Document:

Form of 2006 Series B Warrant

     

    EXHIBIT
      4.2

     

    
      THE
        SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES
        HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS
        AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K), OR (III)
        THE
        COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT
        THAT
        SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES
        ACT
        OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

       

      SUBJECT
        TO THE PROVISIONS OF SECTION 8(b) HEREOF, THIS WARRANT SHALL BE VOID AFTER
        5:00
        P.M. EASTERN TIME ON FEBRUARY __, 2011 (the “EXPIRATION DATE”).

       

      No.
        WB2006-_

       

      CAPRIUS,
        INC.

       

      SERIES
        B WARRANT TO PURCHASE _________ SHARES OF

      COMMON
        STOCK, PAR VALUE $0.01 PER SHARE

       

      For
        VALUE
        RECEIVED, ____________________________________ (“Warrantholder”),
        is
        entitled to purchase, subject to the provisions of this Warrant, from Caprius,
        Inc., a Delaware corporation (the “Company”),
        at
        any time from and after the date hereof (the “Initial
        Exercise Date”)
        and
        not later than 5:00 P.M., Eastern time, on the Expiration Date (as defined
        above), at an exercise price per share equal to $2.00 (the exercise price
        in
        effect being herein called the “Warrant
        Price”),
                  
        shares
        (“Warrant
        Shares”)
        of the
        Company’s Common Stock, par value $0.01 per share (“Common
        Stock”).
        The
        number of Warrant Shares purchasable upon exercise of this Warrant and the
        Warrant Price shall be subject to adjustment from time to time as described
        herein.

       

      This
        Warrant is one of a series (the “Series
        B”)
        of
        Warrants initially issued for an aggregate of         
        shares
        of Common Stock as part of a private placement by the Company of          
        shares
        of Series D Convertible Preferred Stock, Series A Warrants for the purchase
        of
        _____ shares of Common Stock, and the Series B Warrants, pursuant to a Purchase
        Agreement, dated as of February 14, 2006, among the Company and the purchasers
        signatory thereto (the “Purchase
        Agreement”).

       

      Section
        1. Registration.
        The
        Company shall maintain books for the transfer and registration of the Warrant.
        Upon the initial issuance of this Warrant, the Company shall issue and register
        the Warrant in the name of the Warrantholder.

       

      Section
        2. Transfers.
        As
        provided herein, this Warrant may be transferred only pursuant to a registration
        statement filed under the Securities Act of 1933, as amended (the “Securities
        Act”),
        or an
        exemption from such registration. Subject to such restrictions, the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Company
        shall transfer this Warrant from time to time upon the books to be maintained
        by
        the Company for that purpose, upon surrender thereof for transfer properly
        endorsed or accompanied by appropriate instructions for transfer and such
        other
        documents as may be reasonably required by the Company, including, if required
        by the Company, an opinion of its counsel to the effect that such transfer
        is
        exempt from the registration requirements of the Securities Act, to establish
        that such transfer is being made in accordance with the terms hereof, and
        a new
        Warrant shall be issued to the transferee and the surrendered Warrant shall
        be
        canceled by the Company.

       

      Section
        3. Exercise
        of Warrant.
        (a)  Exercise.
        Subject
        to the provisions hereof, the Warrantholder may exercise this Warrant in
        whole
        or in part at any time from and after the Initial Exercise Date and not later
        than 5:00 P.M., Eastern time, on the Expiration Date upon surrender of the
        Warrant, together with delivery of the duly executed Warrant Exercise Form
        attached hereto as Appendix A and payment by cash, certified check or wire
        transfer of funds (or,
        in
        certain circumstances, by cashless exercise as provided in subsection (b)
        below)
for
        the
        aggregate Warrant Price for that number of Warrant Shares then being purchased,
        to the Company during normal business hours on any business day at the Company’s
        principal executive offices (or such other office or agency of the Company
        as it
        may designate by notice to the Warrantholder). The Warrant Shares so purchased
        shall be deemed to be issued to the Warrantholder or the Warrantholder’s
        designee, as the record owner of such shares, as of the close of business
        on the
        date on which this Warrant shall have been duly surrendered (or evidence
        of
        loss, theft or destruction thereof and security or indemnity satisfactory
        to the
        Company), the Warrant Price shall have been paid and the completed Warrant
        Exercise Form shall have been delivered. Certificates for the Warrant Shares
        so
        purchased, representing the aggregate number of shares specified in the Warrant
        Exercise Form, shall be delivered to the Warrantholder within a reasonable
        time,
        not exceeding three (3) business days, after this Warrant shall have been
        so
        exercised (the “Warrant
        Share Delivery Date”).
        The
        certificates so delivered shall be in such denominations as may be requested
        by
        the Warrantholder and shall be registered in the name of the Warrantholder
        or
        such other name as shall be designated by the Warrantholder. The Company
        shall
        pay to the Warrantholder, in cash, as partial liquidated damages and not
        as a
        penalty, for each $1,000 of Warrant Shares to be issued (based on the Market
        Price (as defined herein) of the Common Stock on the date the Warrants together
        with the executed Warrant Exercise Form are received for exercise by the
        Company’s transfer agent), $15 per business day for each business day after the
        Warrant Share Delivery Date until such certificate is delivered, provided,
        however, that the certificate for the Warrant Shares is to be registered
        in the
        name of the Warrantholder. Nothing herein shall limit the Warrantholder’s right
        to pursue actual damages for the Company’s failure to deliver certificates
        representing any Warrant Shares, and the Warrantholder shall have the right
        to
        pursue all remedies available to it at law or in equity including, without
        limitation, a decree or specific performance and/or injunctive relief. If
        this
        Warrant shall have been exercised only in part, then, unless this Warrant
        has
        expired, the Company shall, at its expense, at the time of delivery of such
        certificates, within four (4) business days of exercise, deliver to the
        Warrantholder a new Warrant representing the number of shares with respect
        to
        which this Warrant shall not then have been exercised. As used herein, “business
        day” means a day, other than a Saturday or Sunday, on which banks in New York
        City are open for the general transaction of business. Each exercise hereof
        shall constitute the re-affirmation by the Warrantholder that the
        representations and warranties contained in

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

       Section
        5 of the Purchase Agreement (as defined below) are true and correct in all
        material respects with respect to the Warrantholder as of the time of such
        exercise.

       

      (b) Cashless
        Exercise.
        (i)
        Notwithstanding any other provision contained herein to the contrary, the
        Warrantholder may elect to receive, without the payment by the Warrantholder
        of
        the aggregate Warrant Price in respect of the shares of Common Stock to be
        acquired, shares of Common Stock equal to the value of this Warrant or any
        portion hereof by the surrender of this Warrant (or such portion of this
        Warrant
        being so exercised) together with the Net Issue Election Notice annexed hereto
        as Appendix B duly executed, at the office of the Company. The Net Issue
        Election Notice must be received by the Company not more than five (5) business
        days after the date the election is made. Thereupon, the Company shall issue
        to
        the Warrantholder such number of fully paid, validly issued and nonassessable
        shares of Common Stock as is computed using the following formula:

       

      X
        =
Y
        (A -
        B)

      A

      where

       

      X
        = the
        number of shares of Common Stock which the Warrantholder has then requested
        be
        issued to the Warrantholder;

       

      Y
        = the
        total
        number of shares of Common Stock covered by this Warrant which the Warrantholder
        has surrendered at such time for cashless exercise (including both shares
        to be
        issued to the Warrantholder and shares to be canceled as payment
        therefor);

       

      A
        = the
        average closing “Market Price” of one share of Common Stock for the five (5)
        consecutive business days preceding the date the net issue election is made;
        and

       

      B
        = the
        Warrant Price in effect under this Warrant at the time the net issue election
        is
        made.

       

      (ii)
        For
        the purposes of this Agreement, “Market
        Price”
as
        of a
        particular date (the “Valuation
        Date”)
        shall
        mean the following: (a) if the Common Stock is then listed on a national
        stock
        exchange, the closing sale price of one share of Common Stock on such exchange
        on the last trading day prior to the Valuation Date; (b) if the Common Stock
        is
        then quoted on The Nasdaq Stock Market, Inc. (“Nasdaq”),
        the
        National Association of Securities Dealers, Inc. OTC Bulletin Board (the
        “Bulletin
        Board”)
        or
        such similar exchange or association, the closing sale price of one share
        of
        Common Stock on Nasdaq, the Bulletin Board or such other exchange or association
        on the last trading day prior to the Valuation Date or, if no such closing
        sale
        price is available, the average of the high bid and the low asked price quoted
        thereon on the last trading day prior to the Valuation Date; or (c) if the
        Common Stock is not then listed on a national stock exchange or quoted on
        Nasdaq, the Bulletin Board or such other exchange or association, the fair
        market value of one share of Common Stock as of the Valuation Date, shall
        be
        determined in good faith by the Board of Directors of the Company and the
        Warrantholder. If the Common Stock is not then listed on a national securities
        exchange, the Bulletin Board or such other exchange or association, the Board
        of
        Directors of the Company shall respond promptly, in writing, to an inquiry
        by
        the Warrantholder prior to the exercise hereunder as to the

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      fair
        market value of a share of Common Stock as determined by the Board of Directors
        of the Company. In the event that the Board of Directors of the Company and
        the
        Warrantholder are unable to agree upon the fair market value, the Company
        and
        the Warrantholder shall jointly select an appraiser, who is experienced in
        such
        matters. The decision of such appraiser shall be final and conclusive, and
        the
        cost of such appraiser shall be borne equally by the Company and the
        Warrantholder. Such adjustment shall be made successively whenever such a
        payment date is fixed.

       

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

       

      (d) Exercise
        Limitations.
        The
        Company shall not effect any exercise of this Warrant, and a Holder shall
        not
        have the right to exercise any portion of this Warrant, pursuant to this
        Section
        or otherwise, to the extent that after giving effect to such issuance after
        exercise as set forth on the applicable Warrant Exercise Form, such Holder
        (together with such Holder’s Affiliates, and any other person or entity acting
        as a group together with such Holder or any of such Holder’s Affiliates), as set
        forth on the applicable Warrant Exercise Form, would beneficially own in
        excess
        of the Beneficial Ownership Limitation (as defined below), excluding any
        Holder
        which, together with its affiliates, is a beneficial owner of more than 5%
        of
        the Company’s Common Stock (calculated in accordance with Section 13(d) of the
        Securities Exchange Act of 1934, as amended (the “Exchange
        Act”)
        and
        the rules and regulations thereunder) immediately prior to the Initial Exercise
        Date.  For purposes of the foregoing sentence, the number of shares of
        Common Stock beneficially owned by such Holder and its

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      Affiliates
        shall include the number of shares of Common Stock issuable upon exercise
        of
        this Warrant with respect to which such determination is being made, but
        shall
        exclude the number of shares of Common Stock which would be issuable upon
        (A)
        exercise of the remaining, nonexercised portion of this Warrant beneficially
        owned by such Holder or any of its Affiliates and (B) exercise or conversion
        of
        the unexercised or nonconverted portion of any other securities of the Company
        (including, without limitation, any other Preferred Stock or Warrants) subject
        to a limitation on conversion or exercise analogous to the limitation contained
        herein beneficially owned by such Holder or any of its Affiliates.  Except
        as set forth in the preceding sentence, for purposes of this Section, beneficial
        ownership shall be calculated in accordance with Section 13(d) of the Exchange
        Act and the rules and regulations promulgated thereunder, it being acknowledged
        by a Holder that the Company is not representing to such Holder that such
        calculation is in compliance with Section 13(d) of the Exchange Act and such
        Holder is solely responsible for any schedules required to be filed in
        accordance therewith. To the extent that the limitation contained in this
        Section applies, the determination of whether this Warrant is exercisable
        (in
        relation to other securities owned by such Holder together with any Affiliates)
        and of which a portion of this Warrant is exercisable shall be in the sole
        discretion of a Holder, and the submission of a Warrant Exercise Form shall
        be
        deemed to be each Holder’s determination of whether this Warrant is exercisable
        (in relation to other securities owned by such Holder together with any
        Affiliates) and of which portion of this Warrant is exercisable, in each
        case
        subject to such aggregate percentage limitation, and the Company shall have
        no
        obligation to verify or confirm the accuracy of such determination. In addition,
        a determination as to any group status as contemplated above shall be determined
        in accordance with Section 13(d) of the Exchange Act and the rules and
        regulations promulgated thereunder. For purposes of this Section in determining
        the number of outstanding shares of Common Stock, a Holder may rely on the
        number of outstanding shares of Common Stock as reflected in (x) the Company’s
        most recent Form 10-QSB or Form 10-KSB, as the case may be, (y) a more recent
        public announcement by the Company or (z) any other notice by the Company
        or the
        Company’s Transfer Agent setting forth the number of shares of Common Stock
        outstanding.  Upon the written or oral request of a Holder, the Company
        shall within two (2) Trading Days confirm orally and in writing to such Holder
        the number of shares of Common Stock then outstanding.  In any case, the
        number of outstanding shares of Common Stock shall be determined after giving
        effect to the conversion or exercise of securities of the Company, including
        this Warrant, by such Holder or its Affiliates since the date as of which
        such
        number of outstanding shares of Common Stock was reported. The “Beneficial
        Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock
        outstanding immediately after giving effect to the issuance of shares of
        Common
        Stock issuable upon exercise of this Warrant. The Beneficial Ownership
        Limitation provisions of this Section 3(d) may be waived by such Holder,
        at the
        election of such Holder, upon not less than sixty-one (61) days’ prior notice to
        the Company to change the Beneficial Ownership Limitation to 9.99% of the
        number
        of shares of the Common Stock outstanding immediately after giving effect
        to the
        issuance of shares of Common Stock upon exercise of this Warrant, and the
        provisions of this Section 3(d) shall continue to apply. Upon such a change
        by a
        Holder of the Beneficial Ownership Limitation from such 4.99% limitation
        to such
        9.99% limitation, the Beneficial Ownership Limitation may not be further
        waived
        by such Holder. The provisions of this paragraph shall be construed and
        implemented in a manner otherwise than in strict conformity with the terms
        of
        this Section 3(d) to correct this paragraph (or any portion hereof) which
        may be
        defective or inconsistent with the intended Beneficial

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      Ownership
        Limitation herein contained or to make changes or supplements necessary or
        desirable to properly give effect to such limitation. The limitations contained
        in this paragraph shall apply to a successor holder of this
        Warrant.

       

      Section
        4. Compliance
        with the Securities Act of 1933.
        Except
        as provided in the Purchase Agreement, the Company may cause the legend set
        forth on the first page of this Warrant to be set forth on each Warrant or
        similar legend on any security issued or issuable upon exercise of this Warrant,
        unless counsel for the Company is of the opinion as to any such security
        that
        such legend is unnecessary.

       

      Section
        5. Payment
        of Taxes.
        The
        Company will pay any documentary stamp taxes attributable to the initial
        issuance of Warrant Shares issuable upon the exercise of the Warrant; provided,
        however, that the Company shall not be required to pay any tax or taxes which
        may be payable in respect of any transfer involved in the issuance or delivery
        of any certificates for Warrant Shares in a name other than that of the
        Warrantholder in respect of which such shares are issued, and in such case,
        the
        Company shall not be required to issue or deliver any certificate for Warrant
        Shares or any Warrant until the person requesting the same has paid to the
        Company the amount of such tax or has established to the Company’s reasonable
        satisfaction that such tax has been paid. The Warrantholder shall be responsible
        for income taxes due under federal, state or other law, if any such tax is
        due.

       

      Section
        6. Mutilated
        or Missing Warrants.
        In case
        this Warrant shall be mutilated, lost, stolen, or destroyed, the Company
        shall
        issue in exchange and substitution of and upon cancellation of the mutilated
        Warrant, or in lieu of and substitution for the Warrant lost, stolen or
        destroyed, a new Warrant of like tenor and for the purchase of a like number
        of
        Warrant Shares, but only upon receipt of evidence reasonably satisfactory
        to the
        Company of such loss, theft or destruction of the Warrant, and with respect
        to a
        lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect
        thereto, if requested by the Company.

       

      Section
        7. Reservation
        of Common Stock.
        The
        Company hereby represents and warrants that there have been reserved, and
        the
        Company shall at all applicable times keep reserved until issued (if necessary)
        as contemplated by this Section 7, out of the authorized and unissued shares
        of
        Common Stock, sufficient shares to provide for the exercise of the rights
        of
        purchase represented by this Warrant. The Company agrees that all Warrant
        Shares
        issued upon due exercise of the Warrant shall be, at the time of delivery
        of the
        certificates for such Warrant Shares, duly authorized, validly issued, fully
        paid and non-assessable shares of Common Stock of the Company.

       

      Section
        8. Adjustments.
        Subject
        and pursuant to the provisions of this Section 8, the Warrant Price and number
        of Warrant Shares subject to this Warrant shall be subject to adjustment
        from
        time to time as set forth hereinafter.

       

      (a) Notwithstanding
        the initial Warrant Price of $2.00 per share (the “Initial
        Warrant Price”)
        in the
        event that during the 2006 calendar year the Company and its Subsidiaries
        do not
        receive bona fide purchase orders, commitments, contracts or lease arrangements
        (provided that such purchase orders, commitments, contracts or lease
        arrangements are not terminable at the election of the other party)
        (collectively “Orders”)
        from
        customers, including

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      distributors,
        for 150 Sterimed or Sterimed Junior Units (the “Units”)
        (the
“Milestone
        Amount”),
        as of
        January 1, 2007, the Initial Warrant Price shall be reduced by $0.05 for
        each
        block of ten Units under the Milestone Amount, up to a maximum reduction
        of
        $0.75, which amounts are subject to adjustment pursuant to Subsections (b)
        and
        (c) of this Section 8. For example, should only 128 Units be subject to Orders,
        as of January 1, 2007, the Initial Warrant Price would be reduced by $.15
        to
        $1.85 per share, subject to calculation by reason of any adjustment prior
        to
        January 1, 2007 under this Section 8. For purposes of calculating the Units
        under this Subsection, at least 15 Units must be the Sterimed, and if at
        least
        15 Sterimeds are subject to Orders, each additional Order for the Sterimed
        shall
        count as the equivalent of two Sterimed Juniors. The calculation of Orders
        shall
        not be subject to the principles followed by the Company in recognition of
        revenues for its financial reporting.

       

      (b) If
        the
        Company shall, at any time or from time to time while this Warrant is
        outstanding, pay a dividend or make a distribution on its Common Stock in
        shares
        of Common Stock, subdivide its outstanding shares of Common Stock into a
        greater
        number of shares or combine its outstanding shares of Common Stock into a
        smaller number of shares or issue by reclassification of its outstanding
        shares
        of Common Stock any shares of its capital stock (including any such
        reclassification in connection with a consolidation or merger in which the
        Company is the continuing corporation), then the number of Warrant Shares
        purchasable upon exercise of the Warrant and the Warrant Price in effect
        immediately prior to the date upon which such change shall become effective,
        shall be adjusted by the Company so that the Warrantholder thereafter exercising
        the Warrant shall be entitled to receive the number of shares of Common Stock
        or
        other capital stock which the Warrantholder would have received if the Warrant
        had been exercised immediately prior to such event upon payment of a Warrant
        Price that has been adjusted to reflect a fair allocation of the economics
        of
        such event to the Warrantholder. Such adjustments shall be made successively
        whenever any event listed above shall occur.

       

      (c) If
        any
        capital reorganization, reclassification of the capital stock of the Company,
        consolidation or merger of the Company with another corporation in which
        the
        Company is not the survivor, or sale, transfer or other disposition of all
        or
        substantially all of the Company’s assets to another corporation shall be
        effected, then, as a condition of such reorganization, reclassification,
        consolidation, merger, sale, transfer or other disposition, lawful and adequate
        provision shall be made whereby each Warrantholder shall thereafter have
        the
        right to purchase and receive upon the basis and upon the terms and conditions
        herein specified and in lieu of the Warrant Shares immediately theretofore
        issuable upon exercise of the Warrant, such shares of stock, securities or
        assets as would have been issuable or payable with respect to or in exchange
        for
        a number of Warrant Shares equal to the number of Warrant Shares immediately
        theretofore issuable upon exercise of the Warrant, had such reorganization,
        reclassification, consolidation, merger, sale, transfer or other disposition
        not
        taken place, and in any such case appropriate provision shall be made with
        respect to the rights and interests of each Warrantholder to the end that
        the
        provisions hereof (including, without limitation, provision for adjustment
        of
        the Warrant Price) shall thereafter be applicable, as nearly equivalent as
        may
        be practicable in relation to any shares of stock, securities or assets
        thereafter deliverable upon the exercise hereof. The Company shall not effect
        any such consolidation, merger, sale, transfer or other disposition unless
        prior
        to or simultaneously with the consummation thereof the successor corporation
        (if
        other than the Company) resulting from such consolidation or merger, or the
        corporation purchasing or otherwise acquiring such assets or other appropriate
        corporation or entity shall

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      assume
        the obligation to deliver to the Warrantholder, at the last address of the
        Warrantholder appearing on the books of the Company, such shares of stock,
        securities or assets as, in accordance with the foregoing provisions, the
        Warrantholder may be entitled to purchase, and the other obligations under
        this
        Warrant. The provisions of this subsection (c) shall similarly apply to
        successive reorganizations, reclassifications, consolidations, mergers, sales,
        transfers or other dispositions. Notwithstanding the provisions of the
        subsection (c), in the event that holders of Common Stock receive only cash
        for
        their shares of Common Stock as a result of any such reorganization,
        reclassification, consolidation, merger, sale, transfer or other disposition,
        not later than one business day after the effective date of such reorganization,
        reclassification, consolidation, merger, sale, transfer or other disposition,
        the Warrantholder shall be entitled to receive in full satisfaction of its
        rights under this Warrant an amount in cash (the “Spread”)
        equal
        to (x) the difference between (A) the per share cash to be received by holders
        of Common Stock in connection with such reorganization, reclassification,
        consolidation, merger, sale, transfer or other disposition and (B) the Warrant
        Price in effect immediately prior to the effective date of such reorganization,
        reclassification, consolidation, merger, sale, transfer or other disposition,
        multiplied by (y) the number of shares of Common Stock for which this Warrant
        is
        exercisable immediately prior to the effective date of such reorganization,
        reclassification, consolidation, merger, sale, transfer or other disposition.
        Upon payment in full of the Spread to the Warrantholder as provided above,
        this
        Warrant shall expire and be of no further force and effect. In the event
        that
        the Spread is not a positive number, no amount shall be payable to the
        Warrantholder as a result of such reorganization, reclassification,
        consolidation, merger, sale, transfer or other disposition, and this Warrant
        shall expire and be of no further force and effect as of the effective date
        of
        such reorganization, reclassification, consolidation, merger, sale, transfer
        or
        other disposition.

       

      (d) In
        case
        the Company shall fix a record date for the making of a distribution to all
        holders of Common Stock (including any such distribution made in connection
        with
        a consolidation or merger in which the Company is the continuing corporation)
        of
        evidences of indebtedness or assets (other than cash dividends or cash
        distributions payable out of consolidated earnings or earned surplus or
        dividends or distributions referred to in Section 8(b)), or subscription
        rights
        or warrants, the Warrant Price to be in effect after such record date shall
        be
        determined by multiplying the Warrant Price in effect immediately prior to
        such
        record date by a fraction, the numerator of which shall be the total number
        of
        shares of Common Stock outstanding multiplied by the Market Price per share
        of
        Common Stock immediately prior to such payment date, less the fair market
        value
        (as determined by the Company’s Board of Directors in good faith) of said assets
        or evidences of indebtedness so distributed, or of such subscription rights
        or
        warrants, and the denominator of which shall be the total number of shares
        of
        Common Stock outstanding multiplied by such Market Price per share of Common
        Stock immediately prior to such payment date.

       

      (e) An
        adjustment to the Warrant Price shall become effective immediately after
        the
        payment date in the case of each dividend or distribution and immediately
        after
        the effective date of each other event which requires an
        adjustment.

       

      (f) In
        the
        event that, as a result of an adjustment made pursuant to this Section 8,
        the
        Warrantholder shall become entitled to receive any shares of capital stock
        of
        the Company other than shares of Common Stock, the number of such other shares
        so receivable upon exercise

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      of
        this
        Warrant shall be subject thereafter to adjustment from time to time in a
        manner
        and on terms as nearly equivalent as practicable to the provisions with respect
        to the Warrant Shares contained in this Warrant.

       

      Section
        9. Fractional
        Interest.
        The
        Company shall not be required to issue fractions of Warrant Shares upon the
        exercise of this Warrant. If any fractional share of Common Stock would,
        except
        for the provisions of the first sentence of this Section 9, be deliverable
        upon
        such exercise, the Company, in lieu of delivering such fractional share,
        shall
        pay to the exercising Warrantholder an amount in cash equal to the Market
        Price
        of such fractional share of Common Stock on the date of exercise.

       

      Section
        10. Benefits.
        Nothing
        in this Warrant shall be construed to give any person, firm or corporation
        (other than the Company and the Warrantholder) any legal or equitable right,
        remedy or claim, it being agreed that this Warrant shall be for the sole
        and
        exclusive benefit of the Company and the Warrantholder.

       

      Section
        11. Notices
        to Warrantholder.
        Upon
        the happening of any event requiring an adjustment of the Warrant Price,
        the
        Company shall promptly give written notice thereof to the Warrantholder at
        the
        address appearing in the records of the Company, stating the adjusted Warrant
        Price and the adjusted number of Warrant Shares resulting from such event
        and
        setting forth in reasonable detail the method of calculation and the facts
        upon
        which such calculation is based. Failure to give such notice to the
        Warrantholder or any defect therein shall not affect the legality or validity
        of
        the subject adjustment.

       

      Section
        12. Identity
        of Transfer Agent.
        The
        Transfer Agent for the Common Stock is American Stock Transfer & Trust
        Company. Upon the appointment of any subsequent transfer agent for the Common
        Stock or other shares of the Company’s capital stock issuable upon the exercise
        of the rights of purchase represented by the Warrant, the Company will mail
        to
        the Warrantholder a statement setting forth the name and address of such
        transfer agent.

       

      Section
        13. Notices.
        Unless
        otherwise provided, any notice required or permitted under this Warrant shall
        be
        given in writing and shall be deemed effectively given as hereinafter described
        (i) if given by personal delivery, then such notice shall be deemed given
        upon
        such delivery, (ii) if given by telex or facsimile, then such notice shall
        be
        deemed given upon receipt of confirmation of complete transmittal, (iii)
        if
        given by mail, then such notice shall be deemed given upon the earlier of
        (A)
        receipt of such notice by the recipient or (B) three (3) days after such
        notice
        is deposited in first class mail, postage prepaid, and (iv) if given by an
        internationally recognized overnight air courier, then such notice shall
        be
        deemed given one (1) business day after delivery to such carrier. All notices
        shall be addressed as follows: if to the Warrantholder, at its address as
        set
        forth in the Company’s books and records and, if to the Company, at the address
        as follows, or at such other address as the Warrantholder or the Company
        may
        designate by ten (10) days’ advance written notice to the other:

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      If
        to the
        Company:

       

      Caprius,
        Inc.

      One
        University Plaza

      Hackensack,
        NJ 07601

      Attention:
        George Aaron, President

      Fax:
        (201) 342-0991

       

      With
        a
        copy to:

       

      Thelen
        Reid & Priest LLP

      875
        Third
        Avenue

      New
        York,
        NY 10022

      Attention:
        Bruce A. Rich, Esq.

      Fax:
        (212) 603-2001

       

      Section
        14. Registration
        Rights.
        The
        initial Warrantholder is entitled to the benefit of certain registration
        rights
        with respect to the shares of Common Stock issuable upon the exercise of
        this
        Warrant as provided in the Registration Rights Agreement entered into in
        connection with the closing of the Purchase Agreement, and any subsequent
        Warrantholder may be entitled to such rights.

       

      Section
        15. Successors.
        All the
        covenants and provisions hereof by or for the benefit of the Warrantholder
        shall
        bind and inure to the benefit of its respective successors and assigns
        hereunder. 

       

      Section
        16. Governing
        Law; Consent to Jurisdiction; Waiver of Jury Trial.
        This
        Warrant shall be governed by, and construed in accordance with, the internal
        laws of the State of New York, without reference to the choice of law provisions
        thereof. The Company and, by accepting this Warrant, the Warrantholder, each
        irrevocably submits to the exclusive jurisdiction of the courts of the State
        of
        New York located in New York County and the United States District Court
        for the
        Southern District of New York for the purpose of any suit, action, proceeding
        or
        judgment relating to or arising out of this Warrant and the transactions
        contemplated hereby. Service of process in connection with any such suit,
        action
        or proceeding may be served on each party hereto anywhere in the world by
        the
        same methods as are specified for the giving of notices under this Warrant.
        The
        Company and, by accepting this Warrant, the Warrantholder, each irrevocably
        consents to the jurisdiction of any such court in any such suit, action or
        proceeding and to the laying of venue in such court. The Company and, by
        accepting this Warrant, the Warrantholder, each irrevocably waives any objection
        to the laying of venue of any such suit, action or proceeding brought in
        such
        courts and irrevocably waives any claim that any such suit, action or proceeding
        brought in any such court has been brought in an inconvenient forum.
EACH
        OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE WARRANTHOLDER HEREBY WAIVES
        ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS
        WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO
        THIS
        WAIVER.

       

      Section
        17. No
        Rights as Stockholder.
        Prior
        to the exercise of this Warrant in accordance with Section 3 hereof, the
        Warrantholder shall not have or exercise any rights as a stockholder of the
        Company by virtue of its ownership of this Warrant.

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      Section
        18. Amendment;
        Waiver; Reduction of Warrant Price.
        Any
        term of this Warrant may be amended or waived (including the adjustment
        provisions included in Section 8 of this Warrant) upon the written consent
        of
        the Company and the holders of Series B Warrants representing at least 66%
        of
        the number of shares of Common Stock then subject to all outstanding
        Series B Warrants, which consent shall be binding on all holders of
        Series B Warrants; provided
        that (x)
        any such amendment or waiver must apply to all Series B Warrants; and (y)
        the
        number of Warrant Shares subject to this Warrant, the Warrant Price and the
        Expiration Date may not be amended, and the right to exercise this Warrant
        may
        not be altered or waived, without the written consent of the Warrantholder.
        Notwithstanding the proviso in the immediately preceding sentence, to the
        extent
        permitted by applicable law, the Company from time to time may unilaterally
        reduce the Warrant Price by any amount so long as (i) the period during which
        such reduction is in effect is at least twenty (20) days, (ii) the reduction
        is
        irrevocable during such period and (iii) the Company's Board of Directors
        shall
        have made a determination that such reduction would be in the best interests
        of
        the Company. Whenever the Warrant Price is reduced pursuant to the preceding
        sentence, the Company shall mail or cause to be mailed to the Warrantholder
        a
        notice of the reduction at least five (5) days prior to the date the reduced
        Warrant Price is to take effect, which notice shall state the reduced Warrant
        Price and the period during which it will be in effect.

       

      Section
        19. Section
        Headings.
        The
        section headings in this Warrant are for the convenience of the Company and
        the
        Warrantholder and in no way alter, modify, amend, limit or restrict the
        provisions hereof.

       

      IN
        WITNESS WHEREOF, the Company has caused this Warrant to be duly executed,
        as of
        the __th
        day of
        February, 2006.

       

      
        
          
            
              	 	
                      CAPRIUS,
                        INC.

                    
	 	 
	 	
                      By:

                    	/s/
                       Jonathan Joels
	 	
                      Name: 
                        Jonathan Joels

                    
	 	
                      Title:  
                         Chief Financial
                        Officer

                    

            

          
  

          
            
              
              

            

            
              -11-

              
                

              

            

            
              
              

            

          

           

        

      

      APPENDIX
        A

      CAPRIUS,
        INC.

      WARRANT
        EXERCISE FORM

       

      To
        Caprius, Inc.:

       

      The
        undersigned hereby irrevocably elects to exercise the right of purchase
        represented by the within Warrant (“Warrant”) for, and to purchase thereunder by
        the payment of the Warrant Price and surrender of the Warrant, _______________
        shares of Common Stock (“Warrant Shares”) provided for therein, and requests
        that certificates for the Warrant Shares be issued as follows: 

       

      _______________________________

      Name

      ________________________________

      Address

      ________________________________

      ________________________________

      Federal
        Tax ID or Social Security No.

       

      

        and
          delivered by         (certified
          mail to the above address, or  

        (electronically           (provide                              DWAC
          
Instructions:___________________), or  

        (other        
          (specify):
__________________________________________).

         

      

      and,
        if
        the number of Warrant Shares shall not be all the Warrant Shares purchasable
        upon exercise of the Warrant, that a new Warrant for the balance of the Warrant
        Shares purchasable upon exercise of this Warrant be registered in the name
        of
        the undersigned Warrantholder or the undersigned’s Assignee as below indicated
        and delivered to the address stated below.

       

      Dated:
        ___________________, ____

       

      
        
          
            	 	
                    Signature:

                  	
                     

                  	 
	
                    Note:
                      The signature must correspond with

                  	 	 
	
                    the
                      name of the Warrantholder as written

                  	 	 
	
                    on
                      the first page of the Warrant in every

                  	
                     

                  	 
	
                    particular,
                      without alteration or enlargement

                  	
                    Name
                      (please print)

                  	 
	
                    or
                      any change whatever, unless the Warrant

                  	 	 
	
                    has
                      been assigned.

                  	
                     

                  	 
	 	
                     

                  	 
	 	
                    Address

                  	 
	 	
                     

                  	 
	 	
                    Federal
                      Tax Identification or

                  	 
	 	
                    Social
                      Security No.

                     

                  	 
	 	
                    Assignee:
                      

                  	 
	 	
                     

                  	 
	 	
                     

                  	 
	 	
                     

                  	 

          

        

      

        

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      APPENDIX
        B

      CAPRIUS,
        INC.

      NET
        ISSUE
        ELECTION NOTICE

       

      To:
        Caprius, Inc.

       

      Date:[_________________________]

       

      The
        undersigned hereby elects under Section
        3(b)
        of this
        Warrant to surrender the right to purchase [____________] shares of Common
        Stock
        pursuant to this Warrant and hereby requests the issuance of [_____________]
        shares of Common Stock. The certificate(s) for the shares issuable upon such
        net
        issue election shall be issued in the name of the undersigned or as otherwise
        indicated below.

       

      
        
          	 	 
	
                  Signature

                   

                	 
	 	 
	
                  Name
                    for Registration

                   

                	 
	 	 
	
                  Mailing
                    AddressPlacement Agent Warrant Agreement

     

    EXHIBIT
      4.3

    CAPRIUS,
      INC.

    One
      University Plaza

    Hackensack,
      New Jersey 07601

    

    

            February
      17,
      2006

    

    

    Carter
      Securities, LLC.

    55
      Fifth
      Avenue 18th Floor

    New
      York,
      New York 10003 

    

    Gentlemen:

    

    The
      undersigned, Caprius, Inc., a Delaware corporation (the “Company”),
      proposes to sell to a limited number of “accredited investors,” as such term is
      defined in Rule 501 of Regulation D promulgated under Section 4(2) of the
      Securities Act of 1933, as amended (the “Securities
      Act”),
      a
      minimum of $1,500,000 (“Minimum
      Amount”)
      and a
      maximum of $3,000,000 (“Maximum
      Amount”)
      of
      Series D Convertible Preferred Stock (the “Shares”),
      together with warrants (the “Warrants”)
      to
      purchase the Company’s common stock (the Shares and Warrants shall hereinafter
      be referred to as the “Securities”).
      

    

    Purchases
      of Securities shall be evidenced by the execution by investors of a Purchase
      Agreement (collectively, with all other agreements contemplated therein,
      schedules, exhibits and annexes thereto, the “Transaction
      Documents”).
      No
      Purchase Agreement shall be effective unless and until it is accepted by the
      Company. The Placement Agent (as hereinafter defined) shall not have any
      obligation to independently verify the accuracy or completeness of any
      information contained in any Transaction Document or the authenticity,
      sufficiency, or validity of any check delivered by any prospective investor
      in
      payment for Securities. The sale of Securities pursuant to the Transaction
      Documents is hereinafter referred to as the “Offering”
or
      the
“Transaction”.
      The
      Offering period (the “Offering
      Period”)
      shall
      commence as of the date hereof and shall continue through February 28, 2006,
      which date may be extended at the mutual discretion of the Company and Carter
      Securities, LLC (together with its dealers, the “Placement
      Agent”
or
      “Carter”).
      The
      day
      that the Offering Period terminates is hereinafter referred to as the
“Termination
      Date.” Any
      terms
      used and not otherwise defined herein shall have the respective meanings set
      forth in the Purchase Agreement except that the term “Conversion Rate” shall
      have the meaning assigned to it in Section 4.1 of the Certificate of
      Designations.

    

    Subject
      to the performance by the Company of all of its obligations to be performed
      under this Agreement and to the completeness and accuracy of all representations
      and warranties of the Company contained in this Agreement, Carter is hereby
      appointed placement agent of the Company for the purposes of assisting the
      Company in finding qualified investors for the Offering and agrees to use its
      reasonable efforts to assist the Company in finding qualified investors for
      the
      Offering. Except for the foregoing, it is understood that the Placement Agent
      has no commitment to sell the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Securities.
      Carter’s agency hereunder is not terminable by the Company prior to the
      Termination Date. 

    

    1.    Representations
      Warranties and Covenants of the Company.
      For the
      benefit of Carter, the Company hereby incorporates by reference all of its
      (i)
      representations and warranties as set forth in Section 4 of the Purchase
      Agreement and (ii) covenants set forth in Section 7 of the Purchase Agreement,
      in each case with the same force and effect as if specifically set forth herein.
      In addition, at each closing of the Transaction (“Closing”), the Company will
      provide Carter with the same certificates of the officers of the Company as
      are
      furnished to the investors pursuant to the Purchase Agreement and such other
      certification, opinions and documents as Carter or its counsel may deem
      appropriate, in form and substance satisfactory to Carter and its counsel,
      including any updates of the Company’s representations and warranties set forth
      herein or in the Purchase Agreement.

    

    2.    Closing;
      Fees.
      Simultaneously with payment for and delivery of the Securities at each Closing,
      the Company shall pay to the Placement Agent or its designees (i) a placement
      fee equal to eight percent (8%) of the aggregate gross proceeds in each Closing
      (for a placement fee of $160,000); (ii) warrants to purchase 8% of the number
      of
      shares of common stock initially issuable upon conversion of the Shares sold
      at
      each Closing (but using the Conversion Rate in effect after September 30, 2007
      for purposes of this calculation) at an exercise price equal to $1.68 per share
      (the “Placement Agent Warrants”) (for a total number of Placement Agent Warrants
      of 119,403) and (iii) a non-accountable expense allowance equal to two percent
      (2%) of the aggregate proceeds from the sale of the Securities, not to exceed
      $35,000 (the “Expense Allowance” (for a total Expense Allowance of $35,000). The
      foregoing fees shall not be paid to Carter with respect to Shares purchased
      by
      any investor who is a pre-existing stockholder of the Company or any investor
      who is introduced to the Offering by management of the Company. The common
      stock
      issuable upon exercise of the Placement Agent Warrants shall be afforded the
      same registration rights applicable to the common stock underlying the Shares
      and issuable upon exercise of the Warrants, as described in the Registration
      Rights Agreement included in the Transaction Documents. For the benefit of
      Carter, the Company hereby incorporates by reference all of the provisions
      of,
      and rights and obligations under, the Registration Rights Agreement that apply
      to “Investors” (as defined under such agreement), including but not limited to
      Section 6 of such agreement, relating to indemnification and contribution,
      in
      each case with the same force and effect as if specifically set forth herein.
      The Placement Agent Warrants contain the same terms and conditions as the
      Warrants, except for the exercise price and any requirements imposed on such
      securities by the NASD. In addition, the Company shall pay all filing and
      reasonable legal expenses to be incurred in any Rule 2710 filing to made with
      the NASD to the extent such filing is required, which determination shall be
      made solely by the Placement Agent. 

    

    3.    Covenants
      of the Company.

    

    (a).    No
      Closing.
      Anything set forth herein to the contrary notwithstanding, in the event that
      the
      Closing does not occur in accordance with the terms provided herein for any
      reason other than due to the gross negligence or willful misconduct of Carter,
      no amounts shall be further payable to Carter hereunder, except for up to
      $15,000 to reimburse Carter for legal fees incurred. In no event shall Carter
      be
      responsible

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    for
      any
      of the Company’s fees, costs or expenses incurred in connection with the
      Transaction. The Company shall reimburse Carter for any out-of-pocket expenses
      (including, but not limited to, reasonable legal fees and expenses) which Carter
      may incur in connection with the enforcement of its rights
      hereunder.

    

    (b).    Company
      Expenses and Blue Sky.

     

     
      (i).    The
      Company shall pay all reasonable expenses incurred in connection with the
      preparation and printing of all necessary offering documents and instruments
      related to the Transaction, the issuance of the Securities and will also pay
      the
      Company’s own expenses for accounting fees, legal fees, escrow account fees and
      other costs involved with the Transaction, including the printing costs of
      the
      Transaction documentation. The Company will provide at its own expense such
      quantities of the Transaction documentation and other documents and instruments
      relating to the Transaction as the Placement Agent may reasonably request.
      Further, as promptly as practicable after the final Closing Date of the Offering
      (the “Final
      Closing Date”),
      the
      Company shall prepare, at its own expense, no more than four “velobound volumes”
relating to the Transaction and will distribute such volumes to the individuals
      designated by counsel to the Placement Agent.

    

     
      (ii).    The
      Company will prepare and file the necessary documents so that offers and sales
      of the securities to be offered in the Offering may be made in certain states
      and jurisdictions in the United States. It is understood that such filings
      may
      be based on or rely upon: (i) the representations of each investor set forth
      in
      the Purchase Agreement delivered by such investor; (ii) the representations,
      warranties and agreements of the Company set forth in Section 1 of this
      Agreement; and (iii) the representations of the Company set forth in the
      certificate to be delivered at the closing(s) pursuant to the Purchase
      Agreement. 

    

     
      (iii).    The
      Company shall file five copies of a Notice of Sales of Securities on Form D
      with
      the SEC no later than 15 days after the commencement of the sale of the
      Securities. The Company shall file promptly such amendments to such Notices
      on
      Form D as shall become necessary and shall also comply with any filing
      requirement imposed by the laws of any state or jurisdiction in which offers
      and
      sales are made. The Company shall furnish the Placement Agent with copies of
      all
      such filings.

    

    (c).    Tail. From
      the
      date hereof until the date that is the one year anniversary of the Effective
      Date,
      Carter
      will be entitled to receive the fees as set forth in Section 2 of this Agreement
      in connection with any private financing transaction that the Company
      consummates with any investor(s) introduced to the Company by Carter. Within
      10
      business days following the Final Closing Date, Carter shall deliver to the
      Company a list of individuals and entities, that it has introduced to the
      Company and who, if so requested, had meetings or substantive discussions with
      a
      member of the Company’s management (“Carter
      Introduced Parties”).
      This
      list of investors, if agreed to by the Company (which agreement shall not be
      unreasonably withheld), shall constitute the definitive list of investors
      introduced to the Company by Carter for the purposes of this Agreement (the
      “Carter
      Introduced Parties List”).
      The
      Company acknowledges and agrees that for purposes of this Agreement the Carter
      Introduced Parties List is proprietary

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    to
      Carter
      and shall be maintained in strict confidence by the Company except as may be
      required by law.

    

    (d).    Legal
      Opinion. The
      Company agrees to instruct its counsel, Thelen
      Reid & Priest LLP,
      to
      include Carter as a named recipient on the legal opinion required to be
      delivered in connection at the Closing. 

    

    4.    Indemnification.
      As
      partial inducement for Carter to enter into this Agreement, the Company hereby
      agrees to the indemnification terms set forth in Exhibit A
      hereto.

    

    5.    Due
      Diligence and Company Cooperation.
      The
      Company shall make members of management and other employees, advisors and
      agents available to Carter as Carter shall reasonably request for consummating
      the Offering, and shall commit such time and other resources as are necessary
      or
      appropriate to secure reasonable and timely success of the Offering. The Company
      shall cooperate with Carter in connection with, and shall make available to
      Carter, historic, current and prospective information concerning the business,
      assets, prospects, operations and financial condition of the Company and such
      documents and other information as Carter shall reasonably request in connection
      with the services to be performed by it under this Agreement. The Company shall
      inform Carter of any material events or developments reasonably expected to
      lead
      to material events that may come to the attention of the Company at any point
      during the Offering Period. The Company recognizes and confirms that Carter
      will
      use and rely, without investigation as to accuracy and completeness, on the
      documents and information (written and oral) provided by the Company and on
      information available from generally recognized public sources in performing
      the
      services contemplated by this Agreement and that Carter does not assume nor
      have
      responsibility for the accuracy or completeness of such documents, information
      or the Transaction Documents. Further, Carter does not assume any obligation
      to
      make any solvency determination or to conduct any appraisal of assets or
      liabilities of the Company.

    

    6.    Securities
      Law Compliance.
      Each of
      the Company and Carter agrees to conduct the Offering in a manner intended
      (a) to qualify as a private placement of the Securities in any jurisdiction
      in which the Securities are offered and (b) to comply with the requirements
      of Rule 506 of Regulation D under the Securities Act. Assuming the accuracy
      of
      the representations and warranties given to the Company by each investor to
      the
      extent relevant for such determination, the Offering will be exempt from the
      registration requirements of the Securities Act. In connection with offers
      made
      in the U.S. pursuant to Regulation D, the Company agrees (i) to limit
      offers to sell, and solicitations of offers to buy, the Securities to persons
      reasonably believed by it to be “accredited investors” within the meaning of
      Rule 501(a) under the Securities Act, and (ii) not to engage in any form of
      general solicitation or general advertising in connection with the Offering
      within the meaning of Rule 502 under the Securities Act. The Company agrees
      to
      conduct the Offering in a manner intended to comply with the registration or
      qualification requirements, or available exemptions there from, under applicable
      state securities laws. The Company shall be responsible for compliance with
      the
      filing requirements of the securities laws of all applicable countries, states
      of the U.S., and other jurisdictions. Carter shall advise the Company of those
      states of the U.S. and other jurisdictions in which Carter

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    intends
      to offer the Securities in order that the Company’s counsel can ensure that the
      Offering has been qualified or exempted under the appropriate laws and
      regulations. Carter shall not engage in sales of the Securities in any state
      requiring pre-sale qualification until the Company has qualified to sell
      Securities in such state. The Company has not in the six months prior to the
      date of this Agreement and will not, for a period of six months following the
      Final Closing Date, directly or indirectly, make any offers or sales of any
      security or solicit any offer to buy any security unless such offer or sale
      does
      not (y) jeopardize the availability of exemptions from the registration and
      qualification requirements under applicable U.S. federal securities laws, state
      securities laws, or the securities laws of any other jurisdiction with respect
      to the Offering and (z) cause the Offering to be integrated with such other
      offering for purpose of any stockholder approval provisions applicable to the
      Company or its securities.

    

    7.    Miscellaneous.

    

    (a).    Survival.
      Any
      termination of the Transaction without consummation thereof shall be without
      obligation on the part of any party except that the provisions of Section 3
      and
      4 shall survive. 

    

    (b).    Representations,
      Warranties and Covenants to Survive Delivery.
      The
      representations, warranties, indemnities, agreements, covenants and other
      statements of the Company contained herein shall survive execution of the
      Purchase Agreement and the Closing for a period of twelve months. 

    

    (c).    No
      Other Beneficiaries.
      This
      Agreement is intended for the sole and exclusive benefit of the parties hereto
      and their respective successors, controlling persons and permitted assigns,
      and
      no other person, firm or corporation shall have any third party beneficiary
      or
      other rights hereunder.

    

    (d).    Applicable
      Law.
      This
      Agreement shall be governed by and construed under the laws of the State of
      New
      York as applied to agreements among New York residents entered into and to
      be
      performed entirely within New York. Each of the parties hereto (1) agree that
      any legal suit, action or proceeding arising out of or relating to this
      Agreement shall be instituted exclusively in New York State Supreme Court,
      County of New York, or in the United States District Court for the Southern
      District of New York, (2) waive any objection which the Company may have now
      or
      hereafter to the venue of any such suit, action or proceeding, and (3)
      irrevocably consent to the jurisdiction of the New York State Supreme Court,
      County of New York, and the United States District Court for the Southern
      District of New York in any such suit, action or proceeding. Each of the parties
      hereto further agrees to accept and acknowledge service of any and all process
      which may be served in any such suit, action or proceeding in the New York
      State
      Supreme Court, County of New York, or in the United States District Court for
      the Southern District of New York and agree that service of process upon it
      mailed by certified mail to its address shall be deemed in every respect
      effective service of process upon it, in any such suit, action or proceeding.
      THE
      PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
      CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
      DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (e).    Notices.
      All
      notices, requests, demands and other communications which are required or may
      be
      given hereunder shall be in writing and shall be deemed to have been duly given
      when delivered personally, receipt acknowledged or five (5) days after being
      sent by registered or certified mail, return receipt requested, postage prepaid.
      All notices shall be made to the parties at the addresses designated above
      or at
      such other or different addresses which a party may subsequently provide with
      notice thereof, and to their respective legal counsel, as
      follows:

    
      

      
        	 	
                (i).

              	
                If
                  to Carter, to:

                 

                Carter
                  Securities, LLC.

                55
                  Fifth Avenue 18th Floor

                New
                  York, New York 

                Attention.:
                  John Lipman, Managing Member

                Fax
                  No.: (212) 989-5899

                 

                with
                  a copy to:

                 

                Littman
                  Krooks LLP

                655
                  Third Avenue

                New
                  York, New York 10017

                Attention.:
                  Steven D. Uslaner, Esq.

                Fax
                  No.: (212) 490-2990

              

      

      

      or
        to
        such other person or address as Carter shall furnish to the Company in
        writing.

      

      
        	 	
                (ii)

              	
                If
                  to the Company, to:

                 

                Caprius,
                  Inc.

                One
                  University Plaza 

                Hackensack,
                  New Jersey 07601

                Attention:
                  Jonathan Joels, Chief Financial Officer

                Fax
                  No.: (201) 592-9430

                 

                with
                  a copy to:

                 

                Thelen
                  Reid & Priest LLP

                875
                  Third Avenue

                New
                  York, NY 10022-6225

                Attention:
                  Bruce Rich, Esq.

                Fax
                  No.: (212) 603-2001

              

      

    

     

    or
      to
      such other person or address as the Company shall furnish to Carter in
      writing.

    

    (f).    Counterparts.
      This
      Agreement may be signed in counterparts with the same effect as if both parties
      had signed one and the same instrument.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (g).    Entire
      Agreement.
      This
      Agreement and the Exhibits hereto constitute the entire agreement between the
      parties hereto pertaining to the subject matter hereof and supersede all prior
      and contemporaneous agreements, understandings, documents, negotiations and
      discussions, whether oral or written, of the parties hereto.

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK
 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    If
      you
      find the foregoing is in accordance with our understanding, kindly sign and
      return to us a counterpart hereof, whereupon this instrument along with all
      counterparts will become a binding agreement between us.

    

    
      	 	
              Very
                truly yours,

               

              CAPRIUS,
                INC.

               

               

            
	 	
              By:

            	
              /s/
                Jonathan Joels

            
	 	 	
              Name: 
Jonathan
                Joels

              Title:     
                 Chief Financial
                Officer

            

    

    

    

    

    
      	 	
              AGREED
                AND ACCEPTED TO

              AS
                OF THE DATE FIRST WRITTEN ABOVE:

               

              CARTER
                SECURITIES, LLC

               

               

            	 
	
              By:

            	
            	 
	 	
              Name:  John
                Lipman

              Title:      
                Managing Member

            	 

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

    

    Indemnification
      and Contribution

    

    In
      consideration of the agreement of Carter Securities, LLC (“Carter”)
      to act
      as placement agent on behalf of the Company pursuant to this Placement Agency
      Agreement (the “Agreement”),
      the
      Company agrees to indemnify and hold harmless Carter, its affiliates, and each
      of their respective affiliates, directors, officers, agents, advisors,
      consultants, employees and controlling persons (as defined in the Securities
      Act
      of 1933, as amended) (Carter and each such other person or entity are
      hereinafter referred to as an “Indemnified
      Person”),
      from
      and against any losses, claims, damages, expenses and liabilities or actions
      in
      respect thereof (collectively, “Losses”),
      as
      they may be incurred, including all reasonable legal fees and other expenses
      incurred in connection with investigating, preparing, defending, paying,
      settling or compromising any Losses, whether or not in connection with any
      pending or threatened litigation in which any Indemnified Person is a named
      party or to which any of them may become subject and which are related to or
      arise out of any act, omission, transaction or event contemplated by the
      Agreement, Carter’s role in connection therewith, or in connection with any
      information including, without limitation, Transaction Documents provided to
      purchasers or prospective purchasers of Securities. The Company will not,
      however, be responsible under the foregoing provisions with respect to any
      Losses to the extent that a court of competent jurisdiction shall have
      determined by a final judgment that such Losses resulted from an Indemnified
      Person’s willful misconduct, bad faith or gross negligence.

    

    If
      the
      indemnity referred to hereunder should be, for any reason whatsoever,
      unenforceable, unavailable or otherwise insufficient to hold each Indemnified
      Person harmless for all Losses incurred by it, the Company shall pay to or
      on
      behalf of each Indemnified Person contributions for Losses so that each
      Indemnified Person ultimately bears only a portion of such Losses as is
      appropriate (i) to reflect the relative benefits received by each such
      Indemnified Person, respectively, on the one hand and the Company on the other
      hand in connection with the transaction that is the subject of the Agreement
      (the “Transaction”)
      or
      (ii) if the allocation on that basis is not permitted by applicable law, to
      reflect not only the relative benefits referred to in clause (i) above but
      also the relative fault of each such Indemnified Person, respectively, and
      the
      Company as well as any other relevant equitable considerations; provided,
      however, that in no event shall the aggregate contribution of all Indemnified
      Persons to all Losses exceed the amount of the fees actually received by Carter
      pursuant to the Agreement. The respective relative benefits received by Carter
      and the Company in connection with the Transaction shall be deemed to be in
      the
      same proportion as the aggregate fees (excluding reimbursement of expenses)
      paid
      to Carter under the Agreement bear to the gross proceeds and/or other
      consideration paid, or proposed to be paid, for the Transaction. The relative
      fault of each Indemnified Person and the Company shall be determined by
      reference to, among other things, whether the actions or omissions to act were
      by such Indemnified Person or the Company, and the parties’ relative intent,
      knowledge, access to information and opportunity to correct or prevent such
      action or omission to act.

    

    The
      Company also agrees that no Indemnified Person shall have any liability to
      the
      Company or its affiliates, directors, officers, employees, agents, advisors,
      shareholders or

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    interest
      holders, directly or indirectly, related to or arising out of the Agreement,
      except Losses incurred by the Company that a court of competent jurisdiction
      shall have determined by a final judgment to have resulted from such Indemnified
      Person’s willful misconduct, bad faith or gross negligence. In no event,
      regardless of the legal theory advanced, shall any Indemnified Person be liable
      for any consequential, indirect, incidental or special damages of any nature.
      If
      multiple claims are brought against an Indemnified Person in an arbitration,
      with respect to at least one of which indemnification is permitted under
      applicable law and provided for hereunder, the Company agrees that any
      arbitration award shall be conclusively deemed to be based on claims as to
      which
      indemnification is permitted and provided for, except to the extent the
      arbitration award expressly states that the award, or any portion thereof,
      is
      based solely on a claim as to which indemnification is not
      available.

    

    Promptly
      after receipt by any Indemnified Persons of notice of any pending or threatened
      litigation, such Indemnified Persons will promptly notify the Company in writing
      of such matter; provided, however, that the failure to provide such prompt
      notice to the Company shall not relieve the Company of any liability which
      it
      may have to any Indemnified Person except to the extent such failure to provide
      such prompt notice to the Company has materially prejudiced the defense of
      the
      litigation. In the event any such action is brought against any Indemnified
      Person, the Company shall be entitled to participate therein and to assume
      the
      defense thereof, with counsel reasonably satisfactory to the Indemnified Person;
      unless, however, the Indemnified Person reasonably determines that the
      representation of the Indemnified Person and the Company by the same counsel
      would be inappropriate due to actual or potential differing interests between
      them, including situations in which there are one or more legal defenses
      available to the Indemnified Person that are different from or additional to
      those available to the Company. In such event, the Indemnified Person shall
      have
      the right to assume its own defense, with counsel reasonably satisfactory to
      the
      Company, and shall so signify by promptly notifying the Company in writing
      of
      its decision. Such decision shall not relieve the Company of any liability
      which
      it may have to the Indemnified Person, including the reimbursement of any
      reasonable legal or other expenses incurred in connection with the Indemnified
      Person’s defense; provided that in no event shall the Company be liable for the
      fees and expenses of more than one counsel (in addition to local counsel) for
      all Indemnified Persons in connection with any action. The Company shall not,
      without the prior written consent of Carter, effect any settlement, compromise,
      consent or termination of any pending or threatened proceeding arising out
      of or
      relating to the engagement for which indemnification could be claimed by any
      Indemnified Person hereunder, unless such settlement, compromise, consent or
      termination includes an express, complete release of all Indemnified Persons
      from all liability as to all asserted or potential claims against each such
      Indemnified Person.

    

    The
      obligations of the Company referred to above shall be in addition to any rights
      that any Indemnified Person may otherwise have and shall be binding upon and
      inure to the benefit of any successors, assigns, heirs and personal
      representatives of any Indemnified Person and the Company. The provisions set
      forth in this Exhibit A shall remain operative and in full effect regardless
      of
      (i) the completion by Carter of its assignment under the Agreement or (ii)
      any
      termination of the Agreement or any Indemnified Person. Solely for purposes
      of
      this Indemnification Agreement, the Company

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    hereby
      consents to personal jurisdiction, service and venue in any court in which
      any
      claim or proceeding which is subject to this Agreement is brought against any
      Indemnified Person and waives any defense of lack of personal jurisdiction
      and
      irrevocably agrees that all charges in respect of any suit, action or proceeding
      may be heard or determined by any such court. The parties hereto waive all
      right
      to trial by jury in any action, proceeding or counterclaim (whether based upon
      contract, tort or otherwise) related to or arising out of this Agreement or
      any
      transaction or conduct in connection therewith. This Indemnification Agreement
      shall be governed by and construed in accordance with the internal laws of
      the
      State of New York without regard to principles of conflicts of law. No waiver,
      amendment or other modification of this Agreement shall be effective unless
      in
      writing and signed by the parties thereto.

     

    
      
        
        

      

      
        11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]