Document:

exv10w4

 

Exhibit 10.4

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE
WITH APPLICABLE STATE SECURITIES OR BLUE SKY LAWS. THESE SECURITIES AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES.

PROLINK HOLDINGS CORP.

WARRANT

			
	Warrant No. ___
	 	Dated: October 11, 2006

     ProLink Holdings Corp., a Delaware corporation (the “Company”), hereby certifies that, for
value received, ___or its registered assigns (the “Holder”), is entitled to
purchase from the Company up to a total of ___shares of common stock, $0.0001 par value per
share (the “Common Stock”), of the Company (each such share, a “Warrant Share” and all such shares,
the “Warrant Shares”) at an exercise price equal to $1.45 per share (as adjusted from time to time
as provided in Section 9, the “Exercise Price”), at any time and from time to time from and
after the date hereof and through and including the date that is five years from the date of
issuance hereof (the “Expiration Date”), and subject to the following terms and conditions. This
Warrant (this “Warrant”) is one of a series of similar warrants issued pursuant to that certain
Securities Purchase Agreement, dated as of October 10, 2006, by and among the Company and the
Purchasers identified therein (the “Purchase Agreement”). All such warrants are referred to
herein, collectively, as the “Warrants.”

     1. Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized
terms that are not otherwise defined herein have the meanings given to such terms in the Purchase
Agreement.

     2. Registration of Warrant. The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in the name of the record
Holder hereof from time to time. The Company may deem and treat the registered Holder of this
Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice
to the contrary.

     3. Registration of Transfers. The Company shall register the assignment and transfer of any
portion of this Warrant in the Warrant Register, upon surrender of this Warrant,

 

 

with the Form of
Assignment attached hereto on Annex B duly completed and signed, to the Company’s transfer
agent or to the Company at its address specified herein if the Company receives a certificate that
such transferee is an “accredited investor” under the Securities Act. Upon any such registration
or transfer, a new warrant to purchase Common Stock, in substantially the form of this Warrant (any
such new warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be
issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so
transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant
by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of a Warrant.

     4. Exercise and Duration of Warrants.

          (a)This Warrant shall be exercisable by the registered Holder at any time and from time to time on or
after the date hereof to and including the Expiration Date. At 6:30 P.M., New York City time on
the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become
void and of no value; provided that, if the average of the Closing Prices for the five Trading Days
immediately prior to (but not including) the Expiration Date exceeds the Exercise Price on the
Expiration Date, then this Warrant shall be deemed to have been exercised in full (to the extent
not previously exercised) on a “cashless exercise” basis at 6:30 P.M. New York City time on the
Expiration Date if a “cashless exercise” may occur at such time pursuant to Section 10 below.
Notwithstanding anything to the contrary herein, the Expiration Date shall be extended for each day
following the Effective Date that the Registration Statement is not effective.

          (b)A Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form
attached hereto on Annex A (the “Exercise Notice”), appropriately completed and duly
signed, and (ii) payment of the Exercise Price for the number of Warrant Shares as to
which this Warrant is being exercised (which may take the form of a “cashless exercise” if so
indicated in the Exercise Notice and if a “cashless exercise” may occur at such time pursuant to
this Section 10 below), and the date such items are delivered to the Company (as determined in
accordance with the notice provisions hereof) is an “Exercise Date.” The Holder shall not be
required to deliver the original Warrant in order to effect an exercise hereunder. Execution and
delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant
and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant
Shares.

     5. Delivery of Warrant Shares.

          (a) Upon exercise of this Warrant, the Company shall promptly (but in no event later than five Trading
Days after the Exercise Date) issue or cause to be issued and cause to be delivered to or upon the
written order of the Holder and in such name or names as the Holder may designate, a certificate
for the Warrant Shares issuable upon such exercise, free of restrictive legends unless a
registration statement covering the resale of the Warrant Shares and naming the Holder as a selling
stockholder thereunder is not then effective and the Warrant Shares are not freely transferable
without volume restrictions pursuant to Rule 144 under the Securities Act. If the Warrant Shares
are to be registered in a name or names other than the name of the Holder, prior to issuing a
certificate for the Warrant Shares, the Company must receive a

2

 

certificate that such transferee is
an “accredited investor” under the Securities Act. The Holder, or any Person so designated by the
Holder to receive Warrant Shares, shall be deemed to have become holder of record of such Warrant
Shares as of the Exercise Date. The Company shall, upon request of the Holder, use its best
efforts to deliver Warrant Shares hereunder electronically through the Depository Trust Corporation
or another established clearing corporation performing similar functions.

          (b)This Warrant is exercisable, either in its entirety or, from time to time, for a portion of the
number of Warrant Shares. Upon surrender of this Warrant following one or more partial exercises,
the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right
to purchase the remaining number of Warrant Shares.

          (c) In addition to any other rights available to a Holder, if the Company fails to deliver to the
Holder a certificate representing Warrant Shares by the third Trading Day after exercise of this
Warrant in full compliance with Section 4(b), and if after such third Trading Day the Holder
purchases (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 that the Holder anticipated receiving
from the Company (a “Buy-In”), then the Company shall, within three Trading Days after the Holder’s
request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the
Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common
Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such
certificate (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation
to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash
to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A)
such number of shares of Common Stock, times (B) the Closing Price on the date of the event giving
rise to the Company’s obligation to deliver such certificate.

          (d) The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof
are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the
same, any waiver or consent with respect to any provision hereof, the recovery of any judgment
against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment,
limitation or termination, or any breach or alleged breach by the Holder or any other Person of any
obligation to the Company or any violation or alleged violation of law by the Holder or any other
Person, and irrespective of any other circumstance which might otherwise limit such obligation of
the Company to the Holder in connection with the issuance of Warrant Shares. 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.

     6.
Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common
Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of
the issuance of such certificates, all of which taxes and expenses shall be paid by the Company;
provided, however, that the Company shall not be required to pay any tax which may

3

 

be payable in
respect of any transfer involved in the registration of any certificates for Warrant Shares or
Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or transferring this
Warrant or receiving Warrant Shares upon exercise hereof.

     7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and upon cancellation
hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary
and reasonable indemnity, if requested.

     8. Reservation of Warrant Shares. The Company covenants that it will at all times reserve and
keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common
Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant
as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other contingent purchase
rights of persons other than the Holder (taking into account the adjustments and restrictions of
Section 9). The Company covenants that all Warrant Shares so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms
hereof, be duly and validly authorized, issued and fully paid and nonassessable. The Company will
take all such action as may be necessary to assure that such shares of Common Stock may be issued
as provided herein without violation of any applicable law or regulation, or of any requirements of
any securities exchange or automated quotation system upon which the Common Stock may be listed.

     9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon
exercise of this Warrant are subject to adjustment from time to time as set forth in this
Section 9.

          (a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding,
(i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of
capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of
Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock
into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number of shares of Common
Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this
paragraph shall become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to
clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date
of such subdivision or combination.

          (b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding,
distributes to holders of Common Stock (i) evidences of its indebtedness, (ii) any security (other
than a distribution of Common Stock covered by the preceding paragraph), (iii) rights or warrants
to subscribe for or purchase any security, or (iv) any other asset (in each case, “Distributed
Property”), then in each such case the Exercise Price in effect immediately

4

 

prior to the record
date fixed for determination of stockholders entitled to receive such distribution shall be
adjusted (effective on such record date) to equal the product of such Exercise Price times a
fraction of which the denominator shall be the average of the Closing Prices for the five Trading
Days immediately prior to (but not including) such record date and of which the numerator shall be
such average less the then fair market value of the Distributed Property distributed in respect of
one outstanding share of Common Stock, as determined by the Company’s independent certified public
accountants that regularly examine the financial statements of the Company, (an “Appraiser”). In
such event, the Holder, after receipt of the determination by the Appraiser, shall
have the right to select an additional appraiser (which shall be a nationally recognized accounting
firm), in which case such fair market value shall be deemed to equal the average of the values
determined by each of the Appraiser and such appraiser. As an alternative to the foregoing
adjustment to the Exercise Price, at the request of the Holder delivered to the Company in writing
before the 90th day after such record date, the Company will deliver to such Holder, within five
Trading Days after such request (or, if later, on the effective date of such distribution), the
Distributed Property that such Holder would have been entitled to receive in respect of the Warrant
Shares for which this Warrant could have been exercised immediately prior to such record date. If
such Distributed Property is not delivered to a Holder pursuant to the preceding sentence, then
upon any exercise of the Warrant that occurs after such record date, such Holder shall remain
entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise, such
Distributed Property.

          (c)
Fundamental Transactions. If, at any time while this Warrant is outstanding, (i) the
Company effects any merger or consolidation of the Company with or into another Person, (ii) the
Company effects any sale of all or substantially all of its assets in one or a series of related
transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person)
is completed pursuant to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (iv) the Company effects any reclassification of
the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property (other than as a result of a
subdivision or combination of shares of Common Stock covered by Section 9(a) above) (in any such
case, a “Fundamental Transaction”), then the Holder shall have the right thereafter to receive,
upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would
have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been,
immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then
issuable upon exercise in full of this Warrant (the “Alternate Consideration”). The aggregate
Exercise Price for this Warrant will not be affected by any such Fundamental Transaction, but the
Company shall apportion such aggregate Exercise Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the securities, cash or
property to be received in a Fundamental Transaction, then the Holder shall be given the same
choice as to the Alternate Consideration it receives upon any exercise of this Warrant following
such Fundamental Transaction. In the event of a Fundamental Transaction, the Company or the
successor or purchasing Person, as the case may be, shall execute with the Holder a written
agreement providing that:

5

 

     (x) this Warrant shall thereafter entitle the Holder to purchase the Alternate
Consideration in accordance with this section 9(c),

     (y) upon such consolidation, merger, statutory exchange, combination, sale or
conveyance such successor or purchasing Person shall be jointly and severally liable with
the Company for the performance of all of the Company’s obligations under this Warrant and
the Purchase Agreement, and

     (z)
if registration or qualification is required under the Securities Act or applicable
state law for the public resale by the Holder of shares of stock and other securities so
issuable upon exercise of this Warrant, such registration or qualification shall be
completed prior to such reclassification, change, consolidation, merger, statutory exchange,
combination or sale.

If, in the case of any Fundamental Transaction, the Alternate Consideration includes shares of
stock, other securities, other property or assets of a Person other than the Company or any such
successor or purchasing Person, as the case may be, in such Fundamental Transaction, then such
written agreement shall also be executed by such other Person and shall contain such additional
provisions to protect the interests of the Holder as the Board of Directors of the Company shall
reasonably consider necessary by reason of the foregoing. At the Holder’s request, any successor
to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new
warrant consistent with the foregoing provisions and evidencing the Holder’s right to purchase the
Alternate Consideration for the aggregate Exercise Price upon exercise thereof. The terms of any
agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any
such successor or surviving entity to comply with the provisions of this paragraph (c) and insuring
that the Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction analogous to a
Fundamental Transaction. If any Fundamental Transaction constitutes or results in a Change of
Control, then at the request of the Holder delivered to the Company in writing before the 90th day
after such Fundamental Transaction, the Company (or any such successor or surviving entity) will
purchase this Warrant from the Holder for a purchase price, payable in cash within five Trading
Days after such request (or, if later, on the effective date of the Fundamental Transaction), equal
to the Black-Scholes value of the remaining unexercised portion of this Warrant on the date of such
request.

          (d) Subsequent Equity Sales.

          (i)
If, at any time while this Warrant is outstanding, the Company or any Subsidiary issues
additional shares of Common Stock or rights, warrants, options or other securities or debt
convertible, exercisable or exchangeable for shares of Common Stock or otherwise entitling any
Person to acquire shares of Common Stock (collectively, “Common Stock Equivalents”) at an effective
net price to the Company per share of Common Stock (the “Effective Price”) less than the Exercise
Price (as adjusted hereunder to such date), then the Exercise Price shall be reduced to equal the
Effective Price. For purposes of this paragraph, in connection with any issuance of any Common
Stock Equivalents, (A) the maximum number of shares of Common Stock potentially issuable at any
time upon conversion, exercise or exchange of such Common Stock
Equivalents (the “Deemed Number”)
shall be deemed to be outstanding upon issuance

6

 

of such Common Stock Equivalents, (B) the Effective
Price applicable to such Common Stock shall equal the minimum dollar value of consideration payable
to the Company to purchase such Common Stock Equivalents and to convert, exercise or exchange them
into Common Stock (net of any discounts, fees, commissions and other expenses), divided by the
Deemed Number, and (C) no further adjustment shall be made to the Exercise Price upon the actual
issuance of Common Stock upon conversion, exercise or exchange of such Common Stock Equivalents.

          (ii)If, at any time while this Warrant is outstanding, the Company or any Subsidiary issues Common
Stock Equivalents with an Effective Price or a number of underlying shares that floats or resets or
otherwise varies or is subject to adjustment based (directly or indirectly) on market prices of the
Common Stock (a “Floating Price Security”), then for purposes of applying the preceding paragraph
in connection with any subsequent exercise, the Effective Price will be determined separately on
each Exercise Date and will
be deemed to equal the lowest Effective Price at which any holder of such Floating Price Security
is entitled to acquire Common Stock on such Exercise Date (regardless of whether any such holder
actually acquires any shares on such date).

          (iii)Notwithstanding the foregoing, no adjustment will be made under this paragraph (d) in respect of
Excluded Stock.

          (e)
Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price
pursuant to paragraphs (a), (b) or (d) of this Section, the number of Warrant Shares that may be
purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that
after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased
number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately
prior to such adjustment.

          (f)
Calculations. All calculations under this Section 9 shall be made to the nearest
cent or the nearest 1/100th of a share, as applicable; provided, however, that the Company’s
obligation to issue fractional Warrant Shares shall be limited by Section 12. The number of shares
of Common Stock outstanding at any given time shall not include shares owned or held by or for the
account of the Company, and the disposition of any such shares shall be considered an issue or sale
of Common Stock.

          (g)
Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section
9, the Company at its expense will promptly compute such adjustment in accordance with the
terms of this Warrant and prepare a certificate setting forth such adjustment, including a
statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other
securities issuable upon exercise of this Warrant (as applicable), describing the transactions
giving rise to such adjustments and showing in detail the facts upon which such adjustment is
based. The Company will promptly deliver a copy of each such certificate to the Holder within 10
Trading Days of the occurrence of such adjustment.

          (h)
Notice of Corporate Events. If the Company (i) declares a dividend or any other
distribution of cash, securities or other property in respect of its Common Stock, including
without limitation any granting of
rights or warrants to subscribe for or purchase any

7

 

capital stock of the Company or any Subsidiary,
(ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder
approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation
or winding up of the affairs of the Company, then the Company shall deliver to the Holder a notice
describing the material terms and conditions of such transaction, at least 20 calendar days prior
to the applicable record or effective date on which a Person would need to hold Common Stock in
order to participate in or vote with respect to such transaction, and the Company will take all
steps reasonably necessary in order to insure that the Holder is given the practical opportunity to
exercise this Warrant prior to such time so as to participate in or vote with respect to such
transaction; provided, however, that the failure to deliver such notice or any defect therein shall
not affect the validity of the corporate action required to be described in such notice.

     10.
Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately
available funds; provided, however, that if the Registration Statement did not
become effective on or before the Required Effectiveness Date and is not continuously effective
through the Expiration Date, subject to blackout periods of no greater than seven days (or 25 days
in aggregate in any 12 month period) as required in order to amend the Registration Statement to
comply with Securities Laws, the Holder may satisfy its obligation to pay the Exercise Price
through a “cashless exercise,” in which event the Company shall issue to the Holder the number of
Warrant Shares determined as follows:

	 	 	 	 	 
	 

	 	 	 	X = Y [(A-B)/A]
	 

	 	where:	 	 
	 

	 	 	 	X = the number of Warrant Shares to be
issued to the Holder.
	 
	 	 	 	 
	 

	 	 	 	Y = the number of Warrant Shares with
respect to which this Warrant is being
exercised.
	 
	 	 	 	 
	 

	 	 	 	A = the arithmetic average of the VWAP for
the five Trading Days immediately prior to
(but not including) the Exercise Date.
	 
	 	 	 	 
	 

	 	 	 	B = the Exercise Price.

          For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood
and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed
to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed
to have commenced, on the date this Warrant was originally issued pursuant to the Purchase
Agreement.

     11.
Limitation on Exercise. (a) Notwithstanding anything to the contrary contained herein, the
number of shares of Common Stock that may be acquired by the Holder upon any exercise of this
Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that,
following such exercise (or other issuance), the total number of shares of Common Stock then
beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial
ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of
the Exchange Act, does not exceed 4.999% (the “Threshold Percentage”) or

8

 

9.999% (the “Maximum
Percentage”) of the total number of issued and outstanding shares of Common Stock (including for
such purpose the shares of Common Stock issuable upon such exercise). For such purposes,
beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder. Each delivery of an Exercise Notice hereunder
will constitute a representation by the Holder that it has evaluated the limitations set forth in
this paragraph and determined that issuance of the full number of Warrant Shares requested in such
Exercise Notice is permitted under this paragraph. The Company’s obligation to issue shares of
Common Stock in excess of the limitation referred to in this Section shall be suspended (and shall
not terminate or expire notwithstanding any contrary provisions hereof) until such time, if any, as
such shares of Common Stock may be issued in compliance with such limitation. By written notice to
the Company, the Holder shall have the right (x) at any time and from time to time to reduce its
Maximum Percentage immediately upon notice to the Company in the event and only to the extent that
Section 16 of the Exchange Act or the rules promulgated thereunder (or any successor statute or
rules) is changed to reduce the beneficial ownership percentage threshold thereunder to a
percentage less than 9.999% and (y) at any time and from time to time, to waive the provisions of
this Section insofar as they relate to the Threshold Percentage or to increase or decrease its
Threshold Percentage (but not in excess of the Maximum Percentage) unless the Holder shall have, by
written instrument delivered to the Company, irrevocably waived its rights to so increase or
decrease its Threshold Percentage, but (i) any such waiver, increase or decrease will not be
effective until the 61st day after such notice is delivered to the Company, and (ii) any such
waiver or increase or decrease will apply only to the Holder and not to any other holder of
Warrants.

          (b) Notwithstanding anything to the contrary contained herein, the maximum number of
shares of Common Stock that the Company may issue pursuant to the Transaction Documents at an
effective purchase price less than the Closing Price on the Trading Day immediately preceding the
Closing Date equals 19.99% of the outstanding shares of Common Stock immediately preceding the
Closing Date (the “Issuable Maximum”), unless the Company obtains stockholder approval in
accordance with the rules and regulations of such Trading Market. If, at the time any Holder
requests an exercise of any of the Warrants, the Actual Minimum (excluding any shares issued or
issuable at an effective purchase price in excess of the Closing Price on the Trading Day
immediately preceding the Closing Date) exceeds the Issuable Maximum (and if the Company has not
previously obtained the required stockholder approval), then the Company shall issue to the Holder
requesting such exercise a number of shares of Common Stock not exceeding such Holder’s pro-rata
portion of the Issuable Maximum (based on such Holder’s share (vis-à-vis other Holders) of the
aggregate purchase price paid under the Purchase Agreement and taking into account any Warrant
Shares previously issued to such Holder). For the purposes hereof, “Actual Minimum” shall mean, as
of any date, the maximum aggregate number of shares of Common Stock then issued or potentially
issuable in the future pursuant to the Transaction Documents, including any Underlying Shares
issuable upon exercise in full of all Warrants, without giving effect to (x) any limits on the
number of shares of Common Stock that may be owned by a Holder at any one time, or (y) any
additional Underlying Shares that could be issuable as a result of any future possible adjustments
made under Section 9(d).

9

 

     12.
Fractional Shares. The Company shall not be required to issue or cause to be issued
fractional Warrant Shares on the exercise of this Warrant. If any fraction of a Warrant Share
would, except for the provisions of this Section, be issuable upon exercise of this Warrant, the
number of Warrant Shares to be issued will be rounded up to the nearest whole share or right to
purchase the nearest whole share, as the case may be.

     13.
Notices. Any and all notices or other communications or deliveries hereunder (including
without limitation any Exercise Notice) shall be in writing and shall be deemed given and effective
on the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to
6:30 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number
specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (New York City
time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by a
nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom
such notice is required to be given. The address for such notices or communications shall be as
set forth in the Purchase Agreement.

     14.
Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 30 days’
notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the
Company or any new warrant agent may be merged or any corporation resulting from any consolidation
to which the Company or any new warrant agent shall be a party or any corporation to which the
Company or any new warrant agent transfers substantially all of its corporate trust or stockholders
services business shall be a successor warrant agent under this Warrant without any further act.
Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to
be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as
shown on the Warrant Register.

     15.
Miscellaneous.

          (a) Subject to the restrictions on transfer set forth herein, this Warrant may be assigned by the
Holder. This Warrant may not be assigned by the Company except to a successor in the event of a
Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the parties
hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in
this Warrant shall be construed to give to any Person other than the Company and the Holder any
legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be
amended only in writing signed by the Company and the Holder and their successors and assigns.

          (b) The Company will not, by amendment of its governing documents or through any reorganization,
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 action as may be necessary or appropriate in order to protect
the rights of the Holder against impairment. Without limiting the generality of the foregoing, the
Company (i) will not increase the par value of any Warrant Shares above the amount payable therefor
on such exercise, (ii) will take all such action as may be reasonably

10

 

necessary or appropriate in
order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares on
the exercise of this Warrant, and (iii) will not close its stockholder books or records in any
manner which interferes with the timely exercise of this Warrant.

          (c)Governing Law; Venue; Waiver Of Jury Trial. All questions concerning the construction,
validity, enforcement and interpretation of this warrant shall be governed by and construed and
enforced in accordance with the laws of the State of New York. each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in the city of New
York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the
enforcement of any of the transaction documents), and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices
to it under this agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. the company hereby waives all rights to
a trial by jury.

          (d) The headings herein are for convenience only, do not constitute a part of this Warrant and shall
not be deemed to limit or affect any of the provisions hereof.

          (e) In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any
respect, the validity and enforceability
of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired
thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision
which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,

SIGNATURE PAGE FOLLOWS]

11

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized
officer as of the date first indicated above.

	 	 	 	 	 	 	 
	 	 	PROLINK HOLDINGS CORP.
	 
	 

	 	By:	 	 	 	 
	 

	 	Name:	 	 
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

12

 

Annex A

FORM OF EXERCISE NOTICE

(To be executed by the Holder to exercise the right to purchase shares of Common Stock under the
foregoing Warrant)

To: PROLINK HOLDINGS CORP.

The undersigned is the Holder of Warrant No. ___(the “Warrant”) issued by PROLINK HOLDINGS
CORP., a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise
defined have the respective meanings set forth in the Warrant.

	1.	 	The Warrant is currently exercisable to purchase a total of                      Warrant Shares.
	 
	2.	 	The undersigned Holder hereby exercises its right to purchase                      Warrant Shares
pursuant to the Warrant.
	 
	3.	 	The Holder intends that payment of the Exercise Price shall be made as (check one):

___“Cash
Exercise” under Section 10

___“Cashless Exercise” under Section 10 (if permitted)

	4.	 	If the holder has elected a Cash Exercise, the holder shall pay the sum of $
                     to
the Company in accordance with the terms of the Warrant.
	 
	5.	 	Pursuant to this exercise, the Company shall deliver to the holder                    Warrant Shares
in accordance with the terms of the Warrant.
	 
	6.	 	Following this exercise, the Warrant shall be exercisable to purchase a total of
                    Warrant Shares.

	 	 	 	 	 	 	 
	Dated:                    ,	 	Name of Holder:
	 

	 	(Print)	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)

 

 

Annex B 

FORM OF ASSIGNMENT

     [To be completed and signed only upon transfer of Warrant]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___the right represented by the within Warrant to purchase ___shares
of Common Stock of PROLINK HOLDINGS CORP. to which the within Warrant relates and appoints
___attorney to transfer said right on the books of PROLINK HOLDINGS CORP. with full
power of substitution in the premises.

	 	 	 
	Dated:                    ,               
	 	 
	 
	 	 
	 

	 	                                                            
(Signature must conform in all respects to name of
holder as specified on the face of the Warrant)
	 
	 	 
	 

	 	                                                            
	 

	 	Address of Transferee
	 
	 	 
	 

	 	                                                            
	 
	 	 
	 

	 	                                                            
	 
	 	 
	In the presence of:MINING CLAIM LEASE AGREEMENT

This Mining Claim Lease Agreement ("Lease") is made and effective June
1, 2000 by and between Rogue Silicates, Inc. (Owner) and Advanced
Mineral Technologies Inc.

1. PREMISES.
Rogue Silicates Inc. hereby leases to AMT Inc. and AMT Inc. accepts the
following: AMT Inc. will pay to Rogue the amount $5000.00 each year to
maintain the properties and mine from its open pit.  AMT Inc. has the
right to open new pits, drill new sites and haul up to 10 million tons
of material from anywhere on the Rogue properties.  It will be the
responsibility of AMT to obtain these pelll1its.

2. TERM.
The term of this Lease shall start on June 1,2000, continue until AMT
has acted on the option to purchase the entire deposit.

3. ANNUAL PAYMENT.
AMT Inc. agrees to pay, without demand, to Rogue Silicates Inc. as rent
for the Rogue properties the sum of $5,000.00 per year, in advance on
the first day of August, at 7234 N. Applegate Rd. Grants Pass, Or.
97527, or at such other place as Rogue may designate.

4. USE OF PROPERTY.
A. The Property shall be used and occupied by AMT Inc. exclusively as a
Mining Claim with all rights as a mining claim, no timber shall be
removed not associated with mining operations, water shall not be sold
or removed from the property without a purchase from Rogue or until AMT
Inc. has purchased the entire properties.

B. AMT Inc. shall comply with all laws, ordinances, rules, and orders
of appropriate governmental authorities, with respect to the Property.

5. ASSIGNMENT AND SUBLETTING.
A. AMT Inc. shall not assign this Lease, or sublet or grant any
concession or license to use the Property or any part of the Property
without Rogue's prior written consent.

B. Any assignment, subletting, concession, or license without the prior
written consent of Rogue, or an assignment or subletting by operation
of law, shall be void and, at Rogue's option, terminate this Lease.

6. DAMAGE TO PROPERTY.
If the Property, or any part of the Property, shall be damaged by fire
or act of nature not due to AMT's negligence or willful act, there
shall be an abatement of payments until assessment of damage and a
new....agreement between both parties.

7. RIGHT OF INSPECTION.
Rogue and Rogue's agents shall have the right at all reasonable times
during the term of this Lease and any renewal of this Lease to enter
the Property for the purpose of inspecting the Property.

8. ABANDONMENT.
If at any time during the term of this Lease, AMT Inc. abandons the
Property, Rogue shall have the following rights: Rogue may, at Rogue's
option, enter the Property by any means without liability to AMT Inc.
for damages. Rogue may also dispose of any of AMT's abandoned personal
property as Rogue deems appropriate, without liability to AMT. Rogue is
entitled to presume that AMT has abandoned the Property if AMT has
failed on it's lease payment and has not actively pursued it's mining
operation, or if it would otherwise be reasonable for Rogue to presume
under the circumstances that AMT has abandoned the Property.

9. SEVERABILITY.
If any part or parts of this Lease shall be held unenforceable for any
reason, the remainder of this Agreement shall continue in full force
and effect.

10. INSURANCE.
AMT acknowledges that Rogue will not provide insurance coverage for
AMT's property.

11. BINDING EFFECT.
The covenants and conditions contained in the Lease shall apply to and
bind the heirs, legal representatives, and permitted assigns of the
parties.

12. GOVERNING LAW.
It is agreed that this Lease shall be governed by, construed, and
enforced in accordance with the Jaws of the State of Oregon.

13. ENTIRE AGREEMENT.
This Lease shall constitute the entire agreement between the parties.
Any prior understanding or representation of any kind preceding the
date of this Lease is hereby superseded. This Lease may be modified
only by a writing signed by both Rogue Silicates Inc. and AMT Inc.

14. NOTICES.
Any notice required or otherwise given pursuant to this Lease shall be
in writing; hand delivered, mailed certified return receipt requested,
postage prepaid, or delivered by overnight delivery service, if to AMT
Inc., at the Property and if to Rogue, at the address [or payment of
rent.

IN WITNESS WHEREOF, the Parties have caused this Lease to be executed
the day and year first above written.

/s/Bruce Mesman                          /s/Gary Arthur
--------------------------------------   ------------------------------
-----
Bruce Mesman for Rogue Silicates Inc.    Gary Arthur for AMT Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]