Document:

exv4w2

 

Exhibit 4.2

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS
AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 50 1(a) UNDER THE SECURITIES ACT.

COMMON STOCK PURCHASE WARRANT

To Purchase                      Shares of Common Stock of

NOVINT TECHNOLOGIES, INC.

     THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) CERTIFIES that, for value received,
                                         (the “Holder”), is entitled, upon the terms and subject to the limitations
on exercise and the conditions hereinafter set forth, at any time on or after                                         
(the “Initial Exercise Date”) and on or prior to the close of business on the fifth
anniversary of the issuance date of this Warrant (the “Termination Date”) but not
thereafter, to subscribe for and purchase from Novint Technologies, Inc., a corporation
incorporated in the State of Delaware (the “Company”), up to                                                     shares (the
“Warrant Shares”) of Common Stock, par value $0.01 per share, of the Company (the
“Common Stock”). The purchase price of one share of Common Stock (the “Exercise
Price”) under this Warrant shall be $2.00 subject to adjustment hereunder. The Exercise Price
and the number of common shares for which the Warrant is exercisable (the “Warrant Shares”) shall
be subject to adjustment as provided herein. Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Subscription Agreement (the
“Subscription Agreement”) among the Company and the Holder.

     1. Title to Warrant. This Warrant and all rights hereunder are transferable, in whole
or in part, at the office or agency of the Company by the Holder in person or by duly authorized
attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly
endorsed. The transferee shall sign an investment letter in form and substance reasonably
satisfactory to the Company.

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     2. Authorization of Shares. The Company covenants that all Warrant Shares which may
be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise
of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid
and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such issue).

     3. Exercise of Warrant.

          (a) Exercise of the purchase rights represented by this Warrant may be made at any time or
times on or after the Initial Exercise Date and on or before the Termination Date by delivery to
the Company of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto (or
such other office or agency of the Company as it may designate by notice in writing to the
registered Holder at the address of such Holder appearing on the books of the Company); provided,
however, within 5 Trading Days of the date said Notice of Exercise is delivered to the Company, the
Holder shall have surrendered this Warrant to the Company and the Company shall have received
payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or
cashier’s check drawn on a United States bank. Certificates for shares purchased hereunder shall
be delivered to the Holder within 15 Trading Days from the delivery to the Company of the Notice of
Exercise Form by facsimile copy, surrender of this Warrant and payment of the aggregate Exercise
Price as set forth above. Notwithstanding anything contained in this Warrant to the contrary, the
Holder shall not have the right to exercise any portion of this Warrant, to the extent that after
giving effect to such exercise, the Holder (together with the Holder’s affiliates) would have
acquired, through exercise of the Warrant or otherwise, beneficial ownership of a number of shares
of Common Stock exceeding 9.99% of the number of shares of Common Stock outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by the Holder and its affiliates shall include the number of
shares of Common Stock issuable upon exercise of the Warrants with respect to which the
determination of such sentence is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (A) exercise of the remaining, non-exercised portion of this
Warrant beneficially owned by the Holder or any of its affiliates, and (B) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company (including,
without limitation, any other warrants) subject to a limitation on conversion or exercise analogous
to the limitation contained herein beneficially owned by the Holder or any of its affiliates.
Except as set forth in the preceding sentence, for purposes of this Section 3(a), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended. For purposes of this Section 3(a), in determining the number of outstanding
shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as
reflected in (1) the Company’s most recent Form 10-Q, Form 10-K or other public filing with the
Commission, as the case may be, if any, (2) a more recent public announcement by the Company, or
(3) any other notice by the Company or its transfer agent setting forth the number of shares of
Common Stock outstanding. Upon the written request of the Holder, the Company shall promptly, but
in no event later than 2 Trading Days following the receipt of such notice, confirm in writing to
any such holder the number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to the conversion or
exercise of securities of the Company, including the exercise of any

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portion of this Warrant, by the Holder or its affiliates since the date as of which such
number of outstanding shares of Common Stock was reported.

          (b) If this Warrant shall have been exercised in part, the Company shall, at the time of
delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new
Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by
this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

          (c) Subject to the provisions of this Section 3, if the Closing Price for each of any ten
consecutive Trading Days after the Effective Date (the “Measurement Price”) exceeds 150% of
the then Exercise Price (the “Threshold Price”), then the Company may call for cancellation
of all or any portion of this Warrant for which a Notice of Exercise has not yet been delivered
(such right, a “Call”). To exercise this right, the Company must deliver to the Holder an
irrevocable notice (a “Call Notice”) indicating therein the portion of unexercised portion
of this Warrant to which such notice applies. If the conditions set forth below for such Call are
satisfied from the period from the date of the Call Notice through and including the Call Date (as
defined below), then any portion of this Warrant subject to such Call Notice for which a Notice of
Exercise and, within 7 Trading Days after the Call Date, payment of the aggregate Exercise Price of
the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank
shall not have been received by the Company from and after the date of the Call Notice will be
cancelled at 6:30 p.m. (Los Angeles Time) on the 60th Trading Day after the date the Call Notice
is received by the Holder (such date, the “Call Date”). Any unexercised portion of this
Warrant to which the Call Notice does not pertain will be unaffected by such Call Notice. In
furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise
with respect to Warrant Shares subject to a Call Notice that are tendered from the time of delivery
of the Call Notice through 6:30 p.m. (Los Angeles Time) on the Call Date. The parties agree that
any Notice of Exercise delivered following a Call Notice shall first reduce to zero the number of
Warrant Shares subject to such Call Notice prior to reducing the remaining Warrant Shares available
for purchase under this Warrant. For example, if (x) this Warrant then permits the Holder to
acquire 100 Warrant Shares, (y) a Call Notice pertains to 75 Warrant Shares, and (z) prior to 6:30
p.m. (Los Angeles Time) on the Call Date the Holder tenders a Notice of Exercise in respect of 50
Warrant Shares, then (1) on the Call Date the right under this Warrant to acquire 25 Warrant Shares
will be automatically cancelled, (2) the Company, in the time and manner required under this
Warrant, will have issued and delivered to the Holder 50 Warrant Shares in respect of the exercises
following receipt of the Call Notice, and (3) the Holder may, until the Termination Date, exercise
this Warrant for 25 Warrant Shares (subject to adjustment as herein provided and subject to
subsequent Call Notices). Subject again to the provisions of this Section 3, the Company may
deliver subsequent Call Notices for any portion of this Warrant for which the Holder shall not have
delivered a Notice of Exercise. Notwithstanding anything to the contrary set forth in this
Warrant, the Company may not deliver a Call Notice or require the cancellation of this Warrant (and
any Call Notice will be void), unless, from the beginning of the 10 consecutive Trading Days used
to determine whether the Common Stock has achieved the Threshold Price and Threshold Volume through
the Call Date, (i) the Company shall have honored in accordance with the terms of this Warrant all
Notices of Exercise delivered by 6:30 p.m. (Los Angeles Time) on the Call Date, (ii) the
Registration Statement shall be effective as to all Warrant Shares and the prospectus thereunder
available for use by the Holder for the resale all such Warrant Shares and (iii) the Common Stock
shall be

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listed or quoted for trading on the Trading Market. Further, notwithstanding anything to the
contrary set forth in this Warrant, the Company shall not Call any portion of this Warrant to the
extent that the Holder would be unable to voluntarily exercise such portion of this Warrant in
advance of the Call Date with respect to such Call due to the restrictions on exercise set forth in
Section 3(a), without the Holder further effecting sales of Common Stock. The Holder agrees to
promptly furnish the Company, upon its request, with information regarding the Holder’s
then-current holdings of Common Stock in order to assist the Company in complying with the
foregoing sentence.

     4. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share
that Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a
cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

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

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

     7. Transfer, Division and Combination.

          (a) Subject to compliance with any applicable securities laws and the conditions set forth in
Sections 1 and 7(e) hereof, this Warrant and all rights hereunder are transferable, in whole or in
part, upon surrender of this Warrant at the principal office of the Company, together with a
written assignment of this Warrant substantially in the form attached hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the
making of such transfer. Upon such surrender and, if required, such payment, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the
denomination or denominations specified in such instrument of assignment, and shall issue to the
assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled. A Warrant, if properly assigned, may be exercised by a new holder for
the purchase of Warrant Shares without having a new Warrant issued.

          (b) This Warrant may be divided or combined with other Warrants upon presentation hereof at
the aforesaid office of the Company, together with a written notice specifying the names and
denominations in which new Warrants are to be issued, signed by the Holder or its agent or
attorney. Subject to compliance with Section 7(a), as to any transfer which

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may be involved in such division or combination, the Company shall execute and deliver a new
Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

          (c) The Company shall prepare, issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 7.

          (d) The Company agrees to maintain, at its aforesaid office, books for the registration and
the registration of transfer of the Warrants.

          (e) If, at the time of the surrender of this Warrant in connection with any transfer of this
Warrant, the transfer of this Warrant shall not be registered pursuant to an effective registration
statement under the Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of
this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which
opinion shall be in form, substance and scope customary for opinions of counsel in comparable
transactions and reasonably acceptable to the Company) to the effect that such transfer may be made
without registration under the Securities Act and under applicable state securities or blue sky
laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in
form and substance acceptable to the Company and (iii) that the transferee be an “accredited
investor” as defined in Rule 50 1(a) promulgated under the Securities Act.

     8. No Rights as Shareholder until Exercise. This Warrant does not entitle the Holder
to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof.
Upon the surrender of this Warrant and the payment of the aggregate Exercise Price (or by means of
a cashless exercise), the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner of such shares as of the close of business on the later of the date of
such surrender or payment.

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

     10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or
a legal holiday, then such action may be taken or such right may be exercised on the next
succeeding day not a Saturday, Sunday or legal holiday.

     11. Stock Splits. The number and kind of securities purchasable upon the exercise of
this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the
happening of any of the following. In case the Company shall (i) pay a dividend in shares of

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Common Stock or make a distribution in shares of Common Stock to holders of its outstanding
Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater number of
shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares of
Common Stock, or (iv) issue any shares of its capital stock in a reclassification of the Common
Stock, then the number of Warrant Shares purchasable upon exercise of this Warrant immediately
prior thereto shall be adjusted so that the Holder shall be entitled to receive the kind and number
of Warrant Shares or other securities of the Company which it would have owned or have been
entitled to receive had such Warrant been exercised in advance thereof Upon each such adjustment of
the kind and number of Warrant Shares or other securities of the Company which are purchasable
hereunder, the Holder shall thereafter be entitled to purchase the number of Warrant Shares or
other securities resulting from such adjustment at an Exercise Price per Warrant Share or other
security obtained by multiplying the Exercise Price in effect immediately prior to such adjustment
by the number of Warrant Shares purchasable pursuant hereto immediately prior to such adjustment
and dividing by the number of Warrant Shares or other securities of the Company resulting from such
adjustment. An adjustment made pursuant to this paragraph shall become effective immediately after
the effective date of such event retroactive to the record date, if any, for such event.

     12. Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets.
In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or
merge with or into another corporation (where the Company is not the surviving corporation or where
there is a change in or distribution with respect to the Common Stock of the Company), or sell,
transfer or otherwise dispose of its property, assets or business to another corporation and,
pursuant to the terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever (including warrants
or other subscription or purchase rights) in addition to or in lieu of common stock of the
successor or acquiring corporation (“Other Property”), are to be received by or distributed
to the holders of Common Stock of the Company, then the Holder shall have the right thereafter to
receive, at the option of the Holder, (a) upon exercise of this Warrant, the number of shares of
Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of the number of
shares of Common Stock for which this Warrant is exercisable immediately prior to such event or (b)
cash equal to the value of this Warrant as determined in accordance with the Black Scholes option
pricing formula. In case of any such reorganization, reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than the Company) shall
expressly assume the due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all the obligations and
liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in
good faith by resolution of the Board of Directors of the Company) in order to provide for
adjustments of Warrant Shares for which this Warrant is exercisable which shall be as nearly
equivalent as practicable to the adjustments provided for in this Section 12. For purposes of this
Section 12, “common stock of the successor or acquiring corporation” shall include stock of such
corporation of any class which is not preferred as to dividends or assets over any other class of
stock of such corporation and which is not subject to redemption and shall also include any
evidences of indebtedness, shares of stock or other securities which

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are convertible into or exchangeable for any such stock, either immediately or upon the
arrival of a specified date or the happening of a specified event and any warrants or other rights
to subscribe for or purchase any such stock. The foregoing provisions of this Section 12 shall
similarly apply to successive reorganizations, reclassifications, mergers, consolidations or
disposition of assets.

     13. Voluntary Adjustment by the Company. The Company may at any time during the term
of this Warrant reduce the then current Exercise Price to any amount and for any period of time
deemed appropriate by the Board of Directors of the Company.

     14. Notice of Adjustment. Whenever the number of Warrant Shares or number or kind of
securities or other property purchasable upon the exercise of this Warrant or the Exercise Price is
adjusted, as herein provided, the Company shall give notice thereof to the Holder, which notice
shall state the number of Warrant Shares (and other securities or property) purchasable upon the
exercise of this Warrant and the Exercise Price of such Warrant Shares (and other securities or
property) after such adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was made.

     15. Authorized Shares. The Company covenants that during the period the Warrant is
outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation, or of any requirements of the Trading Market
upon which the Common Stock may be listed.

     16. Miscellaneous.

          (a) Jurisdiction. All questions concerning the construction, validity, enforcement
and interpretation of this Warrant shall be determined in accordance with the provisions of the
Subscription Agreement between the Holder and the Company..

          (b) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the
exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

          (c) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise
any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise
prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate on
the Termination Date. If the Company willfully and knowingly fails to comply with any provision of
this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder
such amounts as shall be sufficient to cover any costs and expenses including, but not limited to,
reasonable attorneys’ fees, including those of appellate proceedings,

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incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any
of its rights, powers or remedies hereunder.

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

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

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

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

          (h) Amendment. This Warrant may be modified or amended or the provisions hereof
waived with the written consent of the Company and the Holder.

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

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

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

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     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized.

	 	 	 	 	 	 	 
	Dated:                                          , 2006	 	NOVINT TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Tom Anderson	 	 
	 

	 	 	 	Chief Executive Officer	 	 

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NOTICE OF EXERCISE

To: Novint Technologies, Inc.

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

     (2) Payment shall take the form of lawful money of the United States.

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

 

The Warrant Shares shall be delivered to the following:

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

     (4) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation
D promulgated under the Securities Act of 1933, as amended.

	 	 	 	 	 
	Dated:                                          , 2005	 	NOVINT TECHNOLOGIES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	Dated:	 	 
	 

	 	 	 	 

 

 

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned
to

	 	 	 	 	 	 	 
	 

	 	 	 	whose	 	 
	 	 	 	 	 
	address is
	 	 	 	 	 	,
	 	 	 
	 
	 	 	 	 	 	 
	 

Dated:                                        ,                     

	 	 	 	 	 
	 

	 	Holder’s Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Holder’s Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Signature Guaranteed:                                                                                

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign the foregoing
Warrant.exv10w39

 

Exhibit 10.39

SUBSCRIPTION AGREEMENT

Novint Technologies, Inc.

(a Delaware corporation)

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SUBSCRIPTION PROCEDURE

To Subscribe for Common Stock and Warrants of Novint Technologies, Inc. :

	1.	 	Date and Fill In the amount of Common Stock and Warrants being subscribed to and Complete
and Sign the Subscription Agreement on the applicable Signature Page.

	2.	 	Fax the signed Agreement to, and send all signed originals to and form of payment to:

Novint Technologies

Attn: Tom Anderson, CEO

4109 Bryan Ave NW

Albuquerque, NM 87114

Phone: 505-463-1469

Fax: 866-298-4420

	3.	 	Please make your subscription payment payable to the order of “Novint Technologies, Inc.”

	4.	 	Wire Transfer Coordinates, if paying by wire transfer:

Wells Fargo Bank, NM

routing number: 107002192

account number: 1350427032

account name: Novint Technologies, Inc.

Thank you for your interest.

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Novint Technologies, Inc.

SUBSCRIPTION AGREEMENT

     The undersigned (hereinafter “Subscriber”) hereby confirms his/her/its subscription for the
purchase of Common Stock, $0.01 par value, and warrants to purchase Common Stock (the “Warrants”)
of Novint Technologies, Inc., a Delaware corporation (the “Company”), on the terms described below.
        .

     The Common Stock and the Warrants, and the common shares issuable upon exercise of the
Warrants are sometimes referred to collectively herein as the “Securities.”

In connection with this subscription, Subscriber and the Company agree as follows:

1. Purchase and Sale of the Common Stock and Warrants.

     (a) The Company hereby agrees to issue and to sell to Subscriber, and Subscriber hereby agrees
to purchase from the Company, Common Stock, and Warrants to purchase Common Stock in amount set
forth on the signature page to this Agreement. The Subscriber understands that this subscription
is not binding upon the Company until the Company accepts it. The Subscriber acknowledges and
understands that acceptance of this Subscription will be made only by a duly authorized
representative of the Company executing and mailing or otherwise delivering to the Subscriber at
the Subscriber’s address set forth herein, a counterpart copy of the signature page to this
Subscription Agreement indicating the Company’s acceptance of this Subscription. The Company
reserves the right, in its sole discretion for any reason whatsoever, to accept or reject this
subscription in whole or in part. Following the acceptance of this Subscription Agreement by the
Company, the Company will promptly issue and deliver to Subscriber the Common Stock and Warrants
for the amount subscribed to against payment in U.S. Dollars of the Purchase Price (as defined
below). If this subscription is rejected, the Company and the Subscriber shall thereafter have no
further rights or obligations to each other under or in connection with this Subscription
Agreement. If this subscription is not accepted by the Company on or before the last day of the
Offering Period, this subscription shall be deemed rejected.

     (b) Subscriber has hereby delivered and paid concurrently herewith the aggregate purchase
price for the Common Stock and Warrants set forth on the signature page hereof (the “Purchase
Price”), which amount has been paid in U.S. Dollars by wire transfer or check, subject to
collection, to the order of “Novint Technologies, Inc.”

     (c) The Common Stock offered hereby is sold at a price per share of $1.00 (the “Purchase Price
Per Share”). The corresponding Warrants are sold, based on the aggregate subscription amount, to
equal 50% coverage of the subscription amount. Such Warrants shall have an exercise price per share
of $2.00. By way of example only, if a subscription is made for $500,000, the Subscriber would
receive (i) 500,000 shares of Common Stock and (ii) a Warrant to purchase 250,000 shares at an
exercise price of $2.00 per share. The purchase price of the Common Stock hereunder is subject to
adjustment, as set forth below.

3

 

     (d) In the event, that after the date hereof, the Company shall complete an offering of
securities (an “Offering”) on or before April 1, 2007 which results in gross proceeds to the
Company of not less than $3,000,000, and if such Offering is conducted at a price per share of
Common Stock (or equivalent convertible securities) of $1.11 per share or less (the “Subsequent
Price”), then, in such event, the Purchase Price Per Share of Common Stock hereunder shall be
automatically adjusted to equal ninety percent (90%) of the Subsequent Price (the “Adjusted
Purchase Price Per Share”), and an additional number of shares of Common Stock shall be issued to
Subscriber as if the Purchase Price Per Share of Common Stock hereunder were such Adjusted Purchase
Price Per Share. Upon such event, the Company shall, and without further action on the part of
Subscriber, issue such additional shares of Common Stock to Subscriber as shall result from the
Adjusted Purchase Price Per Share. Such additional shares shall be issued and delivered to
Subscriber within fifteen (15) days following the consummation of the Offering.

2. Representations and Warranties of Subscriber. Subscriber represents and warrants to the
Company and the Placement Agent as follows:

     (a) Subscriber is an “accredited investor” as defined by Rule 501 under the Securities Act of
1933, as amended (the “Act”), and Subscriber is capable of evaluating the merits and risks of
Subscriber’s investment in the Securities and has the ability and capacity to protect Subscriber’s
interests.

     (b) Subscriber understands that the Securities are not presently registered, but Subscriber is
entitled to certain rights with respect to the registration of the Securities, as set forth herein.
Subscriber understands that the Securities will not be registered under the Act on the ground that
the issuance thereof is exempt under Section 4(2) of the Act as a transaction by an issuer not
involving any public offering and that, in the view of the Commission, the statutory basis for the
exception claimed would not be present if any of the representations and warranties of Subscriber
contained in this Subscription Agreement or those of other purchasers of the Securities are untrue
or, notwithstanding the Subscriber’s representations and warranties, the Subscriber currently has
in mind acquiring any of the Securities for resale upon the occurrence or non-occurrence of some
predetermined event.

     (c) Subscriber is purchasing the Securities subscribed for hereby for investment purposes and
not with a view to distribution or resale, nor with the intention of selling, transferring or
otherwise disposing of all or any part thereof for any particular price, or at any particular time,
or upon the happening of any particular event or circumstance, except selling, transferring, or
disposing the Securities made in full compliance with all applicable provisions of the Act, the
rules and regulations promulgated by the United States Securities and Exchange Commission (the
“SEC”) thereunder, and applicable state securities laws; and that an investment in the Securities
is not a liquid investment.

     (d) Subscriber acknowledges that the Securities must be held indefinitely unless subsequently
registered under the Act or unless an exemption from such registration is available. Subscriber is
aware of the provisions of Rule 144 promulgated under the Act which permit resales of common stock
purchased in a private placement subject to certain limitations and to

4

 

the satisfaction of certain conditions provided for thereunder, including, among other things, the
existence of a public market for the common stock, the availability of certain current public
information about the Company, the resale occurring not less than one year after a party has
purchased and paid for the security to be sold, the sale being effected through a “broker’s
transaction” or in transactions directly with a “market maker” and the number of shares of common
stock being sold during any three-month period not exceeding specified limitations. Subscriber
understands that there is presently no market for the Company’s securities and there is no
assurance that a market will develop in the future.

     (e) Subscriber acknowledges that Subscriber has had the opportunity to ask questions of, and
receive answers from the Company or any authorized person acting on its behalf concerning the
Company and its business and to obtain any additional information, to the extent possessed by the
Company (or to the extent it could have been acquired by the Company without unreasonable effort or
expense) necessary to verify the accuracy of the information received by Subscriber. In connection
therewith, Subscriber acknowledges that Subscriber has had the opportunity to discuss the Company’s
business, management and financial affairs with the Company’s management or any authorized person
acting on its behalf. Without limiting the generality of the foregoing, Subscriber has been
furnished with or has had the opportunity to acquire, and to review all information, both written
and oral, that Subscriber desires with respect to the Company’s business, management, financial
affairs and prospects. In determining whether to make this investment, Subscriber has relied
solely on (i) Subscriber’s own knowledge and understanding of the Company and its business based
upon Subscriber’s own due diligence investigations and the information furnished pursuant to this
paragraph, and (ii) the information described in subparagraph 2(g) below.

     (f) Subscriber has all requisite legal and other power and authority to execute and deliver
this Subscription Agreement and to carry out and perform Subscriber’s obligations under the terms
of this Subscription Agreement. This Subscription Agreement constitutes a valid and legally
binding obligation of Subscriber, enforceable in accordance with its terms, subject to laws of
general application relating to bankruptcy, insolvency and the relief of debtors and rules of law
governing specific performance, injunctive relief or other general principals of equity, whether
such enforcement is considered in a proceeding in equity or law.

     (g) Subscriber has carefully considered and has discussed with the Subscriber’s legal, tax,
accounting and financial advisors, to the extent the Subscriber has deemed necessary, the
suitability of this investment and the transactions contemplated by this Subscription Agreement for
the Subscriber’s particular federal, state, local and foreign tax and financial situation and has
independently determined that this investment and the transactions contemplated by this
Subscription Agreement are a suitable investment for the Subscriber. Subscriber has relied solely
on such advisors and not on any statements or representations of the Company or any of its agents.
Subscriber understands that Subscriber (and not the Company) shall be responsible for Subscriber’s
own tax liability that may arise as a result of this investment or the transactions contemplated by
this Subscription Agreement.

5

 

     (h) Subscriber acknowledges that an investment in the Securities is speculative and involves a
high degree of risk and that Subscriber can bear the economic risk of the purchase of the
Securities, including a total loss of his/her/its investment.

     (i) Subscriber recognizes that no federal, state or foreign agency has recommended or endorsed
the purchase of the Securities.

     (j) Subscriber is aware that the Securities are and will be, when issued, “restricted
securities” as that term is defined in Rule 144 of the general rules and regulations under the Act.

     (k) Subscriber understands that any and all certificates representing the Securities and any
and all securities issued in replacement thereof or in exchange therefor shall bear the following
legend or one substantially similar thereto, which Subscriber has read and understands:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE
OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT
AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”

     (l) In addition, the certificates representing the Securities, and any and all securities
issued in replacement thereof or in exchange therefor, shall bear such legend as may be required by
the securities laws of the jurisdiction in which Subscriber resides.

     (m) Subscriber acknowledges that Subscriber has such knowledge and experience in financial and
business matters that Subscriber is capable of evaluating the merits and risks of an investment in
the Securities and of making an informed investment decision with respect thereto.

     (n) Subscriber represents that: (i) Subscriber is able to bear the economic risks of an
investment in the Securities and to afford a complete loss of the investment, and (ii) (A)
Subscriber could be reasonably assumed to have the ability and capacity to protect his/her/its
interests in connection with this subscription; or (B) Subscriber has a pre-existing personal or
business relationship with either the Company or any affiliate thereof of such duration and nature
as would enable a reasonably prudent purchaser to be aware of the character, business acumen and
general business and financial circumstances of the Company or such affiliate and is otherwise
personally qualified to evaluate and assess the risks, nature and other aspects of this
subscription.

     (o) Subscriber understands that the Company shall have the unconditional right to accept or
reject this subscription, in whole or in part, for any reason or without a specific reason, in the
sole and absolute discretion of the Company (even after receipt and clearance of Subscriber’s
funds). This Subscription Agreement is not binding upon the Company until accepted in writing by
an authorized officer of the Company. In the event that this subscription

6

 

is rejected, then Subscriber’s subscription funds (to the extent of such rejection) will be
promptly returned in full without interest thereon or deduction therefrom.

     (p) Subscriber represents that Subscriber is not subscribing for the Securities as a result of
or subsequent to any advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over the Internet, television or radio or
presented at any seminar or meeting or any public announcement or filing of or by the Company.

     (q) Subscriber represents and warrants, to the best of Subscriber’s knowledge, that no finder,
broker, agent, financial advisor or other intermediary, nor any purchaser representative or any
broker-dealer acting as a broker, is entitled to any compensation in connection with the
transactions contemplated by this Subscription Agreement.

3. Representations and Warranties of the Company. The Company represents and warrants to
Subscriber as follows:

     (a) The Company is duly organized and validly exists as a corporation in good standing under
the laws of the State of Delaware.

     (b) The Company has all such corporate power and authority to enter into, deliver and perform
this Subscription Agreement.

     (c) All necessary corporate action has been duly and validly taken by the Company to authorize
the execution, delivery and performance of this Subscription Agreement by the Company, and the
issuance and sale of the Securities to be sold by the Company pursuant to this Subscription
Agreement. This Subscription Agreement has been duly and validly authorized, executed and
delivered by the Company and constitutes the legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as the enforceability thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles.

4. Indemnification. Subscriber agrees to indemnify and hold harmless the Company and its
respective officers, directors, employees, shareholders, agents, attorneys, representatives and
affiliates, and any person acting for or on behalf of the Company, from and against any and all
damage, loss, liability, cost and expense (including reasonable attorneys’ fees and disbursements)
which any of them may incur by reason of the failure by Subscriber to fulfill any of the terms and
conditions of this Subscription Agreement, or by reason of any breach of the representations and
warranties made by Subscriber herein, or in any other document provided by Subscriber to the
Company in connection with this investment. All representations, warranties and covenants of each
of Subscriber and the Company contained herein shall survive the acceptance of this subscription
and the Closings.

5. Registration Rights. In the event the Company decides to Register any shares of its
Common Stock for cash (either for its own account or the account of a security holder), other than
pursuant to a registration statement which exclusively relates to the registration of an

7

 

employee stock option, purchase, bonus or other benefit plan, then for so long as the Subscriber
holds Securities, the Company will: (1) promptly give the Subscriber written notice thereof (which
shall include a list of the jurisdictions in which the Company intends to attempt to qualify such
securities under the applicable Blue Sky or other state securities laws) and (2) include in such
registration (and any related qualification under Blue Sky laws or other compliance), and in any
underwriting involved therein, all the Securities specified in a written request delivered to the
Company by the Subscriber within 10 days after delivery of such written notice from the Company.
The right of the Subscriber to have Securities included in any registration statement shall be
conditioned upon the provision by the Subscriber of any information reasonably requested by the
Company within ten (10) days of such request.

6. Miscellaneous.

     (a) Subscriber agrees not to transfer or assign this Subscription Agreement or any of
Subscriber’s interest herein and further agrees that the transfer or assignment of the Securities
acquired pursuant hereto shall be made only in accordance with all applicable laws.

     (b) Subscriber agrees that Subscriber cannot cancel, terminate, or revoke this Subscription
Agreement or any agreement of Subscriber made hereunder, and this Subscription Agreement shall
survive the death or legal disability of Subscriber and shall be binding upon Subscriber’s heirs,
executors, administrators, successors, and permitted assigns.

     (c) Subscriber has read and has accurately completed this entire Subscription Agreement.

     (d) This Subscription Agreement constitutes the entire agreement between the parties hereto
with respect to the subject matter hereof and may be amended or waived only by a written instrument
signed by all parties.

     (e) Subscriber acknowledges that it has been advised and has had the opportunity to consult
with Subscriber’s own attorney regarding this subscription and Subscriber has done so to the extent
that Subscriber deems appropriate.

     (f) Any notice or other document required or permitted to be given or delivered to the parties
hereto shall be in writing and sent: (i) by fax if the sender on the same day sends a confirming
copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by
registered or certified mail with return receipt requested (postage prepaid) or (c) by a recognized
overnight delivery service (with charges prepaid).

If to the Company, at:

Novint Technologies, Inc.

4109 Bryan Ave NW

Albuquerque, NM 87114

Phone/Fax: 866-298-4420

8

 

With a copy to:

Jennifer A. Post, Esq.

Richardson & Patel LLP

10900 Wilshire Blvd., Suite 500

Los Angeles, California 90024

Tel: (310) 208-1182

Fax: (310) 208-1154

     If to the Subscriber, at its address set forth on the signature page to this
Subscription Agreement or such other address as Subscriber shall have specified to the
Company in writing.

     (g) Failure of the Company to exercise any right or remedy under this Subscription Agreement
or any other agreement between the Company and the Subscriber, or otherwise, or any delay by the
Company in exercising such right or remedy, will not operate as a waiver thereof. No waiver by the
Company will be effective unless and until it is in writing and signed by the Company.

     (i) This Subscription Agreement shall be enforced, governed and construed in all respects in
accordance with the laws of the State of New Mexico, as such laws are applied by the New Mexico
courts except with respect to the conflicts of law provisions thereof, and shall be binding upon
the Subscriber and the Subscriber’s heirs, estate, legal representatives, successors and permitted
assigns and shall inure to the benefit of the Company, and its successors and assigns.

     (j) Any legal suit, action or proceeding arising out of or relating to this Subscription
Agreement or the transactions contemplated hereby shall be instituted exclusively in a Federal or
State Court located in Bernalillo County, New Mexico. The parties hereto hereby: (i) waive any
objection which they may now have or hereafter have to the venue of any such suit, action or
proceeding, and (ii) irrevocably consent to the jurisdiction of the aforesaid courts in any such
suit, action or proceeding. The parties further agree to accept and acknowledge service of any and
all process which may be served in any such suit, action or proceeding in the aforesaid courts and
agree that service of process upon a party which is mailed by certified mail to such party’s
address shall be deemed in every respect effective service of process upon such party in any such
suit, action or proceeding.

     (k) If any provision of this Subscription Agreement is held to be invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed modified to
conform with such statute or rule of law. Any provision hereof that may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of any other provisions
hereof.

9

 

     (l) The parties understand and agree that money damages would not be a sufficient remedy
for any breach of this Subscription Agreement by the Company or the Subscriber and that the party
against which such breach is committed shall be entitled to equitable relief, including an
injunction and specific performance, as a remedy for any such breach, without the necessity of
establishing irreparable harm or posting a bond therefor. Such remedies shall not be deemed to be
the exclusive remedies for a breach by either party of this Subscription Agreement but shall be in
addition to all other remedies available at law or equity to the party against which such breach is
committed.

     (m) All pronouns and any variations thereof used herein shall be deemed to refer to the
masculine, feminine, singular or plural, as identity of the person or persons may require.

     (n) This Subscription Agreement may be executed in counterparts and by facsimile, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument.

[Remainder of Page intentionally left blank]

[Signature Pages Follow]

10

 

Signature Page for Individuals:

     IN WITNESS WHEREOF, Subscriber has caused this Subscription Agreement to be executed as of the
date indicated below.

	 	 	 	 	 
	$
	 	 	 	 
	 

	 	 	 	 
	 	 	Total Principal Amount of Common Stock and Warrants Subscribed to and Purchase Price Thereof

	 	 	 
	 
	 	 
	 

Print or Type Name

	 	 
	 
	 	 
	 
	 	 
	 

Signature

	 	 
	 
	 	 
	 
	 	 
	 

Date

	 	 
	 
	 	 
	 
	 	 
	 

Social Security Number (if applicable)

	 	 
	 
	 	 
	 
	 	 
	 
	Address
	 	 

Please check if applicable and include co-owner’s information below (name, address, social security
number):

          _______ Joint Tenancy                               ______ Tenants in Common

	 	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 
`

	 	 

FORM OF PAYMENT – CHECK OR WIRE TRANSFER

     [ ] Check attached and made payable to:                    .

     [ ] Wire funds from my outside account according to the Instructions set forth above.

 

 

Signature Page for Partnerships, Corporations or Other Entities:

     IN WITNESS WHEREOF, Subscriber has caused this Subscription Agreement to be executed as of the
date indicated below.

	 	 	 	 	 
	 
	 	 	 	 
	$
	 	 	 	 
	 

	 	 	 	 
	 	 	Total Principal Amount of Common Stock and Warrants Subscribed to and Purchase Price Thereof

	 	 	 
	 
	 	 
	 

Print or Type Name of Entity

	 	 
	 
	 	 
	 
	 	 
	 
	Address
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Taxpayer I.D. No. (if applicable)

	 	Date
	 
	 	 
	 
	 	 
	 

	 	 
	Signature

	 	Print or Type Name and Indicate
	 

	 	Title or Position with Entity

FORM OF PAYMENT – CHECK OR WIRE TRANSFER

     [ ] Check attached and made payable to: FCC f/b/o NGTV.

     [ ] Wire funds from my outside account according to the Instructions set forth above.

 

 

Acceptance by Novint Technologies, Inc.:

     IN WITNESS WHEREOF, the Company has caused this Subscription Agreement to be executed, and the
foregoing subscription accepted, as of the date indicated below, as to Common Stock and Warrants
for the the aggregate amount of $                    .

	 	 	 	 	 
	 	Novint Technologies, Inc.

 	 
	 	By:  	 	 
	 	 	President and Chief Executive Officer 	 
	 	 	 	 
	 

Date: __________________________, 2006

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