registered holder of this Warrant 

Certificate as shown on the books of 

the Company:
	 	 
	 

	 	 
	 

	 	(Street Address)
	 	 	 
	 
	 	 
	 

	 	 
	 

	 	(City and State) (Zip Code)
	 
	 	 
	 

	 	Dated:
	 	 	 
	 
	 	 
	 

	 	 
	 

	 	Signature
	 
	 	 
	 

	 	Signature must conform in all respects to the name of
the holder as specified on the face of this Warrant
Certificate. If Shares, or a Warrant Certificate
evidencing unexercised Warrants, are to be issued in
a name other than that of the registered holder
hereof or are to be delivered to an address other
than the address of such holder as shown on the books
of the Company, the above signature must be
guaranteed by a an Eligible Guarantor Institution (as
that term is defined in Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended).

SIGNATURE GUARANTEE

			
	Name of Firm	 	
  

			
	Address	 	
  

			
	Area Code and Number	 	
  

			
	Authorized Signature	 	
  

			
	Name	 	
  

			
	Title	 	
  

Dated: _________________________, 200___

9

 

ASSIGNMENT

(FORM OF ASSIGNMENT TO BE EXECUTED IF WARRANT HOLDER

DESIRES TO TRANSFER WARRANTS EVIDENCED HEREBY)

     FOR VALUE RECEIVED, ___________________________ HEREBY SELL(S), ASSIGN(S) AND
TRANSFER(S) UNTO _______________________________________________________________

	 	 	 
	 

	 	 
	(Please print name and address

	 	(Please insert social security or
	including zip code of assignee)

	 	other identifying number of assignee)

the rights represented by the within Warrant Certificate and does hereby irrevocably constitute and
appoint _________Attorney to transfer said Warrant Certificate on the books of the Company with
full power of substitution in the premises.

	 	 	 
	Dated:
	 	 
	 

	 	 
	 

	 	Signature
	 

	 	(Signature must conform in all respects to the name of the
holder as specified on the face of this Warrant Certificate
and must bear a signature guarantee by an Eligible Guarantor
Institution (as that term is defined in Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended).

SIGNATURE GUARANTEE

			
	Name of Firm	 	
  

			
	Address	 	
  

			
	Area Code and Number	 	
  

			
	Authorized Signature	 	
  

			
	Name	 	
  

			
	Title	 	
  

Dated: _________________________, 200___

10

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