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Unassociated Document

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE.
      THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
      AND
      MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE
      APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF
      COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
      ANY
      PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
      STATE SECURITIES LAWS.

     

    WATERBANK
      OF AMERICA (USA) INC.

     

    WARRANT
      FOR THE PURCHASE OF SHARES OF COMMON STOCK

     

    
      	
              No.

            	
               

            	
               

            	
               

            	
              Shares

            

    

     

    FOR
      VALUE
      RECEIVED, WATERBANK OF AMERICA (USA) INC., a Utah corporation (the “Company”),
      with its principal office at 1000
      rue
      de la Gauchetiere Ouest, Suite 2400, Montreal, Quebec, Canada,
      hereby
      certifies that _____________________________ (“Holder”), or its assigns, is
      entitled, subject to the provisions of this Warrant, to purchase from the
      Company, at any time before 5:00 p.m. (Eastern Daylight Time) on the expiration
      date of [two years from closing date] (the “Expiration Date”), the number of
      fully paid and nonassessable shares of Common Stock of the Company set forth
      above, subject to adjustment as hereinafter provided.

     

    Holder
      may purchase such number of shares of Common Stock at a purchase price per
      share
      (as appropriately adjusted pursuant to Section 6 hereof) of One and NO/100
      Dollar ($1.00) (the “Exercise Price”). The term “Common Stock” shall mean the
      aforementioned Common Stock of the Company, together with any other equity
      securities that may be issued by the Company in addition thereto or in
      substitution therefor as provided herein.

     

    Section
      1.             
Exercise of Warrant.

     

    (a)          
      Subject
      to there being an effective registration statement on file with the Securities
      and Exchange Commission, this Warrant may be exercised in whole or in part
      on
      any business day, commencing six months and one day following the final closing
      of the Offering of the Company’s Series A Convertible Preferred Stock pursuant
      to that certain Private Placement Memorandum dated June 14, 2006, as
      supplemented from time to time (collectively, the “Private Placement
      Memorandum”), and ending prior to the Expiration Date (collectively, the
“Exercise Period”), unless there is an earlier effective registration statement
      on file with the Securities and Exchange Commission, by presentation and
      surrender hereof to the Company at its principal office at the address set
      forth
      in the initial paragraph hereof (or at such other address as the Company may
      hereafter notify Holder in writing) with the Purchase Form annexed hereto duly
      executed and accompanied by proper payment of the Exercise Price in lawful
      money
      of the United States of America in the form of cash, by wire transfer or by
      check, subject to collection, for the number of Warrant Shares specified in
      the
      Purchase Form. If this Warrant should be exercised in part only, the
      Company shall, upon surrender of this Warrant, execute and deliver a new Warrant
      evidencing the rights of Holder thereof to purchase the balance of the Warrant
      Shares purchasable hereunder. Upon receipt by the Company of this Warrant
      and such Purchase Form, together with proper payment of the Exercise Price,
      at
      such office, Holder shall be deemed to be the holder of record of the Warrant
      Shares, notwithstanding that the stock transfer books of the Company shall
      then
      be closed or that certificates representing such Warrant Shares shall not then
      be actually delivered to Holder. The Company shall pay any and all
      documentary stamp or similar issue or transfer taxes payable in respect of
      the
      issue or delivery of the Warrant Shares.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)          
      In
      lieu
      of exercising this Warrant by paying the purchase price of the shares to be
      purchased in cash, by wire transfer or by check pursuant to in Section 1(a)
      above, the Holder of this Warrant may elect to receive shares of Common Stock
      equal to the value of this Warrant (or the portion thereof being exercised)
      by
      surrender of this Warrant and the attached Notice of Exercise, duly completed
      and executed on behalf of the Holder, at the principal office of the Company
      (or
      such other office or agency of the Company as it may designate by notice in
      writing to the Holder at the address of the Holder appearing on the books of
      the
      Company), in which event the Company shall issue to the Holder hereof a number
      of shares of Common Stock computed using the following formula:

     

    
      	
               

            	
               

            	
              Y
                (A-B)

            
	
              X
                =

            	
               

            	
              A

            

    

     

    
      	
              Where:

            	
              X

            	
              =

            	
              The
                number of shares of Common Stock to be issued to the Holder of this
                Warrant pursuant to this Section 1(b)

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Y

            	
              =

            	
              The
                number of shares of Common Stock purchasable under this Warrant or,
                if
                only a portion of this Warrant is being exercised, the portion of
                this
                Warrant being exercised.

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
              A

            	
              =

            	
              The
                Fair Market Value of one share of Common Stock; and

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
              B

            	
              =

            	
              The
                Exercise Price per share (as adjusted to the date of such
                calculations).

            

    

     

    For
      purposes of this Section 1(b), the “Fair Market Value” of a share of Common
      Stock as of a particular date shall mean:

     

    (i)           
      If
      the
      Common Stock is traded on a securities exchange or The Nasdaq National Market,
      the Fair Market Value shall be deemed to be the average of the closing prices
      of
      the Common Stock of the Company on such exchange or market over the five (5)
      business days ending immediately prior to the applicable date of
      valuation;

     

    (ii)          
      If
      the
      Common Stock is traded over-the-counter, but not on The Nasdaq National Market,
      the Fair Market Value shall be deemed to be the average of the closing bid
      prices over the 30-day period ending immediately prior to the applicable date
      of
      valuation; and

     

    (iii)        
      If
      there
      is no active public market for the Common Stock, the Fair Market Value shall
      be
      the value thereof, as determined in good faith by the Board of Directors of
      the
      Company, upon due consideration of the proposed determination thereof of the
      Holder.

     

     Section
      2.             Reservation
      of Shares. The
      Company hereby agrees that at all times there shall be reserved for issuance
      and
      delivery upon exercise of this Warrant all shares of its Common Stock or other
      shares of capital stock of the Company from time to time issuable upon exercise
      of this Warrant.  All such shares shall be duly authorized and, when issued
      upon such exercise in accordance with the terms of this Warrant, shall be
      validly issued, fully paid and nonassessable, free and clear of all liens,
      security interests, charges and other encumbrances or restrictions on sale
      (other than as provided in the Company’s certificate of incorporation and any
      restrictions on sale set forth herein or pursuant to applicable federal and
      state securities laws) and free and clear of all preemptive rights.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Section
      3.             
Fractional Interest. 
      The Company will not issue a fractional share of Common Stock upon exercise
      of a
      Warrant. Instead, the Company will deliver its check for the current market
      value of the fractional share. The current market value of a fraction of a
      share is determined as follows: multiply the current market price of a full
      share by the fraction of a share and round the result to the nearest
      cent.

     

    The
      current market price of a share of Common Stock for purposes of this Section
      is
      the last reported sales price of the Common Stock as reported by the Nasdaq
      National Market, or the primary national securities exchange on which the Common
      Stock is then quoted, on the last trading day prior to the exercise date;
provided,
      however,
      that if
      the Common Stock is neither traded on the Nasdaq National Market nor on a
      national securities exchange, the price referred to above shall be the price
      reflected in the over-the counter market as reported by the National Quotation
      Bureau, Inc. or any organization performing a similar function.

     

    Section
      4.             
Assignment of Loss of Warrant.

     

    (a)          
      Except
      as
      provided in Section 9, Holder shall be entitled, without obtaining the consent
      of the Company, to assign its interest in this Warrant in whole or in part
      to
      any person or persons. Subject to the provisions of Section 9, upon
      surrender of this Warrant to the Company or at the office of its stock transfer
      agent or warrant agent, with the Assignment Form annexed hereto duly executed
      and funds sufficient to pay any transfer tax, the Company shall, without charge,
      execute and deliver a new Warrant or Warrants in the name of the assignee or
      assignees named in such instrument of assignment (any such assignee will then
      be
      a “Holder” for purposes of this Warrant) and, if Holder’s entire interest is not
      being assigned, in the name of Holder, and this Warrant shall promptly be
      canceled.

     

    (b)          
      Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of this Warrant, and (in the case of loss, theft or destruction)
      of indemnification satisfactory to the Company, and upon surrender and
      cancellation of this Warrant, if mutilated, the Company shall execute and
      deliver a new Warrant of like tenor and date.

     

    Section
      5.             
Rights of Holder. Holder
      shall not, by virtue hereof, be entitled to any rights of a stockholder in
      the
      Company, either at law or equity, and the rights of Holder are limited to those
      expressed in this Warrant. Nothing contained in this Warrant shall be
      construed as conferring upon Holder hereof the right to vote or to consent
      or to
      receive notice as a stockholder of the Company on any matters or with respect
      to
      any rights whatsoever as a stockholder of the Company. No dividends or
      interest shall be payable or accrued in respect of this Warrant or the interest
      represented hereby or the Warrant Shares purchasable hereunder until, and only
      to the extent that, this Warrant shall have been exercised in accordance with
      its terms.

     

    Section
      6.            
Adjustment of Exercise Price and Number of Shares. The
      number and kind of securities purchasable upon the exercise of this Warrant
      and
      the Exercise Price shall be subject to adjustment from time to time upon the
      beginning of certain events, as follows:

     

    (a)          
      Adjustment
      for Change in Capital Stock. 
If
      at any time after the date hereof the Company:

     

    (A)       
      pays a dividend or makes a distribution on its Common Stock in shares of its
      Common Stock;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (B)       
      subdivides its outstanding shares of Common Stock into a greater number of
      shares;

     

    (C)       
      combines its outstanding shares of Common Stock into a smaller number of
      shares;

     

    (D)       
      makes a distribution on its Common Stock in shares of its capital stock other
      than Common Stock; or

     

    (E)       
      issues by reclassification of its Common Stock any shares of its capital
      stock;

     

    then
      the
      number and kind of securities purchasable upon the exercise of this Warrant
      and
      the Exercise Price in effect immediately prior to such action shall be adjusted
      so that Holder may receive upon exercise of this Warrant and payment of the
      same
      aggregate consideration the number of shares of capital stock of the Company
      which Holder would have owned immediately following such action if Holder had
      exercised this Warrant immediately prior to such action.

    

    The
      adjustment shall become effective immediately after the record date in the
      case
      of a dividend or distribution and immediately after the effective date in the
      case of a subdivision, combination or reclassification.

    

    (b)          
      Minimum
      Adjustment. No
      adjustment in the Exercise Price of this Section 6 shall be required unless
      such
      adjustment would require an increase or decrease of at least one cent
      ($.01) in such Exercise Price; provided,
      however,
      that
      any adjustments which by reason of this subsection are not required to be made,
      shall be carried forward and taken into account in any subsequent
      adjustment. All calculations under this Section 6 shall be made to the
      nearest cent or to the nearest share, as the case may be.

     

    (c)          
      Deferral
      of Issuance or Payment. In
      any case in which an event covered by this Section 6 shall require that an
      adjustment in the Exercise Price be made effective as of a record date, the
      Company may elect to defer until the occurrence of such event (i) issuing to
      Holder, if this Warrant is exercised after such record date, the shares of
      Common Stock and other capital stock of the Company, if any, issuable upon
      such
      exercise over and above the shares of Common Stock or other capital stock of
      the
      Company, if any, issuable upon such exercise on the basis of the Exercise Price
      in effect prior to such adjustment, and (ii) paying to Holder by check any
      amount in lieu of the issuance of fractional shares pursuant to Section
      3.

     

    (d)          
      When
      No Adjustment Required. No
      adjustment need be made for a change in the par value of the Common
      Stock. To the extent this Warrant becomes exercisable into cash, no
      adjustment need be made thereafter as to the cash, and interest will not accrue
      on the cash.

     

    (e)          
      Notice
      of Certain Actions.
      In the
      event that:

     

    (A)      
      the Company shall authorize the issuance to all holders of its Common Stock
      of
      rights, warrants, options or convertible securities to subscribe for or purchase
      shares of its Common Stock or of any other subscription rights, warrants,
      options or convertible securities; or

     

    (B)      
      the Company shall authorize the distribution to all holders of its Common Stock
      of evidences of its indebtedness or assets (other than dividends paid in or
      distributions of the Company’s capital stock for which the Exercise Price shall
      have been adjusted pursuant to subsection (a) of this Section 6 or cash
      dividends or cash distributions payable out of consolidated current or
      retained earnings as shown on the books of the Company and paid in the ordinary
      course of business); or

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (C)      
      the Company shall authorize any capital reorganization or reclassification
      of
      the Common Stock (other than a subdivision or combination of the outstanding
      Common Stock and other than a change in par value of the Common Stock) or of
      any
      consolidation or merger to which the Company is a party and for which approval
      of any stockholders of the Company is required (other than a consolidation
      or
      merger in which the Company is the continuing corporation and that does not
      result in any reclassification or change of the Common Stock outstanding),
      or of
      the conveyance or transfer of the properties and assets of the Company as an
      entirety or substantially as an entirety; or

     

    (D)      
      the Company is the subject of a voluntary or involuntary dissolution,
      liquidation or winding-up procedure; or

     

    (E)      
      the Company proposes to take any action that would require an adjustment of
      the
      Exercise Price pursuant to this Section 6;

     

    then
      the
      Company shall cause to be mailed by first-class mail to Holder, at least twenty
      (20) days prior to the applicable record or effective date hereinafter
      specified, a notice stating (x) the date as of which the holders of Common
      Stock
      of record to be entitled to receive any such rights, warrants or distributions
      are to be determined, or (y) the date on which any such consolidation, merger,
      conveyance, transfer, dissolution, liquidation or winding-up is expected to
      become effective, and the date as of which it is expected that holders of Common
      Stock of record shall be entitled to exchange their shares of Common Stock
      for
      securities or other property, if any, deliverable upon such reorganization,
      reclassification, consolidation, merger, conveyance, transfer, dissolution,
      liquidation or winding-up.

     

    Section
      7.             
Officers’ Certificate. Whenever
      the Exercise Price shall be adjusted as required by the provisions of Section
      6,
      the Company shall forthwith file in the custody of its Secretary or an Assistant
      Secretary at its principal office an officers’ certificate showing the adjusted
      Exercise Price determined as herein provided, setting forth in reasonable detail
      the facts requiring such adjustment and the manner of computing such adjustment.
      Each such officers’ certificate shall be signed by the chairperson, president or
      chief financial officer of the Company and by the secretary or any assistant
      secretary of the Company. Each such officers’ certificate shall be made
      available at all reasonable times for inspection by Holder.

     

    Section
      8.             
Reclassification, Reorganization, Consolidation or Merger.
      Other
      than the contemplated reorganization transaction with Autostrada Motors, Inc.,
      a
      Utah corporation, described in the Private Placement Memorandum, in which event
      the terms and conditions of this Section 8 shall not apply, in the event of
      any
      reclassification, capital reorganization or other change of outstanding shares
      of Common Stock of the Company (other than a subdivision or combination of
      the
      outstanding Common Stock and other than a change in the par value of the Common
      Stock) or in the event of any consolidation or merger of the Company with or
      into another corporation (other than a merger (excluding a reverse triangular
      merger or similar transaction) in which the Company is the continuing
      corporation and that does not result in any reclassification, capital
      reorganization or other change of outstanding shares of Common Stock of the
      class issuable upon exercise of this Warrant) or in the event of any sale,
      lease, transfer or conveyance to another corporation of the property and assets
      of the Company as an entirety or substantially as an entirety, the Company
      shall, as a condition precedent to such transaction, cause effective provisions
      to be made so that Holder shall have the right thereafter, by exercising this
      Warrant at any time prior to the Expiration Date, to purchase the kind and
      amount of shares of stock and other securities and property (including cash)
      receivable upon such reclassification, capital reorganization and other change,
      consolidation, merger, sale or conveyance by a holder of the number of shares
      of
      Common Stock that might have been received upon exercise of this Warrant
      immediately prior to such reclassification, capital reorganization, change,
      consolidation, merger, sale or conveyance. Any such provision shall include
      provisions for adjustments in respect of such shares of stock and other
      securities and property that shall be as nearly equivalent as may be practicable
      to the adjustments provided for in this Warrant. The foregoing provisions
      of this Section 8 shall similarly apply to successive reclassifications, capital
      reorganizations and changes of shares of Common Stock and to successive
      consolidations, mergers, sales or conveyances. The issuer of any shares of
      stock or other securities or property thereafter deliverable on the exercise
      of
      this Warrant shall be responsible for all of the agreements and obligations
      of
      the Company hereunder.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Section
      9.             
Transfer to Comply with the Securities Act of 1933. This
      Warrant may not be exercised and neither this Warrant nor any of the Warrant
      Shares, nor any interest in either, may be offered, sold, assigned, pledged,
      hypothecated, encumbered or in any other manner transferred or disposed of,
      in
      whole or in part, except in compliance with applicable United States federal
      and
      state securities or Blue Sky laws and the terms and conditions hereof. Each
      Warrant shall bear a legend in substantially the same form as the legend set
      forth on the first page of this Warrant. Each certificate for Warrant
      Shares issued upon exercise of this Warrant, unless at the time of exercise
      such
      Warrant Shares are acquired pursuant to a registration statement that has been
      declared effective under the Act or are eligible for transfer pursuant to Rule
      144(k) under the Securities Act of 1933, as amended (the “Securities Act”), and
      applicable blue sky laws shall bear a legend substantially in the following
      form:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
      TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
      ACT
      OR, IN THE OPINION OF COUNSEL OR BASED ON OTHER WRITTEN EVIDENCE IN THE FORM
      AND
      SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE
      OR
      TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

     

    Any
      certificate for any Warrant Shares issued at any time in exchange or
      substitution for any certificate for any Warrant Shares bearing such legend
      (except a new certificate for any Warrant Shares (i) issued after the
      acquisition of such Warrant Shares pursuant to a registration statement that
      has
      been declared effective under the Act or in a transaction in compliance with
      Rule 144 under the Securities Act, or (ii) that are then eligible for transfer
      pursuant to Rule 144(k) under the Securities Act) shall also bear such legend
      unless, in the opinion of counsel for the Company, the Warrant Shares
      represented thereby need no longer be subject to the restriction contained
      herein. The provisions of this Section 9 shall be binding upon all
      subsequent holders of certificates for Warrant Shares bearing the above legend
      and all subsequent holders of this Warrant, if any. Nothing in this Section
      9 or elsewhere in this Warrant shall be deemed to restrict the ability of the
      holder hereof to transfer Warrant Shares to an affiliate, partner or former
      partner of such holder in compliance with the Securities Act, nor shall any
      legal opinion be required in respect thereof.

     

    Section
      10.           
Registration
      Rights.

    

    (a)           
      Piggyback
      Registration.
      Pursuant to the terms of the offering
      of the Company’s Series A Convertible Preferred Stock set forth in the Private
      Placement Memorandum, the Company is required to file a registration statement
      with the Securities and Exchange Commission six months and one day following
      the
      closing of that offering. In connection with that registration statement, or,
      if
      earlier, the
      Company at any time proposes to file a registration statement under the
      Securities Act respecting any securities of the Company on a form appropriate
      for registration of a sale of Warrant Shares (excluding registrations of shares
      of Common Stock to be offered in connection with the Company's employee benefit
      plans and registrations of securities to be offered by the Company in connection
      with acquisitions, mergers or similar transactions), it will at such time give
      written notice to Holder of its intention to do so. Upon the written request
      of
      Holder given within 15 days after receipt of any such notice (which request
      shall specify the Warrant Shares intended to be sold or disposed of by Holder
      and describe the nature of any proposed sale or other disposition thereof),
      the
      Company shall use its best efforts, but shall not be obligated, to cause all
      such Warrant Shares specified in such request to be so registered. In the event
      that any such registration shall be underwritten, if the underwriters notify
      the
      Company in writing that the inclusion in such underwriting of such Warrant
      Shares would materially and adversely affect the underwriting, the Company
      shall
      have the right not to include such Warrant Shares.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (b)          
      Other
      Registrations.
      If, in
      connection with a registration under the Securities Act, any Warrant Shares
      require registration or qualification with or approval of any United States
      or
      state governmental official or authority other than registration under the
      Securities Act before the Warrant Shares may be sold, the Company shall use
      its
      best efforts to cause any such Warrant Shares to be duly registered or approved
      as may be required; provided,
      however,
      that
      the Company shall not be required to give a general consent to service of
      process or to qualify as a foreign corporation or subject itself to taxation
      as
      doing business in any such state.

    

    (c)          
      Registration
      Obligations.
      The
      Company shall deliver to Holder after effectiveness of any registration under
      this Warrant such reasonable number of copies of a definitive prospectus
      included in such registration statement and of any revised or supplemental
      prospectus filed as Holder may from time to time request. The Company shall
      file
      post-effective amendments or supplements to such registration statement for
      a
      period of up to 90 days after the commencement of the offering and so long
      as a
      prospectus is required to be delivered under the Act in order that the
      registration statement may be effective at all times during such period and
      at
      all times comply with the various applicable federal and state securities laws
      (after which period the Company may withdraw such Warrant Shares from
      registration), and shall deliver copies of the prospectus contained therein
      as
      hereinabove provided. Holder shall notify the Company when his sales are
      completed.

    

    Prior
      to
      filing a registration statement which includes Warrant Shares, the Company
      shall
      (i) provide copies of such registration statement at a reasonable time before
      it
      is filed for the review of Holder and the underwriters of Holder; and (ii)
      make
      available to such Holders or underwriters the appropriate employees and records
      for purposes of performing the requisite "due diligence".

    

    (d)          
      Expenses.
      In any
      registration pursuant to Section 10 of this Warrant, Holder shall pay the
      Company for the incremental portion of the federal and state registration and
      filing fees attributable to the Warrant Shares and shall pay all underwriting
      commissions, discounts, underwriting expenses and taxes attributable to the
      Warrant Shares.

    

    (e)          
      Indemnity.
      The
      Company shall indemnify Holder and each underwriter of Warrant Shares (and
      any
      person who controls such underwriter within the meaning of Section 15 of the
      Securities Act) against all claims, losses, damages, liabilities and expenses
      resulting from any untrue statement or alleged untrue statement of a material
      fact contained in a prospectus or in any related registration statement,
      notification or the like or from any omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, except insofar as the same may have been
      based upon information furnished in writing to the Company by Holder or such
      underwriter expressly for use therein and used in accordance with such
      writing.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Holder
      shall furnish to the Company such information concerning Holder as may be
      requested by the Company which is necessary in connection with any registration
      or qualification of Warrant Shares pursuant to Section 10(a) hereof, and to
      indemnify the Company, its officers and directors and each underwriter of the
      Company's securities (and any person who controls the Company or any such
      underwriter within the meaning of Section 15 of the Securities Act), against
      all
      claims, losses, damages, liabilities and expenses resulting from any untrue
      statement or alleged untrue statement of material fact contained in a prospectus
      or any related registration statement, notification or the like, or omission
      or
      alleged omission to state therein a material fact required to be stated therein
      or necessary to make the statements therein not misleading, to the extent the
      same was derived from information furnished in writing to the Company by Holder
      expressly for use therein and used in accordance with such writing.

    

    If
      any
      action is brought or any claim is made against any persons indemnified pursuant
      to this Section in respect of which indemnity may be sought against the
      indemnitor pursuant to this Section, such person shall promptly notify the
      indemnitor in writing of the institution of such action or the making of such
      claim and the indemnitor shall promptly notify the indemnitor in writing of
      the
      institution of such action or the making of such claim and the indemnitor shall
      assume the defense of such action or claim, including the employment of counsel
      and payment of expenses. Such person shall have the right to employ his own
      counsel in any such case, but the fees and expenses of such counsel shall be
      at
      the expense of such person unless the employment of such counsel shall have
      been
      authorized in writing by the indemnitor in connection with the defense of such
      action or claim or the indemnitor shall not have employed counsel to have charge
      of the defense of such action or claim or such indemnified party or parties
      shall have reasonably concluded that there may be defenses available to him
      which are different from or additional to those available to the indemnitor
      (in
      which the case the indemnitor shall have the right to direct any different
      or
      additional defense of such action or claim on behalf of the indemnified party
      or
      parties), in any of which events such fees and expenses of not more than one
      additional counsel for the indemnified person shall be borne by the indemnitor.
      Except as expressly provided above, in the event that the indemnitor shall
      not
      previously have assumed the defense of any such action or claim, at such time
      as
      the indemnitor does not assume the defense of such action or claim, the
      indemnitor shall thereafter be liable to any person indemnified pursuant to
      this
      Section for any legal or other expenses subsequently incurred by such person
      in
      investigating, preparing or defending against such action or claim. Anything
      in
      this Section to the contrary notwithstanding, the indemnitor shall not be liable
      for any settlement of any such claim or action effected without its written
      consent.

     

    Section
      11.          
Company
      Call Right. In
      the
      event that (i) the average closing bid prices per share of Common Stock, as
      quoted on the Over-The-Counter-Bulletin Board (or such other exchange or stock
      market on which the Common Stock may then be listed or quoted) over a period
      of
      twenty (20) consecutive trading days ending on or after six months and one
      day
      following the date hereof, equals or exceeds 300% of the Exercise Price
      (appropriate adjusted for any stock split, reverse stock split, stock dividend
      or other reclassification or combination of the Common Stock occurring after
      the
      date hereof), and (ii) the average daily trading volume over that period is
      at
      least fifty thousand (50,000) shares of Common Stock, then thereafter, provided
      there is then an effective registration statement on file with the Securities
      and Exchange Commission relating to the issuance and resale of all shares of
      Common Stock issuable on exercise of these Warrants, the Company, upon
fifteen
      (15) calendar days prior written notice (the “Notice Period”) given to the
      Holder with ten (10) business days of the end of such twenty (20) consecutive
      trading day period, may call the Warrants, in whole or in part, at a redemption
      price equal to $.01 per share of Common Stock then purchasable pursuant to
      the
      Warrants called for redemption. The Holder shall have the right to exercise
      the
      Warrants prior to the end of the Notice Period. As of the last day of the Notice
      Period, any Warrants timely and validly called for redemption by the Company
      shall terminate and permanently cease to be exercisable.

     

    Section
      12.           
Modification and Waiver. Neither
      this Warrant nor any term hereof may be changed, waived, discharged or
      terminated other than by an instrument in writing signed by the Company and
      by
      Holder.

     

    Section
      13.           No Dilution or
      Impairment. Without
      the consent of the holders of at least 51% of the then outstanding Warrants
      issued in connection with the Company’s Series A Convertible Preferred Stock,
      the Company shall not participate in any reorganization, transfer of assets,
      consolidation, merger, dissolution, issue or sale of securities, or take any
      other voluntary action, for the purpose of avoiding or seeking to avoid the
      observance or performance of any of the terms to be observed or performed
      hereunder by the Company, but shall at all times in good faith assist in
      carrying out all such action as may be reasonably necessary or appropriate
      in
      order to protect the exercise rights of the holder of this Warrant against
      dilution or other impairment.

     

    Section
      14.          
Notices. Any
      notice, request or other document required or permitted to be given or delivered
      to Holder or the Company shall be delivered or shall be sent by certified mail,
      postage prepaid, to Holder at its address as shown on the books of the Company
      or to the Company at the address indicated therefor in the first paragraph
      of
      this Warrant.

     

    Section
      15.           Payment of
      Taxes. The
      Company will pay all taxes (other than taxes based upon income) and other
      governmental charges that may be imposed with respect to the issue or delivery
      of Warrant Shares upon exercise of this Warrant, excluding any tax or other
      charge imposed in connection with any transfer involved in the issue and
      delivery of Warrant Shares in a name other than that in which the Warrant so
      exercised was registered.

     

    Section
      16.           Descriptive
      Headings and Governing Law. The
      description headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this
      Warrant. This Warrant shall be construed and enforced in accordance with,
      and the rights of the parties shall be governed by, the laws of the State of
      Utah, without regard to its conflicts of laws principles.

     

    [remainder
      of page intentionally left blank; signature on following page]

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    IN
      WITNESS WHEREOF,
      the
      Company has duly caused this Warrant to be signed by its duly authorized officer
      and to be dated as of ____________, 2006.

     

     

    
      	 	WATERBANK
              OF AMERICA (USA) INC.
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
               

            	
              By:

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              Name:

            
	
               

            	
               

            	
               

            	
              Title:

            

    

     

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    PURCHASE
      FORM

     

     

    Dated
      ___________, 200____

     

     

    The
      undersigned hereby elects:

     

    o   
      to purchase ________ shares of Common Stock pursuant to the terms of the
      attached Warrant, and tenders herewith payment of the exercise price in full,
      together with all applicable transfer taxes, if any;

     

    o   
      to purchase the number of shares of Common Stock pursuant to the terms of the
      net exercise provisions set forth in Section 1(b) of the attached Warrant
      as shall be issuable upon net exercise of the portion of the attached Warrant
      relating to ________ shares, and shall tender payment of all applicable transfer
      taxes, if any;

     

    The
      undersigned represents and warrants to Waterbank of America (USA) Inc. as of
      the
      date hereof the same statements with respect to the shares being acquired upon
      exercise of this warrant as are set forth in the Subscription Document dated
      _____________, 2006, pursuant to which the above-referenced warrant was sold,
      regarding the securities purchased thereby.

     

     

     

    
      	 	Holder	 
	 	 	 
	 	
              By:

            	
               

            
	 	
               

            	
               

            
	 	
              Print
                Name:

            	
               

            
	 	
               

            	
               

            
	 	
              Title:

            	
               

            

    

     

     

    

 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
      FORM

     

    Dated
      _________, 200____

     

    FOR
      VALUE
      RECEIVED, _______________________________________ hereby sells, assigns and
      transfers unto 

    _______________________________________
      (the “Assignee”),

          
      (please type or print in block letters)

     

    _______________________________________________________________________________________________

    (insert
      address)

     

    its
      right
      to purchase up to _______ shares of Common Stock represented by this Warrant
      No.
      _________ and does hereby irrevocably constitute and appoint
      ____________________________  attorney, to transfer the same on the books
      of the Company, with full power of substitution in the premises.

     

    
       

      
        	 	Holder	 
	 	 	 
	 	
                By:

              	
                 

              
	 	
                 

              	
                 

              
	 	
                Print
                  Name:

              	
                 

              
	 	
                 

              	
                 

              
	 	
                Title:

              	
                 

              

      

       

       

       

      
        
          
          

        

        
          1Unassociated Document

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE.
      THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
      AND
      MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE
      APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF
      COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
      ANY
      PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
      STATE SECURITIES LAWS.

     

    WATERBANK
      OF AMERICA (USA) INC.

     

    WARRANT
      FOR THE PURCHASE OF SHARES OF COMMON STOCK

     

    
      	
              No.

            	
               

            	
               

            	
               

            	
              Shares

            

    

     

    FOR
      VALUE
      RECEIVED, WATERBANK OF AMERICA (USA) INC., a Utah corporation (the “Company”),
      with its principal office at 1000
      rue
      de la Gauchetiere Ouest, Suite 2400, Montreal, Quebec, Canada,
      hereby
      certifies that _____________________________ (“Holder”), or its assigns, is
      entitled, subject to the provisions of this Warrant, to purchase from the
      Company, at any time before 5:00 p.m. (Eastern Daylight Time) on the expiration
      date of October 17, 2011 (the “Expiration Date”), the number of fully paid and
      nonassessable shares of Common Stock of the Company set forth above, subject
      to
      adjustment as hereinafter provided.

     

    Holder
      may purchase such number of shares of Common Stock at a purchase price per
      share
      (as appropriately adjusted pursuant to Section 6 hereof) of 50/100 Dollar
      ($0.50) (the “Exercise Price”). The term “Common Stock” shall mean the
      aforementioned Common Stock of the Company, together with any other equity
      securities that may be issued by the Company in addition thereto or in
      substitution therefor as provided herein.

     

    Section
      1. Exercise of Warrant.

     

    (a) Subject
      to there being an effective registration statement on file with the Securities
      and Exchange Commission, this Warrant may be exercised in whole or in part
      on
      any business day, commencing six months and one day following the final closing
      of the Offering of the Company’s Series A Convertible Preferred Stock pursuant
      to that certain Private Placement Memorandum dated June 14, 2006, as
      supplemented from time to time (collectively, the “Private Placement
      Memorandum”), and ending prior to the Expiration Date (collectively, the
“Exercise Period”), unless there is an earlier effective registration statement
      on file with the Securities and Exchange Commission, by presentation and
      surrender hereof to the Company at its principal office at the address set
      forth
      in the initial paragraph hereof (or at such other address as the Company may
      hereafter notify Holder in writing) with the Purchase Form annexed hereto duly
      executed and accompanied by proper payment of the Exercise Price in lawful
      money
      of the United States of America in the form of cash, by wire transfer or by
      check, subject to collection, for the number of Warrant Shares specified in
      the
      Purchase Form. If this Warrant should be exercised in part only, the
      Company shall, upon surrender of this Warrant, execute and deliver a new Warrant
      evidencing the rights of Holder thereof to purchase the balance of the Warrant
      Shares purchasable hereunder. Upon receipt by the Company of this Warrant
      and such Purchase Form, together with proper payment of the Exercise Price,
      at
      such office, Holder shall be deemed to be the holder of record of the Warrant
      Shares, notwithstanding that the stock transfer books of the Company shall
      then
      be closed or that certificates representing such Warrant Shares shall not then
      be actually delivered to Holder. The Company shall pay any and all
      documentary stamp or similar issue or transfer taxes payable in respect of
      the
      issue or delivery of the Warrant Shares.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) In
      lieu
      of exercising this Warrant by paying the purchase price of the shares to be
      purchased in cash, by wire transfer or by check pursuant to in Section 1(a)
      above, the Holder of this Warrant may elect to receive shares of Common Stock
      equal to the value of this Warrant (or the portion thereof being exercised)
      by
      surrender of this Warrant and the attached Notice of Exercise, duly completed
      and executed on behalf of the Holder, at the principal office of the Company
      (or
      such other office or agency of the Company as it may designate by notice in
      writing to the Holder at the address of the Holder appearing on the books of
      the
      Company), in which event the Company shall issue to the Holder hereof a number
      of shares of Common Stock computed using the following formula:

     

    
      	
               

            	
               

            	
              Y
                (A-B)

            
	
              X
                =

            	
               

            	
              A

            

    

     

    
      	
              Where:

            	
              X

            	
              =

            	
              The
                number of shares of Common Stock to be issued to the Holder of this
                Warrant pursuant to this Section 1(b)

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
              Y

            	
              =

            	
              The
                number of shares of Common Stock purchasable under this Warrant or,
                if
                only a portion of this Warrant is being exercised, the portion of
                this
                Warrant being exercised.

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
              A

            	
              =

            	
              The
                Fair Market Value of one share of Common Stock; and

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
              B

            	
              =

            	
              The
                Exercise Price per share (as adjusted to the date of such
                calculations).

            

    

     

    For
      purposes of this Section 1(b), the “Fair Market Value” of a share of Common
      Stock as of a particular date shall mean:

     

    (i)           
      If
      the
      Common Stock is traded on a securities exchange or The Nasdaq National Market,
      the Fair Market Value shall be deemed to be the average of the closing prices
      of
      the Common Stock of the Company on such exchange or market over the five (5)
      business days ending immediately prior to the applicable date of
      valuation;

     

    (ii)          
      If
      the
      Common Stock is traded over-the-counter, but not on The Nasdaq National Market,
      the Fair Market Value shall be deemed to be the average of the closing bid
      prices over the 30-day period ending immediately prior to the applicable date
      of
      valuation; and

     

    (iii)        
      If
      there
      is no active public market for the Common Stock, the Fair Market Value shall
      be
      the value thereof, as determined in good faith by the Board of Directors of
      the
      Company, upon due consideration of the proposed determination thereof of the
      Holder.

     

      Section
      2. Reservation of Shares. The
      Company hereby agrees that at all times there shall be reserved for issuance
      and
      delivery upon exercise of this Warrant all shares of its Common Stock or other
      shares of capital stock of the Company from time to time issuable upon exercise
      of this Warrant.  All such shares shall be duly authorized and, when issued
      upon such exercise in accordance with the terms of this Warrant, shall be
      validly issued, fully paid and nonassessable, free and clear of all liens,
      security interests, charges and other encumbrances or restrictions on sale
      (other than as provided in the Company’s certificate of incorporation and any
      restrictions on sale set forth herein or pursuant to applicable federal and
      state securities laws) and free and clear of all preemptive rights.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Section
      3. Fractional Interest. 
      The Company will not issue a fractional share of Common Stock upon exercise
      of a
      Warrant. Instead, the Company will deliver its check for the current market
      value of the fractional share. The current market value of a fraction of a
      share is determined as follows: multiply the current market price of a full
      share by the fraction of a share and round the result to the nearest
      cent.

     

    The
      current market price of a share of Common Stock for purposes of this Section
      is
      the last reported sales price of the Common Stock as reported by the Nasdaq
      National Market, or the primary national securities exchange on which the Common
      Stock is then quoted, on the last trading day prior to the exercise date;
provided,
      however,
      that if
      the Common Stock is neither traded on the Nasdaq National Market nor on a
      national securities exchange, the price referred to above shall be the price
      reflected in the over-the counter market as reported by the National Quotation
      Bureau, Inc. or any organization performing a similar function.

     

    Section
      4. Assignment of Loss of Warrant.

     

    (a)
      Except
      as
      provided in Section 9, Holder shall be entitled, without obtaining the consent
      of the Company, to assign its interest in this Warrant in whole or in part
      to
      any person or persons. Subject to the provisions of Section 9, upon
      surrender of this Warrant to the Company or at the office of its stock transfer
      agent or warrant agent, with the Assignment Form annexed hereto duly executed
      and funds sufficient to pay any transfer tax, the Company shall, without charge,
      execute and deliver a new Warrant or Warrants in the name of the assignee or
      assignees named in such instrument of assignment (any such assignee will then
      be
      a “Holder” for purposes of this Warrant) and, if Holder’s entire interest is not
      being assigned, in the name of Holder, and this Warrant shall promptly be
      canceled.

     

    (b)
      Upon
      receipt of evidence satisfactory to the Company of the loss, theft, destruction
      or mutilation of this Warrant, and (in the case of loss, theft or destruction)
      of indemnification satisfactory to the Company, and upon surrender and
      cancellation of this Warrant, if mutilated, the Company shall execute and
      deliver a new Warrant of like tenor and date.

     

    Section
      5. Rights of Holder. Holder
      shall not, by virtue hereof, be entitled to any rights of a stockholder in
      the
      Company, either at law or equity, and the rights of Holder are limited to those
      expressed in this Warrant. Nothing contained in this Warrant shall be
      construed as conferring upon Holder hereof the right to vote or to consent
      or to
      receive notice as a stockholder of the Company on any matters or with respect
      to
      any rights whatsoever as a stockholder of the Company. No dividends or
      interest shall be payable or accrued in respect of this Warrant or the interest
      represented hereby or the Warrant Shares purchasable hereunder until, and only
      to the extent that, this Warrant shall have been exercised in accordance with
      its terms.

     

    Section
      6. Adjustment of Exercise Price and Number of Shares. The
      number and kind of securities purchasable upon the exercise of this Warrant
      and
      the Exercise Price shall be subject to adjustment from time to time upon the
      beginning of certain events, as follows:

     

    (a)
      Adjustment
      for Change in Capital Stock. 
If
      at any time after the date hereof the Company:

     

    (A)       
      pays a dividend or makes a distribution on its Common Stock in shares of its
      Common Stock;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (B)       
      subdivides its outstanding shares of Common Stock into a greater number of
      shares;

     

    (C)       
      combines its outstanding shares of Common Stock into a smaller number of
      shares;

     

    (D)       
      makes a distribution on its Common Stock in shares of its capital stock other
      than Common Stock; or

     

    (E)       
      issues by reclassification of its Common Stock any shares of its capital
      stock;

     

    then
      the
      number and kind of securities purchasable upon the exercise of this Warrant
      and
      the Exercise Price in effect immediately prior to such action shall be adjusted
      so that Holder may receive upon exercise of this Warrant and payment of the
      same
      aggregate consideration the number of shares of capital stock of the Company
      which Holder would have owned immediately following such action if Holder had
      exercised this Warrant immediately prior to such action.

    

    The
      adjustment shall become effective immediately after the record date in the
      case
      of a dividend or distribution and immediately after the effective date in the
      case of a subdivision, combination or reclassification.

    

    (b)
      Minimum
      Adjustment. No
      adjustment in the Exercise Price of this Section 6 shall be required unless
      such
      adjustment would require an increase or decrease of at least one cent
      ($.01) in such Exercise Price; provided,
      however,
      that
      any adjustments which by reason of this subsection are not required to be made,
      shall be carried forward and taken into account in any subsequent
      adjustment. All calculations under this Section 6 shall be made to the
      nearest cent or to the nearest share, as the case may be.

     

    (c)
      Deferral
      of Issuance or Payment. In
      any case in which an event covered by this Section 6 shall require that an
      adjustment in the Exercise Price be made effective as of a record date, the
      Company may elect to defer until the occurrence of such event (i) issuing to
      Holder, if this Warrant is exercised after such record date, the shares of
      Common Stock and other capital stock of the Company, if any, issuable upon
      such
      exercise over and above the shares of Common Stock or other capital stock of
      the
      Company, if any, issuable upon such exercise on the basis of the Exercise Price
      in effect prior to such adjustment, and (ii) paying to Holder by check any
      amount in lieu of the issuance of fractional shares pursuant to Section
      3.

     

    (d)
      When
      No Adjustment Required. No
      adjustment need be made for a change in the par value of the Common
      Stock. To the extent this Warrant becomes exercisable into cash, no
      adjustment need be made thereafter as to the cash, and interest will not accrue
      on the cash.

     

    (e)
      Notice
      of Certain Actions.
      In the
      event that:

     

    (A)      
      the Company shall authorize the issuance to all holders of its Common Stock
      of
      rights, warrants, options or convertible securities to subscribe for or purchase
      shares of its Common Stock or of any other subscription rights, warrants,
      options or convertible securities; or

     

    (B)      
      the Company shall authorize the distribution to all holders of its Common Stock
      of evidences of its indebtedness or assets (other than dividends paid in or
      distributions of the Company’s capital stock for which the Exercise Price shall
      have been adjusted pursuant to subsection (a) of this Section 6 or cash
      dividends or cash distributions payable out of consolidated current or
      retained earnings as shown on the books of the Company and paid in the ordinary
      course of business); or

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (C)      
      the Company shall authorize any capital reorganization or reclassification
      of
      the Common Stock (other than a subdivision or combination of the outstanding
      Common Stock and other than a change in par value of the Common Stock) or of
      any
      consolidation or merger to which the Company is a party and for which approval
      of any stockholders of the Company is required (other than a consolidation
      or
      merger in which the Company is the continuing corporation and that does not
      result in any reclassification or change of the Common Stock outstanding),
      or of
      the conveyance or transfer of the properties and assets of the Company as an
      entirety or substantially as an entirety; or

     

    (D)      
      the Company is the subject of a voluntary or involuntary dissolution,
      liquidation or winding-up procedure; or

     

    (E)      
      the Company proposes to take any action that would require an adjustment of
      the
      Exercise Price pursuant to this Section 6;

     

    then
      the
      Company shall cause to be mailed by first-class mail to Holder, at least twenty
      (20) days prior to the applicable record or effective date hereinafter
      specified, a notice stating (x) the date as of which the holders of Common
      Stock
      of record to be entitled to receive any such rights, warrants or distributions
      are to be determined, or (y) the date on which any such consolidation, merger,
      conveyance, transfer, dissolution, liquidation or winding-up is expected to
      become effective, and the date as of which it is expected that holders of Common
      Stock of record shall be entitled to exchange their shares of Common Stock
      for
      securities or other property, if any, deliverable upon such reorganization,
      reclassification, consolidation, merger, conveyance, transfer, dissolution,
      liquidation or winding-up.

     

    Section
      7. Officers’ Certificate. Whenever
      the Exercise Price shall be adjusted as required by the provisions of Section
      6,
      the Company shall forthwith file in the custody of its Secretary or an Assistant
      Secretary at its principal office an officers’ certificate showing the adjusted
      Exercise Price determined as herein provided, setting forth in reasonable detail
      the facts requiring such adjustment and the manner of computing such adjustment.
      Each such officers’ certificate shall be signed by the chairperson, president or
      chief financial officer of the Company and by the secretary or any assistant
      secretary of the Company. Each such officers’ certificate shall be made
      available at all reasonable times for inspection by Holder.

     

    Section
      8. Reclassification, Reorganization, Consolidation or
      Merger.
      Other
      than the contemplated reorganization transaction with Autostrada Motors, Inc.,
      a
      Utah corporation, described in the Private Placement Memorandum, in which event
      the terms and conditions of this Section 8 shall not apply, in the event of
      any
      reclassification, capital reorganization or other change of outstanding shares
      of Common Stock of the Company (other than a subdivision or combination of
      the
      outstanding Common Stock and other than a change in the par value of the Common
      Stock) or in the event of any consolidation or merger of the Company with or
      into another corporation (other than a merger (excluding a reverse triangular
      merger or similar transaction) in which the Company is the continuing
      corporation and that does not result in any reclassification, capital
      reorganization or other change of outstanding shares of Common Stock of the
      class issuable upon exercise of this Warrant) or in the event of any sale,
      lease, transfer or conveyance to another corporation of the property and assets
      of the Company as an entirety or substantially as an entirety, the Company
      shall, as a condition precedent to such transaction, cause effective provisions
      to be made so that Holder shall have the right thereafter, by exercising this
      Warrant at any time prior to the Expiration Date, to purchase the kind and
      amount of shares of stock and other securities and property (including cash)
      receivable upon such reclassification, capital reorganization and other change,
      consolidation, merger, sale or conveyance by a holder of the number of shares
      of
      Common Stock that might have been received upon exercise of this Warrant
      immediately prior to such reclassification, capital reorganization, change,
      consolidation, merger, sale or conveyance. Any such provision shall include
      provisions for adjustments in respect of such shares of stock and other
      securities and property that shall be as nearly equivalent as may be practicable
      to the adjustments provided for in this Warrant. The foregoing provisions
      of this Section 8 shall similarly apply to successive reclassifications, capital
      reorganizations and changes of shares of Common Stock and to successive
      consolidations, mergers, sales or conveyances. The issuer of any shares of
      stock or other securities or property thereafter deliverable on the exercise
      of
      this Warrant shall be responsible for all of the agreements and obligations
      of
      the Company hereunder.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Section
      9. Transfer to Comply with the Securities Act of 1933. This
      Warrant may not be exercised and neither this Warrant nor any of the Warrant
      Shares, nor any interest in either, may be offered, sold, assigned, pledged,
      hypothecated, encumbered or in any other manner transferred or disposed of,
      in
      whole or in part, except in compliance with applicable United States federal
      and
      state securities or Blue Sky laws and the terms and conditions hereof. Each
      Warrant shall bear a legend in substantially the same form as the legend set
      forth on the first page of this Warrant. Each certificate for Warrant
      Shares issued upon exercise of this Warrant, unless at the time of exercise
      such
      Warrant Shares are acquired pursuant to a registration statement that has been
      declared effective under the Act or are eligible for transfer pursuant to Rule
      144(k) under the Securities Act of 1933, as amended (the “Securities Act”), and
      applicable blue sky laws shall bear a legend substantially in the following
      form:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
      TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE
      ACT
      OR, IN THE OPINION OF COUNSEL OR BASED ON OTHER WRITTEN EVIDENCE IN THE FORM
      AND
      SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE
      OR
      TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

     

    Any
      certificate for any Warrant Shares issued at any time in exchange or
      substitution for any certificate for any Warrant Shares bearing such legend
      (except a new certificate for any Warrant Shares (i) issued after the
      acquisition of such Warrant Shares pursuant to a registration statement that
      has
      been declared effective under the Act or in a transaction in compliance with
      Rule 144 under the Securities Act, or (ii) that are then eligible for transfer
      pursuant to Rule 144(k) under the Securities Act) shall also bear such legend
      unless, in the opinion of counsel for the Company, the Warrant Shares
      represented thereby need no longer be subject to the restriction contained
      herein. The provisions of this Section 9 shall be binding upon all
      subsequent holders of certificates for Warrant Shares bearing the above legend
      and all subsequent holders of this Warrant, if any. Nothing in this Section
      9 or elsewhere in this Warrant shall be deemed to restrict the ability of the
      holder hereof to transfer Warrant Shares to an affiliate, partner or former
      partner of such holder in compliance with the Securities Act, nor shall any
      legal opinion be required in respect thereof.

     

    Section
      10. Registration
      Rights.

    

    (a) Piggyback
      Registration.
      Pursuant to the terms of the offering
      of the Company’s Series A Convertible Preferred Stock set forth in the Private
      Placement Memorandum, the Company is required to file a registration statement
      with the Securities and Exchange Commission six months and one day following
      the
      closing of that offering. In connection with that registration statement, or,
      if
      earlier, the
      Company at any time proposes to file a registration statement under the
      Securities Act respecting any securities of the Company on a form appropriate
      for registration of a sale of Warrant Shares (excluding registrations of shares
      of Common Stock to be offered in connection with the Company's employee benefit
      plans and registrations of securities to be offered by the Company in connection
      with acquisitions, mergers or similar transactions), it will at such time give
      written notice to Holder of its intention to do so. Upon the written request
      of
      Holder given within 15 days after receipt of any such notice (which request
      shall specify the Warrant Shares intended to be sold or disposed of by Holder
      and describe the nature of any proposed sale or other disposition thereof),
      the
      Company shall use its best efforts, but shall not be obligated, to cause all
      such Warrant Shares specified in such request to be so registered. In the event
      that any such registration shall be underwritten, if the underwriters notify
      the
      Company in writing that the inclusion in such underwriting of such Warrant
      Shares would materially and adversely affect the underwriting, the Company
      shall
      have the right not to include such Warrant Shares.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (b) Other
      Registrations.
      If, in
      connection with a registration under the Securities Act, any Warrant Shares
      require registration or qualification with or approval of any United States
      or
      state governmental official or authority other than registration under the
      Securities Act before the Warrant Shares may be sold, the Company shall use
      its
      best efforts to cause any such Warrant Shares to be duly registered or approved
      as may be required; provided,
      however,
      that
      the Company shall not be required to give a general consent to service of
      process or to qualify as a foreign corporation or subject itself to taxation
      as
      doing business in any such state.

    

    (c) Registration
      Obligations.
      The
      Company shall deliver to Holder after effectiveness of any registration under
      this Warrant such reasonable number of copies of a definitive prospectus
      included in such registration statement and of any revised or supplemental
      prospectus filed as Holder may from time to time request. The Company shall
      file
      post-effective amendments or supplements to such registration statement for
      a
      period of up to 90 days after the commencement of the offering and so long
      as a
      prospectus is required to be delivered under the Act in order that the
      registration statement may be effective at all times during such period and
      at
      all times comply with the various applicable federal and state securities laws
      (after which period the Company may withdraw such Warrant Shares from
      registration), and shall deliver copies of the prospectus contained therein
      as
      hereinabove provided. Holder shall notify the Company when his sales are
      completed.

    

    Prior
      to
      filing a registration statement which includes Warrant Shares, the Company
      shall
      (i) provide copies of such registration statement at a reasonable time before
      it
      is filed for the review of Holder and the underwriters of Holder; and (ii)
      make
      available to such Holders or underwriters the appropriate employees and records
      for purposes of performing the requisite "due diligence".

    

    (d) Expenses.
      In any
      registration pursuant to Section 10 of this Warrant, Holder shall pay the
      Company for the incremental portion of the federal and state registration and
      filing fees attributable to the Warrant Shares and shall pay all underwriting
      commissions, discounts, underwriting expenses and taxes attributable to the
      Warrant Shares.

    

    (e) Indemnity.
      The
      Company shall indemnify Holder and each underwriter of Warrant Shares (and
      any
      person who controls such underwriter within the meaning of Section 15 of the
      Securities Act) against all claims, losses, damages, liabilities and expenses
      resulting from any untrue statement or alleged untrue statement of a material
      fact contained in a prospectus or in any related registration statement,
      notification or the like or from any omission or alleged omission to state
      therein a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, except insofar as the same may have been
      based upon information furnished in writing to the Company by Holder or such
      underwriter expressly for use therein and used in accordance with such
      writing.

    

    Holder
      shall furnish to the Company such information concerning Holder as may be
      requested by the Company which is necessary in connection with any registration
      or qualification of Warrant Shares pursuant to Section 10(a) hereof, and to
      indemnify the Company, its officers and directors and each underwriter of the
      Company's securities (and any person who controls the Company or any such
      underwriter within the meaning of Section 15 of the Securities Act), against
      all
      claims, losses, damages, liabilities and expenses resulting from any untrue
      statement or alleged untrue statement of material fact contained in a prospectus
      or any related registration statement, notification or the like, or omission
      or
      alleged omission to state therein a material fact required to be stated therein
      or necessary to make the statements therein not misleading, to the extent the
      same was derived from information furnished in writing to the Company by Holder
      expressly for use therein and used in accordance with such writing.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    If
      any
      action is brought or any claim is made against any persons indemnified pursuant
      to this Section in respect of which indemnity may be sought against the
      indemnitor pursuant to this Section, such person shall promptly notify the
      indemnitor in writing of the institution of such action or the making of such
      claim and the indemnitor shall promptly notify the indemnitor in writing of
      the
      institution of such action or the making of such claim and the indemnitor shall
      assume the defense of such action or claim, including the employment of counsel
      and payment of expenses. Such person shall have the right to employ his own
      counsel in any such case, but the fees and expenses of such counsel shall be
      at
      the expense of such person unless the employment of such counsel shall have
      been
      authorized in writing by the indemnitor in connection with the defense of such
      action or claim or the indemnitor shall not have employed counsel to have charge
      of the defense of such action or claim or such indemnified party or parties
      shall have reasonably concluded that there may be defenses available to him
      which are different from or additional to those available to the indemnitor
      (in
      which the case the indemnitor shall have the right to direct any different
      or
      additional defense of such action or claim on behalf of the indemnified party
      or
      parties), in any of which events such fees and expenses of not more than one
      additional counsel for the indemnified person shall be borne by the indemnitor.
      Except as expressly provided above, in the event that the indemnitor shall
      not
      previously have assumed the defense of any such action or claim, at such time
      as
      the indemnitor does not assume the defense of such action or claim, the
      indemnitor shall thereafter be liable to any person indemnified pursuant to
      this
      Section for any legal or other expenses subsequently incurred by such person
      in
      investigating, preparing or defending against such action or claim. Anything
      in
      this Section to the contrary notwithstanding, the indemnitor shall not be liable
      for any settlement of any such claim or action effected without its written
      consent.

     

    Section
      11. Company
      Call Right. In
      the
      event that (i) the average closing bid prices per share of Common Stock, as
      quoted on the Over-The-Counter-Bulletin Board (or such other exchange or stock
      market on which the Common Stock may then be listed or quoted) over a period
      of
      twenty (20) consecutive trading days ending on or after six months and one
      day
      following the date hereof, equals or exceeds 300% of the Exercise Price
      (appropriate adjusted for any stock split, reverse stock split, stock dividend
      or other reclassification or combination of the Common Stock occurring after
      the
      date hereof), and (ii) the average daily trading volume over that period is
      at
      least fifty thousand (50,000) shares of Common Stock, then thereafter, provided
      there is then an effective registration statement on file with the Securities
      and Exchange Commission relating to the issuance and resale of all shares of
      Common Stock issuable on exercise of these Warrants, the Company, upon
fifteen
      (15) calendar days prior written notice (the “Notice Period”) given to the
      Holder with ten (10) business days of the end of such twenty (20) consecutive
      trading day period, may call the Warrants, in whole or in part, at a redemption
      price equal to $.01 per share of Common Stock then purchasable pursuant to
      the
      Warrants called for redemption. The Holder shall have the right to exercise
      the
      Warrants prior to the end of the Notice Period. As of the last day of the Notice
      Period, any Warrants timely and validly called for redemption by the Company
      shall terminate and permanently cease to be exercisable.

     

     

    Section
      12.    Modification and Waiver. Neither
      this Warrant nor any term hereof may be changed, waived, discharged or
      terminated other than by an instrument in writing signed by the Company and
      by
      Holder.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Section
      13. No Dilution or Impairment. Without
      the consent of the holders of at least 51% of the then outstanding Warrants
      issued in connection with the Company’s Series A Convertible Preferred Stock,
      the Company shall not participate in any reorganization, transfer of assets,
      consolidation, merger, dissolution, issue or sale of securities, or take any
      other voluntary action, for the purpose of avoiding or seeking to avoid the
      observance or performance of any of the terms to be observed or performed
      hereunder by the Company, but shall at all times in good faith assist in
      carrying out all such action as may be reasonably necessary or appropriate
      in
      order to protect the exercise rights of the holder of this Warrant against
      dilution or other impairment.

     

    Section
      14. Notices. Any
      notice, request or other document required or permitted to be given or delivered
      to Holder or the Company shall be delivered or shall be sent by certified mail,
      postage prepaid, to Holder at its address as shown on the books of the Company
      or to the Company at the address indicated therefor in the first paragraph
      of
      this Warrant.

     

    Section
      15. Payment of Taxes. The
      Company will pay all taxes (other than taxes based upon income) and other
      governmental charges that may be imposed with respect to the issue or delivery
      of Warrant Shares upon exercise of this Warrant, excluding any tax or other
      charge imposed in connection with any transfer involved in the issue and
      delivery of Warrant Shares in a name other than that in which the Warrant so
      exercised was registered.

     

    Section
      16. Descriptive Headings and Governing Law. The
      description headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this
      Warrant. This Warrant shall be construed and enforced in accordance with,
      and the rights of the parties shall be governed by, the laws of the State of
      Utah, without regard to its conflicts of laws principles.

     

    [remainder
      of page intentionally left blank; signature on following page]

     

     

    
 

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has duly caused this Warrant to be signed by its duly authorized officer
      and to be dated as of ____________, 2006.

     

    
 

     

    
      	 	WATERBANK
              OF AMERICA (USA) INC.
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
               

            	
              By:

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
              Name:

            
	
               

            	
               

            	
               

            	
              Title:

            

    

     

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    PURCHASE
      FORM

     

     

    Dated
      ___________, 200____

     

     

    The
      undersigned hereby elects:

     

    o   
      to purchase ________ shares of Common Stock pursuant to the terms of the
      attached Warrant, and tenders herewith payment of the exercise price in full,
      together with all applicable transfer taxes, if any;

     

    o   
      to purchase the number of shares of Common Stock pursuant to the terms of the
      net exercise provisions set forth in Section 1(b) of the attached Warrant
      as shall be issuable upon net exercise of the portion of the attached Warrant
      relating to ________ shares, and shall tender payment of all applicable transfer
      taxes, if any;

     

    The
      undersigned represents and warrants to Waterbank of America (USA) Inc. as of
      the
      date hereof the same statements with respect to the shares being acquired upon
      exercise of this warrant as are set forth in the Subscription Document dated
      _____________, 2006, pursuant to which the above-referenced warrant was sold,
      regarding the securities purchased thereby.

     

     

    
      	 	Holder	 
	 	 	 
	 	
              By:

            	
               

            
	 	
               

            	
               

            
	 	
              Print
                Name:

            	
               

            
	 	
               

            	
               

            
	 	
              Title:

            	
               

            

    

     

    

 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    ASSIGNMENT
      FORM

     

    Dated
      _________, 200____

     

    FOR
      VALUE
      RECEIVED, _______________________________________ hereby sells, assigns and
      transfers unto 

    _______________________________________
      (the “Assignee”),

          
      (please type or print in block letters)

     

    ________________________________________________________________________________________________

    (insert
      address)

     

    its
      right
      to purchase up to _______ shares of Common Stock represented by this Warrant
      No.
      _________ and does hereby irrevocably constitute and appoint
      ____________________________  attorney, to transfer the same on the books
      of the Company, with full power of substitution in the premises.

     

    
       

      
        	 	Holder	 
	 	 	 
	 	
                By:

              	
                 

              
	 	
                 

              	
                 

              
	 	
                Print
                  Name:

              	
                 

              
	 	
                 

              	
                 

              
	 	
                Title:

              	
                 

              

      

       

       

       

      
        
           

        

        
          1

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