Document:

Edgewater Foods International, Inc. Exhibit 10.14

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

SERIES J WARRANT TO PURCHASE

SHARES OF COMMON STOCK

OF

EDGEWATER FOODS INTERNATONAL, INC.

Expires April 12, 2007

No.: W-J-06- __

Number of Shares: ___________

Date of Issuance: April 12, 2006

FOR VALUE RECEIVED, the undersigned, Edgewater Foods International, Inc., a Nevada corporation (together with its successors and assigns, the "Issuer"), hereby certifies that _______________________________ or its registered assigns is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to ____________________________________ (_____________) shares (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth.  Capitalized terms used in this Warrant and not otherwise defined herein shall have the respective meanings specified in Section 9 hereof.

1.

Term.  The term of this Warrant shall commence on April 12, 2006 and shall expire at 6:00 p.m., eastern time, on April 12, 2007 (such period being the "Term").

2.

Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.

(a)

Time of Exercise.  The purchase rights represented by this Warrant may be exercised in whole or in part during the Term. 

(b)

Method of Exercise.  The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed) at the principal office of the Issuer, and by the payment to the Issuer of an amount of consideration 

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therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable at such Holder's election (i) by certified or official bank check or by wire transfer to an account designated by the Issuer, (ii) by "cashless exercise" in accordance with the provisions of subsection (c) of this Section 2, but only when a registration statement under the Securities Act providing for the resale of the Warrant Stock is not then in effect, or (iii) by a combination of the foregoing methods of payment selected by the Holder of this Warrant.

(c)

Cashless Exercise.  Notwithstanding any provisions herein to the contrary and commencing one (1) year following the Original Issue Date if (i) the Per Share Market Value of one share of Common Stock is greater than the Warrant Price (at the date of calculation as set forth below) and (ii) a registration statement under the Securities Act providing for the resale of the Warrant Stock is not then in effect by the date such registration statement is required to be effective pursuant to the Registration Rights Agreement (as defined in the Purchase Agreement) or not effective at any time during the Effectiveness Period (as defined in the Registration Rights Agreement) in accordance with the terms of the Registration Rights Agreement, unless the registration statement is not effective as a result of the Issuer exercising its rights under Section 3(n) of the Registration Rights Agreement, in lieu of exercising this Warrant by payment of cash, the Holder may exercise this Warrant by a cashless exercise and shall receive the number of shares of Common Stock equal to an amount (as determined below) by surrender of this Warrant at the principal office of the Issuer together with the properly endorsed Notice of Exercise in which event the Issuer shall issue to the Holder a number of shares of Common Stock computed using the following formula:

X = Y - (A)(Y)

      

      B

Where

X =

the number of shares of Common Stock to be issued to the Holder.

Y =

the number of shares of Common Stock purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised. 

A =

the Warrant Price. 

B =

the Per Share Market Value of one share of Common Stock.

(d)

Issuance of Stock Certificates.  In the event of any exercise of this Warrant in accordance with and subject to the terms and conditions hereof, (i) certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder hereof within a reasonable time, not exceeding three (3) Trading Days after such exercise (the “Delivery Date”) or, at the request of the Holder (provided that a registration statement under the Securities Act providing for the resale of the Warrant Stock is then in effect), issued and delivered to the Depository Trust Company (“DTC”) account on the Holder’s behalf via the Deposit Withdrawal Agent Commission System (“DWAC”) within a reasonable time, not exceeding three (3) Trading Days after such exercise, and the Holder hereof shall be deemed for all purposes to be the holder of the shares of Warrant Stock so purchased as of the date of such 

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exercise and (ii) unless this Warrant has expired, a new Warrant representing the number of shares of Warrant Stock, if any, with respect to which this Warrant shall not then have been exercised (less any amount thereof which shall have been canceled in payment or partial payment of the Warrant Price as hereinabove provided) shall also be issued to the Holder hereof at the Issuer's expense within such time.  Notwithstanding the foregoing to the contrary, the Issuer or its transfer agent shall only be obligated to issue and deliver the shares to the DTC on a holder’s behalf via DWAC if such exercise is in connection with a sale and the Issuer and its transfer agent are participating in DTC through the DWAC system. 

(e)

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

(f)

Transferability of Warrant.  Subject to Section 2(h) hereof, this Warrant may be transferred by a Holder without the consent of the Issuer.  If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer.  This Warrant is exchangeable at the principal office of the Issuer for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange.  All Warrants issued on transfers or exchanges shall 

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be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant thereto.

(g)

Continuing Rights of Holder.  The Issuer will, at the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder.

(h)

Compliance with Securities Laws.

(i)

The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder's own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws.

(ii)

Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with a legend in substantially the following form:

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

(iii)

The Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing the manner and terms of such transfer.  Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, (ii) a registration statement under the Securities Act covering such proposed disposition has been filed by 

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the Issuer with the Securities and Exchange Commission and has become effective under the Securities Act and the Holder has represented that the Warrant Stock has been or will be sold, (iii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required, or (iv) the Holder provides the Issuer with reasonable assurances that such security can be sold pursuant to Rule 144 under the Securities Act; and (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or "blue sky" laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or "blue sky" laws has been effected or a valid exemption exists with respect thereto.  The Issuer will respond to any such notice from a holder within three (3) business days.  In the case of any proposed transfer under this Section 2(h), the Issuer will use reasonable efforts to comply with any such applicable state securities or "blue sky" laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer.  The restrictions on transfer contained in this Section 2(h) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant.  Whenever a certificate representing the Warrant Stock is required to be issued to a the Holder without a legend, in lieu of delivering physical certificates representing the Warrant Stock, the Issuer shall use its reasonable best efforts to cause its transfer agent to electronically transmit the Warrant Stock to the Holder by crediting the account of the Holder's Prime Broker with DTC through its DWAC system (to the extent not inconsistent with any provisions of this Warrant or the Purchase Agreement).  Notwithstanding the foregoing to the contrary, the Issuer or its transfer agent shall only be obligated to issue and deliver the shares to the DTC on a holder’s behalf via DWAC if such exercise is in connection with a sale and the Issuer and its transfer agent are participating in DTC through the DWAC system. 

(i)

Accredited Investor Status.  In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act.  

3.

Stock Fully Paid; Reservation and Listing of Shares; Covenants.

(a)

Stock Fully Paid.  The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by or through the Issuer.  The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of issuance upon exercise of this Warrant a number of shares of Common Stock equal to at least one hundred twenty percent (120%) of the aggregate number of shares of Common Stock to provide for the exercise of this Warrant.

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(b)

Reservation.  If any shares of Common Stock required to be reserved for issuance upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any governmental authority under any federal or state law before such shares may be so issued, the Issuer will in good faith use its best efforts as expeditiously as possible at its expense to cause such shares to be duly registered or qualified.  If the Issuer shall list any shares of Common Stock on any securities exchange or market it will, at its expense, list thereon, maintain and increase when necessary such listing, of, all shares of Warrant Stock from time to time issued upon exercise of this Warrant or as otherwise provided hereunder (provided that such Warrant Stock has been registered pursuant to a registration statement under the Securities Act then in effect), and, to the extent permissible under the applicable securities exchange rules, all unissued shares of Warrant Stock which are at any time issuable hereunder, so long as any shares of Common Stock shall be so listed.  The Issuer will also so list on each securities exchange or market, and will maintain such listing of, any other securities which the Holder of this Warrant shall be entitled to receive upon the exercise of this Warrant if at the time any securities of the same class shall be listed on such securities exchange or market by the Issuer.

(c)

Covenants.  The Issuer shall not by any action including, without limitation, amending the Articles of Incorporation or the by-laws of the Issuer, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder hereof against dilution (to the extent specifically provided herein) or impairment.  Without limiting the generality of the foregoing, the Issuer will (i) not permit the par value, if any, of its Common Stock to exceed the then effective Warrant Price, (ii) not amend or modify any provision of the Articles of Incorporation or by-laws of the Issuer in any manner that would adversely affect the rights of the Holders of the Warrants, (iii) take all such action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable shares of Common Stock, free and clear of any liens, claims, encumbrances and restrictions (other than as provided herein) upon the exercise of this Warrant, and (iv) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be reasonably necessary to enable the Issuer to perform its obligations under this Warrant.

(d)

Loss, Theft, Destruction of Warrants.  Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same number of shares of Common Stock.

4.

Adjustment of Warrant Price.  The price at which such shares of Warrant Stock may be purchased upon exercise of this Warrant shall be subject to adjustment from time to time as set forth in this Section 4. The Issuer shall give the Holder notice of any event described below which requires an adjustment pursuant to this Section 4 in accordance with the notice provisions set forth in Section 5.

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(a)

Recapitalization, Reorganization, Reclassification, Consolidation, Merger or Sale.

  

(i)  In case the Issuer after the Original Issue Date shall do any of the following (each, a "Triggering Event"): (a) consolidate or merge with or into any other Person and the Issuer shall not be the continuing or surviving corporation of such consolidation or merger, or (b) permit any other Person to consolidate with or merge into the Issuer and the Issuer shall be the continuing or surviving Person but, in connection with such consolidation or merger, any Capital Stock of the Issuer shall be changed into or exchanged for Securities of any other Person or cash or any other property, or (c) transfer all or substantially all of its properties or assets to any other Person, or (d) effect a capital reorganization or reclassification of its Capital Stock, then, and in the case of each such Triggering Event, proper provision shall be made so that, upon the basis and the terms and in the manner provided in this Warrant, the Holder of this Warrant shall be entitled upon the exercise hereof at any time after the consummation of such Triggering Event, to the extent this Warrant is not exercised prior to such Triggering Event, to receive at the Warrant Price in effect at the time immediately prior to the consummation of such Triggering Event in lieu of the Common Stock issuable upon such exercise of this Warrant prior to such Triggering Event, the Securities, cash and property to which such Holder would have been entitled upon the consummation of such Triggering Event if such Holder had exercised the rights represented by this Warrant immediately prior thereto (including the right of a shareholder to elect the type of consideration it will receive upon a Triggering Event), subject to adjustments (subsequent to such corporate action) as nearly equivalent as possible to the adjustments provided for elsewhere in this Section 4; provided, however, in the event that the Per Share Market Value is less than the Warrant Price at the time of such Triggering Event, the Holder shall receive an amount in cash equal to the value of this Warrant calculated in accordance with the Black-Scholes formula.  Notwithstanding the foregoing to the contrary, this Section 4(a)(i) shall only apply if the surviving entity pursuant to any such Triggering Event is a company that has a class of equity securities registered pursuant to the Securities Exchange Act of 1934, as amended, and its common stock is listed or quoted on a national securities exchange, national automated quotation system or the OTC Bulletin Board.  In the event that the surviving entity pursuant to any such Triggering Event is not a public company that is registered pursuant to the Securities Exchange Act of 1934, as amended, or its common stock is not listed or quoted on a national securities exchange, national automated quotation system or the OTC Bulletin Board, then the Holder shall have the right to demand that the Issuer pay to the Holder an amount in cash equal to the value of this Warrant calculated in accordance with the Black-Scholes formula.

(ii)

Notwithstanding anything contained in this Warrant to the contrary and so long as the surviving entity pursuant to any Triggering Event is a company that has a class of equity securities registered pursuant to the Securities Exchange Act of 1934, as amended, and its common stock is listed or quoted on a national securities exchange, national automated quotation system or the OTC Bulletin Board, a Triggering Event shall not be deemed to have occurred if, prior to the consummation thereof, each Person (other than the Issuer) which may be required to deliver any Securities, cash or property upon the exercise of this Warrant as provided herein shall assume, by written instrument 

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delivered to, and reasonably satisfactory to, the Holder of this Warrant, (A) the obligations of the Issuer under this Warrant (and if the Issuer shall survive the consummation of such Triggering Event, such assumption shall be in addition to, and shall not release the Issuer from, any continuing obligations of the Issuer under this Warrant) and (B) the obligation to deliver to such Holder such Securities, cash or property as, in accordance with the foregoing provisions of this subsection (a), such Holder shall be entitled to receive, and such Person shall have similarly delivered to such Holder an opinion of counsel for such Person, which counsel shall be reasonably satisfactory to such Holder, or in the alternative, a written acknowledgement executed by the President or Chief Financial Officer of the Issuer, stating that this Warrant shall thereafter continue in full force and effect and the terms hereof (including, without limitation, all of the provisions of this subsection (a)) shall be applicable to the Securities, cash or property which such Person may be required to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto. 

(b)

Stock Dividends, Subdivisions and Combinations.  If at any time the Issuer shall:

 

(i)

make or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive a dividend payable in, or other distribution of, shares of Common Stock, 

 

(ii) 

subdivide its outstanding shares of Common Stock into a larger number of shares of Common Stock, or

 

(iii) 

combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock,

then (1) the number of shares of Common Stock for which this Warrant is exercisable immediately after the occurrence of any such event shall be adjusted to equal the number of shares of Common Stock which a record holder of the same number of shares of Common Stock for which this Warrant is exercisable immediately prior to the occurrence of such event would own or be entitled to receive after the happening of such event, and (2) the Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B) the number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment.

(c)

Certain Other Distributions.  If at any time the Issuer shall make or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive any divi­dend or other distribution of:

(i)

cash (other than a cash dividend payable out of earnings or earned surplus legally available for the payment of dividends under the laws of the jurisdiction of incorporation of the Issuer),

(ii)

any evidences of its indebtedness, any shares of stock of any class 

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or any other securities or property of any nature whatsoever (other than cash, Common Stock Equivalents or Additional Shares of Common Stock), or

(iii)

any warrants or other rights to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever (other than cash, Common Stock Equivalents or Additional Shares of Common Stock), 

then (1) the number of shares of Common Stock for which this Warrant is exercisable shall be adjusted to equal the product of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such adjustment multiplied by a fraction (A) the numerator of which shall be the Per Share Market Value of Common Stock at the date of taking such record and (B) the denominator of which shall be such Per Share Market Value minus the amount allocable to one share of Common Stock of any such cash so distributable and of the fair value (as determined in good faith by the Board of Directors of the Issuer and supported by an opinion from an investment banking firm mutually agreed upon by the Issuer and the Holder) of any and all such evidences of indebtedness, shares of stock, other securities or property or warrants or other subscription or purchase rights so distributable, and (2) the Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B) the number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment.  A reclassification of the Common Stock (other than a change in par value, or from par value to no par value or from no par value to par value) into shares of Common Stock and shares of any other class of stock shall be deemed a distribution by the Issuer to the holders of its Common Stock of such shares of such other class of stock within the meaning of this Section 4(c) and, if the outstanding shares of Common Stock shall be changed into a larger or smaller number of shares of Common Stock as a part of such reclassification, such change shall be deemed a subdivision or combination, as the case may be, of the outstanding shares of Common Stock within the meaning of Section 4(b).

(d)

Issuance of Additional Shares of Common Stock.  

(i)

For a period of two (2) years following the Original Issue Date, in the event the Issuer shall at any time following the Original Issue Date issue any Additional Shares of Common Stock (otherwise than as provided in the foregoing subsections (a) through (c) of this Section 4), at a price per share less than the Warrant Price then in effect or without consideration, then the Warrant Price upon each such issuance shall be adjusted to that price determined by multiplying the Warrant Price then in effect by a fraction:

(A)

the numerator of which shall be equal to the sum of (x) the number of shares of Outstanding Common Stock immediately prior to the issuance of such Additional Shares of Common Stock plus (y) the number of shares of Common Stock (rounded to the nearest whole share) which the aggregate consideration for the total number of such Additional Shares of Common Stock so issued would purchase at a price per share equal to the Warrant Price then in effect, and

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(B)

the denominator of which shall be equal to the number of shares of Outstanding Common Stock immediately after the issuance of such Additional Shares of Common Stock.

(ii)

No adjustment of the number of shares of Common Stock for which this Warrant shall be exercisable shall be made under paragraph (i) of Section 4(d) upon the issuance of any Additional Shares of Common Stock which are issued pursuant to the exercise of any Common Stock Equivalents, if any such adjustment shall previously have been made upon the issuance of such Common Stock Equivalents (or upon the issuance of any warrant or other rights therefor) pursuant to Section 4(e).

(e)

  Issuance of Common Stock Equivalents.  For a period of two (2) years following the Original Issue Date, if at any time the Issuer shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a distribution of, or shall in any manner (whether directly or by assumption in a merger in which the Issuer is the surviving corporation) issue or sell, any Common Stock Equivalents, whether or not the rights to exchange or convert thereunder are immediately exercisable, and the price per share for which Common Stock is issuable upon such conversion or exchange shall be less than the Warrant Price in effect immediately prior to the time of such issue or sale, or if, after any such issuance of Common Stock Equivalents, the price per share for which Additional Shares of Common Stock may be issuable thereafter is amended or adjusted, and such price as so amended shall be less than the Warrant Price in effect at the time of such amendment or adjustment, then the Warrant Price then in effect shall be adjusted as provided in Section 4(d).  No further adjustments of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect shall be made upon the actual issue of such Common Stock upon conversion or exchange of such Common Stock Equivalents.

(f)

Superseding Adjustment.  If, at any time after any adjustment of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect shall have been made pursuant to Section 4(e) as the result of any issuance of Common Stock Equivalents, and (i) such Common Stock Equivalents, or the right of conversion or exchange in such Common Stock Equivalents, shall expire, and all or a portion of such or the right of conversion or exchange with respect to all or a portion of such Common Stock Equivalents, as the case may be, shall not have been exercised, or (ii) the consideration per share for which shares of Common Stock are issuable pursuant to such Common Stock Equivalents shall be increased, then such previous adjustment shall be rescinded and annulled and the Additional Shares of Common Stock which were deemed to have been issued by virtue of the computation made in connection with the adjustment so rescinded and annulled shall no longer be deemed to have been issued by virtue of such computation.  Upon the occurrence of an event set forth in this Section 4(f), there shall be a recomputation made of the effect of such Common Stock Equivalents on the basis of: (i) treating the number of Additional Shares of Common Stock theretofore actually issued or issuable pursuant to the previous exercise of Common Stock Equivalents or any such right of conversion or exchange, as having been issued on the date or dates of any such exercise and for the consideration actually received and receivable therefor, and (ii) treating any such Common Stock Equivalents which then remain outstanding as having been granted or issued immediately after the time of such increase of the consideration per share for which Additional Shares of Common Stock are issuable under such Common Stock 

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Equivalents; whereupon a new ad­justment of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect shall be made, which new adjustment shall supersede the previous adjustment so rescinded and annulled.

(h)

Other Provisions applicable to Adjustments under this Section.  The following provisions shall be ap­plicable to the making of adjustments of the number of shares of Common Stock for which this Warrant is exercisable and the Warrant Price then in effect provided for in this Section 4:

(i)

Computation of Consideration.  To the extent that any Additional Shares of Common Stock or any Common Stock Equivalents (or any warrants or other rights therefor) shall be issued for cash consideration, the consideration received by the Issuer therefor shall be the amount of the cash received by the Issuer therefor, or, if such Additional Shares of Common Stock or Common Stock Equivalents are offered by the Issuer for subscription, the subscription price, or, if such Additional Shares of Common Stock or Common Stock Equivalents are sold to underwriters or dealers for public offering without a subscription offering, the initial public offering price (in any such case subtracting any amounts paid or receivable for accrued interest or accrued dividends and without taking into account any compensation, discounts or expenses paid or incurred by the Issuer for and in the underwriting of, or otherwise in connection with, the issuance thereof).  In connection with any merger or consolidation in which the Issuer is the surviving corporation (other than any consolidation or merger in which the previously outstanding shares of Common Stock of the Issuer shall be changed to or exchanged for the stock or other securities of another corporation), the amount of consideration therefore shall be, deemed to be the fair value, as determined reasonably and in good faith by the Board, of such portion of the assets and business of the nonsurviving corporation as the Board may determine to be attributable to such shares of Common Stock or Common Stock Equivalents, as the case may be.  The consideration for any Additional Shares of Common Stock issuable pursuant to any warrants or other rights to subscribe for or purchase the same shall be the consideration received by the Issuer for issuing such warrants or other rights plus the additional con­sideration payable to the Issuer upon exercise of such warrants or other rights.  The consideration for any Additional Shares of Common Stock issuable pursuant to the terms of any Common Stock Equivalents shall be the consideration received by the Issuer for issuing war­rants or other rights to subscribe for or purchase such Common Stock Equivalents, plus the consideration paid or payable to the Issuer in respect of the subscription for or purchase of such Common Stock Equivalents, plus the additional consideration, if any, payable to the Issuer upon the exercise of the right of conversion or exchange in such Common Stock Equivalents.  In the event of any consolidation or merger of the Issuer in which the Issuer is not the surviving corporation or in which the previously outstanding shares of Common Stock of the Issuer shall be changed into or exchanged for the stock or other securities of another corporation, or in the event of any sale of all or substantially all of the assets of the Issuer for stock or other securities of any corporation, the Issuer shall be deemed to have issued a number of shares of its Common Stock for stock or securities or other property of the other corporation computed on the basis of the actual exchange ratio on which the transaction was predicated, and for a consideration equal to the fair market value on the date of such transaction of all such stock or securities or other property of the other corporation.  In the event any consideration received by the Issuer for any securities consists of property other than cash, the fair market value thereof at the time of issuance or as otherwise applicable shall be as determined in good faith by the Board.  In the event Common Stock is issued with other shares 

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or securities or other assets of the Issuer for consideration which covers both, the consideration computed as provided in this Section 4(h)(i) shall be allocated among such securities and assets as determined in good faith by the Board.

(ii)

When Adjustments to Be Made.  The adjustments required by this Section 4 shall be made whenever and as often as any specified event requiring an adjustment shall occur, except that any adjustment of the number of shares of Common Stock for which this Warrant is exercisable that would otherwise be required may be postponed (except in the case of a subdivision or combination of shares of the Common Stock, as provided for in Section 4(b)) up to, but not beyond the date of exercise if such adjustment either by itself or with other adjustments not previously made adds or subtracts less than one percent (1%) of the shares of Common Stock for which this Warrant is exercisable immediately prior to the making of such adjustment.  Any adjustment representing a change of less than such minimum amount (except as aforesaid) which is postponed shall be carried forward and made as soon as such adjustment, together with other adjustments required by this Section 4 and not previously made, would result in a minimum adjustment or on the date of exercise. For the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of business on the date of its occurrence.

(iii)

Fractional Interests.  In computing ad­justments under this Section 4, fractional interests in Common Stock shall be taken into account to the near­est one one-hundredth (1/100th) of a share.

(iv)

When Adjustment Not Required.  If the Issuer shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and before the distribution to stockholders thereof, legally abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights, then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment previously made in respect thereof shall be rescinded and annulled.

(i)

Form of Warrant after Adjustments.  The form of this Warrant need not be changed because of any adjustments in the Warrant Price or the number and kind of Securities purchasable upon the exercise of this Warrant.

(j)

Escrow of Warrant Stock.  If after any property becomes distributable pursuant to this Section 4 by reason of the taking of any record of the holders of Common Stock, but prior to the occurrence of the event for which such record is taken, and the Holder exer­cises this Warrant, any shares of Common Stock issuable upon exercise by reason of such adjustment shall be deemed the last shares of Common Stock for which this Warrant is exercised (notwithstanding any other provision to the contrary herein) and such shares or other property shall be held in escrow for the Holder by the Issuer to be issued to the Holder upon and to the extent that the event actually takes place, upon payment of the current Warrant Price.  Notwithstanding any other provision to the contrary herein, if the event for which such record was taken fails to occur or is rescinded, then such escrowed shares shall be cancelled by the Issuer and escrowed property returned.

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5.

Notice of Adjustments.  Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant to Section 4 hereof (for purposes of this Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial Officer to prepare and execute a certificate setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated (including a description of the basis on which the Board made any determination hereunder), and the Warrant Price and Warrant Share Number after giving effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder of this Warrant promptly after each adjustment.  Any dispute between the Issuer and the Holder of this Warrant with respect to the matters set forth in such certificate may at the option of the Holder of this Warrant be submitted to a national or regional accounting firm reasonably acceptable to the Issuer and the Holder, provided that the Issuer shall have ten (10) days after receipt of notice from such Holder of its selection of such firm to object thereto, in which case such Holder shall select another such firm and the Issuer shall have no such right of objection.  The firm selected by the Holder of this Warrant as provided in the preceding sentence shall be instructed to deliver a written opinion as to such matters to the Issuer and such Holder within thirty (30) days after submission to it of such dispute.  Such opinion shall be final and binding on the parties hereto.  The costs and expenses of the initial accounting firm shall be paid equally by the Issuer and the Holder and, in the case of an objection by the Issuer, the costs and expenses of the subsequent accounting firm shall be paid in full by the Issuer.

6.

Fractional Shares.  No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Issuer shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.

7.

Ownership Cap and Exercise Restriction.  Notwithstanding anything to the contrary set forth in this Warrant, at no time may a Holder of this Warrant exercise this Warrant if the number of shares of Common Stock to be issued pursuant to such exercise would exceed, when aggregated with all other shares of Common Stock owned by such Holder at such time, the number of shares of Common Stock which would result in such Holder beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules  thereunder) in excess of 9.9% of the then issued and outstanding shares of Common Stock; provided, however, that upon a holder of this Warrant providing the Issuer with sixty-one (61) days notice (pursuant to Section 13 hereof) (the "Waiver Notice") that such Holder would like to waive this Section 7 with regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this Section 7 will be of no force or effect with regard to all or a portion of the Warrant referenced in the Waiver Notice; provided, further, that this provision shall be of no further force or effect during the sixty-one (61) days immediately preceding the expiration of the term of this Warrant.

8.

Call.  Notwithstanding anything herein to the contrary, commencing at any time following the effective date of the registration statement under the Securities Act providing for the resale of the Warrant Stock and the shares of Common Stock issuable upon conversion of the Issuer’s Series A Preferred Stock issued pursuant to the Purchase Agreement (the “Registration Statement”), the Issuer, at its option, may call (a “Call”) up to one hundred percent (100%) of this Warrant if (A) the average VWAP of the Common Stock has been greater than $2.50 (as may be adjusted for any stock splits or combinations of the Common Stock) for a period of thirty (30) consecutive Trading Days immediately prior to the date of delivery of the Call Notice (a 

-13-

 

"Call Notice Period") and (B) the trading volume of the Common Stock for each Trading Day of such thirty (30) Trading Day period exceeds 75,000 shares of Common Stock, by providing the Holder of this Warrant written notice pursuant to Section 13 (the "Call Notice"); provided, that (i) the Registration Statement is then in effect and has been effective, without lapse or suspension of any kind, for a period of thirty (30) consecutive calendar days, (ii) trading in the Common Stock shall not have been suspended by the Securities and Exchange Commission or the OTC Bulletin Board (or other exchange or market on which the Common Stock is trading), (iii) the Issuer is in material compliance with the terms and conditions of this Warrant and the other Transaction Documents (as defined in the Purchase Agreement) and (iv) the Issuer is not in possession of material non-public information; provided, further, that the Registration Statement is in effect from the date of delivery of the Call Notice until the date which is the later of (1) the date the Holder exercises the Warrant pursuant to the Call Notice and (2) the 20th day after the Holder receives the Call Notice (the "Early Termination Date").  The rights and privileges granted pursuant to this Warrant with respect to the shares of Warrant Stock subject to the Call Notice (the "Called Warrant Shares") shall expire on the Early Termination Date if this Warrant is not exercised with respect to such Called Warrant Shares prior to such Early Termination Date.  In the event this Warrant is not exercised with respect to the Called Warrant Shares, the Issuer shall remit to the Holder of this Warrant (A) $.01 per Called Warrant Share and (B) a new Warrant representing the number of shares of Warrant Stock, if any, which shall not have been subject to the Call Notice upon the Holder tendering to the Issuer the applicable Warrant certificate.  Notwithstanding anything in the foregoing to the contrary, if the Holder may not exercise this Warrant as a result of the restrictions contained in Section 7 hereof, the Call Notice shall be deemed null and void and shall not be deemed effective until the date that the Holder may exercise this Warrant in accordance with Section 7 hereof.

9.

Definitions.  For the purposes of this Warrant, the following terms have the following meanings:

"Additional Shares of Common Stock" means all shares of Common Stock issued by the Issuer after the Original Issue Date, and all shares of Other Common, if any, issued by the Issuer after the Original Issue Date, except: (i) securities issued (other than for cash) in connection with a merger, acquisition, or consolidation, (ii) securities issued pursuant to the conversion or exercise of convertible or exercisable securities issued or outstanding on or prior to the date of the Purchase Agreement or issued pursuant to the Purchase Agreement (so long as the conversion or exercise price in such securities are not amended to lower such price and/or adversely affect the Holders), (iii) the Warrant Stock, (iv) securities issued in connection with bona fide strategic license agreements or other partnering arrangements so long as such issuances are not for the purpose of raising capital, (v) Common Stock issued or the issuance or grants of options to purchase Common Stock pursuant to the Issuer’s stock option plans and employee stock purchase plans outstanding as they exist on the date of the Purchase Agreement, (vi) Common Stock issued as payment of dividends on the Series A Preferred Stock issued pursuant to the Purchase Agreement or the Additional Preferred Stock and Warrant Financing, (vii) any warrants issued to the placement agent and its designees for the transactions contemplated by the Purchase Agreement, and (viii) securities issued pursuant to the Additional Preferred Stock and Warrant Financing (as defined in the Purchase Agreement) and securities issuable upon the conversion or exercise of such securities 

-14-

 

issued pursuant to the Additional Preferred Stock and Warrant Financing. 

"Articles of Incorporation" means the Articles of Incorporation of the Issuer as in effect on the Original Issue Date, and as hereafter from time to time amended, modified, supplemented or restated in accordance with the terms hereof and thereof and pursuant to applicable law. 

“Board" shall mean the Board of Directors of the Issuer.

"Capital Stock" means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.

"Common Stock" means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter be changed.

"Common Stock Equivalent" means any Convertible Security or warrant, option or other right to subscribe for or purchase any Additional Shares of Common Stock or any Convertible Security.

"Convertible Securities" means evidences of Indebtedness, shares of Capital Stock or other Securities which are or may be at any time convertible into or exchangeable for Additional Shares of Common Stock.  The term "Convertible Security" means one of the Convertible Securities.

"Governmental Authority" means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.

"Holders" mean the Persons who shall from time to time own any Warrant.  The term "Holder" means one of the Holders.

"Independent Appraiser" means a nationally recognized or major regional investment banking firm or firm of independent certified public accountants of recognized standing (which may be the firm that regularly examines the financial statements of the Issuer) that is regularly engaged in the business of appraising the Capital Stock or assets of corporations or other entities as going concerns, and which is not affiliated with either the Issuer or the Holder of any Warrant.

"Issuer" means Edgewater Foods International, Inc., a Nevada corporation, and its successors. 

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"Majority Holders" means at any time the Holders of Warrants exercisable for a majority of the shares of Warrant Stock issuable under the Warrants at the time outstanding.

"Original Issue Date" means April 12, 2006.

"OTC Bulletin Board" means the over-the-counter electronic bulletin board.

"Other Common" means any other Capital Stock of the Issuer of any class which shall be authorized at any time after the date of this Warrant (other than Common Stock) and which shall have the right to participate in the distribution of earnings and assets of the Issuer without limitation as to amount.

“Outstanding Common Stock” means, at any given time, the aggregate amount of outstanding shares of Common Stock, assuming full exercise, conversion or exchange (as applicable) of all options, warrants and other Securities which are convertible into or exercisable or exchangeable for, and any right to subscribe for, shares of Common Stock that are outstanding at such time.

"Person" means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.

"Per Share Market Value" means on any particular date (a) the last closing bid price per share of the Common Stock on such date on the OTC Bulletin Board or another registered national stock exchange on which the Common Stock is then listed, or if there is no such price on such date, then the closing bid price on such exchange or quotation system on the date nearest preceding such date, or (b) if the Common Stock is not listed then on the OTC Bulletin Board or any registered national stock exchange, the last closing bid price for a share of Common Stock in the over-the-counter market, as reported by the OTC Bulletin Board or in the National Quotation Bureau Incorporated or similar organization or agency succeeding to its functions of reporting prices) at the close of business on such date, or (c) if the Common Stock is not then reported by the OTC Bulletin Board or the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting prices), then the average of the "Pink Sheet" quotes for the five (5) Trading Days preceding such date of determination, or (d) if the Common Stock is not then publicly traded the fair market value of a share of Common Stock as determined by an Independent Appraiser selected in good faith by the Majority Holders; provided, however, that the Issuer, after receipt of the determination by such Independent Appraiser, shall have the right to select an additional Independent Appraiser, in which case, the fair market value shall be equal to the average of the determinations by each such Independent Appraiser; and provided, further that all determinations of the Per Share Market Value shall be appropriately adjusted for any stock dividends, stock splits or other similar transactions during such period.  The determination of fair market value by an Independent Appraiser shall be based upon the fair market value of the Issuer determined on a going concern basis as between a willing buyer and a willing seller and taking into account all relevant factors determinative of 

-16-

 

value, and shall be final and binding on all parties.  In determining the fair market value of any shares of Common Stock, no consideration shall be given to any restrictions on transfer of the Common Stock imposed by agreement or by federal or state securities laws, or to the existence or absence of, or any limitations on, voting rights.

"Purchase Agreement" means the Series A Preferred Stock Purchase Agreement dated as of April 12, 2006, among the Issuer and the Purchasers.

"Purchasers" means the purchasers of the Preferred Stock and the Warrants issued by the Issuer pursuant to the Purchase Agreement.

"Securities" means any debt or equity securities of the Issuer, whether now or hereafter authorized, any instrument convertible into or exchangeable for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security.  "Security" means one of the Securities.

"Securities Act" means the Securities Act of 1933, as amended, or any similar federal statute then in effect.

"Subsidiary" means any corporation at least 50% of whose outstanding Voting Stock shall at the time be owned directly or indirectly by the Issuer or by one or more of its Subsidiaries, or by the Issuer and one or more of its Subsidiaries.

"Term" has the meaning specified in Section 1 hereof.

"Trading Day" means (a) a day on which the Common Stock is traded on the OTC Bulletin Board, or (b) if the Common Stock is not traded on the OTC Bulletin Board, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the Common Stock is not listed or quoted as set forth in (a) or (b) hereof, then Trading Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

“VWAP” means, for any date, (i) the daily volume weighted average price of the Common Stock for such date on the OTC Bulletin Board as reported by Bloomberg Financial L.P. (based on a trading day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time); (ii) if the Common Stock is not then listed or quoted on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by the Pink Sheets, LLC (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (iii) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Issuer.

-17-

 

"Voting Stock" means, as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated) having ordinary voting power for the election of a majority of the members of the Board of Directors (or other governing body) of such corporation, other than Capital Stock having such power only by reason of the happening of a contingency.

"Warrants" means the Warrants issued and sold pursuant to the Purchase Agreement, including, without limitation, this Warrant, and any other warrants of like tenor issued in substitution or exchange for any thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof or of any of such other Warrants. 

"Warrant Price" initially means $0.5625, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 hereto.

"Warrant Share Number" means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.

"Warrant Stock" means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

10.

Other Notices.  In case at any time:

(A)

the Issuer shall make any distributions to the holders of Common Stock; or

(B)

the Issuer shall authorize the granting to all holders of its Common Stock of rights to subscribe for or purchase any shares of Capital Stock of any class or other rights; or

(C)

there shall be any reclassification of the Capital Stock of the Issuer; or

(D)

there shall be any capital reorganization by the Issuer; or

(E)

there shall be any (i) consolidation or merger involving the Issuer or (ii) sale, transfer or other disposition of all or substantially all of the Issuer's property, assets or business (except a merger or other reorganization in which the Issuer shall be the surviving corporation and its shares of Capital Stock shall continue to be outstanding and unchanged and except a consolidation, merger, sale, transfer or other disposition involving a wholly-owned Subsidiary); or

-18-

 

(F)

there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Issuer or any partial liquidation of the Issuer or distribution to holders of Common Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder of the date on which (i) the books of the Issuer shall close or a record shall be taken for such dividend, distribution or subscription rights or (ii) such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be, shall take place.  Such notice also shall specify the date as of which the holders of Common Stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled to exchange their certificates for Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be.  Such notice shall be given at least twenty (20) days prior to the action in question and not less than ten (10) days prior to the record date or the date on which the Issuer's transfer books are closed in respect thereto.  This Warrant entitles the Holder to receive copies of all financial and other information distributed or required to be distributed to the holders of the Common Stock.

11.

Amendment and Waiver.  Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by the Issuer and the Majority Holders; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 11 without the consent of the Holder of this Warrant.  No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders of the Warrants.

12.

Governing Law; Jurisdiction.  This Warrant shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction.  This Warrant shall not be interpreted or construed with any presumption against the party causing this Warrant to be drafted.  The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in New York County, New York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is not the proper venue.  The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the state of New York.  The Issuer and the Holder consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing in this Section 12 shall affect or limit any right to serve process in any other manner permitted by law.  The Issuer and the Holder hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to this Warrant or the Purchase Agreement, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party.  The parties hereby waive all rights to a trial by jury.

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13.

Notices.  Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:

If to the Issuer:

Edgewater Foods International, Inc. 

400 Professional Drive, Suite 310 

Gaithersburg, Maryland 20879

Attention: Michael Boswell

Tel. No.: (240) 864-0449

Fax No.:  (240) 864-0450

with copies (which copies 

shall not constitute notice) 

to:

Law Offices of Louis E. Taubman, P.C.

225 Broadway, Suite 1200

New York, New York  10007

Attention:  Louis E. Taubman

Tel. No.:  (212) 732-7184

Fax No.:  (212) 202-6380

If to any Holder:

At the address of such Holder set forth on Exhibit A to this Agreement, with copies to Holder’s counsel as set forth on Exhibit A or as specified in writing by such Holder with copies to:

with copies (which copies 

shall not constitute notice) 

to:

Kramer Levin Naftalis & Frankel LLP

1177 Avenue of the Americas

New York, New York 10036

Attention: Christopher S. Auguste

Tel. No.: (212) 715-9100

Fax No.: (212) 715-8000

Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.

14.

Warrant Agent.  The Issuer may, by written notice to each Holder of this Warrant, appoint an agent having an office in New York, New York for the purpose of issuing shares of Warrant Stock on the exercise of this Warrant pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any such 

-20-

 

issuance, exchange or replacement, as the case may be, shall be made at such office by such agent.

15.

Remedies.  The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

16.

Successors and Assigns.  This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.

17.

Modification and Severability.  If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency.  If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.

18.

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

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the Issuer has executed this Series J Warrant as of the day and year first above written.

EDGEWATER FOODS INTERNATIONAL, INC.

By:

      Name: Michael Boswell

      Title:   Acting Chief Financial Officer 

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EXERCISE FORM

SERIES J WARRANT

EDGEWATER FOODS INTERNATIONAL, INC.

The undersigned _______________, pursuant to the provisions of the within Warrant, hereby elects to purchase _____ shares of Common Stock of Edgewater Foods International, Inc. covered by the within Warrant.

Dated: _________________

Signature

___________________________

Address

_____________________

_____________________

The Holder is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.

Number of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the date of Exercise: _________________________

ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto __________________ the within Warrant and all rights evidenced thereby and does irrevocably constitute and appoint _____________, attorney, to transfer the said Warrant on the books of the within named corporation.

Dated: _________________

Signature

___________________________

Address

_____________________

_____________________

PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto __________________ the right to purchase _________ shares of Warrant Stock evidenced by the within Warrant together with all rights therein, and does irrevocably constitute and appoint ___________________, attorney, to transfer that part of the said Warrant on the books of the within named corporation.

Dated: _________________

Signature

___________________________

Address

_____________________

_____________________

-23-

 

FOR USE BY THE ISSUER ONLY:

This Warrant No. W-___ canceled (or transferred or exchanged) this _____ day of ___________, _____, shares of Common Stock issued therefor in the name of _______________, Warrant No. W-_____ issued for ____ shares of Common Stock in the name of _______________.

-24-<PAGE>

                                                                   Exhibit 10.10

                LICENSING, MANUFACTURING AND CONSULTING AGREEMENT

         LICENSING, MANUFACTURING AND CONSULTING AGREEMENT (the "Agreement")
dated as of June 1, 2004, among DA VINCI SYSTEMS, INC., Inc., a California
corporation ("Da Vinci"), Alan Creamer, Chief Executive Officer of Da Vinci
("Creamer") and MILESTONE SCIENTIFIC, INC., a Delaware corporation
("MILESTONE").

                                   WITNESSETH

         WHEREAS         Creamer has an exclusive license under a patent
                         co-owned by him and another person as well as other
                         rights, to certain products used in dentistry for
                         purposes of curing, trans-illuminating, tacking and
                         whitening teeth, all as set forth on EXHIBIT 1 to this
                         Agreement (the "PRODUCTS");

         WHEREAS         Da Vinci and Creamer own certain rights to teeth
                         whitening products geared directly to the professional
                         dental market all as set forth on EXHIBIT 2 to this
                         Agreement (the "PROFESSIONAL PRODUCTS");

         WHEREAS         Milestone wishes to obtain an exclusive license from Da
                         Vinci and Creamer to manufacture, market and sell the
                         Products and the Professional Products in the U.S. and
                         such other jurisdictions as Milestone determines and Da
                         Vinci and Creamer wish to grant such license;

         WHEREAS         Da Vinci and Creamer own certain rights to and Creamer
                         has filed provisional patents to teeth whitening
                         products geared directly to the consumer market all as
                         set forth on EXHIBIT 3 to this Agreement (the "CONSUMER
                         PRODUCTS");

         WHEREAS         Da Vinci and Creamer wish to assign the rights to the
                         Consumer Products and assign such provisional patents
                         to Milestone and Milestone wishes to assume such
                         provisional patents and obtain such rights to the
                         Consumer Products from Da Vinci and Creamer;

         WHEREAS         Milestone wishes to retain consulting services from
                         DaVinci in connection with the research and
                         development, manufacturing, marketing and sale of the
                         Products the Consumer Products and DaVinci wishes to
                         provide such consulting services to Milestone;

         WHEREAS         Da Vinci wishes to sell to Milestone all of its usable
                         inventory of parts for the Products (the "INVENTORY")
                         as well as certain molds used to manufacture some of
                         the Products and Milestone wishes to purchase such
                         Inventory and molds; and

                                      -1-
<PAGE>

         WHEREAS         Milestone wishes that Da Vinci, for a limited period of
                         time, will be responsible for the assembly and supply
                         to Milestone of finished Products and Consumer Products
                         and Da Vinci wishes to do so.

         NOW, THEREFORE, for and in consideration of the mutual promises,
covenants, and promises contained herein, and other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

                        1. Exclusive License to Products

1.1  Creamer hereby grants to Milestone the exclusive right, including as to Da
     Vinci and Creamer, to use U.S. Patent 6,102,696, registered jointly under
     his name and the name of J. Martin Osterwalder which copy is annexed to
     this Agreement as Schedule 1.1 (the "Patent") and any other rights he has
     to the Products and the Professional Products, for the life of such patent,
     commencing on the date of this Agreement (the "License Term"), for the
     manufacture, marketing, distribution and sale of the Products and the
     Professional Products in the U.S. and such other jurisdictions as Milestone
     determines .

     Creamer hereby represents that he has an exclusive license granted to him
     by Mr. Osterwalder, to make, market and sell certain products under the
     Patent, including the Products and the Professional Products, which copy of
     such license is annexed to this Agreement as Schedule 1.2 and that he has
     good and marketable title to this patent, free and clear of any liens or
     encumbrances.

1.2  Milestone shall pay to Creamer:

         (a) a royalty equal to 2.5% of the net sales of the Products included
         in Schedule 1.2.A ["Gun" style] that are covered under the Patent
         except that on sales made to existing customers of Da Vinci, whose name
         appears on the list attached hereto as Schedule 1.2.B, the royalty will
         be in the rate of 20% of net sales.

         (b) a royalty equal to 7% of the net sales of the Products included in
         Schedule 1.2.C [Consumer and Professional Bleaching Kits, collectively
         "Bleaching Kits"]

         (c) The foregoing royalty payments shall be paid on a monthly basis
         within 20 days from the end of each month.

1.3  For purposes of this section "Net Sales" shall mean gross sales less
     discounts, returns and allowances.

                                      -2-
<PAGE>

1.4  The parties agree that in the event of Creamer's death before the end of
     the License Term, Milestone shall continue to pay royalty directly to his
     wife, Mrs. Rosanna Creamer.

1.5  Milestone shall have the right to use its own trademarks and brand names on
     the Products and any ancillary products designed for use along with the
     Products.

           2. Assignment of patent applications for Consumer Products

2.1  Creamer hereby assigns to Milestone any and all rights, including his
     provisional patent applications for (i) Intra Oral Whitening Light and
     Photo Sensitive Whitening Formula; (ii) Whitening Tablet and Rinse; and
     (iii) Method and Composition for Whitening Teeth, which copies of such
     applications are annexed to this Agreement in Schedules 2.1.A, 2.1.B and
     2.1.C, respectively. Da Vinci and Creamer hereby represent that they have
     good and marketable title to these patent applications, free and clear of
     any liens or encumbrances and that no other party has rights to these
     patents.

2.2  Creamer shall fully cooperate in the preparation and filing of
     non-provisional and foreign applications for the abovementioned provisional
     applications and in the assignment of these patent applications to
     Milestone, including executing any and all necessary documents.

                             3. Consulting Services

3.1  Engagement. Milestone hereby engages Da Vinci to make Creamer available to
     Milestone on a full time basis to render the consulting services, through
     Creamer, specified herein, and Da Vinci accepts engagement by Milestone to
     render certain consulting services on the terms and conditions set forth
     herein.

3.2  Services. For a term of one year commencing on the date hereof and
     terminating on the one year anniversary of the date hereof (the "Consulting
     Term"), Da Vinci shall perform the following services ("Services") for
     Milestone:

               A. Da Vinci shall assist Milestone in the orderly transfer of the
                  Inventory and the rights for the Consumer Products from Da
                  Vinci to Milestone;

               B. Da Vinci shall assist Milestone in responding to inquiries
                  from customers of Milestone;

               C. Da Vinci shall train employees of Milestone relative to the
                  use of the Products, the Professional Products and the
                  Consumer Products; and

               D. Da Vinci shall perform such other duties, as Milestone shall
                  reasonably deem in the best interest of Milestone, including,
                  without limitation, participating in trade shows and assisting
                  with research and development of the Products, the
                  Professional Products and the Consumer Products.

                                      -3-
<PAGE>

3.3  Compensation. For the Services rendered by Da Vinci pursuant to this
     Agreement, Milestone shall pay to Da Vinci the sum of One Hundred Thousand
     and 00/100 Dollars ($100,000.00), which sum shall be payable in twelve (12)
     equal monthly installments in the amount of Eight Thousand Three Hundred
     and 33/100 Dollars ($8,333.33) each. The first (1st) installment shall be
     due and payable by the Milestone to Da Vinci upon the execution of this
     Agreement and payment for the following months shall be due and payable on
     the last day of each month through and including May, 2005.

3.4  Representations and Warranties. Da Vinci and/or Creamer hereby covenants,
     warrants and represents, which covenants, warranties and representations
     shall be continuing covenants, warranties and representations, as follows:

               A. Da Vinci's Chief Executive Officer, Alan Creamer, shall devote
                  his full work time, knowledge and skills to perform the
                  Services to Milestone under this Agreement;

               B. Da Vinci and/or Creamer shall be responsible for the
                  withholding and payment of any and all state and federal
                  income taxes, FICA or social security taxes, and FUTA or
                  unemployment taxes applicable under federal, state or local
                  laws;

               C. There is no circumstance, action, proceeding or investigation
                  pending or threatened against Da Vinci and/or Creamer nor any
                  term or provision of any agreement, instrument, judgment,
                  decree, order, statute, rule or regulation which prevents or
                  interferes with or limits adversely its entering into this
                  Agreement or the validity of this Agreement or carrying out
                  the terms hereof;

               D. Da Vinci and/or Creamer agree that any and all information
                  pertaining to Milestone, the Products, the Consumer Products
                  and the Inventory, including but not limited to any trade
                  secrets, customer lists, computer programs, methods of
                  operation, pricing information and other confidential
                  information, are the sole property of Milestone. Such
                  information shall be deemed confidential whether obtained by
                  Da Vinci and/or Creamer by reason of Da Vinci's engagement
                  with Milestone or before or during the term of this Agreement.
                  Da Vinci and/or Creamer shall not without the prior written
                  consent of Milestone, use for its or his own benefit or in any
                  way adverse to the interests of Milestone, or disclose,
                  directly or indirectly, in any fashion or manner whatsoever,
                  either during the term of this Agreement or at any time
                  thereafter, any trade secret or other confidential information
                  relative to Milestone, the Products, the Professional
                  Products, the Consumer Products and the Inventory. Da Vinci
                  and/or Creamer shall not, without the prior written consent of
                  Milestone, take or retain or copy any trade secrets or other
                  confidential information.

                                      -4-
<PAGE>

3.5   Termination. The Consulting Term may terminate earlier than contemplated
      in section 3.2 above, commencing two weeks from receipt of written notice
      from either party notifying the other party of its material breach of the
      terms of the provisions of this section 3 to this Agreement and in the
      event the breaching party had not cured such breach during this two week
      period. In the event the Consulting Term is terminated due to a material
      breach on behalf of Milestone, the entire unpaid compensation owed by
      Milestone to Da Vinci pursuant to Paragraph 3.3 hereof shall continue to
      be payable according to the same monthly schedule. In any other event of
      early termination, no additional payments shall be due to Da Vinci
      following the termination date.

3.6   Relationship of Parties. The relationship of the parties herein shall be
      that of principal and independent contractor and not that of employer and
      employee. Nothing contained in this Agreement shall be deemed or construed
      to create a partnership, tenancy-in-common, joint tenancy, joint venture,
      co-ownership or other similar relationship by or between Milestone and Da
      Vinci. Da Vinci shall have full power and authority to select the means,
      manner, method and sequence of performing the services hereunder.

3.7   Non-Assignability. Milestone and Da Vinci acknowledge and agree that Da
      Vinci shall perform the Services only through its Chief Executive Officer,
      Alan Creamer, and will not have the right to assign its obligation to
      perform the Services to any other employee or agent on its behalf.

                         4. Sale of Inventory and Molds

4.1   Da Vinci will sell and transfer to Milestone and Milestone will purchase
      from Da Vinci its entire usable inventory of parts of the Products, as set
      forth on Schedule 4.1. ("Transferred Inventory"). Da Vinci hereby
      represents and warrants to Milestone that it is the sole legal and
      beneficial owner of all of the Transferred Inventory and that such assets
      are owned free and clear of all liens, mortgages, pledges and other
      security interests and that it has the full legal and corporate power and
      authority to transfer such assets to Milestone in accordance with the
      terms hereof. The purchase price for the Transferred Inventory shall be
      $94,897.59 and shall be payable in cash within 5 days following execution
      of this Agreement.

4.2   Da Vinci will sell to Milestone and Milestone will purchase from Da Vinci
      the molds associated with the production of the "Gun Style" Cool Blue
      products ("Molds"), as set forth on Schedule 4.2. Da Vinci hereby
      represents and warrants to Milestone that it is the sole legal and
      beneficial owner of the Molds and that they are owned free and clear of
      all liens, mortgages, pledges and other security interests and that it has
      the full legal and corporate power and authority to transfer such Molds to
      Milestone in accordance with the terms hereof. The purchase price for the
      Molds shall be determined by dividing the original purchase price of each
      mold by the number of applications it was designed to perform and
      multiplying the quotient by the number of applications remaining to be
      made using such mold. The number of applications remaining to be made will
      be the number of applications the mold was designed to perform less the
      number of applications made to that date using that mold. The purchase
      price for the Molds, as will be agreed by the parties using the above
      described formula will be paid in twelve equal monthly installments
      commencing 15 days from final inspection and validation of the Molds by
      Milestone, to be performed no later than August 1, 2004. Upon payment of
      the first installment, the parties will execute a bill of sale reflecting
      the passage of ownership in the Molds to Milestone.

                                      -5-
<PAGE>

                    5. Assembly and Supply of Finished Goods

5.1   Da Vinci shall continue to assemble and supply finished Products to
      Milestone pursuant to purchase orders received from Milestone, at a
      manufacturing price per unit as set forth in schedule 5.1. DaVinci shall
      use parts owned and inventoried by Milestone for such Products. DaVinci
      will have access to Milestone's warehouse and will independently obtain
      the necessary parts to fulfill each purchase order. Da Vinci will provide
      to Milestone, no later than the 7th day of each month, a detailed list and
      count of all of the parts obtained by it from Milestone's warehouse for
      use in fulfilling Milestone's purchase orders in the previous month. All
      orders will be filled and shipped to Milestone or directly to the
      customer, per Milestone's instructions, within 30 days from receipt of a
      purchase order and a 50% deposit. The remaining balance is to be paid net
      30 days F.O.B. manufacturer.

5.2   Da Vinci represents and warrants that all Products produced and assembled
      by it shall comply with all federal, state, and local laws, rules and
      regulations and shall be produced in accordance with the FDA's GMP
      standards and comparable regulations of the European Community. Da Vinci
      further represents that and warrants that all Products produced by it
      shall be of merchantable quality and free from defects. Da Vinci shall
      keep its manufacturing and packaging records and data for the Products in
      accordance with GMP standards and Milestone will have access to such
      information upon reasonable notice during business hours and will be
      entitled to make copies at its own cost.

5.3   Da Vinci shall defend Milestone and hold it harmless against all damages,
      claims, costs and expenses (including reasonable attorney's fees) arising
      out of or resulting from any product liability claims relating to Products
      produced by it. This obligation for indemnification shall be contingent
      upon Milestone giving Da Vinci timely notice of any claim or loss. Da
      Vinci shall carry and keep in force as long as it manufactures and
      supplies products to Milestone, a Comprehensive General Liability
      Insurance, including Products Liability combined single limit in the
      amount of $2,000,000, naming Milestone as an additional insured party.

                                      -6-
<PAGE>

5.4   Milestone may transfer the assembly, manufacturing and supply of some or
      all of these Products to a different supplier, upon 60 days prior written
      notice to Da Vinci.

                       6. Non-Compete and Non Solicitation

6.1   The covenants set forth in Paragraph 6.2 and 6.3 are reasonably necessary
      for the protection of the interest of Milestone, and are not unreasonably
      restrictive upon the rights of Da Vinci or Creamer.

6.2   Covenant Not to Compete. Da Vinci and Creamer agree, as a material part of
      the consideration of Milestone to enter into this Agreement, that it shall
      not, without the prior written consent of Milestone, for a period of time
      commencing on the date hereof, and ending three (3) years following the
      date hereof, engage, either directly or indirectly, including but not
      limited to as a partner, owner, proprietor, shareholder, employee, officer
      or contractor in the business of manufacturing, marketing, distributing
      and selling light emitting devices for curing of dental repair amalgams,
      trans-illumination of teeth and activation of gels and pastes and
      consumables for use in connection therewith worldwide (or such smaller
      area and on such terms as a court of competent jurisdiction shall deemed
      permissible in order to give effect to this Paragraph 6.2). In addition,
      Da Vinci and Creamer agree that for a period of time commencing on the
      date hereof and ending three (3) years following the date hereof, Da Vinci
      and Creamer shall not solicit or assist in the solicitation of any of the
      clients of Milestone for the purpose of providing services similar or
      identical to those provided by Milestone, or discouraging the engagement
      of Milestone by any clients with respect to future services. Da Vinci,
      Creamer and Milestone acknowledge and agree that any damages sustained or
      to be sustained by Milestone as a result of any breach or intended breach
      of this Paragraph 6.2 by Da Vinci or Creamer shall be extremely difficult
      to ascertain, and therefore agree that Milestone shall have the right, in
      addition to any right of damages or other relief, to enjoin, or to obtain
      other appropriate equitable relief to prevent or stop, any breach or
      intended breach of this Paragraph 6.2 by Da Vinci or Creamer. Milestone,
      Da Vinci and Creamer acknowledge and agree that this Paragraph shall
      survive termination of this Agreement.

6.3   Non-Solicitation of Employees. Da Vinci and Creamer agree that for a
      period of time commencing on the date hereof and ending three (3) years
      following any termination of this Agreement, Da Vinci and/or Creamer shall
      not individually or as a partner, owner, proprietor, shareholder,
      employee, officer, contractor or agent, either directly or indirectly,
      hire, solicit or otherwise encourage or entice to leave their employment
      with Milestone, any employee of Milestone. Milestone, Da Vinci and Creamer
      acknowledge and agree that this Paragraph shall survive termination of
      this Agreement.

                                      -7-
<PAGE>

                              7. Grant of Options

      Subject to Milestone's board approval, Milestone shall grant a 5-year
      option to Creamer to purchase 8,000 shares of its common stock at a price
      determined by the Board of Directors. The options shall vest according to
      the company's policy as to options granted to non-employees.

                                8. Miscellaneous

8.1   Entire Agreement. This Agreement embodies the entire agreement of the
      parties and all prior agreements or understanding regarding the subject
      matter hereof are hereby superseded. The parties hereto covenant and agree
      that neither party hereto shall record this Agreement or make this
      Agreement a matter of public record without the prior written consent of
      the other party.

8.2   Amendment. No promise, representation, warranty or agreement made
      subsequent to the execution and delivery hereof by either party hereto,
      and no revocations, partial or otherwise, change, amendment, addition,
      alteration or modification of this Agreement shall be valid unless the
      same shall be in writing signed by all the parties hereto or by their duly
      authorized agent.

8.3   Notices. Any and all notice or demands by one party to the other shall be
      in writing. Such notices shall be served either personally, by certified
      mail or by telephone facsimile transmission. If served personally, notice
      shall be conclusively deemed given at the time of receipt. If served by
      certified mail, notice shall be conclusively deemed given forty-eight (48)
      hours after deposit thereof in the United States mail, postage prepaid,
      addressed to the party to whom such notice or demand is to be given as
      hereinafter provided. If served by telephonic facsimile transmission,
      notice shall be conclusively deemed given at the time of receipt. Any
      notice or demand to may be given to each respective party at the following
      addresses, or at such other address as the parties may designate in
      writing by notice to the other party from time to time.

                  Da Vinci:                 Da Vinci Systems, Inc.
                                            9885 Mesa Rim Road
                                            Suite 126
                                            San Diego, CA 92121
                                            Attn: Alan Creamer
                                                  President
                                            Telephone: (858) 45-6262
                                            Fax: (858) 462-6265

                  Alan Creamer              Alan Creamer
                                            16065 Via De Las Palmas
                                            San Diego, CA 92091

                                      -8-
<PAGE>

                  Milestone                 Milestone Scientific, Inc.
                                            220 South Orange Avenue
                                            Livingston, New Jersey 07039
                                            Attn:  Stuart Wildhorn
                                            Telephone: (973) 535-2717
                                            Fax: (973) 535-2829

                  With copy to:             Stephen A. Zelnick, Esq.
                                            Morse, Zelnick, Rose & Lander, LP
                                            405 Park Avenue, Suite 1401
                                            New York, New York 10022
                                            Telephone: (212) 838-8040
                                            Fax: (212) 838-9190

8.4   Successors and Assigns. This Agreement, to the extent assignable, shall be
      binding upon and inure to the benefit of the parties hereto and their
      respective successors and assigns.

8.5   Invalidity. Wherever possible, each provision of this Agreement shall be
      interpreted in such manner as to be valid under applicable law, but if any
      provision of this Agreement shall be invalid or prohibited hereunder, such
      provision of this Agreement shall be ineffective to the extent of such
      invalidation or prohibition, but shall not invalidate the remainder of
      such provision or the remaining provisions of this Agreement.

8.6   Waiver. No failure on the part of any party hereto to exercise any right
      or remedy hereunder shall operate as a waiver thereof; nor shall any
      single or partial exercise of any right or remedy hereunder preclude any
      other or further exercise thereof or the exercise of any right or remedy
      granted hereby or by law.

8.7   Controlling Law. This Agreement shall be construed and interpreted under,
      and governed and enforced according to the laws of the State of New
      Jersey.

8.8   Headings. The headings used herein are for the convenience and reference
      of the parties hereto and are not intended to define, limit or describe
      the scope or intent of any provision of this Agreement.

8.9   Representation by Counsel. Each of the parties has been represented by or
      has had the opportunity to be represented by legal counsel of his or its
      own choice. This Agreement had been negotiated among them and if there is
      any ambiguity, no presumption concerning this Agreement against a party
      shall be imposed because this Agreement was prepared by counsel for the
      party.

                                      -9-
<PAGE>

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above written.

DA VINCI:                                     MILESTONE:

DA VINCI SYSTEMS, INC., a California          MILESTONE SCIENTIFIC, INC., a
corporation                                   Delaware corporation

By: /s/ Alan Creamer                          By: /s/ Stuart Wildhorn
    --------------------------------              ------------------------------
      Alan Creamer, President                      Stuart Wildhorn, President

/s/ Alan Creamer
-----------------------------------

ALAN CREAMER

                                      -10-
<PAGE>

                                    EXHIBIT 1

                                    PRODUCTS

CoolBlue(TM) Wand Dental Diode Lighting System (Creamer/Osterwald Patent)

Trans-illuminating Tip

Tacking Tip

Whitening Tip

Amber Shield

Barrier Sheath

                                      -11-
<PAGE>

                                    EXHIBIT 2

                     PROFESSIONAL DENTAL WHITENING PRODUCTS

Whitening Gel (35 - 47%)

Whitening Gel Accelerator

Whitening Rinse

Whitening Rinse Accelerator

                                      -12-
<PAGE>

                                    EXHIBIT 3

                  CONSUMER PRODUCTS (PROVISIONAL PATENTS FILED)

CoolBlue(TM) Wand Consumer Light

Whitening Gel (3 - 5%)

Whitening Gel Accelerator

Whitening Rinse

Whitening Rinse Accelerator

                                      -13-
<PAGE>

                                  SCHEDULE 1.1

APPARATUS FOR CURING RESIN IN DENTISTRY - U.S. PATENT 6,102,696

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

UNITED STATES PATENT                                                  6,102,696
OSTERWALDER , ET AL.                                            AUGUST 15, 2000

--------------------------------------------------------------------------------
Apparatus for curing resin in dentistry

                                    ABSTRACT

A self contained light source for curing light initiated resins used to coat
teeth as veneers and fill cavities and chips in teeth in aesthetic or
restorative procedures. The source includes an elongated container holding a
battery and electronic compartment at one end and a light emitting window at the
other. A plurality of closely space light emitters, typically light emitting
diodes or laser diodes, are arrayed to direct light to a common focal point. The
light is directed out of the container toward a tooth bearing the resin to be
cured to a hard, stable state. The light emitters produce light in a region of
the spectrum to which the resin curing initiators is sensitive, typically blue
light. The light emitters are preferably mounted on concave edged printed
circuit so that they are all oriented inwardly toward the focal point.
Microlenses may be used with each light emitter to further concentrate light
toward the focal point. Preferably, a light transparent barrier sleeve is placed
over the light emitting end of the container and replaced between patients.
--------------------------------------------------------------------------------

Inventors: OSTERWALDER; J. MARTIN (2119 Via Tiempo, Cardiff, CA 92007); CREAMER;
           ALAN AUSTIN (16065 Via De Las Palmas, San Diego, CA 92091)

Appl. No.: 302526

Filed: APRIL 30, 1999

CURRENT U.S. CLASS:                                             433/29; 433/229

INTERN'L CLASS:                                                     A61C 003/00

FIELD OF SEARCH:                                     433/29,215,229 362/120,119

--------------------------------------------------------------------------------
                        REFERENCES CITED [REFERENCED BY]
--------------------------------------------------------------------------------
                              U.S. PATENT DOCUMENTS

5328368              Jul., 1994            Lansing et al.              433/116.

5634711              Jun., 1997            Kennedy et al.              362/119.

Primary Examiner: Wilson; John J.
Assistant Examiner: Bumgarner; Melba
Attorney, Agent or Firm: Gilliam; Frank D.
--------------------------------------------------------------------------------

                                      -14-
<PAGE>

                   SCHEDULE 1.2 (EXCLUSIVE LICENSE AGREEMENT)

                                      -15-
<PAGE>

                            SCHEDULE 1.2A (GUN STYLE)

COOLBLUE WAND DENTAL DIODE LIGHTING SYSTEM

Part numbers:

Part numbers:

CB11-001    CoolBlue Curing Light, 100V
CB11-002    CoolBlue Trans-illumination Light, 100V
CB11-003    CoolBlue Tacking Light, 100V
CB11-004    CoolBlue Whitening Tip, 100V
CB12-001    CoolBlue Curing Light, 220V
CB12-002    CoolBlue Trans-illumination Light, 220V
CB12-003    CoolBlue Tacking Tip, 220V
CB12-004    CoolBlue Whitening Tip, 220V

Accessories:

CB00-001    Curing Tip
CB00-002    Trans-illumination Tip
CB00-003    Tacking Tip
CB00-004    Whitening Tip
CB00-005    Amber Shield
CB00-006    Barrier Sheaths

                                      -16-
<PAGE>

                                 SCHEDULE 1.2.B

      DA VINCI'S EXISTING CUSTOMERS OF PRODUCTS INCLUDED IN SCHEDULE 1.2.A

American Dental Systems GMBH.
Prodentec, Professional Dental Technologies, Inc.
Advance Dental
DC DENTAL
DR. CARR
DMD Australia
DMD UK

                                      -17-
<PAGE>

                         SCHEDULE 1.2.C (BLEACHING KITS)

Consumer Light Kit
Consumer Maintenance Kit
Professional Dental Kit
Patient Take Home Kit

                                      -18-
<PAGE>

                                 SCHEDULE 2.1.A

PROVISIONAL PATENT APPLICATION 60/499,692 - INTRA ORAL WHITENING LIGHT AND PHOTO
SENSITIVE WHITENING FORMULA

                                      -19-
<PAGE>

SCHEDULE 2.1.B

PROVISIONAL PATENT APPLICATION 60/505,196 - WHITENING TABLET AND RINSE

                                      -20-
<PAGE>

SCHEDULE 2.1.C

PROVISIONAL PATENT APPLICATION 60/498,990 - METHOD AND COMPOSITION FOR WHITENING
TEETH.

                                      -21-
<PAGE>

SCHEDULE 4.1

                   TRANSFERRED INVENTORY (AS OF JUNE 1, 2004)

<TABLE>
<CAPTION>
DESCRIPTION                      VENDOR                   WHERE USED                           QOH
<S>                              <C>                      <C>                                 <C>
Power Supply                     Jerome Industries        CoolBlue                            2,448
Charger Boards, components       Velleman                 CoolBlue                            1,600
Charger Boards, Complete         Velleman                 CoolBlue                              630
Batteries, 4.8 V                 House of Batteries       Toothbrush, 3 Watt CoolBlue         1,065
LED, Blue                        Nichia America Corp      CoolBlue                              500
LED, Green                       Nichia America Corp      CoolBlue                              500
PCB, Timer                                                CoolBlue                            1,000
Foam Insert, Packaging           Kent H. Landsberg        CoolBlue                            1,322
Box, Packaging                   Kent H. Landsberg        CoolBlue                            1,414
Labels                                                    CoolBlue                              950
Molded handpiece, Right          Enstrom Corporation      CoolBlue                            1,000
Molded handpiece, Left           Enstrom Corporation      CoolBlue                            1,000
Molded Charger Base, Top         Enstrom Corporation      CoolBlue                            1,000
Molded Charger Base, Bottom      Enstrom Corporation      CoolBlue                            1,000
Rubber handpiece button set      Enstrom Corporation      CoolBlue                            1,440
Button Support (metal)           Enstrom Corporation      CoolBlue                            2,000
Shell Back, Single LED           Vinatech                 CoolBlue                              903
Shaft, Single LED                Vinatech                 CoolBlue                            1,366
LED Holder, Single LED           Vinatech                 CoolBlue                            1,000
Shell Back, Curing               Vinatech                 CoolBlue                            1,300
LED Holder, Curing               Vinatech                 CoolBlue                            1,319
MilSpec RCA Connector                                     CoolBlue                              250
Gold Pins                                                 CoolBlue                            2,000
Gold Pins, Spring                                         CoolBlue                            2,000

<CAPTION>

DESCRIPTION                        COST            EXTENDED COST            NET COST
<S>                             <C>              <C>                   <C>
Power Supply                    $   14.86        $    36,377.28        $   30,193.14
Charger Boards, components      $    5.50        $     8,800.00        $    7,304.00
Charger Boards, Complete        $   10.00        $     6,300.00        $    5,229.00
Batteries, 4.8 V                $    8.79        $     9,361.35        $    7,769.92
LED, Blue                       $    2.40        $     1,200.00        $      996.00
LED, Green                      $    1.80        $       900.00        $      747.00
PCB, Timer                      $   23.04        $    23,040.00        $   19,123.20
Foam Insert, Packaging          $    2.50        $     3,305.00        $    2,743.15
Box, Packaging                  $    0.54        $       763.56        $      633.75
Labels                          $    0.26        $       247.00        $      205.01
Molded handpiece, Right         $    1.81        $     1,810.00        $    1,502.30
Molded handpiece, Left          $    1.81        $     1,810.00        $    1,502.30
Molded Charger Base, Top        $    2.22        $     2,220.00        $    1,842.60
Molded Charger Base, Bottom     $    2.22        $     2,220.00        $    1,842.60
Rubber handpiece button set     $    0.74        $     1,065.60        $      884.45
Button Support (metal)          $    0.85        $     1,700.00        $    1,411.00
Shell Back, Single LED          $    2.20        $     1,986.60        $    1,648.88
Shaft, Single LED               $    0.80        $     1,092.80        $      907.02
LED Holder, Single LED          $    1.00        $     1,000.00        $      830.00
Shell Back, Curing              $    2.20        $     2,860.00        $    2,373.80
LED Holder, Curing              $    2.66        $     3,508.54        $    2,912.09
MilSpec RCA Connector           $    1.25        $       312.50        $      259.38
Gold Pins                       $    0.60        $     1,200.00        $      996.00
Gold Pins, Spring               $    0.60        $     1,200.00        $      996.00

                                Totals:          $   114,280.23        $   94,897.59
                                ====================================================
</TABLE>

                                      -22-
<PAGE>

                                  SCHEDULE 4.2

                                TRANSFERRED MOLDS

TYPE OF MOLD             ORIGINAL PURCHASE PRICE

HANDSET                           $28,985

CHARGER BASE                      $22,750

RUBBER PARTS                      $12,245

                                      -23-
<PAGE>

                                  SCHEDULE 5.1

                              MANUFACTURING PRICES

Product Description                                         Manufacturing Price

CoolBlue Curing Light, 110/220V                                   $70.00
CoolBlue, Trans-illumination Light, 110/220V                      $65.00
CoolBlue, Tacking Light, 110/220V                                 $65.00
CoolBlue, Whitening Light, 110/220V                               $70.00
Curing Tip                                                        $40.00
Tacking Tip                                                       $35.00
Trans-illumination                                                $35.00
Whitening Tip                                                     $40.00

                                      -24-

<PAGE>

                           [MILESTONE SCIENTIFIC LOGO]

March 18, 2004

Mr. Alan A. Creamer
16065 Viadelas Palmas
Rancho Santa Fe, CA 92091

Dear Alan:

It is with great pleasure that I extend an offer to join the Milestone
Scientific team as Business Unit Manager, Diode Lighting Systems. In this new
capacity, you will be responsible for the growth of this extremely important
segment of our business. The opportunity is multi-functional, which will provide
an extremely dynamic opportunity. We are all very excited about you joining our
team. The specifics of the offer are attached.

The timing of the offer is contingent on our agreement regarding the purchase of
the usable inventory. I am planning on reviewing this with you and taking a
physical count the week of March 29th. Once Milestone owns the usable inventory,
we will begin purchasing the components necessary to build the CoolBlue Wand,
the "toothbrush" model as well as accessories. We must still agree on the final
cost of the units to Milestone following these transactions.

Alan, I realize that this is a big step for both or us; however, I am confident
that both you and Milestone will derive mutual benefit. If you are in agreement
with terms outlined on the attached offer, please sign in the appropriate
section and let's get going!

Sincerely,

/s/ Stuart J. Wildhorn

Stuart J. Wildhorn
President

-------------------------------------------------------------------------------
        220 South Orange Avenue, Livingston, NJ 07039 o Tel: 973.535.2717
                              o Fax: 973.535.2829
                                www.MileSci.com

<PAGE>

[MILESTONE SCIENTIFIC LOGO]                                         Page 2 of 2

                                EMPLOYMENT OFFER
                                ALAN A. CREAMER

TITLE:       Business Unit Manager, Diode Lighting Systems

REPORTS TO:  President, Milestone Scientific

SALARY:      $100,000 annually

Additional Compensation:

o   Milestone will pay 2.5% on global net sales of all CoolBlue(TM) Wand diode
    lighting products
o   Milestone will pay 20% on global net sales of the "toothbrush" model to
    existing customers
o   As per our earlier agreement, Milestone will pay 7% on net sales of all
    whitening products, including professional and consumer kits.

Benefits:
o   Healthcare for employee paid by company (Optional)
o   401 (k)
o   Holidays and vacation schedule as per company policy
o   Milestone will provide a phone for use
o   Milestone will provide a corporate credit card, with expenses paid per
    company policy.
o   Milestone will provide a voice mail box on the Livingston phone system and
    email access

Term:
o   Initial term of employment is 1 year and can be extended by mutual consent
o   Term for royalty payments is 10 years

Inventory:
o   Milestone Scientific will purchase the usable inventory, as determined by
    Milestone, from Da Vinci at a price to be determined
o   Milestone will be responsible for purchasing parts required for
    manufacturing on a forward looking basis

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

Agreed and Accepted:

/s/ Alan A. Creamer
------------------------------------
Alan A. Creamer

3-20-2004
------------------------------------
Date

-------------------------------------------------------------------------------
        220 South Orange Avenue, Livingston, NJ 07039 o Tel: 973.535.2717
                              o Fax: 973.535.2829
                                www.MileSci.com

<PAGE>

                                                            Milestone Scientific

MEMO

TO:       Kevin Lusardi

FROM:     Stu Wildhorn

CC:

DATE:    August 31, 2004

RE:      Da Vinci Mold Purchase

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

Kevin, as part of the agreement with Da Vinci and Alan Creamer, Milestone agreed
to purchase the molds for the CoolBlue Wand handset, charger base and rubber
parts. The agreement stipulated that the purchase price would be based on
dividing the original price of each mold by the number of applications it was
designed to perform and multiplying the quotient by the number of applications
remaining to be made for each mold.

I have attached a letter from the mold firm, Enstrom Mold and Engineering, Inc.,
that states they will guarantee the molds for as long as Milestone uses them, at
no charge, as long as they remain in their facility. I have also personally
inspected the molds and found them to be in perfect working order.

Based on the above and pursuant to Section 4.2, Sale of Inventory and Molds
(attached for your reference), please set up to pay Da Vinci the sum of
$63,980.00 in twelve equal payments of $5,331.67, commencing September 1st. Per
the agreement, once Da Vinci receives the initial payment, we will execute a
bill of sales reflecting the passage of ownership in the molds to Milestone.

Please let me know if you need any additional information.

Thank you

1

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