Document:

Unassociated Document

     

    
      Exhibit
4.1

    

     

    
      

      WARRANT
PURCHASE AGREEMENT

       

      by
and between

       

      CAPRIUS,
INC.

       

      and

       

      VINTAGE
CAPITAL GROUP, LLC

       

      Dated
as of January 22, 2010

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
OF CONTENTS

       

      
        
          	
                  1.

                	
                  Terms
      of Warrant

                	
                  1

                
	 	 	 	 
	 
      	
                  1.1

                	
                  Warrant

                	
                  1

                
	 
      	
                  1.2

                	
                  Closing

                	
                  1

                
	 	 	 
	
                  2.

                	
                  Representations
      and Warranties of the Company

                	
                  2

                
	 	 	 	 
	 
      	
                  2.1

                	
                  Organization,
      Good Standing, and Qualification

                	
                  2

                
	 
      	
                  2.2

                	
                  Authorization

                	
                  2

                
	 
      	
                  2.3

                	
                  Valid
      Issuance of Capital Stock

                	
                  2

                
	 
      	
                  2.4

                	
                  Subsidiaries

                	
                  3

                
	 
      	
                  2.5

                	
                  No
      Conflicts

                	
                  3

                
	 
      	
                  2.6

                	
                  Warrant
      Coverage

                	
                  3

                
	 	 	 
	
                  3.

                	
                  Representations
      and Warranties of the Purchaser

                	
                  3

                
	 	 	 	 
	 
      	
                  3.1

                	
                  Authorization

                	
                  3

                
	 
      	
                  3.2

                	
                  Purchase
      Entirely for Own Account

                	
                  3

                
	 
      	
                  3.3

                	
                  Disclosure
      of Information

                	
                  4

                
	 
      	
                  3.4

                	
                  Investment
      Experience

                	
                  4

                
	 
      	
                  3.5

                	
                  Accredited
      Investor

                	
                  4

                
	 
      	
                  3.6

                	
                  Restricted
      Securities

                	
                  4

                
	 
      	
                  3.7

                	
                  Further
      Limitations on Disposition

                	
                  4

                
	 
      	
                  3.8

                	
                  Legends

                	
                  4

                
	 	 	 
	
                  4.

                	
                  Original
      Issue Discount Calculation

                	
                  5

                
	 	 	 
	
                  5.

                	
                  California
      Corporate Securities Law

                	
                  5

                
	 	 	 
	
                  6.

                	
                  Miscellaneous

                	
                  5

                
	 	 	 	 
	 
      	
                  6.1

                	
                  Successors
      and Assigns; Assignments

                	
                  5

                
	 
      	
                  6.2

                	
                  Governing
      Law

                	
                  6

                
	 
      	
                  6.3

                	
                  Consent
      to Forum

                	
                  6

                
	 
      	
                  6.4

                	
                  Waiver
      of Trial by Jury

                	
                  6

                
	 
      	
                  6.5

                	
                  Counterparts

                	
                  7

                
	 
      	
                  6.6

                	
                  Titles
      and Subtitles

                	
                  7

                
	 
      	
                  6.7

                	
                  Notices

                	
                  7

                
	 
      	
                  6.8

                	
                  Finder’s
      Fee

                	
                  8

                
	 
      	
                  6.9

                	
                  Expenses

                	
                  8

                
	 
      	
                  6.10

                	
                  Entire
      Agreement; Amendments and Waivers

                	
                  8

                
	 
      	
                  6.11

                	
                  Severability

                	
                  9

                

        

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      EXHIBITS

       

      
        	
                Exhibit A

              	
                —

              	
                Warrant

              
	
                Exhibit B

              	
                —

              	
                Registration
      Rights Agreement

              
	
                Exhibit C

              	
                —

              	
                Equity
      Rights Agreement

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      WARRANT
PURCHASE AGREEMENT

       

      
        THIS
WARRANT PURCHASE AGREEMENT (“Agreement”) is made
as of January 22, 2010, by and between Caprius, Inc., a Delaware
corporation (the “Company”), and
Vintage Capital Group, LLC, a Delaware limited liability company (the “Purchaser”).

         

        WHEREAS,
to induce the Purchaser to enter into that certain Securities Purchase and Sale
Agreement, dated as of September 16, 2009 (the “Securities Purchase
Agreement”), the Company agreed to issue and sell to the Purchaser a
warrant to purchase a number of shares of the Common Stock (as such term is
defined herein) of the Company, which shares will represent 40% of the Company’s
Common Stock on a Fully Diluted Basis (as defined in the Warrant);
and

         

        WHEREAS,
all capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Securities Purchase Agreement.

         

        NOW,
THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

         

        1.           Terms of
Warrant.

         

        1.1           Warrant.  In
return for the consideration provided by the Purchaser, the Company shall sell
and issue to the Purchaser a warrant to purchase shares of Common Stock (the
“Common Stock”)
in the form attached hereto as Exhibit A (the
“Warrant”).  The
Warrant shall be exercisable for that number of shares of Common Stock of the
Company equal to 40% of the Common Stock of the Company on a Fully Diluted Basis
(as defined in the Warrant) (the “Warrant
Shares”).

         

        1.2           Closing.

         

        (a)           The
closing (the “Closing”) of the
purchase of the Warrant by the Purchaser in return for the payment to the
Company by the Purchaser of $0.01 (the “Purchase Price”)
shall take place at the offices of Klee, Tuchin, Bogdanoff & Stern LLP, 1999
Avenue of the Stars, Los Angeles, California  90067, at 10:00
a.m. Los Angeles time, January 22, 2010 or at such other time and place as
the Company and the Purchaser mutually agree.

         

        (b)           At
the Closing:

         

        (i)           the
Purchaser shall deliver the Purchase Price to the Company and the Company shall
deliver to the Purchaser the executed Warrant in return for the consideration
provided to the Company;

         

        (ii)           the
Company shall deliver an executed copy of the Registration Rights Agreement in
the form attached hereto as Exhibit B;

         

        (iii)           the
Company shall deliver an executed copy of the Equity Rights Agreement in the
form attached hereto as Exhibit C;

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        (iv)           the
Company shall deliver an opinion of counsel to the Company, in form and
substance satisfactory to the Purchaser in its sole and absolute discretion,
which shall include, without limitation, opinions as to the authorization of the
Warrant and the Warrant Shares and the entry into, and enforceability of, this
Agreement, the Equity Rights Agreement and the Registration Rights
Agreement;

         

        (v)           the
Company shall deliver a certificate signed by the Chief Executive Officer of the
Company, certifying on behalf of the Company (1) that the representations
and warranties set forth in Section 2 are
true and correct, (2) that all conditions to Closing have been satisfied
and (3) as to the capitalization of the Company as of the
Closing;

         

        (vi)           the
Company shall deliver a certified copy of its Certificate of Incorporation as in
effect as of the Closing;

         

        (vii)           the
Company shall deliver a good standing certificate, issued by the State of
Delaware, dated as of the most recent practicable date prior to the Closing;
and

         

        (viii)           the
Company shall deliver resolutions or consents of (1) its Board of Directors
approving and authorizing the execution, delivery and performance of this
Agreement, the Warrant, the Equity Rights Agreement and the Registration Rights
Agreement and the amendments to the Company’s Certificate of Incorporation
necessary or desirable to comply with the terms and conditions of this Agreement
and the Warrant and (2) its stockholders approving and authorizing the
amendments to the Company’s Certificate of Incorporation necessary or desirable
to comply with the terms and conditions of this Agreement and the
Warrant.

         

        2.           Representations and
Warranties of the Company.  In connection with the transactions
provided for herein, the Company hereby represents and warrants to the Purchaser
that:

         

        2.1           Organization, Good Standing,
and Qualification.  The Company is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Delaware and has all requisite corporate power and authority to carry on its
business as now conducted and as proposed to be conducted.  The
Company is duly qualified to transact business and is in good standing in each
jurisdiction in which the failure so to qualify would have a material adverse
effect on its business or properties.

         

        2.2           Authorization.  All
corporate action on the part of the Company, its officers, directors, and
stockholders necessary for the authorization, execution, and delivery of this
Agreement, the performance of all obligations of the Company hereunder, and the
authorization, issuance and delivery of the Warrant has been
taken.  All corporate action on the part of the Company, its officers,
directors and stockholders necessary for the authorization, issuance (or
reservation for issuance) and delivery of the Warrant Shares to be issued upon
exercise of the Warrant has been taken.

         

        2.3           Valid Issuance of Capital
Stock.  The Warrant Shares, when issued, sold, and delivered in
accordance with the terms of the Warrant for the consideration expressed
therein, will be duly and validly issued, fully paid, and nonassessable and,
based in part upon the representations of the Purchaser in this Agreement, will
be issued in compliance with all applicable federal and state securities
laws.

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        2.4           Subsidiaries.  The
Company does not own or hold, directly or indirectly, any stock, partnership
interest, membership interest, joint venture interest, ownership interest or
other security, investment or interest in any corporation, partnership, limited
liability company, joint venture, organization or other entity, other than
M.C.M. Environmental Technologies, Inc., M.C.M. Environmental Technologies Ltd.,
and M.C.M. Environmental Technologies (U.K.) Ltd. (collectively, the “Subsidiaries”).

         

        2.5           No
Conflicts.  Neither the execution and delivery of this
Agreement or the Warrant, or any other agreement related thereto to which the
Company or any Subsidiary is a party, nor the consummation of the transaction
contemplated hereby or thereby, will (a) violate any provision of the
charter, bylaws or similar organizational documents of the Company or any
Subsidiary, (b) violate, breach, conflict with or constitute a default (or
constitute an event which, with the giving of notice or lapse of time or both,
would constitute a default) under, or give rise to any right of termination,
cancellation or acceleration under any material agreement, contract, lease,
license or document to which the Company or any Subsidiary is a party,
(c) violate any order, writ, injunction, decree, law, statute, rule or
regulation of any governmental authority applicable to the Company or any
Subsidiary or pertaining or relating to the business or any property of the
Company, or (d) give rise to a declaration or imposition of any lien upon
any share of Common Stock or any property of the Company.

         

        2.6           Warrant
Coverage.  The Warrant, as of the date hereof, represents 40%
of the Common Stock of the Company on a Fully Diluted Basis (as defined in the
Warrant) and there are no equity securities of the Company or any Subsidiary
outstanding that are not convertible into Common Stock.

         

        3.           Representations and
Warranties of the Purchaser.  In connection with the
transactions provided for herein, the Purchaser hereby represents and warrants
to the Company that:

         

        3.1           Authorization.  This
Agreement constitutes the Purchaser’s valid and legally binding obligation,
enforceable in accordance with its terms.

         

        3.2           Purchase Entirely for Own
Account.  The Purchaser acknowledges that this Agreement is
made with the Purchaser in reliance upon the Purchaser’s representation to the
Company that the Warrant and the Warrant Shares (collectively, the “Securities”) will be
acquired for investment for the Purchaser’s own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and that the Purchaser has no present intention of selling, granting any
participation in, or otherwise distributing the same.  By executing
this Agreement, the Purchaser further represents that the Purchaser does not
have any contract, undertaking, agreement, or arrangement with any person to
sell, transfer, or grant participations to such person or to any third person,
with respect to the Securities.  The Purchaser represents that it has
full power and authority to enter into this Agreement.

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        3.3           Disclosure of
Information.  The Purchaser acknowledges that it has received
all the information it considers necessary or appropriate for deciding whether
to acquire the Securities.  The Purchaser further represents that it
has had an opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering of the
Securities.

         

        3.4           Investment
Experience.  The Purchaser is an investor in securities of
companies in the development stage and acknowledges that it is able to fend for
itself, can bear the economic risk of its investment, and has such knowledge and
experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment in the Securities.  The Purchaser
also represents it has not been organized solely for the purpose of acquiring
the Securities.

         

        3.5           Accredited
Investor.  The Purchaser is an “accredited investor” within the
meaning of Rule 501 of Regulation D of the Securities and Exchange Commission
(the “SEC”), as
presently in effect.

         

        3.6           Restricted
Securities.  The Purchaser understands that the Securities are
characterized as “restricted securities” under the federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable regulations
such securities may be resold without registration under the Securities Act of
1933, as amended (the “Act”), only in
certain limited circumstances.  In this connection, the Purchaser
represents that it is familiar with SEC Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the Act.

         

        3.7           Further Limitations on
Disposition.  Without in any way limiting the representations
set forth above, the Purchaser further agrees not to make any disposition of all
or any portion of the Securities unless and until:

         

        (a)           There
is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with such registration
statement; or

         

        (b)           (i) The
Purchaser shall have notified the Company of the proposed disposition and shall
have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and (ii) if reasonably requested by
the Company, the Purchaser shall have furnished the Company with an opinion of
counsel, reasonably satisfactory to the Company, that such disposition will not
require registration of such shares under the Act.  It is agreed that
the Company will not require opinions of counsel for transactions made pursuant
to Rule 144 except in extraordinary circumstances.

         

        3.8           Legends.  It
is understood that the Securities shall bear the following legend:

         

        “These
securities have not been registered under the Securities Act of
1933.  They may not be sold, offered for sale, pledged, hypothecated,
or otherwise transferred except pursuant to an effective registration statement
under the Securities Act of 1933 or an opinion of counsel satisfactory to the
Company that registration is not required under such Act or unless sold pursuant
to Rule 144 under such Act.”

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        4.           Original Issue Discount
Calculation.  To the extent that it is applicable, the
Purchaser and the Company shall use reasonable efforts to determine a mutually
acceptable original issue discount calculation for the Warrant promptly after
Closing.  If they are not able to agree, then within ninety (90)
days following the Closing Date the Company shall prepare a calculation of the
original issue discount attributable to the issuance of the Warrant to the
Purchaser, and deliver it to the Purchaser together with supporting
statements.  The Purchaser shall have thirty (30) days to review
the Company’s calculation and if the Purchaser disagrees with the calculation,
the Purchaser shall submit its own calculation, together with supporting
statements, to the Company.  If the parties cannot agree within one
hundred and fifty (150) days of the Closing Date on the original issue
discount calculation, then the parties agree that the original issue discount
shall be determined as set forth in this paragraph by an independent accounting
firm mutually acceptable to both the Purchaser and the Company.  The
independent accounting firm shall select either the Company’ original
calculation or the Purchaser’s calculation, and not make a new calculation of
original issue discount.  Each party agrees to sign any reasonable
engagement letter requested by the independent accounting firm related to its
determination.  The determination of original issue discount in
accordance with this Section 4 shall
be used by each party hereto in all income tax filings.  All fees and
expenses of third parties related to the determination of original issue
discount shall be paid by the Company.

         

        5.           California Corporate
Securities Law.  THE SALE OF THE SECURITIES WHICH ARE THE
SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF
CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR
THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION FOR SUCH SECURITIES
PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT
FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE.  THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE
EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS
SO EXEMPT.

         

        6.           Miscellaneous.

         

        6.1           Successors and Assigns;
Assignments.  This Agreement shall inure to the benefit of, and
be binding upon, the parties and their respective successors and permitted
assigns.  The Company shall not assign any of its rights and
obligations hereunder or any interest herein or therein without the prior
written consent of the Purchaser.  The Purchaser may, at any time and
from time to time without the consent of the Company, assign, transfer or
delegate to one or more persons (each an “Assignee”) all or any
part of its right, title and interest in and to this Agreement and the Warrant,
subject to compliance with applicable federal and state securities laws; provided, however, that, in any
privately negotiated transaction involving a sale or assignment of any such
right, title or interest, the transferor shall obtain from the Assignee in
writing investment intent representations which would be customarily obtained in
transactions of such nature; and provided further, that the
Company shall continue to deal solely and directly with the transferor in
connection with any right, title or interest so assigned until written notice of
such assignment, together with payment instructions, addresses and related
information with respect to the Assignee, shall have been given to the
Company.

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        6.2           Governing
Law.  IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE (WITHOUT REGARD TO THE
CHOICE OF LAW OR CONFLICTS OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA.

         

        6.3           Consent to
Forum.  AS PART OF THE CONSIDERATION FOR NEW VALUE RECEIVED,
AND REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL PLACE OF BUSINESS
OF THE COMPANY OR THE PURCHASER, THE COMPANY HEREBY CONSENTS AND AGREES THAT THE
SUPERIOR COURT OF LOS ANGELES COUNTY, CALIFORNIA, OR, AT THE PURCHASER’S OPTION,
THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
THE COMPANY ON THE ONE HAND AND THE PURCHASER ON THE OTHER HAND PERTAINING TO
THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS
AGREEMENT.  THE COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO
SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE
COMPANY HEREBY WAIVES ANY OBJECTION WHICH THE COMPANY MAY HAVE BASED UPON LACK
OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY
CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT.  THE COMPANY HEREBY WAIVES PERSONAL SERVICE
OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT
AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE
BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE COMPANY AT THE ADDRESS SET
FORTH IN THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON
THE EARLIER OF THE COMPANY’S ACTUAL RECEIPT THEREOF OR FIVE (5) DAYS AFTER
DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID.  NOTHING IN THIS
AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF THE PURCHASER TO
SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO PRECLUDE THE
ENFORCEMENT BY THE PURCHASER OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR
THE TAKING OF ANY ACTION UNDER THIS AGREEMENT TO ENFORCE SAME IN ANY OTHER
APPROPRIATE FORUM OR JURISDICTION.

         

        6.4           Waiver of Trial by
Jury.  THE COMPANY AND THE PURCHASER HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT,
COUNTERCLAIM OR OTHER PROCEEDING (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF, CONNECTED WITH OR RELATING TO THIS AGREEMENT, THE NOTE, THE
WARRANT OR ANY OTHER DOCUMENT RELATED THERETO, THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY, OR THE ACTIONS OF THE PURCHASER IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF, REGARDLESS OF WHICH PARTY
INITIATES SUCH ACTION OR ACTIONS.

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        6.5           Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.  Facsimile or PDF signatures delivered hereunder shall be
deemed, and effective as, originals.

         

        6.6           Titles and
Subtitles.  The titles and subtitles used in this Agreement are
used for convenience only and are not to be considered in construing or
interpreting this Agreement.

         

        6.7           Notices.  All
notices, requests, demands and other communications which are required or may be
given under this Agreement shall be in writing and shall be deemed to have been
duly given (i) if transmitted by telecopier with receipt acknowledged, or
(ii) upon delivery, if delivered personally or by recognized commercial
courier with receipt acknowledged, or (iii) the next Business Day, if sent
by a nationally recognized overnight courier for next Business Day delivery,
addressed as follows:

         

        If to the
Purchaser:

         

        Vintage
Capital Group, LLC

        11611 San
Vicente Boulevard, 10th Floor

        Los Angeles,
CA  90049

        
          	
                	
                  Attention: 

                	
                  Thomas
      Webster

                

        

        
          	
                	
                  Telephone:

                	
                  (310)
      979-9090

                

        

        
          	
                	
                  Facsimile:

                	
                  (310)
      207-0035

                

        

        
          	
                	
                  E-Mail: 

                	
                  twebster@vintage-vfm.com

                

        

         

        With a
copy to:

         

        Klee,
Tuchin, Bogdanoff & Stern LLP

        1999
Avenue of the Stars, 39th Floor

        Los
Angeles, CA  90067

        
          	
                	
                  Attention: 

                	
                  Ronn
      S. Davids

                

        

        
          	
                	
                  Telephone: 

                	
                  (310)
      407-4095

                

        

        
          	
                	
                  Facsimile: 

                	
                  (310)
      407-9090

                

        

        
          	
                	
                  E-Mail: 

                	
                  RDavids@ktbslaw.com

                

        

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        If to the
Company, to:

         

        Caprius,
Inc.

        10 Forest
Avenue, Suite 220

        Paramus,
NJ  07652

        
          	
                	
                  Attention: 

                	
                  Dwight
      Morgan

                

        

        
          	
                	
                  Telephone: 

                	
                  (201)
      342-0900

                

        

        
          	
                	
                  Facsimile: 

                	
                  (866)
      405-4918

                

        

        
          	
                	
                  E-Mail: 

                	
                  dmorgan@mcmetech.com

                

        

         

        With a
copy  to:

         

        Carter
Ledyard & Milburn LLP

        2 Wall
Street

        New York,
NY  10005

        
          	
                	
                  Attention: 

                	
                  Bruce
      A. Rich

                

        

        
          	
                	
                  Telephone: 

                	
                  (212)
      238-8895

                

        

        
          	
                	
                  Facsimile: 

                	
                  (212)
      732-3232

                

        

        
          	
                	
                  E-Mail: 

                	
                  rich@clm.com

                

        

         

        or at
such other address or addresses as the Purchaser or the Company, as the case may
be, may specify by written notice given in accordance with this Section 6.6.

         

        6.8           Finder’s
Fee.  Each party represents that it neither is nor will be
obligated for any finder’s fee or commission in connection with this
transaction.  The Purchaser agrees to indemnify and to hold harmless
the Company from any liability for any commission or compensation in the nature
of a finder’s fee (and the costs and expenses of defending against such
liability or asserted liability) for which the Purchaser or any of its officers,
partners, employees, or representatives is responsible.  The Company
agrees to indemnify and hold harmless Purchaser from any liability for any
commission or compensation in the nature of a finder’s fee (and the costs and
expenses of defending against such liability or asserted liability) for which
the Company or any of its officers, employees, or representatives is
responsible.

         

        6.9           Expenses.  If
any action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs, expenses and necessary disbursements in addition to any other
relief to which such party may be entitled.  The Company shall bear
all costs, expenses and legal fees incurred by it and by the Purchaser with
respect to this Agreement, the Warrant and the transactions contemplated
hereby.

         

        6.10           Entire Agreement; Amendments
and Waivers.  This Agreement, the Warrant, the Securities
Purchase Agreement, the Investment Documents and the other documents delivered
pursuant hereto and thereto constitute the full and entire understanding and
agreement between the parties with regard to the subject matter hereof and
thereof.  Any term of this Agreement may be amended and the observance
of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), with the written consent of
the Company and the Purchaser.

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        6.11           Severability.  If
one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement and the
balance of the Agreement shall be interpreted as if such provision were so
excluded and shall be enforceable in accordance with its terms.

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.

         

        
          
            	 	
                    CAPRIUS,
      INC.,

                    a
      Delaware corporation

                  	 
	 	 	 	 
	
                     

                  	
                    By: 

                  	

                    /s/Dwight Morgan

                  	 
	 	 	

                    Name: 
      

                      Title: 

                    

                  	

                    Dwight Morgan 

                      Chief Executive
    Officer

                    

                  	 
	 	 	 	 

          

        

         

        
          
            
            

          

          
            
              [SIGNATURE
PAGE TO WARRANT PURCHASE AGREEMENT]

              PAGE
1

            

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  

                    VINTAGE
      CAPITAL GROUP, LLC,

                    a
      Delaware limited liability company

                  

                	 
	 	 	 	 
	
                   

                	
                  By: 

                	

                  

                    /s/Fred C.
      Sands

                  

                	 
	 	 	

                  Name: 
      

                    Title: 

                  

                	

                  

                    Fred C. Sands 

                    Chairman

                  

                	 
	 	 	 	 

        

         

         

        
           [SIGNATURE
PAGE TO WARRANT PURCHASE AGREEMENT] 

            PAGE
2Unassociated Document

     

    
      Exhibit
4.2

    

     

    
      WARRANT

       

      THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR
QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT IN COMPLIANCE
WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND THE REGISTRATION OR
QUALIFICATION REQUIREMENTS OF SUCH STATE SECURITIES LAWS OR PURSUANT TO AN
EXEMPTION FROM SUCH REGISTRATION AND QUALIFICATION.

       

      
        	
                WARRANT
      NO. 1

              	
                January 22,
      2010

              

      

      

      CAPRIUS,
INC.

       

      WARRANT
TO PURCHASE SHARES OF COMMON STOCK

       

      
        FOR VALUE
RECEIVED, CAPRIUS, INC., a Delaware corporation (the “Company”), hereby
certifies that VINTAGE CAPITAL GROUP, LLC, a Delaware limited liability company
(together with its successors or assigns, the “Holder”), is entitled
to purchase, on the terms and subject to the conditions contained herein, a
number of shares (the “Warrant Shares”) of
the Company’s common stock (“Common Stock”)
calculated in accordance with Section 2.3, at
the per-share exercise price of $0.01 (the “Warrant Purchase
Price”), at any time and from time to time during the Exercise Period (as
such term is defined below).  The number of Warrant Shares and the
Warrant Purchase Price are subject to adjustment as provided in Section 3.  This
Warrant is being issued in accordance with the terms and conditions set forth in
that certain Warrant Purchase Agreement, dated as of January 22, 2010, by
and between the Company and the Holder, and that certain Securities Purchase and
Sale Agreement, dated as of September 16, 2009, by and among the Company,
M.C.M. Environmental Technologies, Inc., a Delaware corporation, and M.C.M.
Environmental Technologies Ltd., an Israeli corporation, on the one hand, and
the Holder, on the other hand (as amended, restated, supplemented or otherwise
modified from time to time, the “Securities Purchase
Agreement”).

         

        This
Warrant is subject to the following terms and conditions:

         

        1.           DEFINITIONS

         

        Unless
otherwise defined in this Warrant, capitalized terms used and not otherwise
defined in this Warrant have the meanings set forth in the Securities Purchase
Agreement.  In addition, the following capitalized terms have the
following meanings:

         

        “Common Stock” has the
meaning set forth in the preamble.

         

        “Company” has the
meaning set forth in the preamble.

         

        “Convertible
Securities” means any Securities or other obligations issued or issuable
by the Company or any other Person that are exchangeable for, or convertible
into, (i) any Common Stock or (ii) any Securities exchangeable for, or
convertible into, any Common Stock.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        “Designated Office”
has the meaning set forth in Section 2.1.

         

        “Distribution” has the
meaning set forth in Section 3.1.

         

        “Distribution Amount”
has the meaning set forth in Section 3.1.

         

        “Effective Date” means
the issue date of this Warrant.

         

        “Exercise Notice” has
the meaning set forth in Section 2.1.

         

        “Exercise Period”
means the period commencing on the Effective Date and ending on (and including)
the Expiration Date.

         

        “Expiration Date”
means January 22, 2017.

         

        “Fully Diluted Basis”
means, at any time, a basis that includes (i) all shares of Common Stock of
the Company issued and outstanding at such time and (ii) all additional
shares of Common Stock of the Company which would be issued or issuable at such
time upon the conversion, purchase, exchange or exercise of any then outstanding
warrants, preferred stock, debt, options (including under any employee stock
option or similar plan), rights, other convertible instruments or other
securities convertible into or exchangeable for shares of Common Stock or
otherwise entitles the holder to receive shares of Common Stock of the
Company.

         

        “Holder” has the
meaning set forth in the preamble.

         

        “Other Property” has
the meaning set forth in Section 3.2(a).

         

        “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the Securities and Exchange Commission thereunder, all as the
same shall be in effect from time to time.

         

        “Securities Purchase
Agreement” has the meaning set forth in the preamble.

         

        “Warrant” means this
Warrant, any amendment or other modification of this Warrant, and any warrants
issued upon transfer, division or combination of, or in substitution for, this
Warrant or any other such warrant. All such warrants shall at all times be
identical as to terms and conditions and date, except as to the number of
Warrant Shares for which they may be exercised.

         

        “Warrant Purchase
Price” has the meaning set forth in the preamble (as adjusted in
accordance with the terms of this Warrant).

         

        “Warrant Shares” has
the meaning set forth in the preamble.

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        2.           EXERCISE

         

        2.1           Exercise; Delivery of
Certificates.  This Warrant may be exercised at the option of
the Holder, in whole or in part, at any time and from time to time during the
Exercise Period, by (a) delivering to the Company at its principal
executive office (the “Designated Office”)
(i) a notice of exercise, in substantially the form attached hereto (the
“Exercise
Notice”), duly completed and signed by the Holder, and (ii) this
Warrant, and (b) paying the Warrant Purchase Price pursuant to Section 2.2 for
the number of Warrant Shares being purchased.  The Warrant Shares
being purchased under this Warrant will be deemed to have been issued to the
Holder, as the record owner of such Warrant Shares, as of the close of business
on the date on which payment therefor is made by the Holder pursuant to Section 2.2,
provided that the Exercise Notice and this Warrant have been delivered to the
Company.  Stock certificates representing the Warrant Shares so
purchased shall be delivered to the Holder within three (3) Business Days
after this Warrant has been exercised.  In the case of a purchase of
less than all of the Warrant Shares issuable upon exercise of this Warrant, the
Company shall cancel this Warrant and, within three (3) Business Days after
this Warrant has been exercised, execute and deliver to the Holder a new Warrant
of like tenor representing the number of unexercised Warrant
Shares.  Each stock certificate representing the number of Warrant
Shares purchased or purchasable under this Warrant shall be registered in the
name of the Holder or, subject to compliance with Applicable Laws, such other
name as shall be designated by the Holder.

         

        2.2           Payment of Warrant Purchase
Price.  Payment of the Warrant Purchase Price may be made, at
the option of the Holder, by (i) check, (ii) wire transfer,
(iii) surrender to the Company of a portion of the principal amount of the
Note or any PIK Notes, provided, that any accrued but unpaid interest on the
surrendered portion of the principal of the Note or any PIK Notes shall be paid
in cash by the Company concurrent with delivery of the stock certificate
representing the purchased Warrant Shares, or (iv) any combination of the
foregoing.

         

        2.3           Calculation of Warrant
Shares.

         

        The
number of Warrant Shares to be issued upon any exercise of this Warrant shall be
calculated on the date of exercise as follows:

         

        
          	
                  Step
      1:

                	
                    A  

                    B  

                	
                  =  C

                
	 	 	 
	
                  Step
      2:

                	
                  C

                	
                  *
      40% = D

                
	 	 	 
	
                  Step
      3:

                	
                  D

                	
                  * E
      = F

                

        

         

        
          Where:

        

         

        
          	
                  A

                	
                  =

                	
                  The
      sum of (i) all shares of Common Stock of the Company issued and
      outstanding at such time plus (ii) all shares of Common Stock of the
      Company which would be issued or issuable at such time upon the
      conversion, purchase, exchange or exercise of any then-outstanding
      warrants, preferred stock, debt, options, rights, other convertible
      instruments or other securities convertible into or exchangeable for
      shares of Common Stock of the Company or that otherwise entitles the
      holder to receive shares of Common Stock of the Company, other than the
      then-unexercised portion of this
Warrant.

                

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

           

        

        
          	
                  B

                	
                  =

                	
                  The
      sum of (i) 60% plus (ii) the percentage of the Common Stock of
      the Company on a Fully Diluted Basis for which this Warrant has previously
      been exercised.

                
	 	 	 
	
                  C

                	
                  =

                	
                  The
      number of shares of Common Stock of the Company on a Fully Diluted Basis,
      including this Warrant.

                
	 	 	 
	
                  D

                	
                  =

                	
                  The
      number of shares of Common Stock of the Company subject to this Warrant at
      such time (without regard to any prior exercise of this
      Warrant).

                
	 	 	 
	
                  E

                	
                  =

                	
                  The
      quotient of (i) the percentage of the Common Stock of the Company on
      a Fully Diluted Basis for which this Warrant is being exercised at such
      time divided by (ii) 40%.

                
	 	 	 
	
                  F

                	
                  =

                	
                  The
      number of shares of Common Stock issuable to the Holder upon such exercise
      of this Warrant.

                

        

         

        

        For
purposes of reference only, if exercised in full as of the Effective Date, this
Warrant would be exercisable for 25,602,333 shares of Common Stock of the
Company.

         

        3.           DISTRIBUTIONS AND
ADJUSTMENTS

         

        The
number of Warrant Shares for which this Warrant is exercisable and the Warrant
Purchase Price shall be subject to adjustment from time to time as set forth in
this Section 3.

         

        3.1           Distribution of Assets or
Securities.  If the Company makes a distribution (a “Distribution”) to its
stockholders (other than in connection with the liquidation, dissolution or
winding up of the Company) of any asset (including cash) or security (the total
of the assets or securities so distributed, the “Distribution Amount”)
other than those referred to in Section 3.2,
then, the Holder shall have the right to receive the portion of the Distribution
Amount which a holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to the Distribution would have owned or
received immediately after and as a result of such Distribution.  Upon
the closing of the Distribution, the Company shall distribute such portion of
the Distribution Amount to the Holder.

         

        3.2           Reorganization,
Reclassification, Merger, Consolidation or Disposition of
Assets.

         

        (a)           If
at any time the Company reorganizes its capital, reclassifies its capital stock,
consolidates, merges or combines with or into another Person (where the Company
is not the surviving corporation or where there is any change whatsoever in, or
distribution with respect to, the outstanding Common Stock), or the Company
sells, transfers or otherwise disposes of all or substantially all of its
property, assets or business to another Person (including in connection with a
going private transaction by the Company), other than in a transaction provided
for in Section 3.3,
and, pursuant to the terms of such reorganization, reclassification,
consolidation, merger, combination, sale, transfer or other disposition of
assets, (i) shares of common stock of the successor or acquiring Person or
of the Company (if it is the surviving corporation) or (ii) 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 Person or the Company
(“Other
Property”) are to be received by or distributed to the holders of Common
Stock who are holders immediately prior to such transaction, then the Holder
shall have the right thereafter to receive, upon exercise of this Warrant, the
number of shares of Common Stock, common stock of the successor or acquiring
Person and/or Other Property which a holder of the number of shares of Common
Stock for which this Warrant is exercisable immediately prior to such event
would have owned or received immediately after and as a result of such
event.

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        (b)           In
case of any such event described in Section 3.2(a),
the successor or acquiring Person (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 the Holder may approve in writing (and memorialized by
resolutions of the Board of Directors of the Company) in order to provide for
adjustments of any shares of common stock of such successor or acquiring Person
for which this Warrant thus becomes exercisable, which modifications shall be as
equivalent as practicable to the adjustments provided for in this Section 3.2.  For
purposes of this Section 3,
“common stock of the successor or acquiring Person” shall include stock or other
equity securities, or securities that are exercisable or exchangeable for or
convertible into equity securities, of such corporation, or other securities if
such Person is not a corporation, of any class that is not preferred as to
dividends or assets over any other class of stock of such corporation or Person
and that is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities that 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 3.2
shall similarly apply to successive reorganizations, reclassifications,
consolidations, mergers, sales, transfers and other dispositions of
assets.

         

        3.3           Dissolution, Total
Liquidation or Winding-Up.  If at any time there is a voluntary
or involuntary dissolution, total liquidation or winding-up of the Company,
other than as contemplated by Section 3.2,
then the Company shall cause to be mailed (by registered or certified mail,
return receipt requested, postage prepaid) to the Holder at the Holder’s address
as shown on the Warrant register, at the earliest practicable time (and, in any
event, not less than thirty (30) days before any date set for definitive
action) written notice of the date on which such dissolution, liquidation or
winding-up shall take place, as the case may be.  Such notice shall
also specify the date as of which the record holders of shares of Common Stock
shall be entitled to exchange their shares for securities, money or other
property deliverable upon such dissolution, liquidation or winding-up, as the
case may be.  On such date, the Holder shall be entitled to receive
upon surrender of this Warrant the cash or other property, less the Warrant
Purchase Price for this Warrant then in effect, that the Holder would have been
entitled to receive had this Warrant been exercised and all Warrant Shares
issuable upon exercise hereof have been issued immediately prior to such
dissolution, liquidation or winding-up. Upon receipt of the cash or other
property, any and all rights of the Holder to exercise this Warrant shall
terminate in their entirety.  If the cash or other property
distributable in the dissolution, liquidation or winding-up has a fair market
value which is less than the Warrant Purchase Price for this Warrant then in
effect, this Warrant shall terminate and be of no further force or effect upon
the dissolution, liquidation or winding-up.

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        3.4           Split, Reverse Split and
Additional Securities Issuances.  In the event that the Company
completes a stock split, stock dividend or reverse stock split, or otherwise
issues any additional securities or repurchases any outstanding securities, the
number of Warrant Shares to be issued upon exercise of this Warrant shall
account for such additional securities or repurchase, and the aggregate Warrant
Purchase Price shall remain unchanged.

         

        3.5           [Reserved].

         

        3.6           Other Dilutive
Events.  If any event occurs as to which the other provisions
of this Section 3 are
not strictly applicable but as to which the failure to make any adjustment or
distribution would not protect the purchase rights represented by this Warrant
in accordance with the intent and principles hereof, then, in each such case and
unless the Company and the Holder agree on the appropriate adjustment, the
Holder may appoint on behalf of the Company an investment banking or accounting
firm of recognized national or regional standing which shall give its opinion as
to the adjustment, if any, on a basis consistent with the intent and principles
established herein, necessary to preserve the purchase rights represented by the
Warrant.  Upon receipt of such opinion, the Company will mail (by
registered or certified mail, return receipt requested, postage prepaid) a copy
thereof to the Holder within three (3) Business Days and shall make the
adjustments and distributions described therein.  To the extent that
such investment banking or accounting firm agrees with the adjustment as
proposed by the Company to such firm at the time such firm is engaged, the
Holder shall bear the fees and expenses of such firm; otherwise, the fees and
expenses of such firm shall be borne by the Company.

         

        3.7           Other Provisions Applicable
to Distributions and Adjustments.  The following provisions
shall be applicable to the distributions and adjustments provided for pursuant
to this Section 3:

         

        (a)           The
distributions and adjustments required by this Section 3 shall
be made whenever and as often as any specified event requiring such a
distribution or adjustment shall occur.  For the purpose of any such
distribution or adjustment, any specified event shall be deemed to have occurred
at the close of business on the date of its occurrence.

         

        (b)           Whenever
the number of shares or type of Securities or Other Property for which this
Warrant is exercisable or the Warrant Purchase Price shall be adjusted or
recalculated pursuant to this Section 3, the
Company shall immediately, but in no event in more than two (2) Business
Days after the event giving rise to the adjustment or recalculation, prepare a
certificate to be executed by the chief financial officer of the Company setting
forth, in reasonable detail, the event requiring the adjustment or recalculation
and the method by which such adjustment or recalculation was calculated,
specifying the number of shares and type of Securities or Other Property for
which this Warrant is exercisable, and any related change in the Warrant
Purchase Price, after giving effect to such adjustment, recalculation or
change.  The Company shall deliver to the Holder (in accordance with
the provisions of Section 4.8) a
signed copy of the certificate within five (5) Business Days of the event
which caused the adjustment or recalculation.  The Company shall keep
at the Designated Office copies of all such certificates and cause them to be
available for inspection at the Designated Office during normal business hours
by the Holder or any prospective transferee of this Warrant designated by the
Holder.

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        (c)           Except
as otherwise provided herein, all subsections of this Section 3 are
intended to operate independently of one another (but without
duplication).  If an event occurs that requires the application of
more than one subsection, all applicable subsections shall be given independent
effect without duplication.

         

        (d)           Notwithstanding
any adjustment required by this Section 3, in no
event shall the Warrant Purchase Price be less than the par value of the Common
Stock.

         

        4.           MISCELLANEOUS

         

        4.1           Restrictive
Legend.  This Warrant, any Warrant issued upon transfer of this
Warrant and, unless registered under the Securities Act, any Warrant Shares
issued upon exercise of this Warrant or any portion thereof, shall be imprinted
with the following legend, in addition to any legend required under applicable
state securities laws:

         

        THIS
WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR
QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT IN COMPLIANCE
WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT AND THE REGISTRATION OR
QUALIFICATION REQUIREMENTS OF SUCH STATE SECURITIES LAWS OR PURSUANT TO AN
EXEMPTION FROM SUCH REGISTRATION AND QUALIFICATION.

         

        The
legend shall be appropriately modified upon issuance of certificates for shares
of Common Stock.

         

        Upon
request of the holder of a Common Stock certificate, the Company shall issue to
that holder a new certificate free of the foregoing legend, if, with such
request, such holder provides the Company with a reasonable opinion of counsel
reasonably acceptable to the Company to the effect that the securities evidenced
by such certificate may be sold without restriction under Rule 144 (or any other
rule permitting resales of securities without restriction) promulgated under the
Securities Act.

         

        4.2           Holder Entitled to Benefits
Under Other Agreements.  The Holder of this Warrant (or, if the
Warrant has been divided up, the Holders) is entitled to certain rights,
benefits and privileges with respect to this Warrant and the Warrant Shares
pursuant to the terms of the Securities Purchase Agreement, the Registration
Rights Agreement (it being understood that the Warrant Shares constitute “Registrable
Securities” thereunder), and certain other Investment
Documents.

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        4.3           Other
Covenants.  Without limiting the generality of Section 4.2, the
Company covenants and agrees that, as long as this Warrant remains outstanding
or any Warrant Shares are issuable with respect to this Warrant, the Company
will perform all of the following covenants for the express benefit of the
Holder:  (a) the Warrant Shares shall, upon payment therefore and
issuance, be duly authorized, validly issued, fully paid and non-assessable
shares of Common Stock; (b) each Holder shall, upon the exercise thereof in
accordance with the terms hereof, receive good and marketable title to the
Warrant Shares, free and clear of all voting and other trust arrangements to
which the Company is a party or by which it is bound, preemptive rights of any
stockholder, liens, encumbrances, equities and claims whatsoever, including, but
not limited to, all Taxes, Liens and other charges with respect to the issuance
thereof except as otherwise provided in the Investment Documents; (c) at
all times prior to the Expiration Date, the Company shall have reserved for
issuance a sufficient number of authorized but unissued shares of Common Stock,
or other securities or property for which this Warrant may then be exercisable,
to permit this Warrant (or if this Warrant has been divided, all outstanding
Warrants) to be exercised in full; (d) the Company shall deliver to each
Holder the information and reports described in Section 9.4 of
the Securities Purchase Agreement as contemplated therein; (e) the Company
shall extend to the initial Holder the management rights set forth in the
Investment Monitoring Agreement or any other agreement between the Holder and
the Company to the extent the initial Holder is not already a party thereto; and
(f) the Company shall provide each Holder with notice of all corporate
actions in the same manner and to the same extent as the stockholders of the
Company.

         

        4.4           Issue
Tax.  The issuance of shares of Common Stock upon the exercise
of this Warrant shall be made without charge to the Holder for any issue tax in
respect thereof.

         

        4.5           Closing of
Books.  The Company will at no time close its transfer books
against the transfer of this Warrant or of any Warrant Shares in any manner
which interferes with the timely exercise hereof.

         

        4.6           No Voting Rights; Limitation
of Liability.  Except as expressly set forth in this Warrant,
nothing contained in this Warrant shall be construed as conferring upon the
Holder (a) the right to vote or consent as a stockholder in respect of
meetings of stockholders for the election of directors of the Company or any
other matter, (b) the right to receive dividends, except as set forth in
Section 3
or (c) any other rights as a stockholder of the Company, except as set
forth in Section 3 and in
the other Investment Documents.  No provisions hereof, in the absence
of affirmative action by the Holder to purchase shares of Common Stock, and no
mere enumeration herein of the rights or privileges of the Holder, shall give
rise to any liability of the Holder for the Warrant Purchase Price or as a
stockholder of the Company, whether such liability is asserted by the Company or
by its creditors.

         

        4.7           Modification and
Waiver.  This Warrant and any provision hereof may be modified,
changed, waived, discharged or terminated only by an instrument in writing
signed by the Company and the Holder.

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        4.8           Notices.  All
notices, requests, demands and other communications which are required or may be
given under this Warrant shall be in writing and shall be deemed to have been
duly given at the earliest of (i) the date received, or
(ii) one (1) Business Day after being sent by a nationally recognized
overnight courier for next Business Day delivery, with receipt acknowledged, or
(iii) five (5) Business Days after being mailed, postage prepaid, by
certified mail, return receipt requested, addressed to the applicable party as
set forth in the Securities Purchase Agreement or at such other address or
addresses as the Holder or the Company, as the case may be, may specify by
written notice given in accordance with this Section 4.8.

         

        4.9           Successors and
Assigns.

         

        (a)           The
Company may not assign any of its rights, or delegate any of its obligations,
under this Warrant without the prior written consent of the Holder (which
consent may be withheld for any reason or no reason at all).  Subject
to the requirements of Applicable Laws, the Holder may assign this Warrant and
its rights hereunder, and delegate its obligations under this Warrant, in whole
or in part, at any time or from time to time, without the consent of the
Company.  Each such assignment of this Warrant, in whole or in part,
shall be registered on the books of the Company to be maintained for such
purpose, upon surrender of this Warrant at the Designated Office, together with
appropriate instruments of assignment, duly completed and
executed.  Upon such surrender, the Company shall, at its own expense,
within three (3) Business Days of surrender, execute and deliver a new Warrant
or Warrants in the name of the assignee or assignees specified in such
assignment and in the denominations specified therein and this Warrant shall
promptly be canceled.  If any portion of this Warrant is not being
assigned, the Company shall, at its own expense, within three (3) Business Days
thereafter issue to the Holder a new Warrant evidencing the portion not so
assigned.  If the Holder assigns this Warrant to one or more Persons,
any decisions that the Holder is entitled to make at any time hereunder shall be
made by the Holders holding an aggregate of more than fifty percent (50%) of the
number of Warrant Shares issuable upon exercise of all of the then-exercisable
Warrants.

         

        (b)           This
Warrant shall be binding upon and inure to the benefit of the Company, the
Holder and their respective successors and permitted assigns, and shall include,
with respect to the Company, any Person succeeding the Company by merger,
consolidation, combination or acquisition of all or substantially all of the
Company’s assets, and in such case, except as expressly provided herein and in
the Securities Purchase Agreement, all of the obligations of the Company
hereunder shall survive such merger, consolidation, combination or
acquisition.

         

        4.10           Captions; Construction and
Interpretation.  The captions in this Warrant are for
convenience of reference only, do not constitute a part of this Agreement and
are not to be considered in construing or interpreting this
Warrant.  All section, preamble, recital, exhibit, schedule,
disclosure schedule, annex, clause and party references are to this Warrant
unless otherwise stated.  No party, nor its counsel, shall be deemed
the drafter of this Warrant for purposes of construing the provisions of this
Warrant, and all provisions of this Warrant shall be construed in accordance
with their fair meaning, and not strictly for or against any party.

         

        4.11           Lost Warrant or
Certificates.  Upon receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant or
of a stock certificate evidencing Warrant Shares and, in the case of any such
loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory
to the Company or, in the case of any such mutilation, upon surrender and
cancellation of this Warrant or stock certificate, the Company shall make and
deliver to the Holder, within three (3) Business Days of receipt by the
Company of such documentation, a new Warrant or stock certificate, of like
tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock
certificate.

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        4.12           No
Impairment.  The Company shall not by any action, including,
without limitation, amending its charter documents or regulations or through any
reorganization, reclassification, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such actions as may be necessary or appropriate to
protect the rights of the Holder against impairment. Without limiting the
generality of the foregoing, the Company will (i) not increase the par value (if
any) of any shares of Common Stock receivable upon the exercise of this Warrant
above the amount payable therefor upon such exercise immediately prior to such
increase in par value, (ii) take all such action as may be necessary or
appropriate in order that the Company may, at any time and from time to time,
validly and legally issue fully paid and nonassessable shares of Common Stock
upon the exercise of this Warrant, free and clear of all liens, encumbrances,
equities and claims, and (iii) use its best efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its
obligations under this Warrant.

         

        4.13           GOVERNING
LAW.  IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE (WITHOUT REGARD TO THE
CHOICE OF LAW OR CONFLICTS OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA.

         

        4.14           Remedies.  If
the Company fails to perform, comply with or observe any covenant or agreement
to be performed, complied with or observed by it under this Warrant, the Holder
may proceed to protect and enforce its rights by suit in equity or action at
law, whether for specific performance of any term contained in this Warrant or
for an injunction against the breach of any such term or in aid of the exercise
of any power granted in this Warrant or to enforce any other legal or equitable
right, or to take any one or more of such actions.  The Company hereby
agrees that the Holder shall not be required or otherwise obligated to, and
hereby waives any right to demand that the Holder, post any performance or other
bond in connection with the enforcement of its rights and remedies
hereunder.  The Company agrees to pay all fees, costs, and expenses,
including, without limitation, fees, costs and expenses of attorneys,
accountants and other experts retained by the Holder, and all fees, costs and
expenses of appeals, incurred or expended by the Holder in connection with the
enforcement of this Warrant or the collection of any sums due hereunder, whether
or not suit is commenced.  None of the rights, powers or remedies
conferred under this Warrant shall be mutually exclusive, and each right, power
or remedy shall be cumulative and in addition to any other right, power or
remedy whether conferred by this Warrant or now or hereafter available at law,
in equity, by statute or otherwise.

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        4.15           WAIVER OF JURY
TRIAL.  TO THE EXTENT PERMITTED BY AND ENFORCEABLE UNDER
APPLICABLE LAW, THE COMPANY AND THE HOLDER (BY ACCEPTANCE HEREOF) HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY
ACTION, SUIT, COUNTERCLAIM OR OTHER PROCEEDING (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF, CONNECTED WITH OR RELATING TO THIS AGREEMENT, ANY
OTHER INVESTMENT DOCUMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR
THE ACTIONS OF HOLDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT THEREOF, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION OR
ACTIONS.

         

        4.16           CONSENT TO
FORUM.  AS PART OF THE CONSIDERATION FOR NEW VALUE RECEIVED,
AND REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL PLACE OF BUSINESS
OF THE COMPANY OR THE HOLDER, THE COMPANY HEREBY CONSENTS AND AGREES THAT THE
SUPERIOR COURT OF LOS ANGELES COUNTY, CALIFORNIA, OR, AT THE HOLDER’S OPTION,
THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
THE COMPANY ON THE ONE HAND AND THE HOLDER ON THE OTHER HAND PERTAINING TO THIS
AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS
AGREEMENT.  THE COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO
SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE
COMPANY HEREBY WAIVES ANY OBJECTION WHICH THE COMPANY MAY HAVE BASED UPON LACK
OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT.  THE COMPANY HEREBY WAIVES PERSONAL SERVICE
OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT
AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE
BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE COMPANY AT THE ADDRESS SET
FORTH IN THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON
THE EARLIER OF THE COMPANY’S ACTUAL RECEIPT THEREOF OR FIVE (5) DAYS AFTER
DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID.  NOTHING IN THIS
AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF THE HOLDER TO SERVE
LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO PRECLUDE THE
ENFORCEMENT BY THE HOLDER OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE
TAKING OF ANY ACTION UNDER THIS AGREEMENT TO ENFORCE SAME IN ANY OTHER
APPROPRIATE FORUM OR JURISDICTION.

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        4.17           JUDICIAL
REFERENCE.  IN THE EVENT THE WAIVER PROVIDED IN SECTION 4.15 IS
DEEMED INEFFECTIVE, TO GIVE EFFECT TO THE PARTIES’ DESIRE THAT THEIR DISPUTES BE
RESOLVED BY A JUDGE OR RETIRED JUDGE APPLYING THE APPLICABLE LAW, THE PARTIES
AGREE TO REFER, FOR A COMPLETE AND FINAL ADJUDICATION, ANY AND ALL ISSUES OF
FACT OR LAW INVOLVED IN ANY LITIGATION OR PROCEEDING (INCLUDING, WITHOUT
LIMITATION, ALL DISCOVERY AND LAW AND MOTION MATTERS, PRETRIAL MOTIONS, TRIAL
MATTERS AND POST-TRIAL MOTIONS (E.G. MOTIONS FOR RECONSIDERATION, NEW TRIAL AND
TO TAX COSTS, ATTORNEY FEES, EXPENSES, COSTS, AND PREJUDGMENT INTEREST)) UP TO
AND INCLUDING FINAL JUDGMENT, BROUGHT TO RESOLVE ANY DISPUTE (WHETHER SOUNDING
IN CONTRACT, TORT, UNDER ANY STATUTE OR OTHERWISE) BETWEEN AND AMONG ANY OF THE
PARTIES HERETO, TO A JUDICIAL REFEREE WHO SHALL BE APPOINTED UNDER A GENERAL
REFERENCE PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION
638.  THE REFEREE’S DECISION WOULD STAND AS THE DECISION OF THE COURT,
WITH JUDGMENT TO BE ENTERED ON HIS/HER STATEMENT OF DECISION IN THE SAME MANNER
AS IF THE ACTION HAD BEEN TRIED BY THE COURT.  THE PARTIES HERETO
SHALL SELECT A SINGLE NEUTRAL REFEREE, WHO SHALL BE A RETIRED STATE OR FEDERAL
JUDGE WITH AT LEAST FIVE YEARS OF JUDICIAL EXPERIENCE IN CIVIL
MATTERS.  IN THE EVENT THAT THE PARTIES HERETO CANNOT AGREE UPON A
REFEREE, THE REFEREE SHALL BE APPOINTED BY THE COURT.  WITHOUT
LIMITING OR AFFECTING ANY INDEMNITIES AVAILABLE TO THE HOLDER, THE HOLDER, ON
THE ONE HAND, AND THE COMPANY, ON THE OTHER HAND, SHALL EQUALLY BEAR THE FEES
AND EXPENSES OF THE REFEREE (50% BY THE HOLDER AND 50% BY THE COMPANY) UNLESS
THE REFEREE OTHERWISE PROVIDES IN THE STATEMENT OF DECISION.

         

        [Signature
pages follow]

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        IN
WITNESS WHEREOF, the parties have caused this Warrant to be executed and issued
by their respective duly authorized representative on the date first above
written.

         

        
          
            
              	 	
                      CAPRIUS,
      INC.,

                      a
      Delaware corporation

                    	 
	 	 	 	 
	
                       

                    	
                      By: 

                    	
                      /s/Dwight Morgan

                    	 
	 	 	
                      Name: 
      

                        Title: 

                      

                    	
                      Dwight Morgan 

                        Chief Executive
    Officer

                      

                    	 
	 	 	 	 

            

          

           

          
            
              
              

            

            
              
                
                  [SIGNATURE
PAGE TO WARRANT]

                

                PAGE
1

              

              
                

              

            

            
              
              

            

          

           

          
            	 	
                    
                      VINTAGE
      CAPITAL GROUP, LLC,

                      a
      Delaware limited liability company

                    

                  	 
	 	 	 	 
	
                     

                  	
                    By: 

                  	
                    
                      /s/Fred C.
      Sands

                    

                  	 
	 	 	
                    Name: 
      

                      Title: 

                    

                  	
                    
                      Fred C. Sands 

                      Chairman

                    

                  	 
	 	 	 	 

          

           

        

        
          
            
            

          

          
             [SIGNATURE
PAGE TO WARRANT]

              PAGE
2

            

            
              

            

          

          
            
            

          

        

         

        
          EXHIBIT A

        

         

        CAPRIUS,
INC.

         

        Form of Exercise
Subscription

         

        (To be
signed only upon exercise of this Warrant)

         

        The
undersigned hereby irrevocably elects to exercise its Warrant to purchase
__________________________________________________ (_______) shares of Common
Stock for an aggregate Warrant Purchase Price of
_________________________________  Dollars ($______).

         

        The
Warrant Purchase Price to be paid as follows (check as applicable):

         

        ___           Company
check in the amount of $_________;

         

        ___           Wire
transfer in the amount of $_________; or

         

        ___           Surrender
of $_______ principal amount of the Note or the PIK Notes.

         

        The
undersigned represents that it is acquiring such shares of Common Stock for its
own account for investment purposes only and not with a view to or for sale in
connection with any distribution thereof, and, as to the undersigned, the
representations and warranties of the Holder set forth in Section 4 of the
Securities Purchase Agreement are true and correct on the date hereof as if made
by the undersigned on this date.

         

        
          	
                   

                  Dated:                                                   

                	 
      	
                   

                  
                                                                                                                     
      
Name of the Holder (must conform precisely to the name
      specified on the face of the Warrant)

                   

                   

                
	 
      	 
      	
                   

                  
                                                                                                                     
      
Signature of authorized representative of the
      Holder

                   

                   

                
	 
      	 
      	
                   

                  
                                                                                                                     
      
Print or type name of authorized representative

                   

                   

                
	 
      	 
      	
                  Social
      Security Number or Employer

                  Tax
      Identification Number of the Holder:

                   

                  
                                                                                                                     
      

                  

                   

                   

                
	 	 	
                  Address
      of the Holder:                                                        

                
	 
      	 
      	
                  
                    Address
      of the Holder :

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]