Document:

Exhibit
10.3

 

THIS NOTE AND THE COMMON SHARES
ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. 
THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO DIGITAL ANGEL CORPORATION, THAT
SUCH REGISTRATION IS NOT REQUIRED.

 

SECURED
CONVERTIBLE NOTE

 

FOR
VALUE RECEIVED, DIGITAL ANGEL CORPORATION, a Delaware corporation (hereinafter
called the “Borrower”), hereby promises to pay to LAURUS MASTER FUND, LTD., c/o
Ironshore Corporate Services Ltd., P.O. Box 1234 G.T., Queensgate House, South
Church Street, Grand Cayman, Cayman Islands, Fax: 345-949-9877 (the “Holder”)
or its registered assigns, on order, without demand, the sum of Two Million
Dollars ($2,000,000) (the “Principal Amount”), together with any accrued and
unpaid interest, on July 31, 2005 (the “Maturity Date”).

 

The
following terms shall apply to this Note:

 

ARTICLE I

 

INTEREST

 

1.1   Interest Rate.  Interest payable on this Note shall accrue
at the annual rate of Prime Rate plus 1.75%, provided, however, that in no
event shall the interest rate be less than 6% (the “Interest Rate”) and be
payable in arrears commencing one month from the date hereof and on the first
business day of each consecutive calendar month thereafter, and on the Maturity
Date, accelerated or otherwise, due and payable as described below.  Interest shall be computed on the basis of
actual days elapsed in a year of 360 days. 
“Prime Rate” means the “base rate” or “prime rate” published in the Wall
Street Journal from time to time.  The
Prime Rate shall be increased or decreased as the case may be for each increase
or decrease in the Prime Rate in an amount equal to such increase or decrease
in the Prime Rate, each such change to be effective as of the day of the change
in such rate.

 

1.2   Default Rate.  The Borrower shall have a three (3) business
day grace period to pay any monetary amounts due under this Note, after which
grace period a default interest rate of 5% per annum above the Interest Rate
shall apply to the amounts owed hereunder. 
This is the same period set forth in Section 4.1.

 

 

ARTICLE II

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

2.1   Monthly Payments.  Subject to the terms of this Article II, the
Borrower shall repay one twenty-first (1/21st) of the Principal
Amount (to the extent such amount has not been converted pursuant to Article
III below), together with interest accrued to date on such portion of the
Principal Amount plus any and all other amounts owing under this Note but not
previously paid (collectively the “Monthly Amount”), in accordance with Section
2.2 below, on the first business day of each consecutive calendar month (each,
a “Repayment
Date”), beginning on the first such day which occurs ninety days
following the date hereof.

 

2.2   Cash or Common Stock.  Subject to the terms of this Article II, the
Borrower has the sole option to determine whether to satisfy payment of the
Monthly Amount in full on each Repayment Date either in cash or in shares of
the Borrower’s common stock, as currently constituted (the “Common Stock”),
or any combination of both.  The
Borrower shall deliver to the Holder a written irrevocable notice in the form
of Exhibit B attached hereto electing to pay such Monthly Amount in full on
such Repayment Date in either cash or Common Stock, or any combination of both
(“Repayment
Election Notice”).  Such
Repayment Election Notice shall be delivered at least twenty (20) days prior to
the applicable Repayment Date (the date of such notice being hereinafter
referred to as the “Notice Date”).  The Holder shall have the right to defer for any period of time
the payment of the Monthly Amount in shares of Common Stock in its sole
discretion.  If such Repayment Election
Notice is not delivered within twenty (20) days prior to the applicable Repayment
Date, then the repayment shall be made in either cash or shares of Common Stock
on the same terms hereunder at the Holder’s sole option.  If the Borrower elects or is required to
repay all or a portion of the Monthly Amount in cash on a Repayment Date, then
on such Repayment Date the Borrower shall pay to the Holder 105% of the Monthly
Amount in satisfaction of such obligation. 
If the Borrower elects or is required to repay any portion of the
Monthly Amount in shares of Common Stock, the number of such shares to be
issued for such Repayment Date shall be the number determined by dividing (x)
the portion of the Monthly Amount to be paid in shares of Common Stock, by (y)
the applicable Conversion Price as of such Repayment Date. Any shares of Common
Stock comprising the Monthly Amount are referred to herein as “Repayment
Shares.”

 

2.3   No Effective Registration.  Notwithstanding anything to the contrary
herein, the Borrower shall be prohibited from exercising its right to repay the
Monthly Amount in Repayment Shares (and must deliver cash in respect thereof)
if at any time from the Notice Date until the day on which the Holder receive
such Repayment Shares (i) there fails to exist an effective registration
statement covering the resale of such Repayment Shares or (ii) an Event of
Default (as defined in Article V) exists or occurs which is not waived in
writing by the Holder in whole or in part at the Holder’s option.

 

2.4   Share Price/Issuance
Limitations.  Notwithstanding
anything to the contrary herein (a) the Borrower shall have no right to satisfy
payment of the Monthly Amount by delivery of Repayment Shares unless the
closing price of the Common Stock as reported by Bloomberg, L.P. on the
Principal Market for any of the eleven (11) trading days preceding a Repayment
Date is greater than 113% of the Fixed Conversion Price (as defined in Section
3.1

 

2

 

below) and (b) the Borrower shall not be entitled to issue any
Repayment Shares if such issuance would exceed the difference between the
number of shares of Common Stock beneficially owned by the Holder or issuable
upon exercise of warrants held by the Holder and 4.99% of the outstanding
shares of Common Stock of the Borrower. 
For the purposes of the immediately preceding sentence, beneficial ownership
shall be determined in accordance with Section 13(d) of the Exchange Act and
Regulation 13d-3 thereunder.  The Holder
may void the Repayment Share limitation described in this Section 2.4 upon 75
days’ prior notice to the Borrower or without any notice requirement upon an
Event of Default.

 

2.4   Deemed Conversions.  Any repayment of the Monthly Amount in
Repayment Shares pursuant to the terms hereof shall constitute and be deemed a
conversion of such portion of the applicable Principal Amount and accrued
interest for all purposes under this Note (except as otherwise provided
herein).

 

2.5   Prepayments.  In the event Borrower wishes to prepay all
or a portion of the Principal Amount, Borrower shall deliver to the Holder a
written irrevocable notice indicating the amount intended to be so prepaid (the
“Prepayment Amount”) and the date on which such prepayment shall be made (the
“Prepayment Date”).  Such notice shall
be delivered to the Holder at least five (5) business days’ prior to the
Prepayment Date.  On the Prepayment
Date, Borrower shall pay to the Holder (a) in the event the Prepayment Date
occurs during the first six month period following the date hereof, 110% of the
Prepayment Amount in satisfaction of the Prepayment Amount, (b) in the event the
Prepayment Date occurs during the second six month period following the date
hereof, 115% of the Prepayment Amount in satisfaction of the Prepayment Amount
and (c) in the event the Prepayment Date occurs at any time after the second
six month period following the date hereof, 125% of the Prepayment Amount in
satisfaction of the Prepayment Amount.

 

ARTICLE III

 

CONVERSION RIGHTS

 

3.1   Optional Conversion.
Subject to the terms of this Article III, the Holder shall have the right, but
not the obligation, at any time until the Maturity Date or thereafter during an
Event of Default (as defined in Article V), to convert all or any portion of
the outstanding Principal Amount and/or accrued interest and fees due and
payable into fully paid and nonassessable shares of Common Stock at the
conversion price set forth in Section 3.2 (the “Conversion Price”). The
shares of Common Stock to be issued upon such conversion are herein referred to
as the “Conversion
Shares.”

 

3.2   Conversion Price.
Subject to adjustment as provided in Section 3.7 hereof, the Conversion Price
per share shall be $2.33 (the “Fixed Conversion Price”).  If an Event of Default has occurred and
shall be continuing hereunder, then the Conversion Price shall be equal to the
lower of (i) the Fixed Conversion Price; or (ii) eighty percent (80%) of the
average of the three lowest closing prices for the Common Stock on the
principal trading exchange or market for the Common Stock, (the “Principal
Market”), or on any securities exchange or other securities market
on which the Common Stock is then being listed or traded, for the thirty (30)
trading days prior to but not including the Conversion Date.

 

3

 

3.3   Conversion Limitation.
Notwithstanding anything contained herein to the contrary, the Holder shall not
be entitled to convert pursuant to the terms of this Note an amount that would
be convertible into that number of Conversion Shares which would exceed the
difference between the number of shares of Common Stock beneficially owned by
such holder or issuable upon exercise of warrants held by such holder and 4.99%
of the outstanding shares of Common Stock of the Borrower.  For the purposes of the immediately
preceding sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the Exchange Act and Regulation 13d-3 thereunder.  The Holder may void the Conversion Share
limitation described in this Section 3.3 upon 75 days’ prior notice to the Borrower
or without any notice requirement upon an Event of Default.

 

3.4   Mechanics of Conversion.
In the event that the Holder elects to convert this Note into Common Stock, the
Holder shall give notice of such election by delivering an executed and
completed notice of conversion (“Notice of Conversion”) to the Borrower and
such Notice of Conversion shall provide a breakdown in reasonable detail of the
amount of Principal Amount, accrued interest and fees that are being
converted.  On each Conversion Date (as
hereinafter defined) and in accordance with its Notice of Conversion, the
Holder shall make the appropriate reduction to the Principal Amount, accrued
interest and fees as entered in its records and shall provide written notice
thereof to the Borrower within two (2) business days after the Conversion
Date.  Each date on which a Notice of
Conversion is delivered or telecopied to the Borrower in accordance with the
provisions hereof shall be deemed a Conversion Date (the “Conversion Date”).  A form of Notice of Conversion that may be
employed by the Holder is annexed hereto as Exhibit A.  The Borrower will cause the transfer agent
to transmit the certificates representing the Conversion Shares to the Holder
by crediting the account of the Holder’s designated broker with the Depository
Trust Corporation (“DTC”) through its Deposit Withdrawal Agent
Commission (“DWAC”) system within three (3) business days after receipt by the
Borrower of the Notice of Conversion (the “Delivery Date”).

 

In the
case of the exercise of the conversion rights set forth herein, the conversion
privilege shall be deemed to have been exercised and the Conversion Shares
issuable upon such conversion shall be deemed to have been issued upon the date
of receipt by the Borrower of the Notice of Conversion.  The Holder shall be treated for all purposes
as the record holder of such Common Stock, unless the Holder provides the
Borrower written instructions to the contrary.

 

3.5   Partial Conversions.
In the event of any partial conversions of outstanding Principal Amount
pursuant to this Article III, such conversions shall be deemed to constitute
conversions of outstanding Principal Amount applying to Monthly Amounts for the
Repayment Dates in chronological order. 
For example, if the Holder elects to convert $200,000 of the Principal
Amount prior to the first Repayment Date, then (i) the Principal Amount of the
Monthly Amount due on each of the first and second Repayment Dates would equal
$0, (ii) the Principal Amount of the Monthly Amount due on the third Repayment
Date would equal $85,714 and (iii) the Principal Amount of the Monthly Amount
due on each of the remaining Repayment Dates would be $95,238.

 

3.6   Late Payments. The
Borrower understands that a delay in the delivery of the shares of Common Stock
in the form required pursuant to this Article beyond the Delivery Date could
result in economic loss to the Holder. 
As compensation to the Holder for such loss, the

 

4

 

Borrower agrees to pay late payments to the Holder for late issuance of
the such shares in the form required pursuant to this Article III upon
conversion of the Note, in the amount equal to the greater of (i) $500 per
business day after the Delivery Date and (ii) the Borrower’s actual damages
from such delayed delivery.  The
Borrower shall pay any payments incurred under this Section in immediately
available funds upon demand and, in the case of actual damages, accompanied by
reasonable documentation of the amount of such damages.

 

3.7   Adjustment Provisions.
The Fixed Conversion Price and number and kind of shares or other securities to
be issued upon conversion determined pursuant to Sections 3.1 and 3.2 shall be
subject to adjustment from time to time upon the happening of certain events
while this conversion right remains outstanding, as follows:

 

A.                                                                                   Reclassification,
etc.  If the Borrower at any time
shall, by reclassification or otherwise, change the Common Stock into the same
or a different number of securities of any class or classes, this Note, as to
the unpaid Principal Amount and accrued interest thereon, shall thereafter be
deemed to evidence the right to purchase an adjusted number of such securities
and kind of securities as would have been issuable as the result of such change
with respect to the Common Stock immediately prior to such reclassification or
other change.

 

B.                                                                                     Stock
Splits, Combinations and Dividends. 
If the shares of Common Stock are subdivided or combined into a greater
or smaller number of shares of Common Stock, or if a dividend is paid on the
Common Stock in shares of Common Stock, the Fixed Conversion Price shall be
proportionately reduced in case of subdivision of shares or stock dividend or
proportionately increased in the case of combination of shares, in each such
case by the ratio which the total number of shares of Common Stock outstanding
immediately after such event bears to the total number of shares of Common
Stock outstanding immediately prior to such event.

 

C.                                                                                     Share
Issuances.  Subject to the
provisions of this Section 3.7, if the Borrower shall at any time prior to the
conversion or repayment in full of the Principal Amount issue any shares of
Common Stock to a person other than the Holder (otherwise than (i) pursuant to
Subsections A or B above; (ii) pursuant to options, warrants, or other
obligations to issue shares outstanding on the date hereof as set forth in the
Schedules to the Purchase Agreement dated as of the date hereof between the
Borrower and the Holder, which agreement is incorporated herein by this
reference (the “Purchase Agreement”); or (iii) pursuant to options that may be
issued under any employee incentive stock option and/or any qualified stock
option plan adopted by the Borrower), for a consideration per share (the “Offer
Price”) less than the Fixed Conversion Price in effect at the time of such
issuance, then the Fixed Conversion Price shall be immediately reset to such
lower Offer Price. For purposes hereof, the issuance of any security of the
Borrower convertible into or exercisable or exchangeable for Common Stock shall
result in an adjustment to the Conversion Price only upon the conversion,
exercise or exchange of such securities.

 

D.                                                                                    Computation
of Consideration. For purposes of any computation respecting consideration
received pursuant to Subsection C above, the following shall apply:

 

5

 

(a)                                  in
the case of the issuance of shares of Common Stock for cash, the consideration
shall be the amount of such cash, provided that in no case shall any deduction
be made for any commissions, discounts or other expenses incurred by the
Company for any underwriting of the issue or otherwise in connection therewith;

 

(b)                                 in
the case of the issuance of shares of Common Stock for a consideration in whole
or in part other than cash, the consideration other than cash shall be deemed
to be the fair market value thereof as determined in good faith by the Board of
Directors of the Company (irrespective of the accounting treatment thereof);
and

 

(c)                                  in
the case of the issuance of securities convertible into or exchangeable for
shares of Common Stock, the aggregate consideration received therefor shall be
deemed to be the consideration received by the Company for the issuance of such
securities plus the additional minimum consideration, if any, to be received by
the Company upon the conversion or exchange thereof (the consideration in each
case to be determined in the same manner as provided in clauses (a) and (b) of
this Subsection (D)).

 

3.8   Reservation of Shares.
During the period the conversion right exists, the Borrower will reserve from
its authorized and unissued Common Stock a sufficient number of shares to
provide for the issuance of Common Stock upon the full conversion of this
Note.  The Borrower represents that upon
issuance, such shares will be duly and validly issued, fully paid and
non-assessable.  The Borrower agrees
that its issuance of this Note shall constitute full authority to its officers,
agents, and transfer agents who are charged with the duty of executing and
issuing stock certificates to execute and issue the necessary certificates for
shares of Common Stock upon the conversion of this Note.

 

3.9   Registration Rights.  The Holder has been granted registration
rights with respect to the shares of Common Stock issuable upon conversion of
this Note as more fully set forth in a Registration Rights Agreement dated the
date hereof.

 

ARTICLE IV

 

EVENT OF DEFAULT

 

The
occurrence of any of the following events is an Event of Default (“Event of
Default”):

 

4.1   Failure to Pay Principal,
Interest or other Fees.  Subject to
the grace period set forth in Section 1.2 hereof, the Borrower fails to pay any
installment of principal, interest or other fees hereon or in respect of any
other promissory note issued pursuant to the Purchase Agreement when due.

 

4.2   Breach of Covenant.  The Borrower breaches any covenant or other
term or condition of this Note or the Purchase Agreement (as hereafter defined)
in any material respect and such breach, if subject to cure, continues for a
period of five (5) days after the occurrence thereof.

 

6

 

4.3   Breach of Representations
and Warranties.  Any material
representation or warranty of the Borrower made herein, in the Purchase
Agreement, or in any agreement, statement or certificate given in writing
pursuant hereto or in connection therewith shall be false or misleading.

 

4.4 Receiver or
Trustee.  The Borrower shall make an
assignment for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business; or such a receiver or trustee shall otherwise be
appointed.

 

4.5   Judgments.  Any money judgment, writ or similar final
process shall be entered or filed against the Borrower or any of its property
or other assets for more than $250,000, and shall remain unvacated, unbonded or
unstayed for a period of ninety (90) days.

 

4.6   Bankruptcy.  Bankruptcy, insolvency, reorganization or
liquidation proceedings or other proceedings or relief under any bankruptcy law
or any law for the relief of debtors shall be instituted by or against the
Borrower.

 

4.7   Stop Trade.  An SEC stop trade order or Principal Market
trading suspension of the Common Stock for 5 consecutive trading days or 5
trading days during a period of 10 consecutive trading days, excluding in all
cases a suspension of all trading on a Principal Market.

 

4.8   Cross Default.  A default shall have occurred under any
document, instrument or agreement by and between the Company and Wells Fargo
Business Credit, Inc., which has not been cured within any applicable cure or
grace period, other than those financial covenant defaults specified on
Schedule 2.6(b) to the Purchase Agreement.

 

4.9   Default Under Related
Agreement.  An Event of Default
occurs under and as defined in the Security Agreement.

 

ARTICLE V

 

DEFAULT PAYMENT

 

5.1   Default Payment.  If an Event of Default occurs, the Holder,
at its option, may elect to require the Borrower to make a Default Payment (“Default
Payment”).  The Default
Payment shall be 130% of the outstanding principal amount of the Note, plus
accrued but unpaid interest, all other fees then remaining unpaid, and all
other amounts payable hereunder. 
Additionally, at the direction of Laurus, the Borrower shall enter into
an additional convertible debt transaction with Laurus, the proceeds of which
shall be used by the Borrower to payoff in full all obligations and liabilities
then owing by the Borrower to Wells Fargo Business Credit, Inc.  In connection therewith, the Borrower shall
deliver to Laurus an additional secured convertible note, registration rights
agreement, securities purchase agreement and common stock purchase warrant on terms
identical to those set forth in such documents, instruments and agreements
entered into by the Borrower in connection with the transactions contemplated
hereby.

 

7

 

5.2   Default Payment Date and
Default Notice Period.  The Default
Payment shall be due and payable on the fifth business day after the date
written notice is sent from the Holder to the Borrower of an Event of Default
as defined in Article IV (“Default Payment Date”).  The period between the date of the written
notice from the Holder to the Borrower of an Event of Default and the Default
Payment Date shall be the “Default Notice Period.”  If during the Default Notice Period, the
Borrower cures the Event of Default, the Event of Default will no longer exist
and any rights the Holder had pertaining to the Event of Default will no longer
exist.  If the Event of Default is not
cured during the Default Notice Period, all amounts payable hereunder shall be
due and payable on the Default Payment Date, all without further demand,
presentment or notice, or grace period, all of which hereby are expressly
waived.

 

5.3   Cumulative Remedies.  The remedies under this Note shall be
cumulative.

 

ARTICLE VI

 

MISCELLANEOUS

 

6.1   Failure or Indulgence Not
Waiver.  No failure or delay on the
part of the Holder hereof in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

 

6.2   Notices.  Any notice herein required or permitted to
be given shall be in writing and shall be deemed effectively given:  (a) upon personal delivery to the party
notified, (b) when sent by confirmed telex or facsimile if sent during normal
business hours of the recipient but, if not, then on the next business day, (c)
five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt.  All
communications shall be sent to the Borrower at the address as set forth on the
signature page to the Purchase Agreement executed in connection herewith and to
the Holder at the address set forth on the signature page to the Purchase
Agreement for such Holder, with a copy to John Tucker, Esq., 152 West 57th
Street, 4th Floor, New York, New York 10019, facsimile number (212) 541-4434,
or at such other address as the Borrower or the Holder may designate by ten
days’ advance written notice to the other parties hereto.  A Notice of Conversion shall be deemed given
when made to the Borrower pursuant to the Purchase Agreement.

 

6.3   Amendment Provision.  The term “Note” and all references thereto,
as used throughout this instrument, shall mean this instrument as originally
executed, or if later amended or supplemented, then as so amended or
supplemented.

 

6.4   Assignability.  This Note shall be binding upon the Borrower
and its successors and assigns, and shall inure to the benefit of the Holder
and its successors and assigns, and may be assigned by the Holder.

 

8

 

6.5   Costs of Collection.  If default is made in the payment of this
Note, the Borrower shall pay the Holder hereof reasonable costs of collection,
including reasonable attorneys’ fees.

 

6.6   Governing Law.  This Note shall be governed by and construed
in accordance with the laws of the State of New York, without regard to
principles of conflicts of laws.  Any
action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in
the federal courts located in the state of New York.  Both parties and the individual signing this Note on behalf of
the Borrower agree to submit to the jurisdiction of such courts.  The prevailing party shall be entitled to
recover from the other party its reasonable attorneys’ fees and costs.  In the event that any provision of this Note
is invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law.  Any such provision which may prove
invalid or unenforceable under any law shall not affect the validity or
unenforceability of any other provision of this Note.

 

6.7   Maximum Payments.  Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum permitted by applicable law.  In the event that the rate of interest required to be paid or
other charges hereunder exceed the maximum permitted by such law, any payments
in excess of such maximum shall be credited against amounts owed by the
Borrower to the Holder and thus refunded to the Borrower.

 

6.8   Security Interest.  The Holder of this Note has been granted a
security interest in certain assets of the Borrower as more fully described in
the Security Agreement dated as of the date hereof between the Borrower and the
Holder, as the same may be amended, modified and supplemented from time to time
(the “Security Agreement”).

 

6.9   Construction.  Each party acknowledges that its legal
counsel participated in the preparation of this Note and, therefore, stipulates
that the rule of construction that ambiguities are to be resolved against the
drafting party shall not be applied in the interpretation of this Note to favor
any party against the other.

 

6.10   Management Fee.  Simultaneously with the execution of this
Note, the Borrower shall pay to Laurus Capital Management, LLC a management fee
in an amount equal to four percent (4%) of the Principal Amount, which such
amount at the Holder’s option may be deducted from funds made available by the
Holder to the Borrower hereunder.

 

6.11   Subordination Agreement.  This Note is subject to the Subordination
Agreement dated as of the date hereof among the Borrower, the Holder and Wells
Fargo Business Credit, Inc. under which this Note and the Borrower’s
obligations hereunder are subordinated in the manner set forth therein.

 

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IN WITNESS WHEREOF,
the Borrower has caused this Note to be signed in its name effective as of this
        day of July, 2003.

 

	
   

  	
  DIGITAL
  ANGEL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

10

 

NOTICE OF
CONVERSION

 

(To be executed by the
Holder in order to convert the Note)

 

The
undersigned hereby elects to convert
$                
of the principal and
$                
of the interest due on the Note issued by DIGITAL ANGEL CORPORATION (the
“Company”) on                 ,
2003 into Shares of Common Stock of the Company according to the conditions set
forth in such Note, as of the date written below.

 

	
  Date of
  Conversion:

  	
   

  
	
   

  	
   

  	
   

  
	
  Conversion
  Price:

  	
   

  
	
   

  	
   

  	
   

  
	
  Shares To Be
  Delivered:

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  

 

11

 

EXHIBIT B

 

FORM OF REPAYMENT
ELECTION NOTICE

 

To:                              [HOLDER
AT HOLDER’S ADDRESS]

 

Pursuant to Section 2.2 the Note of Digital Angel
Corporation (the “Company”) issued on
             ,
2003 we hereby notify you that we are irrevocably electing to repay the
outstanding Monthly Amount (as defined in the Note) due on the Repayment Date
(as defined in the Note) which occurs on
             ,
20     (CHECK ONE):

 

o   In
full in cash on such Repayment Date.

 

o   In
full in shares of the Company’s Common Stock within three (3) trading days
following such Repayment Date.

 

	
   

  	
  Digital
  Angel Corporation

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

12Exhibit
10.4

 

THIS WARRANT AND THE
SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE
COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO DIGITAL ANGEL CORPORATION THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

	
   

  	
   

  	
  Right
  to Purchase 125,000 Shares of Common Stock of Digital Angel Corporation
  (subject to adjustment as provided herein)

  

 

COMMON STOCK PURCHASE WARRANT

 

	
  No. 2003-1

  	
   

  	
  Issue Date: 
  July 31, 2003

  

 

DIGITAL ANGEL
CORPORATION, a corporation organized under the laws of the State of Delaware
(the “Company”), hereby certifies that, for value received, LAURUS MASTER FUND,
LTD., or its assigns (the “Holder”), is entitled, subject to the terms set
forth below, to purchase from the Company from and after the Issue Date of this
Warrant and at any time or from time to time before 5:00 p.m., New York time,
through five (5) years after such date (the “Expiration Date”), up to 125,000
fully paid and nonassessable shares of Common Stock (as hereinafter defined),
$.005 par value, of the Company, at the Exercise Price (as defined below). The
number and character of such shares of Common Stock and the Exercise Price are
subject to adjustment as provided herein.

 

As used herein the
following terms, unless the context otherwise requires, have the following
respective meanings:

 

(a)                                  The
term “Company” shall include Digital Angel Corporation and any corporation
which shall succeed or assume the obligations of Digital Angel Corporation
hereunder.

 

(b)                                 The
term “Common Stock” includes (a) the Company’s Common Stock, par value $.005
per share, and (b) any other securities into which or for which any of the
securities described in (a) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or otherwise.

 

(c)                                  The
term “Other Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which
the holder of the Warrant at any time shall be entitled to receive, or shall
have received, on the exercise of the Warrant, in lieu of or in addition to
Common Stock, or which at any time shall be issuable or shall have been issued
in exchange for or in replacement of Common Stock or Other Securities pursuant
to Section 4 or otherwise.

 

(d)                                 The
term “Exercise Price” shall be as follows:

 

 

a.                                       75,000
shares at $2.68 per share;

 

b.                                      35,000
shares at $2.91 per share; and

 

c.                                       15,000
shares at $3.38 per share.

 

1.                                       Exercise of
Warrant.

 

1.1                                 Number
of Shares Issuable upon Exercise. 
From and after the date hereof and through and including the Expiration
Date, the Holder shall be entitled to receive, upon exercise of this Warrant,
in whole or in part, by delivery of an original or fax copy of the exercise
notice attached hereto as Exhibit A (the “Exercise Notice”), shares of Common
Stock of the Company, subject to adjustment pursuant to Section 4.

 

1.2                                 Fair
Market Value.  Fair Market Value of
a share of Common Stock as of a particular date (the “Determination Date”)
shall mean:

 

(a)                                  If
the Company’s Common Stock is traded on an exchange or is quoted on the
National or SmallCap Market of The Nasdaq Stock Market, Inc. (“Nasdaq”), then
the closing or last sale price, respectively, reported for the last business
day immediately preceding the Determination Date.

 

(b)                                 If
the Company’s Common Stock is not traded on an exchange or on the Nasdaq but is
traded on the NASD OTC Bulletin Board or BBX Exchange, then the mean of the
average of the closing bid and asked prices reported for the last business day
immediately preceding the Determination Date.

 

(c)                                  Except
as provided in clause (d) below, if the Company’s Common Stock is not publicly
traded, then as the Holder and the Company agree or in the absence of agreement
by arbitration in accordance with the rules then in effect of the American
Arbitration Association, before a single arbitrator to be chosen from a panel
of persons qualified by education and training to pass on the matter to be
decided.

 

(d)                                 If
the Determination Date is the date of a liquidation, dissolution or winding up,
or any event deemed to be a liquidation, dissolution or winding up pursuant to
the Company’s charter, then all amounts to be payable per share to holders of
the Common Stock pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per share in
respect of the Common Stock in liquidation under the charter, assuming for the
purposes of this clause (d) that all of the shares of Common Stock then
issuable upon exercise of the Warrant are outstanding at the Determination
Date.

 

2.                                       Procedure
for Exercise.

 

2.1                                 Delivery
of Stock Certificates, etc. on Exercise. The Company agrees that the shares
of Common Stock purchased upon exercise of this Warrant shall be deemed to be
issued to the Holder as the record owner of such shares as of the close of
business on the date on which this Warrant shall have been surrendered and
payment made for such shares as aforesaid. As soon as practicable after the
exercise of this Warrant in whole or in part, and in any event

 

2

 

within 3 business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon
payment by such holder of any applicable transfer taxes) may direct in
compliance with applicable securities laws, a certificate or certificates for
the number of duly and validly issued, fully paid and nonassessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on
such exercise, plus, in lieu of any fractional share to which such holder would
otherwise be entitled, cash equal to such fraction multiplied by the then Fair
Market Value of one full share, together with any other stock or other
securities and property (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

 

2.2                                 Exercise.

 

(a)                                  Payment
may be made either in (i) cash or by certified or official bank check payable
to the order of the Company equal to the applicable aggregate Exercise Price,
(ii) by delivery of the Warrant, Common Stock and/or Common Stock receivable
upon exercise of the Warrant in accordance with Section (b) below, or (iii) by
a combination of any of the foregoing methods, for the number of Common Shares
specified in such form (as such exercise number shall be adjusted to reflect
any adjustment in the total number of shares of Common Stock issuable to the
holder per the terms of this Warrant), and the Holder shall thereupon be
entitled to receive the number of duly authorized, validly issued, fully-paid
and non-assessable shares of Common Stock (or Other Securities) determined as provided
herein.

 

(b)                                 Notwithstanding
any provisions herein to the contrary, if the Fair Market Value of one share of
Common Stock is greater than the Exercise Price (at the date of calculation as
set forth below), in lieu of exercising this Warrant for cash, the Holder may
elect to receive shares equal to the value (as determined below) of this
Warrant (or the portion thereof being exercised) by surrender of this Warrant
at the principal office of the Company together with the properly endorsed
Exercise Notice in which event the Company shall issue to the Holder a number
of shares of Common Stock computed using the following formula:

 

	
  X=Y (A-B)

  
	
  A

  	
   

  

 

	
  Where X

  	
  =

  	
  the number of
  shares of Common Stock to be issued to the Holder

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Y

  	
  =

  	
  the number of
  shares of Common Stock purchasable under the Warrant or, if only a portion of
  the Warrant is being exercised, the portion of the Warrant being exercised
  (at the date of such calculation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
  =

  	
  the Fair Market Value
  of one share of the Company’s Common Stock (at the date of such calculation)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B

  	
  =

  	
  Exercise Price (as
  adjusted to the date of such calculation)

  

 

3

 

3.                                       Effect of
Reorganization, etc.; Adjustment of Exercise Price.

 

3.1                                 Reorganization,
Consolidation, Merger, etc.  In case
at any time or from time to time, the Company shall (a) effect a
reorganization, (b) consolidate with or merge into any other person, or (c)
transfer all or substantially all of its properties or assets to any other
person under any plan or arrangement contemplating the dissolution of the
Company, then, in each such case, as a condition to the consummation of such a
transaction, proper and adequate provision shall be made by the Company whereby
the Holder of this Warrant, on the exercise hereof as provided in Section 1 at
any time after the consummation of such reorganization, consolidation or merger
or the effective date of such dissolution, as the case may be, shall receive,
in lieu of the Common Stock (or Other Securities) issuable on such exercise
prior to such consummation or such effective date, the stock and other
securities and property (including cash) to which such Holder would have been
entitled upon such consummation or in connection with such dissolution, as the
case may be, if such Holder had so exercised this Warrant, immediately prior
thereto, all subject to further adjustment thereafter as provided in Section 4.

 

3.2                                 Dissolution.  In the event of any dissolution of the
Company following the transfer of all or substantially all of its properties or
assets, the Company, prior to such dissolution, shall at its expense deliver or
cause to be delivered the stock and other securities and property (including
cash, where applicable) receivable by the Holder of the Warrant after the
effective date of such dissolution pursuant to Section 3.1 to a bank or trust
company having its principal office in New York, NY, as trustee for the Holder
of the Warrant.

 

3.3                                 Continuation
of Terms.  Upon any reorganization,
consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3, this Warrant shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and
other securities and property receivable on the exercise of this Warrant after
the consummation of such reorganization, consolidation or merger or the
effective date of dissolution following any such transfer, as the case may be,
and shall be binding upon the issuer of any such stock or other securities, including,
in the case of any such transfer, the person acquiring all or substantially all
of the properties or assets of the Company, whether or not such person shall
have expressly assumed the terms of this Warrant as provided in Section 4.  In the event this Warrant does not continue
in full force and effect after the consummation of the transactions described
in this Section 3, then only in such event will the Company’s securities and
property (including cash, where applicable) receivable by the holders of the
Warrant be delivered to the Trustee as contemplated by Section 3.2.

 

4.                                       Extraordinary
Events Regarding Common Stock. 
In the event that the Company shall (a) issue additional shares of the
Common Stock as a dividend or other distribution on outstanding Common Stock,
(b) subdivide its outstanding shares of Common Stock, or (c) combine its
outstanding shares of the Common Stock into a smaller number of shares of the
Common Stock, then, in each such event, the Exercise Price shall,
simultaneously with the happening of such event, be adjusted by multiplying the
then Exercise Price by a fraction, the numerator of which shall be the number
of shares of Common Stock outstanding immediately prior to such event and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately after such event, and the product so obtained shall thereafter be
the Exercise Price then in effect. The Exercise Price, as so adjusted, shall be

 

4

 

readjusted in the same manner upon the happening of any successive
event or events described herein in this Section 4. The number of shares of
Common Stock that the holder of this Warrant shall thereafter, on the exercise
hereof as provided in Section 1, be entitled to receive shall be increased to a
number determined by multiplying the number of shares of Common Stock that
would otherwise (but for the provisions of this Section 4) be issuable on such
exercise by a fraction of which (a) the numerator is the Exercise Price that
would otherwise (but for the provisions of this Section 4) be in effect, and
(b) the denominator is the Exercise Price in effect on the date of such
exercise.

 

5.                                       Certificate
as to Adjustments.  In each
case of any adjustment or readjustment in the shares of Common Stock (or Other
Securities) issuable on the exercise of the Warrant, the Company at its expense
will promptly cause its Chief Financial Officer or other appropriate designee
to compute such adjustment or readjustment in accordance with the terms of the
Warrant and prepare a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is
based, including a statement of (a) the consideration received or receivable by
the Company for any additional shares of Common Stock (or Other Securities)
issued or sold or deemed to have been issued or sold, (b) the number of shares
of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
and (c) the Exercise Price and the number of shares of Common Stock to be
received upon exercise of this Warrant, in effect immediately prior to such
adjustment or readjustment and as adjusted or readjusted as provided in this
Warrant. The Company will forthwith mail a copy of each such certificate to the
holder of the Warrant and any Warrant agent of the Company (appointed pursuant
to Section 11 hereof).

 

6.                                       Reservation
of Stock, etc. Issuable on Exercise of Warrant.  The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of the
Warrant, shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of the Warrant.

 

7.                                       Assignment;
Exchange of Warrant.  Subject
to compliance with applicable securities laws, this Warrant, and the rights
evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”) with respect to any or all of the Shares. On the surrender for
exchange of this Warrant, with the Transferor’s endorsement in the form of
Exhibit B attached hereto (the “Transferor Endorsement Form”) and together with
evidence reasonably satisfactory to the Company demonstrating compliance with
applicable securities laws, which shall include, without limitation, a legal
opinion from the Transferor’s counsel that such transfer is exempt from the
registration requirements of applicable securities laws, the Company at its
expense but with payment by the Transferor of any applicable transfer taxes)
will issue and deliver to or on the order of the Transferor thereof a new
Warrant of like tenor, in the name of the Transferor and/or the transferee(s)
specified in such Transferor Endorsement Form (each a “Transferee”), calling in
the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face or faces of the Warrant so surrendered by the
Transferor.

 

8.                                       Replacement
of Warrant.  On receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and, in the case of any such loss, theft or
destruction of this Warrant, on delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of
any such

 

5

 

mutilation, on surrender and cancellation of this Warrant, the Company
at its expense will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

 

9.                                       Registration
Rights.  The Holder of this
Warrant has been granted certain registration rights by the Company.  These registration rights are set forth in a
Registration Rights Agreement entered into by the Company and Purchaser of the
Company’s Convertible Note (the “Note”) at or prior to the issue date of this
Warrant.

 

10.                                 Maximum
Exercise.  The Holder shall
not be entitled to exercise this Warrant on an exercise date, in connection
with that number of shares of Common Stock which would be in excess of the sum
of (i) the number of shares of Common Stock beneficially owned by the Holder
and its affiliates on an exercise date, and (ii) the number of shares of Common
Stock issuable upon the exercise of this Warrant with respect to which the
determination of this proviso is being made on an exercise date, which would
result in beneficial ownership by the Holder and its affiliates of more than
4.99% of the outstanding shares of Common Stock of the Company on such
date.  For the purposes of the proviso
to the immediately preceding sentence, beneficial ownership shall be determined
in accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulation 13d-3 thereunder. 
Subject to the foregoing, the Holder shall not be limited to aggregate
exercises which would result in the issuance of more than 4.99%.  The restriction described in this paragraph
may be revoked upon 75 days’ prior notice from the Holder to the Company and is
automatically null and void upon an Event of Default under the Note.

 

11.                                 Warrant
Agent.  The Company may, by
written notice to the each holder of the Warrant, appoint an agent for the
purpose of issuing Common Stock (or Other Securities) on the exercise of this
Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section 7,
and replacing this Warrant pursuant to Section 8, or any of the foregoing, and
thereafter any such issuance, exchange or replacement, as the case may be,
shall be made at such office by such agent.

 

12.                                 Transfer on
the Company’s Books.  Until
this Warrant is transferred on the books of the Company, the Company may treat
the registered holder hereof as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary.

 

13.                                 Notices, etc.  All notices and other communications from
the Company to the Holder of this Warrant shall be mailed by first class registered
or certified mail, postage prepaid, at such address as may have been furnished
to the Company in writing by such holder or, until any such Holder furnishes to
the Company an address, then to, and at the address of, the last Holder of this
Warrant who has so furnished an address to the Company.

 

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

 

15.                                 Miscellaneous.  This Warrant and any term hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge
or termination is sought.  This Warrant
shall be

 

6

 

governed by and construed in accordance with the laws of State of New
York without regard to principles of conflicts of laws.  Any action brought by either party concerning
the transactions contemplated by this Warrant shall be brought only in the
state courts of New York or in the federal courts located in the state of New
York.  The individuals executing this
Warrant on behalf of the Company agree to submit to the jurisdiction of such
courts and waive trial by jury.  The
prevailing party shall be entitled to recover from the other party its
reasonable attorney’s fees and costs. 
In the event that any provision of this Warrant is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law.  Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability
of any other provision of this Warrant. The headings in this Warrant are for
purposes of reference only, and shall not limit or otherwise affect any of the
terms hereof.  The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision. 
The Company acknowledges that legal counsel participated in the
preparation of this Warrant and, therefore, stipulates that the rule of
construction that ambiguities are to be resolved against the drafting party
shall not be applied in the interpretation of this Warrant to favor any party
against the other party.

 

IN WITNESS WHEREOF, the
Company has executed this Warrant under seal as of the date first written
above.

 

	
   

  	
   

  	
  DIGITAL
  ANGEL CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

7

 

Exhibit
A

 

FORM
OF SUBSCRIPTION

 

(To be
signed only on exercise of Warrant)

 

TO:                            Digital
Angel Corporation

 

The undersigned, pursuant
to the provisions set forth in the attached Warrant
(No.        ), hereby irrevocably
elects to purchase (check applicable box):

 

o                            shares
of the Common Stock covered by such Warrant; or

 

o            the maximum number of shares of
Common Stock covered by such Warrant pursuant to the cashless exercise
procedure set forth in Section 2.

 

The undersigned herewith
makes payment of the full Exercise Price for such shares at the price per share
provided for in such Warrant, which is
$                 .  Such payment takes the form of (check
applicable box or boxes):

 

o            $                
in lawful money of the United States; and/or

 

o            the cancellation of such portion of
the attached Warrant as is exercisable for a total of
                
shares of Common Stock (using a Fair Market Value of
$             per
share for purposes of this calculation); and/or

 

o            the cancellation of such number of
shares of Common Stock as is necessary, in accordance with the formula set
forth in Section 2, to exercise this Warrant with respect to the maximum number
of shares of Common Stock purchaseable pursuant to the cashless exercise
procedure set forth in Section 2.

 

	
  The undersigned
  requests that the certificates for such shares be issued in the name of, and
  delivered to

  	
   

  
	
  whose address is

  	
   

  
	
   

  
			

 

The undersigned
represents and warrants that all offers and sales by the undersigned of the
securities issuable upon exercise of the within Warrant shall be made pursuant
to registration of the Common Stock under the Securities Act of 1933, as
amended (the “Securities Act”) or pursuant to an exemption from registration
under the Securities Act.

 

	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Address)

  	
   

  
						

 

8

 

Exhibit
B

 

FORM
OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

 

For value received, the
undersigned hereby sells, assigns, and transfers unto the person(s) named below
under the heading “Transferees” the right represented by the within Warrant to
purchase the percentage and number of shares of Common Stock of Digital Angel
Corporation to which the within Warrant relates specified under the headings
“Percentage Transferred” and “Number Transferred,” respectively, opposite the
name(s) of such person(s) and appoints each such person Attorney to transfer
its respective right on the books of Digital Angel Corporation with full power
of substitution in the premises.

 

	
  Transferees

  	
   

  	
  Percentage
  Transferred

  	
   

  	
  Number
  Transferrred

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

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

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signed in the presence
  of:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
  (address)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  	
   

  	
   

  
	
  [TRANSFEREE]

  	
   

  	
  (address)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  	
   

  
						

 

9

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