Document:

Unassociated Document

     

    

    
      	 	
              WARRANT

            	 
	
              NO.
                __________

            	
              CUSTOMER
                ACQUISITION NETWORK HOLDINGS, INC. 

            	
              __________
                Shares

            
	 	 	 

    

    WARRANT
      TO PURCHASE COMMON STOCK

     

    VOID
      AFTER 5:30 P.M., EASTERN 

    TIME,
      ON THE EXPIRATION DATE

     

    THIS
      WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT
      BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT
      COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE
      FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS
      THEREFROM.

     

    FOR
      VALUE
      RECEIVED, CUSTOMER ACQUISITION NETWORK HOLDINGS, INC., a Delaware corporation
      (the “Company”), hereby agrees to sell upon the terms and on the conditions
      hereinafter set forth, but no later than 5:30 p.m., Eastern Time, on the
      Expiration Date (as hereinafter defined), to __________,
      or
      registered assigns (the “Holder”), under the terms as hereinafter set forth,
__________fully
      paid and non-assessable shares of the Company’s Common Stock, par value $0.001
      per share (the “Warrant Stock”), at a purchase price of $2.50 per share (the
“Warrant Price”), pursuant to this warrant (this “Warrant”). The number of
      shares of Warrant Stock to be so issued and the Warrant Price are subject to
      adjustment in certain events as hereinafter set forth. The term “Common Stock”
shall mean, when used herein, unless the context otherwise requires, the stock
      and other securities and property at the time receivable upon the exercise
      of
      this Warrant.

     

    1.  Exercise
      of Warrant.

     

    a.  The
      Holder may exercise this Warrant according to its terms by (i) surrendering
      this
      Warrant, properly endorsed, to the Company at the address set forth in Section
      10, (ii) the subscription form attached hereto having then been duly executed
      by
      the Holder, and (iii) payment of the purchase price being made to the Company
      for the number of shares of the Warrant Stock specified in the subscription
      form, or as otherwise provided in this Warrant, prior to 5:30 p.m., Eastern
      Time, on June --__, 2013 (the
      “Expiration
      Date”).

     

    b.  (i)
      The
      aggregate purchase price for the shares of Warrant Stock being purchased may
      be
      paid (1) either by cash, certified check or bank draft or wire transfer of
      immediately available funds, or (2) subject to Section 1b.(ii) below, by
      surrender of a number of shares of Warrant Stock having a fair market value
      equal to the aggregate purchase price of the Warrant Stock being purchased
      (“Cashless
      Exercise”)
      as
      determined herein. If the Holder elects the Cashless Exercise method of payment,
      the Company shall issue to the Holder a number of shares of Warrant Stock
      determined in accordance with the following formula:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      
        	 	
                X

              	
                =

              	
                Y(A
                  - B)

              	 
	 	 	 	
                A

              	 

      

    

    

      
        	
                with:

              	
                X
                  =
                  

              	
                the
                  number of shares of Warrant Stock to be issued to the Holder;

              
	 	 	 
	 	
                Y
                  =

              	
                the
                  number of shares of Warrant Stock with respect to which the Warrant
                  is
                  being exercised;

              
	 	 	 
	 	
                A
                  =

              	
                the
                  fair value per share of Common
                  Stock on
                  the date of exercise of this Warrant;
                  and 

              
	 	 	 
	 	
                B
                  =

              	
                the
                  then-current Warrant Price of
                  the Warrant

              

      

    

    

    For
      the
      purposes of this Section 1b., “fair value” per share of Common Stock shall mean
      (A) the average of the closing sales prices, as quoted on the primary national
      or regional stock exchange on which the Common Stock is listed, or,
      if not
      listed,
      the OTC
      Bulletin Board if quoted thereon, on the five
      consecutive trading days immediately preceding the date of exercise, or (B)
      if
      the Common Stock is not publicly traded as set forth above, as reasonably and
      in
      good faith determined by the Board of Directors of the Company as of the date
      which the notice of exercise is deemed to have been sent to the
      Company.

    

    (ii)
      Notwithstanding the foregoing, the Cashless Exercise option set forth in clause
      (i) of Section 1b. above shall only be available so long as the Company shall
      not have registered the Warrant Stock in an effective registration statement
      with the Securities and Exchange Commission on or prior to the six month
      anniversary of the date that this warrant is issued. 

    

     

    c.  This
      Warrant may be exercised in whole or in part so long as any exercise in part
      hereof would not involve the issuance of fractional shares of Warrant Stock.
      If
      exercised in part, the Company shall deliver to the Holder a new Warrant,
      identical in form, in the name of the Holder, evidencing the right to purchase
      the number of shares of Warrant Stock as to which this Warrant has not been
      exercised, which new Warrant shall be signed by the Chairman, Chief Executive
      Officer, President or any Vice President of the Company. The term Warrant as
      used herein shall include any subsequent Warrant issued as provided
      herein.

     

    d.  No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. The Company shall pay cash in lieu of fractions
      with respect to the Warrants based upon the fair market value of such fractional
      shares of Common Stock (which shall be the closing price of such shares on
      the
      exchange or market on which the Common Stock is then traded) at the time of
      exercise of this Warrant.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    e.  In
      the
      event of any exercise of the rights represented by this Warrant, a certificate
      or certificates for the Warrant Stock so purchased, registered in the name
      of
      the Holder, shall be delivered to the Holder within a reasonable time after
      such
      rights shall have been so exercised. The person or entity in whose name any
      certificate for the Warrant Stock is issued upon exercise of the rights
      represented by this Warrant shall for all purposes be deemed to have become
      the
      holder of record of such shares immediately prior to the close of business
      on
      the date on which the Warrant was surrendered and payment of the Warrant Price
      and any applicable taxes was made, irrespective of the date of delivery of
      such
      certificate, except that, if the date of such surrender and payment is a date
      when the stock transfer books of the Company are closed, such person shall
      be
      deemed to have become the holder of such shares at the opening of business
      on
      the next succeeding date on which the stock transfer books are open. Except
      as
      provided in Section 4 hereof, the Company shall pay any and all documentary
      stamp or similar issue or transfer taxes payable in respect of the issue or
      delivery of shares of Common Stock on exercise of this Warrant; provided,
      however, that the Company shall not be required to pay any tax that may be
      payable in respect of any issuance and delivery of shares of Warrant Stock
      to
      any Person other than the Holder or with respect to any income tax due by the
      Holder with respect to any shares of Warrant Stock. “Person” shall mean any
      natural person, corporation, division of a corporation, partnership, limited
      liability company, trust, joint venture, association, company, estate,
      unincorporated organization or government or any agency or political subdivision
      thereof.

     

    2.  Disposition
      of Warrant Stock and Warrant.

     

    a.  The
      Holder hereby acknowledges that this Warrant and any Warrant Stock purchased
      pursuant hereto are, as of the date hereof, not registered: (i) under the Act
      on
      the ground that the issuance of this Warrant is exempt from registration under
      Section 4(2) of the Act as not involving any public offering or (ii) under
      any
      applicable state securities law because the issuance of this Warrant does not
      involve any public offering; and that the Company’s reliance on the Section 4(2)
      exemption of the Act and under applicable state securities laws is predicated
      in
      part on the representations hereby made to the Company by the Holder that it
      is
      acquiring this Warrant and will acquire the Warrant Stock for investment for
      its
      own account, with no present intention of dividing its participation with others
      or reselling or otherwise distributing the same, subject, nevertheless, to
      any
      requirement of law that the disposition of its property shall at all times
      be
      within its control.

     

    The
      Holder hereby agrees that it will not sell or transfer all or any part of this
      Warrant and/or Warrant Stock, except pursuant to an effective registration
      statement under the Act, unless and until it shall first have given notice
      to
      the Company describing such sale or transfer and furnished to the Company either
      (i) an opinion of counsel for the Company, which the Company shall obtain at
      its
      own expense, to the effect that the proposed sale or transfer may be made
      without registration under the Act and without registration or qualification
      under any state law, or (ii) an interpretative letter from the Securities and
      Exchange Commission to the effect that no enforcement action will be recommended
      if the proposed sale or transfer is made without registration under the
      Act.

     

    b.  If,
      at
      the time of issuance of the shares issuable upon exercise of this Warrant,
      no
      registration statement is in effect with respect to such shares under applicable
      provisions of the Act, the Company may at its election require that the Holder
      provide the Company with written reconfirmation of the Holder’s investment
      intent and that any stock certificate delivered to the Holder of a surrendered
      Warrant shall bear a legend reading substantially as follows:

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE
      DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
      OF
      THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.”

     

    In
      addition, so long as the foregoing legend may remain on any stock certificate
      delivered to the Holder, the Company may maintain appropriate “stop transfer”
orders with respect to such certificates and the shares represented thereby
      on
      its books and records and with those to whom it may delegate registrar and
      transfer functions.

     

    3.  Reservation
      of Shares.
      The
      Company hereby agrees that at all times there shall be reserved for issuance
      upon the exercise of this Warrant such number of shares of its Common Stock
      as
      shall be required for issuance upon exercise of this Warrant. The Company
      further agrees that all shares which may be issued upon the exercise of the
      rights represented by this Warrant will be duly authorized and will, upon
      issuance and against payment of the Warrant Price therefor, be validly issued,
      fully paid and non-assessable, free from all taxes, liens, charges and
      preemptive rights with respect to the issuance thereof, other than taxes, if
      any, in respect of any transfer occurring contemporaneously with such issuance
      and other than transfer restrictions imposed by federal and state securities
      laws.

     

    4.  Exchange,
      Transfer or Assignment of Warrant.
      

     

    a.  This
      Warrant is exchangeable, without expense, at the option of the Holder, upon
      presentation and surrender hereof to the Company or at the office of its stock
      transfer agent, if any, for other Warrants of different denominations, entitling
      the Holder or Holders thereof to purchase in the aggregate the same number
      of
      shares of Common Stock purchasable hereunder. Upon surrender of this Warrant
      to
      the Company or at the office of its stock transfer agent, if any, with an
      appropriate instrument of assignment duly executed and funds sufficient to
      pay
      any transfer tax, the Company shall, without charge, execute and deliver a
      new
      Warrant in the name of the assignee named in such instrument of assignment
      and
      this Warrant shall promptly be canceled. This Warrant may be divided or combined
      with other Warrants that carry the same rights upon presentation hereof at
      the
      office of the Company or at the office of its stock transfer agent, if any,
      together with a written notice specifying the names and denominations in which
      new Warrants are to be issued and signed by the Holder hereof.

     

    b.  Notwithstanding
      anything to the contrary contained herein, at such time as this Warrant shall
      be
      registered by the Company under the Act, Holder shall deliver this Warrant
      to
      the Company in exchange for a warrant certificate representing the registered
      warrant, which shall entitle Holder to purchase the same number of shares of
      Warrant Stock and at the same Warrant Price as exists at the time of the
      surrender. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    5.  Capital
      Adjustments. 
      This Warrant is subject to the following further provisions:

     

    a.  Recapitalization,
      Reclassification and Succession. 
      If any recapitalization of the Company or reclassification of its Common
      Stock or any merger or consolidation of the Company into or with a Person,
      or
      the sale or transfer of all or substantially all of the Company’s assets or of
      any successor corporation’s assets to any Person (any such Person being included
      within the meaning of the term “successor corporation”) shall be effected, at
      any time while this Warrant remains outstanding and unexpired, then, as a
      condition of such recapitalization, reclassification, merger, consolidation,
      sale or transfer, lawful and adequate provision shall be made whereby the Holder
      of this Warrant thereafter shall have the right to receive upon the exercise
      hereof as provided in Section 1 and in lieu of the shares of Common Stock
      immediately theretofore issuable upon the exercise of this Warrant, such shares
      of capital stock, securities or other property as may be issued or payable
      with
      respect to or in exchange for a number of outstanding shares of Common Stock
      equal to the number of shares of Common Stock immediately theretofore issuable
      upon the exercise of this Warrant had such recapitalization, reclassification,
      merger, consolidation, sale or transfer not taken place, and in each such case,
      the terms of this Warrant shall be applicable to the shares of stock or other
      securities or property receivable upon the exercise of this Warrant after such
      consummation.

     

    b.  Subdivision
      or Combination of Shares.
       If the Company at any time while this Warrant remains outstanding and
      unexpired shall subdivide or combine its Common Stock, the number of shares
      of
      Warrant Stock purchasable upon exercise of this Warrant and the Warrant Price
      shall be proportionately adjusted.

     

    c.  Stock
      Dividends and Distributions. 
      If the Company at any time while this Warrant is outstanding and unexpired
      shall
      issue or pay the holders of its Common Stock, or take a record of the holders
      of
      its Common Stock for the purpose of entitling them to receive, a dividend
      payable in, or other distribution of, Common Stock, then (i) the Warrant Price
      shall be adjusted in accordance with Section 5(e) and (ii) the number of shares
      of Warrant Stock purchasable upon exercise of this Warrant shall be adjusted
      to
      the number of shares of Common Stock that the Holder would have owned
      immediately following such action had this Warrant been exercised immediately
      prior thereto.

     

    d.  Stock
      and Rights Offering to Stockholders. 
      If the Company shall at any time after the date of issuance of this Warrant
      distribute to all holders of its Common Stock any shares of capital stock of
      the
      Company (other than Common Stock) or evidences of its indebtedness or assets
      (excluding cash dividends or distributions paid from retained earnings or
      current year’s or prior year’s earnings of the Company) or rights or warrants to
      subscribe for or purchase any of its securities (excluding those referred to
      in
      the immediately preceding paragraph) (any of the foregoing being hereinafter
      in
      this paragraph called the “Securities”), then in each such case, the Company
      shall reserve shares or other units of such Securities for distribution to
      the
      Holder upon exercise of this Warrant so that, in addition to the shares of
      the
      Common Stock to which such Holder is entitled, such Holder will receive upon
      such exercise the amount and kind of such Securities which such Holder would
      have received if the Holder had, immediately prior to the record date for the
      distribution of the Securities, exercised this Warrant.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    e.  Warrant
      Price Adjustment.
       Whenever the number of shares of Warrant Stock purchasable upon exercise
      of this Warrant is adjusted, as herein provided, the Warrant Price payable
      upon
      the exercise of this Warrant shall be adjusted to that price determined by
      multiplying the Warrant Price immediately prior to such adjustment by a fraction
      (i) the numerator of which shall be the number of shares of Warrant Stock
      purchasable upon exercise of this Warrant immediately prior to such adjustment,
      and (ii) the denominator of which shall be the number of shares of Warrant
      Stock
      purchasable upon exercise of this Warrant immediately thereafter.

     

    f.  Certain
      Shares Excluded. 
      The number of shares of Common Stock outstanding at any given time for purposes
      of the adjustments set forth in this Section 5 shall exclude any shares then
      directly or indirectly held in the treasury of the Company.

     

    g.  Deferral
      and Cumulation of De Minimis Adjustments. 
      The Company shall not be required to make any adjustment pursuant to this
      Section 5 if the amount of such adjustment would be less than one percent (1%)
      of the Warrant Price in effect immediately before the event that would otherwise
      have given rise to such adjustment. In such case, however, any adjustment that
      would otherwise have been required to be made shall be made at the time of
      and
      together with the next subsequent adjustment which, together with any adjustment
      or adjustments so carried forward, shall amount to not less than one percent
      (1%) of the Warrant Price in effect immediately before the event giving rise
      to
      such next subsequent adjustment.

     

    h.  Duration
      of Adjustment.
       Following each computation or readjustment as provided in this Section 5,
      the new adjusted Warrant Price and number of shares of Warrant Stock purchasable
      upon exercise of this Warrant shall remain in effect until a further computation
      or readjustment thereof is required.

     

    6.  Notice
      to Holders.

     

    a.  Notice
      of Record Date. 
      In case:

     

    (i)  the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time receivable upon the exercise of this Warrant) for
      the
      purpose of entitling them to receive any dividend (other than a cash dividend
      payable out of earned surplus of the Company) or other distribution, or any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities, or to receive any other right;

     

    (ii)  of
      any
      capital reorganization of the Company, any reclassification of the capital
      stock
      of the Company, any consolidation with or merger of the Company into another
      Person, or any conveyance of all or substantially all of the assets of the
      Company to another Person; or

     

    (iii)  of
      any
      voluntary dissolution, liquidation or winding-up of the Company;

     

    then,
      and
      in each such case, the Company will mail or cause to be mailed to the Holder
      hereof at the time outstanding a notice specifying, as the case may be, (i)
      the
      date on which a record is to be taken for the purpose of such dividend,
      distribution or right, and stating the amount and character of such dividend,
      distribution or right, or (ii) the date on which such reorganization,
      reclassification, consolidation, merger, conveyance, dissolution, liquidation
      or
      winding-up is to take place, and the time, if any is to be fixed, as of which
      the holders of record of Common Stock (or such stock or securities at the
      time receivable upon the exercise of this Warrant) shall be entitled to exchange
      their shares of Common Stock (or such other stock or securities) for securities
      or other property deliverable upon such reorganization, reclassification,
      consolidation, merger, conveyance, dissolution, liquidation or winding-up.
      Such
      notice shall be mailed at least twenty (20) days prior to the record date
      therein specified, or if no record date shall have been specified therein,
      at
      least twenty (20) days prior to the date of such action, provided, however,
      failure to provide any such notice shall not affect the validity of such
      transaction.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    b.  Certificate
      of Adjustment. 
      Whenever any adjustment shall be made pursuant to Section 5 hereof, the Company
      shall promptly make a certificate signed by its Chairman, Chief Executive
      Officer, President, Vice President, Chief Financial Officer or Treasurer,
      setting forth in reasonable detail the event requiring the adjustment, the
      amount of the adjustment, the method by which such adjustment was calculated
      and
      the Warrant Price and number of shares of Warrant Stock purchasable upon
      exercise of this Warrant after giving effect to such adjustment, and shall
      promptly cause copies of such certificate to be mailed (by first class mail,
      postage prepaid) to the Holder of this Warrant.

     

    7.  Intentionally
      Omitted.

     

    8.  Price
      Protection; Reset of Warrant Price. 
      Until the earlier of (i) 24 months from the date hereof or (ii) such date that
      there is an effective registration statement on file with the Securities and
      Exchange Commission covering the resale of any warrants to purchase shares
      of
      capital stock, in the event that the Company issues or sells any warrants or
      options to purchase shares of capital stock to which they may be acquired at
      an
      exercise price of less than $2.50 per share, then the Company shall promptly
      issue additional warrants to the Holder in an amount sufficient that the actual
      price per warrant paid hereunder (which is $2.50) (the “Per Warrant Purchase
      Price”), when divided by the total number of warrants issued will result in an
      actual Per Warrant Purchase Price paid by the Holder hereunder equal to such
      lower price (this is intended to be a “full ratchet” adjustment). Such
      adjustment shall be made successively whenever such an issuance is made.

     

    9.  Maximum
      Exercise. 
      The Holder shall not be entitled to exercise this Warrant on an exercise date,
      in connection with that number of shares of Common Stock which would be in
      excess of the sum of (i) the number of shares of Common Stock beneficially
      owned by the Holder and its affiliates on an exercise date, and (ii) the
      number of shares of Common Stock issuable upon the exercise of this Warrant
      with
      respect to which the determination of this limitation is being made on an
      exercise date, which would result in beneficial ownership by the Holder and
      its
      affiliates of more than 4.99% of the outstanding shares of Common Stock on
      such
      date. For the purposes of the immediately preceding sentence, beneficial
      ownership shall be determined in accordance with Section 13(d) of the
      Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
      Subject to the foregoing, the Holder shall not be limited to aggregate exercises
      which would result in the issuance of more than 4.99%. The restriction described
      in this paragraph may be waived, in whole or in part, upon sixty-one (61)
      days prior notice from the Holder to the Company to increase such percentage
      to
      up to 9.99%, but not in excess of 9.99%.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    10.  Loss,
      Theft, Destruction or Mutilation. 
      Upon receipt by the Company of evidence satisfactory to it, in the exercise
      of
      its reasonable discretion, of the ownership and the loss, theft, destruction
      or
      mutilation of this Warrant and, in the case of loss, theft or destruction,
      of
      indemnity reasonably satisfactory to the Company and, in the case of mutilation,
      upon surrender and cancellation hereof, the Company will execute and deliver
      in
      lieu hereof, without expense to the Holder, a new Warrant of like tenor dated
      the date hereof.

     

    11.  Warrant
      Holder Not a Stockholder.
       The Holder of this Warrant, as such, shall not be entitled by reason of
      this Warrant to any rights whatsoever as a stockholder of the
      Company.

     

    12.  Notices. 
      Any notice required or contemplated by this Warrant shall be deemed to have
      been
      duly given if transmitted by registered or certified mail, return receipt
      requested, postage prepaid, or nationally recognized overnight delivery
      service,
      to
      the
      Company at its principal executive offices: 200 Park Avenue South, Suite
      908-909, New York, NY 10003, Attention: Chief Executive Officer, or to the
      Holder at the name and address set forth in the Warrant Register maintained
      by
      the Company.

     

    13.  Choice
      of Law. 
      THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND
      CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT
      GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

     

    14.  Jurisdiction
      and Venue.
       The Company and the Holder, by its acceptance hereof, hereby agree that
      any dispute which may arise between them arising out of or in connection with
      this Warrant shall be adjudicated before a court located in New York City,
      New
      York, and they hereby submit to the exclusive jurisdiction of the federal and
      state courts of the State of New York located in New York City with respect
      to
      any action or legal proceeding commenced by any party, and irrevocably waive
      any
      objection they now or hereafter may have respecting the venue of any such action
      or proceeding brought in such a court or respecting the fact that such court
      is
      an inconvenient forum, relating to or arising out of this Warrant or any acts
      or
      omissions relating to the sale of the securities hereunder, and consent to
      the
      service of process in any such action or legal proceeding by means of registered
      or certified mail, return receipt requested, postage prepaid, in care of the
      address set forth herein or such other address as either party shall furnish
      in
      writing to the other.

     

    

     

    [Signature
      Page Follows]

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the Company has duly caused this Warrant to be signed on its
      behalf, in its corporate name and by its duly authorized officer, as of this
      __ day
      of
      June, 2008.

    
      	 	 	 
	 	CUSTOMER
              ACQUISITION NETWORK HOLDINGS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
	 	Title: 

    

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    FORM
      OF
      EXERCISE

     

    (to
      be
      executed by the registered holder hereof)

     

     

     

    The
      undersigned hereby exercises the right to purchase _________ shares of common
      stock, par value $0.001 per share (“Common Stock”), of Customer Acquisition
      Network Holdings,
      Inc.
      evidenced by the within Warrant Certificate for a Warrant Price of $2.50 per
      share (subject to adjustment in accordance with the Warrant) and herewith makes
      payment of the purchase price in full of (i) $__________ in cash or (ii) solely
      in the event that the Company is not in compliance with Section 1b(ii). of
      the Warrant, shares of Common Stock (pursuant to a Cashless Exercise in
      accordance with Section 1b.). Kindly issue certificates for shares of Common
      Stock (and for the unexercised balance of the Warrants evidenced by the within
      Warrant Certificate, if any) in accordance with the instructions given below.
      

    

      
        	
                Dated:____________________
                  , 20__ .

              	
                ______________________________

              
	 	
                Name:

              

      

    

    

    Instructions
      for registration of stock:

    

    

    _____________________________

      Name
      (Please Print)

    

    Social
      Security or other identifying Number: _______________

    

    Address:____________________________________________

           City,
      State and Zip Code

     

    

    Instructions
      for registration of certificate representing

    the
      unexercised balance of Warrants (if any):

     

    

    _____________________________
      

    Name
      (Please Print)

     

    Social
      Security or other identifying Number: _______________

    

    Address:____________________________________________

           City,
      State and Zip Code

     

     

    
      
         

      

      
        10Unassociated Document

    EXHIBIT
      10.1

    

    FIFTH
      AMENDMENT TO ASSET PURCHASE AGREEMENT

    

    THIS
      FIFTH AMENDMENT
      to Asset
      Purchase Agreement is dated this 9th
      day of
      June, 2008, by and among Hunter Bates Mining Corporation (“Hunter
      Bates”),
      a
      Minnesota corporation and wholly-owned subsidiary of Wits Basin Precious
      Minerals Inc. (“Wits
      Basin”),
      a
      Minnesota corporation (as successor-in-interest to Wits Basin) (the
“Purchaser”),
      Central City Consolidated, Corp. d/b/a Central City Consolidated Mining Co.,
      a
      Colorado corporation, Hunter Gold Mining Inc., a Colorado corporation and George
      Otten, a Colorado resident (collectively, the “Sellers”
      and
      each
      individually, a“Seller”),
      and
      Hunter Gold Mining Corp., a British Columbia corporation (the “Covenantor”)
      (the
      Purchaser, Sellers and Covenantors are individually or collectively, as the
      case
      may be, a “Party”
or
      “Parties”).

     

    RECITALS: The
      Parties entered into an Asset Purchase Agreement dated on or about September
      20,
      2006, for the sale and purchase of assets, real estate and real estate mining
      claims described in such asset purchase agreement, which was amended by that
      certain First Amendment to Asset Purchase Agreement dated October 31, 2006,
      that
      Second Amendment to Asset Purchase Agreement dated as of March 1, 2007, that
      Third Amendment to Asset Purchase Agreement dated May 31, 2007 and that Fourth
      Amendment to Asset Purchase Agreement dated January 14, 2008 (collectively,
      “Purchase
      Agreement”);
      and
      the wish to amend the Purchase Agreement on the terms and conditions hereafter
      set forth. Capitalized terms used but not defined herein shall have the meanings
      ascribed to them in the Purchase Agreement. 

    

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual covenants and
      agreements set forth below, the Parties agree that the Purchase Agreement shall
      be revised as follows:

     

    1. Section
      3.2 is hereby deleted and replaced in its entirety with the following language:
      

     

    Purchase
      Price.
      In the
      event that Purchaser elects to proceed to closing, as and for the purchase
      price
      of the Purchased Assets, Purchaser agrees to pay and Sellers agree to accept
      the
      sum of Six Million Seven Hundred Fifty Thousand Canadian Dollars ($6,750,000.00
      CDN) plus Three Million Six Hundred Twenty Thousand (3,620,000) unregistered
      and
      restricted shares of the .01 par value common capital stock of Wits Basin
      Precious Minerals Inc., a Minnesota corporation (“Wits
      Basin”),
      payable as set out in Section 3.3 hereof (the “Purchase
      Price”).

     

    2. Section
      3.3(b)(ii) subsection (iv) is hereby deleted and replaced in its entirety with
      the following language: 

     

    (iv)
      Three Million Six Hundred Twenty Thousand (3,620,000) shares of the unregistered
      and restricted .01 par value common capital stock of Wits Basin. 

     

    3. Section
      3.3(b)(iv) is hereby deleted and replaced in its entirety with the following
      language:

     

    Seller
      shall deliver to Purchaser a fully-executed Undertaking Agreement in the form
      of
Exhibit
      I
      attached
      hereto and a fully-executed Shareholder Voting Agreement in the form of
Exhibit
      J
      attached
      hereto. 

     

    4. Sellers
      and Covenantor agree that the operations of the limited personal liability
      provisions under the Promissory Note attached hereto as Exhibit “C” shall be
      suspended until such time as the Sellers have delivered the certificate of
      an
      Officer of Hunter Gold Mining Corp. confirming that the covenants set forth
      in
      the Undertaking Agreement have be performed by the parties thereto.

     

    5. All
      references to Exhibits E and F are hereby deleted in their entirety.

     

    6. An
      execution copy of Exhibits C, D, I and J to the Purchase Agreement are hereby
      attached to this Fifth Amendment and shall replace any previous versions of
      such
      Exhibits. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    7. All
      references to “Central City Consolidated Mining Corp.” or “Central City
      Consolidated Mining Co.” or “Central City Mining Corp.” are hereby deleted in
      their entirety and replaced with “Central City Consolidated, Corp.”

     

    8. The
      first
      paragraph of the Purchase Agreement is hereby deleted and replaced in its
      entirety with the following language: 

     

    

    THIS
      ASSET PURCHASE AGREEMENT (this “Agreement”)
      is
      made and entered into as of this 20th day of September, 2006, by and among
      Wits
      Basin Precious Minerals Inc., a corporation organized under the laws of the
      State of Minnesota (the “Purchaser”),
      Central City Consolidated Corp. d/b/a Central City Consolidated Mining Co.,
      a
      corporation organized under the laws of the State of Colorado, Hunter Gold
      Mining Inc., a corporation organized under the laws of the state of Colorado
      and
      George Otten, a resident of Colorado, (collectively, the “Sellers”
and
      each individually as a “Seller”),
      and
      Hunter Gold Mining Corp., a corporation organized under the laws of the Province
      of British Columbia, (the “Covenantor”).
      

    

    9. The
      Parties acknowledge that Hunter Gold Mining Inc., a Colorado corporation, shall
      hereby be included in the definition of “Sellers”
and
      excluded from the definition of “Covenantors.”
All
      references to the term “Covenantors” shall include only Hunter Gold Mining
      Corp., a British Columbia corporation. All references to the plural term
“Covenantors” shall be deemed singular, mutatis
      mutandis.

     

    10. Section
      4.1.1 is hereby deleted in its entirety and replaced with the following
      language: 

     

    

     

    “Central
      City Consolidated Corp. and Hunter Gold Mining Inc. are corporations duly
      incorporated, validly existing and in good standing under the laws of their
      respective jurisdictions of incorporation. Central City Consolidated Corp.
      and
      Hunter Gold Mining Inc. have the requisite power to own, operate, use and/or
      lease the Purchased Assets, as applicable, and to conduct the operations of
      the
      Purchased Assets as presently being conducted by them and/or by the Covenantor,
      including any and all permits required by any public authority for such
      operations such as permits, or regulatory authorizations.”

     

    

     

    11. Section
      5.7 is hereby deleted in its entirety and replaced with the following language:
      

     

    “Shares
      Duly and Validly Issued.
      The
      3,620,000 shares of .01 par value common capital stock of Wits Basin
      constituting a portion of the Purchase Price shall have been duly and validly
      issued as fully paid and non-assessable, and in accordance with all applicable
      securities laws, as of the Closing Date.” 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    12. Any
      notice or other documents given pursuant to the Purchase Agreement to Hunter
      Gold Mining Inc., as Seller, shall be sent to: Hunter Gold Mining Corp., P.O.
      Box 2460, Station “R”, Kelowna, British Columbia, Canada V1X 6A5, Attention:
      Dell Balfour, Facsimile: (250) 765-4420, with a copy to: Pushor Mitchell LLP,
      3rd Floor, 1665 Ellis Street, Kelowna, British Columbia, Canada V1W 4T7,
      Attention: E. Blair Forrest, Facsimile: (250) 762-9115. 

     

    13. Section
      8.10 of the Purchase Agreement is deleted in its entirety and replaced with
      the
      following:

     

    “Purchaser
      reserves the right hereunder to assign its right(s) to one or more affiliated
      parties prior to closing, it being understood that Purchaser may create one
      or
      more new entities which may consummate the Contemplated Transactions. In the
      event that the Purchaser assigns it right(s) hereunder any such affiliated
      party
      or parties, then (i) Purchaser shall also make, or shall cause such assignee(s)
      to make, in respect of such assignee(s), the representations and warranties
      set
      forth in sections 5.1 to 5.6 (inclusive) of the Purchase Agreement, (ii)
      Purchaser shall cause such assignee(s) to agree to be bound by all of the
      Purchaser’s covenants and obligations under the Purchase Agreement except for
      those which, by their nature, are intended to be performed solely by the
      Purchaser notwithstanding any assignment of the Purchaser’s rights under the
      Purchase Agreement, (iii) both the Purchaser and each such assignee shall
      deliver a certificate of an officer thereof for the purposes of section 9.1
      of
      the Purchase Agreement, and (iv) the opinions set forth in the Purchaser
      Counsel’s Legal Opinion (as defined in section 9.4 hereof) shall extend, to the
      extent applicable, to both the Purchaser and its assignee(s).” 

     

    

     

    14. To
      each
      of the Sellers and the Covenantor, Hunter Bates hereby makes the representations
      and warranties set forth in sections 5.1 to 5.6 (inclusive) of the Purchase
      Agreement as though the term “Purchaser” set forth therein refers to Hunter
      Bates and with the exception that the representation set forth in section 5.5
      of
      the Purchase Agreement shall be deemed to include the words “Except for the
      consent of “Wits Basin,” at the beginning of such section. Hunter Bates further
      agrees to be bound by all of the covenants and obligations of the Purchaser
      except for those covenants and obligations which, by their nature, are intended
      to be performed by Wits Basin notwithstanding the assignment of Wits Basin’s
      rights under the Purchase Agreement to Hunter Bates. 

     

    15. Wits
      Basin hereby confirms that it has consented to the consummation by Hunter Bates
      of the “Contemplated Transactions” (as defined in the Purchase Agreement) and to
      its execution of any documents incidental thereto.

     

    16. The
      parties hereto agree that in the event the tax advisors to Hunter Gold Mining
      Inc. and Hunter Gold Mining Corp. identify and recommend an alternate structure
      for the delivery of the Purchase Price including, but not limited to, the
      distribution and documentation of the Purchase Price in the name of one or
      more
      alternate parties, and/or recommend an alteration to the content of the
      Allocation Schedule, then each of the parties hereto agrees to take all
      reasonable steps to record and effect the necessary changes to the Purchase
      Agreement and the documents ancillary thereto to implement such recommendation;
      provided, however, that Sellers and Covenantor shall reimburse Purchaser for
      all
      reasonable expenses incurred in the course of effecting such change.
      Notwithstanding the foregoing, Purchaser shall not be obligated to participate
      in effecting the aforementioned changes if, in the reasonable opinion of legal
      counsel to the Purchaser, there is a reasonable risk of adverse tax, accounting
      or securities law consequences to the Purchaser in connection with the
      implementation of such changes. The parties further agree that any references
      to
      a deemed value for the 3,620,000 shares of common capital stock of Wits Basin,
      which comprise a portion of the Purchase Price under the Purchase Agreement,
      contained in the Purchase Agreement or in any of the transaction documents
      ancillary to the Purchase Agreement shall not be binding on the parties thereto
      in conjunction with any valuation of the Purchase Price for taxation purposes
      and the Sellers and Covenantor shall be at liberty to employ any reasonable
      method of valuation that is recommended by the tax advisors to Hunter Gold
      Mining Inc. and Hunter Gold Mining Corp.

     

    17. Clause
      12.4(e) of the Purchase Agreement is hereby added with the following
      language:

     

    “(e)
      any
      costs not otherwise falling within the scope of subsections 12.4(a) - (e),
      inclusive, which are reasonably incurred by or on behalf of the Beneficiary
      (as
      defined in the Deed of Trust), following enforcement by the Beneficiary of
      its
      remedies under the Deed of Trust, in effecting the remediation and/or
      rehabilitation of the Acquired Real Property in respect of any activities of
      the
      Purchaser (or its related party successors) thereon where such activities (i)
      contravene any Environmental Law (regardless of whether such contravention
      is
      enforced against the Purchaser or its successors) and (ii) take place after
      January 15, 2005 and prior to the earlier of (a) time of repossession of the
      Acquired Real Property by the Beneficiary or (b) transfer of the Acquired Real
      Property to a third party unrelated to the Purchaser; provided, however, that
      the maximum amount of the Purchaser's liability under this subsection 12.4(e)
      shall be $4,750,000 CDN.”

     

    18. The
      Allocation Schedule set forth in Section 3.8 is hereby deleted in its entirety
      and replaced with the allocation schedule attached hereto as Exhibit
      K.
      

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    19. The
      Parties agree that the following amounts, when advanced by the Purchasers on
      behalf of the Sellers and/or the Covenantors, shall be credited against the
      amount due under the Promissory Note attached hereto and to the Purchase
      Agreement as Exhibit “C”, and Sellers shall deliver a receipt to the Purchasers
      upon payment by the Purchasers of such amounts:

     

    
      	 	
              (i)

            	
              $15,000.00
                to Pushor Mitchell LLP in respect of past legal fees of the Covenantor
                (paid),

            

    

     

    
      	 	
              (ii)

            	
              $5,000.00
                to Dill Dill Carr Stonbraker and Hutchings, PC in respect of the
                closing
                legal costs of Hunter Gold Mining Inc.
                (paid),

            

    

     

    
      	 	
              (iii)

            	
              $7,500.00
                to Pushor Mitchell LLP for the closing legal costs of the Covenantor
                (pending),

            

    

     

    
      	 	
              (iv)

            	
              $3,467.16
                to First American Heritage Title Company for the Sellers’ closing costs as
                per the Sellers Closing Statement
                (pending),

            

    

     

    
      	 	
              (v)

            	
              $1,376.60
                for the Sellers’ 2008 personal property taxes
                (pending)

            

    

     

    for
      a
      total of $32,343.76.

     

    20. At
      the
      end of the first sentence of Article 2 of the Purchase Agreement, the words
      “(Assumed
      Liabilities”)”
is
      hereby added. 

     

    21. All
      references to “Purchaser Losses” in Sections 6.4(d) and (e) of the Purchase
      Agreement are hereby replaced with “Purchaser Environmental Losses.”

     

    22. The
      term
“Purchaser Losses” in Section 12.1 of the Purchase Agreement is hereby replaced
      with the following language: 

     

    “loss,
      liability, expense (including without limitation reasonable expenses of
      investigation and reasonable attorneys’ fees and expenses in connection with any
      action, suit or proceeding brought against the Purchaser (or its related party
      successors)) or Damages suffered or incurred by the Purchaser (or its related
      party successors) (the “Purchaser
      Losses”)”
      

     

    23. Except
      as
      provided for above, all the terms and conditions of the Purchase Agreement
      shall
      remain in full force and effect. This Fifth Amendment may be executed in
      counterparts. A facsimile signature shall be deemed an original.

     

    

     

    Signature
      Page Follows

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be
      duly
      executed and delivered, all on and as of the date first written
      above.

     

    

     

    
      	 	 
	
               

              HUNTER
                BATES MINING CORPORATION 

              a
                Minnesota corporation

              By:
                /s/
                Mark D. Dacko

              Its:
                CFO

            	 
	
               

              CENTRAL
                CITY CONSOLIDATED, CORP. 

              a
                Colorado corporation

              By:/s/
                George E. Otten 

              Its:
                President

            	
               

              GEORGE
                OTTEN, a resident of Colorado

               

               

              /s/
                George E. Otten

            
	
               

              HUNTER
                GOLD MINING CORP.

              a
                British Columbia corporation

              By:
                /s/
                George E. Otten 

              Its:President

            	
               

              HUNTER
                GOLD MINING INC. 

              a
                Colorado corporation

              By:
                /s/
                George E. Otten 

              Its:
                President

            

    

    

    

    The
      foregoing is consented to by and joined solely with respect to Section 5.7
      of
      the Purchase Agreement, as amended by this Fifth Amendment: 

     

    WITS
      BASIN PRECIOUS MINERALS INC. 

     

    a
      Minnesota corporation

     

    

     

    By:
      /s/
      Mark D. Dacko

    Its:
      CFO

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