Document:

WWW.EXFILE.COM, INC. -- 14950 -- ZAP -- EXHIBIT 10.4 TO FORM 8-K

    EXHIBIT
      10.4

    

    Schedule
      Prepared in accordance with Instruction 2 to Item 601 of Regulation
      S-K

    

    The
      Warrants dated February 20, 2007 are substantially identical in all material
      respects except as to the holder and the number of shares for which the warrant
      is exercisable.

    

    
      	
              Holder

            	
              Number
                of shares

            
	 	 
	
              Gemini
                Master Fund, Ltd.

            	
              150,000

            
	
              Grey
                K Offshore Fund, Ltd.

            	
              114,240

            
	
              Grey
                K Fund, LP

            	
              49,560

            
	
              Grey
                K Offshore Leveraged Fund, Ltd.

            	
              46,200

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      WARRANT (THIS “WARRANT”) AND
      THE
      SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE OR SOLD
      UNLESS A REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
      LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM REGISTRATION
      UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS AVAILABLE
      IN
      CONNECTION WITH SUCH OFFER OR SALE. THIS WARRANT AND THE SECURITIES ISSUABLE
      UPON EXERCISE
      HEREOF
      (I) MAY BE PLEDGED OR HYPOTHECATED IN CONNECTION WITH A BONA FIDE MARGIN LOAN
      OR
      OTHER FINANCING SECURED BY SUCH SECURITIES OR (II) MAY BE TRANSFERRED OR
      ASSIGNED TO AN AFFILIATE OF THE HOLDER HEREOF WITHOUT THE NECESSITY OF AN
      OPINION OF COUNSEL OR THE CONSENT OF THE ISSUER
      HEREOF.

     

    WARRANT
      

     

    TO
      PURCHASE COMMON STOCK 

    

    OF

     

    ZAP

     

     

    Issue
      Date: February 20, 2007Warrant
      No. 1A

     

    THIS
      CERTIFIES that GEMINI
      MASTER
      FUND, LTD. or
      any
      permitted subsequent holder hereof (the “Holder”),
      has
      the right to purchase from ZAP,
      a
      California corporation (the
      “Company”),
      up to
      150,000 fully paid and nonassessable shares of the Company’s common stock, no
      par value (the “Common
      Stock”),
      subject to adjustment as provided herein, at a price per share equal to the
      Exercise Price (as defined below), at any time and from time to time beginning
      on the date on which this Warrant is issued (the “Issue
      Date”)
      and
      ending at 5:00 p.m., New York City time, on the fifth (5th)
      anniversary of the Issue Date or, if such day is not a Business Day, on the
      next
      succeeding Business Day (the “Expiration
      Date”).
      This
      Warrant is issued pursuant to a Securities Purchase Agreement, dated as of
      December 5, 2006, as amended by the Purchase and Amendment Agreement dated
      as of
      February 20, 2007 (the “Securities
      Purchase Agreement”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Securities Purchase Agreement.

    

    1.    
EXERCISE.

    

    (a)    Right
      to Exercise; Exercise Price.
      The
      Holder shall have the right to exercise this Warrant at any time and from time
      to time during the period beginning on the Issue Date and ending at 5 p.m.,
      New
      York City time, on the Expiration Date as to all or any part of the shares
      

     

    
      
        
        

      

      
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    of
      Common
      Stock covered hereby (the “Warrant
      Shares”).
      The
“Exercise
      Price”
for
      each Warrant Share purchased by the Holder upon the exercise of this Warrant
      shall be $1.32, subject to adjustment for the events specified in Section
      6
      of this
      Warrant. 

    

    (b)    Exercise
      Notice.
      In
      order to exercise this Warrant, the Holder shall (i) send by facsimile
      transmission (followed by a telephonic or email confirmation that such facsimile
      was sent), at any time prior to 5:00 p.m., New York City time, on the Business
      Day on which the Holder wishes to effect such exercise (the “Exercise
      Date”),
      to
      the Company an executed copy of the notice of exercise in the form attached
      hereto as Exhibit
      A
      (the
“Exercise
      Notice”)
      and
      (ii) in the case of a Cash Exercise (as defined below), deliver the Exercise
      Price to the Company by wire transfer of immediately available funds. The Holder
      shall promptly thereafter deliver the original Warrant to the Company for
      cancellation (and replacement with a new Warrant if exercised in part) pursuant
      to Section
      1(d)
      of this
      Warrant. Subject to Section
      8(d),
      the
      Exercise Notice shall also state the name or names in which the Warrant Shares
      issuable on such exercise shall be issued if other than the Holder. In
      the
      case of a dispute as to the calculation of the Exercise Price or the number
      of
      Warrant Shares issuable hereunder (including, without limitation, the
      calculation of any adjustment pursuant to Section
      6 below),
      the Company shall promptly issue to the Holder the number of Warrant Shares
      that
      are not disputed, the Company and the Holder shall provide each other with
      their
      respective calculations, and the Company shall submit the disputed calculations
      to a certified public accounting firm of national recognition (other than the
      Company’s independent accountants) within two (2) Business Days following the
      later of the date on which the Holder delivers its calculations to the Company
      and the date on which the Exercise Notice is delivered to the Company. The
      Company shall use its best efforts to cause such accountant to calculate the
      Exercise Price and/or the number of Warrant Shares issuable hereunder and to
      notify the Company and the Holder of the results in writing no later than two
      (2) Business Days following the day on which such accountant received the
      disputed calculations (the “Dispute
      Procedure”).
      Such
      accountant’s calculation shall be deemed conclusive absent manifest error. The
      fees of any such accountant shall be borne by the party whose calculations
      were
      most at variance with those of such accountant.

    

    (c)    Holder
      of Record.
      The
      Holder shall, for all purposes, be deemed to have become the holder of record
      of
      the Warrant Shares specified in an Exercise Notice on the Exercise Date
      specified therein, irrespective of the date of delivery of such Warrant Shares.
      Except as specifically provided herein, nothing in this Warrant shall be
      construed as conferring upon the Holder hereof any rights as a stockholder
      of
      the Company prior to the Exercise Date.

    

    (d)    Cancellation
      of Warrant.
      This
      Warrant shall be canceled upon its exercise and, if this Warrant is exercised
      in
      part, the Company shall, at the time that it delivers Warrant Shares to the
      Holder pursuant to such exercise as provided herein, issue a new warrant, and
      deliver to the Holder a certificate representing such new warrant, with terms
      identical in all respects to this Warrant (except that such new warrant shall
      be
      exercisable into the number of shares of Common Stock with respect to which
      this
      Warrant shall remain unexercised); provided,
      however,
      that
      the Holder shall be entitled to exercise all or any portion of such new warrant
      at any time following the time at which this Warrant is exercised, regardless
      of
      whether the Company has actually issued such new warrant or delivered to the
      Holder a certificate therefor.

    

    
      
        
        

      

      
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    2.    
DELIVERY
      OF WARRANT SHARES UPON EXERCISE.
      

    

    Upon
      receipt of an Exercise Notice pursuant to Section
      1
      of this
      Warrant, the Company shall, (A) in the case of a Cash Exercise (as defined
      below) no later than the close of business on the later to occur of (i) the
      sixth (6th) Business Day following the Exercise Date set forth in such Exercise
      Notice and (ii) the date on which the Company has received payment of the
      Exercise Price, (B) in the case of a Cashless Exercise (as defined below),
      no
      later than the close of business on the sixth (6th) Business Day following
      the
      Exercise Date set forth in such Exercise Notice, and (C) with respect to Warrant
      Shares that are the subject of a Dispute Procedure, the close of business on
      the
      sixth (6th) Business Day following the determination made pursuant to
Section
      1(b)
      of this
      Warrant (each of the dates specified in the foregoing clauses
      (A),
      (B)
      or
(C)
      being
      referred to as a “Delivery
      Date”),
      issue
      and deliver or cause to be delivered to the Holder the number of Warrant Shares
      as shall be determined as provided herein. The Company shall effect delivery
      of
      Warrant Shares to the Holder, as long as the Company’s designated transfer agent
      or co-transfer agent in the United States for the Common Stock (the
“Transfer
      Agent”)
      participates in the Depository Trust Company (“DTC”)
      Fast
      Automated Securities Transfer program (“FAST”),
      by
      crediting the account of the Holder or its nominee at DTC (as specified in
      the
      applicable Exercise Notice) with the number of Warrant Shares required to be
      delivered, no later than the close of business on such Delivery Date. In the
      event that the Transfer Agent is not a participant in FAST, or if the Holder
      so
      specifies in an Exercise Notice or otherwise in writing on or before the
      Exercise Date, the Company shall effect delivery of Warrant Shares by delivering
      to the Holder or its nominee physical certificates representing such Warrant
      Shares, no later than the close of business on such Delivery Date. If any
      exercise would create a fractional Warrant Share, such fractional Warrant Share
      shall be disregarded and the number of Warrant Shares issuable upon such
      exercise, in the aggregate, shall be the nearest whole number of Warrant Shares.
      Warrant Shares delivered to the Holder shall not contain any restrictive legend
      unless such legend is required pursuant to the terms of the Securities Purchase
      Agreement.

    

    3.    
FAILURE
      TO DELIVER WARRANT SHARES.
      

    

    (a)    In
      the
      event that the Company fails for any reason (other than as a result of the
      Holder’s failure, in the case of a Cash Exercise (as defined below), to pay the
      aggregate Exercise Price for the Warrant Shares being purchased) to deliver
      to
      the Holder the number of Warrant Shares specified in the applicable Exercise
      Notice (without any restrictive legend to the extent permitted by applicable
      law
      and the terms of the Securities Purchase Agreement) on or before the Delivery
      Date therefor, or fails to remove any restrictive legend from outstanding
      Warrant Shares at the request of the Holder in accordance with Section
      2.5
      of the
      Securities Purchase Agreement on or before the tenth (10th) Business Day
      following such request (an “Exercise
      Default”),
      the
      Holder shall have the right to receive from the Company an amount equal to
      (i)
      (N/365) multiplied
      by
      (ii) the
      aggregate Exercise Price of the Warrant Shares which are the subject of such
      Exercise Default multiplied
      by
      (iii)
      the lower of twelve percent (12%) and the maximum rate permitted by applicable
      law or by the applicable rules or regulations of any Governmental Agency (the
      “Default
      Interest Rate”),
      where
“N” equals the number of days elapsed between the original Delivery Date of such
      Warrant Shares (or from such tenth Business Day in the event of a failure to
      remove a legend from outstanding Warrant Shares) and the date on which such
      Exercise Default has been cured. In the event that shares of Common Stock are
      

     

    
      
        
        

      

      
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    purchased
      by or on behalf of the Holder in order to
      make
      delivery on a sale effected in anticipation of receiving Warrant Shares upon
      an
      exercise, and there is an Exercise Default with respect to such exercise, the
      Holder shall have the right to receive from the Company, in addition to the
      foregoing amounts, (i) the aggregate amount paid by or on behalf of the Holder
      for such shares of Common Stock minus
      (ii) the
      aggregate amount of net proceeds, if any, received by the Holder from the sale
      of the Warrant Shares issued by the Company pursuant to such exercise.
Amounts
      payable under this Section
      3(a) shall
      be
      paid to the Holder in immediately available funds on or before the second (2nd)
      Business Day following written notice from the Holder to the Company specifying
      the amount owed to it by the Company pursuant to this Section
      3(a)
      and, if
      an Exercise Default continues to exist thereafter, at the end of each period
      of
      thirty (30) days following such second Business Day.

     

    (b)    In
      addition to its rights under Section
      3(a)
      of this
      Warrant, the Holder shall have the right to pursue all other remedies available
      to it at law or in equity (including, without limitation, a decree of specific
      performance and/or injunctive relief).  

     

    4.    
EXERCISE
      LIMITATION.
      

    

    In
      no
      event shall the Holder be permitted to exercise this Warrant, or part thereof,
      if, upon such exercise, the number of shares of Common Stock beneficially owned
      by the Holder (other than shares which may be deemed beneficially owned except
      for being subject to a limitation on exercise or exercise analogous to the
      limitation contained in this Section
      4,
      would
      exceed 4.99% of the number of shares of Common Stock then issued and
      outstanding, it being the intent of the Company and the Holder that the Holder
      not be deemed at any time to have the power to vote or dispose of greater than
      4.99% of the number of shares of Common Stock issued and outstanding at any
      time. Nothing contained herein shall be deemed to restrict the right of the
      Holder to exercise this Warrant at such time as such exercise will not violate
      the provisions of this Section
      4.
      As
      used
      herein, beneficial ownership shall be determined in accordance with Section
      13(d) of the Exchange Act. To the extent that the limitation contained in this
      Section
      4
      applies
      (and without limiting any rights the Company may otherwise have), the submission
      of an Exercise Notice by the Holder shall be deemed to be the Holder’s
      representation that this Warrant is exercisable
      pursuant
      to the terms hereof,
      the
      Company may rely on the Holder’s representation that this Warrant
      is
      exercisable pursuant to the terms hereof,
      and the
      Company shall have no obligation whatsoever to verify or confirm the accuracy
      of
      such representation. The Company shall have no liability to any person if the
      Holder’s determination of whether this Warrant is exercisable pursuant to the
      terms hereof is incorrect. The holders of Common Stock are to be deemed
      third-party beneficiaries of the limitation imposed hereby and, accordingly,
      this Section
      4
      may not
      be amended without the consent of the holders of a majority of the shares of
      Common Stock then outstanding; provided,
      however,
      that
      the Holder shall have the right, upon sixty (60) days’ prior written notice to
      the Company, to waive the provisions of this Section
      4,
      without
      obtaining such consent.
      

    

    5.    
      PAYMENT
      OF THE EXERCISE PRICE; CASHLESS EXERCISE.
      

    

    The
      Holder may pay the Exercise Price in either of the following forms or, at the
      election of Holder, a combination thereof:

    

    (a)    through
      a
      cash exercise (a “Cash
      Exercise”)
      by
      delivering immediately available 

     

    
      
        
        

      

      
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    funds,
      or

    

    (b)    through
      a
      cashless exercise (a “Cashless
      Exercise”)
      if an
      effective Registration Statement is not available for the resale of all of
      the
      Warrant Shares issuable hereunder at the time an Exercise Notice is delivered
      to
      the Company, or if the Company otherwise consents in writing. The Holder shall
      effect a Cashless Exercise by surrendering this Warrant to the Company and
      noting on the Exercise Notice that the Holder wishes to effect a Cashless
      Exercise, upon which the Company shall issue to the Holder a number of Warrant
      Shares determined as follows:

     

    
      	 	 	 	X = Y x (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 Market Price as of the Exercise Date;
                and

            

    

    

    
      	 	 	 	
              B
                =
                the Exercise Price.

            

    

    

    It
      is
      intended 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 required by Rule 144 shall be deemed, subject
      to
      applicable law, to have been commenced, on the Issue Date. 

    

    6.    
ANTI-DILUTION
      ADJUSTMENTS; DISTRIBUTIONS; OTHER EVENTS.
      

    

    The
      Exercise Price and the number of Warrant Shares issuable hereunder shall be
      subject to adjustment from time to time as provided in this Section
      6.
      

    

    (a)    Stock
      Splits, Stock Interests, Etc.
      If, at
      any time on or after the Issue Date, the number of outstanding shares of Common
      Stock is increased by a stock split, stock dividend, reclassification or other
      similar event, the Exercise Price shall be proportionately reduced, or if the
      number of outstanding shares of Common Stock is decreased by a reverse stock
      split, combination, reclassification or other similar event, the Exercise Price
      shall be proportionately increased. In such event, the Company shall notify the
      Company’s transfer agent of such change on or before the effective date
      thereof.

     

    (b)    Major
      Transactions.
      If, at
      any time after the Issue Date, any Major Transaction shall occur, then the
      Holder shall thereafter have the right to receive upon exercise, in lieu of
      the
      shares of Common Stock otherwise issuable upon exercise of this Warrant, such
      shares of stock, securities and/or other property as would have been issued
      or
      payable upon such Major Transaction with respect to or in exchange for the
      number of shares of Common Stock which would have been issuable upon exercise
      of
      this Warrant had such Major Transaction not taken place (without giving effect
      to any limitations on such exercise contained in this Warrant or the Securities
      Purchase Agreement). The Company shall not effect any Major Transaction unless
      (i) 

     

    
      
        
        

      

      
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    the
      Holder has received written notice of such transaction at least thirty (30)
      days
      prior thereto (which period shall be increased to sixty one (61) days if, at
      such time, without giving effect to the limitation on exercise contained in
      Section
      4
      hereof,
      the Holder would beneficially own more than 4.99% of the Common Stock then
      outstanding, and the Holder has notified the Company in writing of such
      circumstance) but in no event later than fifteen (15) days prior to the record
      date for the determination of stockholders entitled to vote with respect
      thereto; provided,
      however,
      that
      the Company shall publicly disclose the material terms of any such Major
      Transaction on or before the date on which it delivers notice of a Major
      Transaction to the Holder, and (ii) the resulting successor or acquiring entity
      (if not the Company) assumes by written instrument (in form and substance
      reasonable satisfactory to the Holder) the obligations of the Company under
      this
      Warrant. The above provisions shall apply regardless of whether or not there
      would have been a sufficient number of shares of Common Stock authorized and
      available for issuance upon exercise of this Warrant as of the date of such
      transaction, and shall similarly apply to successive Major
      Transactions.

     

    (c)    Distributions.
      If, at
      any time after the Issue Date, the Company declares or makes any distribution
      of
      cash or any other assets (or rights to acquire such assets) to holders of Common
      Stock, including without limitation any dividend or distribution to the
      Company’s stockholders in shares (or rights to acquire shares) of capital stock
      of a subsidiary) (a “Distribution”),
      the
      Company shall deliver written notice of such Distribution (a “Distribution
      Notice”)
      to the
      Holder at least fifteen (15) days prior to the earlier to occur of (i) the
      record date for determining stockholders entitled to such Distribution (the
      “Record
      Date”)
      and
      (ii) the date on which such Distribution is made (the “Distribution
      Date”)
      (the
      earlier of such dates being referred to as the “Determination
      Date”).
      Upon
      receipt of the Distribution Notice, the Holder shall promptly (but in no event
      later than three (3) Business Days) notify the Company whether it has elected
      (A) to receive the same amount and type of assets (including, without
      limitation, cash) being distributed as though the Holder were, on the
      Determination Date, a holder of a number of shares of Common Stock into which
      this Warrant is exercisable as of such Determination Date (such number of shares
      to be determined without giving effect to any limitations on such exercise)
      or
      (B) upon any exercise of this Warrant on or after the Distribution Date, to
      reduce the Exercise Price in effect on the Business Day immediately preceding
      the Record Date by an amount equal to the fair market value of the assets to
      be
      distributed divided
      by
      the
      number of shares of Common Stock as to which such Distribution is to be made,
      such fair market value to be reasonably determined in good faith by the
      independent members of the Company’s Board of Directors. Upon receipt of such
      election notice from the Holder, the Company shall timely effectuate the
      transaction or adjustment contemplated in the foregoing clause
      (A) or (B),
      as
      applicable. 
      If the
      Holder does not notify the Company of its election pursuant to the preceding
      sentence on or prior to the Determination Date, the Holder shall be deemed
      to
      have elected clause
      (A)
      of the
      preceding sentence.

     

    (d)    Convertible
      Securities; Options.
      If, at
      any time after the Issue Date, the Company issues Convertible Securities or
      Options to the record holders of the Common Stock, whether or not such
      Convertible Securities or Options are immediately convertible, exercisable
      or
      exchangeable, then the Holders shall be entitled, upon any exercise of this
      Warrant after the date of record for determining stockholders entitled to
      receive such Convertible Securities or Options (or if no such record is taken,
      the date on which such Convertible Securities or Options are issued), to receive
      the aggregate number of Convertible Securities or Options which the Holder
      

     

    
      
        
        

      

      
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    would
      have received with respect to the shares of Common Stock issuable upon such
      exercise (without giving effect to any limitations on such exercise contained
      in
      this Warrant or the Securities Purchase Agreement) had the Holder been the
      holder of such shares of Common Stock on the record date for the determination
      of stockholders entitled to receive such Convertible Securities or Options
      (or
      if no such record is taken, the date on which such Convertible Securities or
      Options were issued). 

     

    (e)    Dilutive
      Issuances.

     

    
      	 	
              (i)

            	
              Adjustment
                Upon Dilutive Issuance.
                If, at any time after the Issue Date, and on or prior to the date
                that is
                the later of (1) the earlier of (x) the Effective Date and (y) two
                years
                from the Issue Date, and (2) the six month anniversary of the Issue
                Date,
                the Company issues or sells, or in accordance with Section
                6(e)(ii) is
                deemed to have issued or sold, any shares of Common Stock for no
                consideration or for a consideration per share less than the Exercise
                Price on the date of such issuance or sale (or deemed issuance or
                sale) (a
                “Dilutive
                Issuance”),
                then the Exercise Price shall be adjusted so as to equal 110% of
                the
                consideration received or receivable by the Company (on a per share
                basis)
                for the additional shares of Common Stock so issued, sold or deemed
                issued
                or sold in such Dilutive Issuance (which, in the case of a deemed
                issuance
                or sale, shall be calculated in accordance with Section
                6(e)(ii)
                of
                this Warrant). 

            

    

     

    Notwithstanding
      the foregoing, no adjustment shall be made pursuant to this Section
      6(e)(i)
      if such
      adjustment would result in an increase in the Exercise Price.

     

    (ii)    Effect
      On Exercise Price Of Certain Events.
      For
      purposes of determining the adjusted Exercise Price under Section
      6(e)(i)
      of this
      Warrant, the following will be applicable:

     

    (A)    Issuance
      Of Options.
      If the
      Company issues or sells any Options, whether or not immediately exercisable,
      and
      the price per share for which Common Stock is issuable upon the exercise of
      such
      Options (and the price of any conversion of Convertible Securities, if
      applicable) is less than the Exercise Price in effect on the date of issuance
      or
      sale of such Options, then the maximum total number of shares of Common Stock
      issuable upon the exercise of all such Options (assuming full conversion,
      exercise or exchange of Convertible Securities, if applicable) shall, as of
      the
      date of the issuance or sale of such Options, be deemed to be outstanding and
      to
      have been issued and sold by the Company for such price per share. For purposes
      of the preceding sentence, the “price per share for which Common Stock is
      issuable upon the exercise of such Options” shall be determined by dividing (x)
      the total amount, if any, received or receivable by the Company as consideration
      for the issuance or sale of all such Options, plus
      the
      minimum aggregate amount of additional consideration, if any, payable to the
      Company upon the exercise of all such Options, plus,
      in the
      case of Convertible Securities issuable upon the exercise of such Options,
      the
      minimum aggregate amount of 

     

    
      
        
        

      

      
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    additional
      consideration payable upon the conversion, exercise or exchange thereof
      (determined in accordance with the calculation method set forth in Section
      6(e)(ii)(B)
      below)
      at the time such Convertible Securities first become convertible, exercisable
      or
      exchangeable, by (y) the maximum total number of shares of Common Stock issuable
      upon the exercise of all such Options (assuming full conversion, exercise or
      exchange of Convertible Securities, if applicable). No further adjustment to
      the
      Exercise Price shall be made upon the actual issuance of such Common Stock
      upon
      the exercise of such Options or upon the conversion, exercise or exchange of
      Convertible Securities issuable upon exercise of such Options.
      To the
      extent that shares of Common Stock or Convertible Securities are not delivered
      pursuant to such Options, upon the expiration or termination of such Options,
      the Exercise Price shall be readjusted to the Exercise Price that would then
      be
      in effect had the adjustments made upon the issuance of such Options been made
      on the basis of delivery of only the number of shares of Common Stock actually
      delivered.

     

    (B)    Issuance
      Of Convertible Securities.
      If the
      Company issues or sells any Convertible Securities, whether or not immediately
      convertible, exercisable or exchangeable, and the price per share for which
      Common Stock is issuable upon such conversion, exercise or exchange is less
      than
      the Exercise Price in effect on the date of issuance or sale of such Convertible
      Securities, then the maximum total number of shares of Common Stock issuable
      upon the conversion, exercise or exchange of all such Convertible Securities
      shall, as of the date of the issuance or sale of such Convertible Securities,
      be
      deemed to be outstanding and to have been issued and sold by the Company for
      such price per share. If the Convertible Securities so issued or sold do not
      have a fluctuating conversion or exercise price or exchange ratio, then for
      the
      purposes of the immediately preceding sentence, the “price per share for which
      Common Stock is issuable upon such conversion, exercise or exchange” shall be
      determined by dividing (A) the total amount, if any, received or receivable
      by
      the Company as consideration for the issuance or sale of all such Convertible
      Securities, plus the minimum aggregate amount of additional consideration,
      if
      any, payable to the Company upon the conversion, exercise or exchange thereof
      (determined in accordance with the calculation method set forth in this
Section
      6(e)(ii)(B))
      at the
      time such Convertible Securities first become convertible, exercisable or
      exchangeable, by (B) the maximum total number of shares of Common Stock issuable
      upon the exercise, conversion or exchange of all such Convertible Securities.
      If
      the Convertible Securities so issued or sold have a fluctuating conversion
      or
      exercise price or exchange ratio (a “Variable
      Rate Convertible Security”),
      then
      for purposes of the first sentence of this Section
      6(e)(ii)(B),
      the
“price per share for which Common Stock is issuable upon such conversion,
      exercise or exchange” shall be deemed to be the lowest price per share which
      would be applicable (assuming all holding period and other conditions to any
      discounts contained in such Variable Rate Convertible Security have been
      satisfied) if the conversion price of such Variable Rate Convertible Security
      on
      the date of issuance or sale thereof were equal to the actual conversion price
      on such date (or such higher minimum conversion price if such Variable Rate
      Convertible Security is subject to a minimum conversion price) (the
“Assumed
      Variable Market Price”),
      and,
      further, if the conversion price of such Variable Rate Convertible Security
      at
      any time or times thereafter is less than or equal to the Assumed Variable
      Market Price last used for making any adjustment under this Section
      6(e)
      with
      respect to 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    any
      Variable Rate Convertible Security, the Exercise Price in effect at such time
      shall be readjusted to equal the Exercise Price which would have resulted if
      the
      Assumed Variable Market Price at the time of issuance of the Variable Rate
      Convertible Security had been equal to the actual conversion price of such
      Variable Rate Convertible Security existing at the time of the adjustment
      required by this sentence; provided,
      however,
      that if
      the conversion or exercise price or exchange ratio of a Convertible Security
      may
      fluctuate solely as a result of provisions designed to protect against dilution,
      such Convertible Security shall not be deemed to be a Variable Rate Convertible
      Security. No further adjustment to the Exercise Price shall be made upon the
      actual issuance of such Common Stock upon conversion, exercise or exchange
      of
      such Convertible Securities.

     

    (C)    Change
      In Option Price Or Conversion Rate.
      If
      there is a change at any time (including, without limitation, a change with
      respect to any Options or Convertible Securities outstanding as of the Issue
      Date) in (x) the amount of additional consideration payable to the Company
      upon
      the exercise of any Options; (y) the amount of additional consideration, if
      any,
      payable to the Company upon the conversion, exercise or exchange of any
      Convertible Securities; or (z) the rate at which any Convertible Securities
      are
      convertible into or exercisable or exchangeable for Common Stock (in each such
      case, other than under or by reason of provisions designed to protect against
      dilution), the Exercise Price in effect at the time of such change shall be
      readjusted to the Exercise Price which would have been in effect at such time
      had such Options or Convertible Securities still outstanding provided for such
      changed additional consideration or changed conversion, exercise or exchange
      rate, as the case may be, at the time initially issued or sold.

     

    (D)    Calculation
      Of Consideration Received.
      If any
      Common Stock, Options or Convertible Securities are issued or sold for cash,
      the
      consideration received therefor will be the amount received by the Company
      therefor. In case any Common Stock, Options or Convertible Securities are issued
      or sold for a consideration part or all of which shall be other than cash,
      the
      amount of the consideration other than cash received by the Company (including
      the net present value of the consideration expected by the Company for the
      provided or purchased services) shall be the fair market value of such
      consideration. In case any Common Stock, Options or Convertible Securities
      are
      issued in connection with any merger or consolidation in which the Company
      is
      the surviving corporation, the amount of consideration therefor will be deemed
      to be the fair market value of such portion of the net assets and business
      of
      the non-surviving corporation as is attributable to such Common Stock, Options
      or Convertible Securities, as the case may be. The independent members of the
      Company’s Board of Directors shall calculate reasonably and in good faith, using
      standard commercial valuation methods appropriate for valuing such assets,
      the
      fair market value of any consideration.

    

    (iii)   Exceptions
      To Adjustment Of Exercise Price.
      Notwithstanding the foregoing, no adjustment to the Exercise Price shall be
      made
      pursuant to this Section
      6(e)
      upon the
      issuance of any Excluded Securities. 

    

    (iv)   Notice
      Of Adjustments.
      Upon
      the occurrence of each adjustment or readjustment of the Exercise Price pursuant
      to this Section
      6(e)
      resulting in a change in the 

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Exercise
      Price by more than one percent (1%), or any change in the number or type of
      stock, securities and/or other property issuable upon exercise of this Warrant,
      the Company, at its expense, shall promptly compute such adjustment,
      readjustment or change and prepare and furnish to the Holder a certificate
      setting forth such adjustment, readjustment or change and showing in detail
      the
      facts upon which such adjustment, readjustment or change is based. The Company
      shall, upon the written request at any time of the Holder, furnish to the Holder
      a like certificate setting forth (i) such adjustment, readjustment or change,
      (ii) the Exercise Price at the time in effect and (iii) the number of shares
      of
      Common Stock and the amount, if any, of other securities or property which
      at
      the time would be received upon exercise of this Warrant.

     

    (f)    Adjustments;
      Additional Shares, Securities or Assets.
      In the
      event that at any time, as a result of an adjustment made pursuant to this
      Section
      6,
      the
      Holder of this Warrant shall, upon exercise of this Warrant, become entitled
      to
      receive securities or assets (other than Common Stock) then, wherever
      appropriate, all references herein to shares of Common Stock shall be deemed
      to
      refer to and include such shares and/or other securities or assets; and
      thereafter the number of such shares and/or other securities or assets shall
      be
      subject to adjustment from time to time in a manner and upon terms as nearly
      equivalent as practicable to the provisions of this Section
      6.
      Any
      adjustment made herein that results in a decrease in the Exercise Price shall
      also effect a proportional increase in the number of shares of Common Stock
      into
      which this Warrant is exercisable.

     

    7.    FORCED
      EXERCISE.

     

    (a)    Forced
      Exercise.
      Subject
      to the terms and conditions of this Section
      7(a),
      the
      Company shall have the right, exercisable at any time after December 31, 2007,
      to require exercise of this Warrant in whole or in part (a “Forced
      Exercise”).
      In
      order to effect a Forced Exercise, (i) the daily VWAP must, on each of twenty
      (20) Trading Days occurring during any period of thirty (30) consecutive Trading
      Days (such period of thirty Trading Days, a “Forced
      Exercise Period”),
      be
      equal to or greater than the Forced Exercise Price (as defined below) and (ii)
      each of the Equity Conditions must be satisfied on each Trading Day occurring
      during the Forced Exercise Period and through and including the Forced Exercise
      Date. For purposes hereof, “Forced
      Exercise Price”
means,
      as of any date, the lesser of (i) $2.64 and (ii) two hundred percent (200%)
      of
      the Exercise Price in effect as of such date (provided
      that the
      Forced Exercise Price shall be appropriately adjusted for any stock dividend,
      stock split, reverse stock split or other similar transaction). Notwithstanding
      the foregoing, in no event shall the Company be permitted to effect a Forced
      Exercise to the extent that, upon receipt of the shares of Common Stock
      deliverable thereby, the Holder would beneficially own more than 4.99% of the
      number of shares of Common Stock then outstanding. 

    

    (b)    Forced
      Exercise Notice; Number of Warrant Shares.
      In
      order to effect a Forced Exercise hereunder, the Company must deliver to the
      Holder written notice thereof (a “Forced
      Exercise Notice”)
      at any
      time after the fifth (5th)
      Business Day immediately following the last Trading Day of the Forced Exercise
      Period but not later than the tenth (10th)
      Business Day following such last Trading Day. A Forced Exercise Notice shall
      specify the number of Warrant Shares that the Company elects to submit to a
      Forced Exercise. Within three (3) Business Days after its receipt of a Forced
      Exercise Notice, the Holder shall deliver to the Company, in accordance with
      Section
      1
      of this
      Warrant, an Exercise Notice and, if applicable, the Exercise Price for the
      

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    number
      of
      Warrant Shares specified in the Forced Exercise Notice. On the date that is
      the
      third (3rd)
      Trading
      Day immediately following delivery of such Exercise Notice by the Holder (the
      “Forced
      Exercise Date”),
      the
      Company must deliver the specified shares of Common Stock to the Holder in
      accordance with the provisions of Section
      2
      of this
      Warrant, with
      the
      Forced Exercise Date being deemed the Delivery Date for purposes hereof. If
      any
      fractional share would be issuable upon a Forced Exercise, such fractional
      shares shall be disregarded and the number of shares issuable shall, in the
      aggregate, be equal to the nearest whole number of shares.

    

    (c)    Notwithstanding
      the delivery by the Company of a Forced Exercise Notice, nothing contained
      herein shall be deemed to limit in any way (x) the right of the Holder to
      exercise this Warrant prior to the Forced Exercise Date or (y) the availability
      of any and all remedies that are provided to the Holder hereunder, including
      without limitation in the event that the Company fails to deliver Warrant Shares
      upon a Forced Exercise as required by the terms of Section
      3
      of this
      Warrant, provided,
      that,
      in
      the event of such failure, the Forced Exercise shall be terminated with respect
      to the Holder upon the delivery of written notice thereof by the Holder to
      the
      Company, and the Company shall forfeit its right to require a Forced Exercise
      of
      the Warrants thereafter. In
      the
      event of multiple Forced Exercises, at least sixty (60) days must elapse between
      Forced Exercise Dates.

    

    8.    
MISCELLANEOUS.

     

    (a)    Failure
      to Exercise Rights not Waiver.
      No
      failure or delay on the part of the Holder 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 any other
      or
      further exercise thereof. All rights and remedies of the Holder hereunder are
      cumulative and not exclusive of any rights or remedies otherwise available.
      In
      the event that the Company breaches any of its obligations hereunder to issue
      Warrant Shares or pay any amounts as and when due, the Company shall bear all
      costs incurred by the Holder in collecting such amount, including without
      limitation reasonable legal fees and expenses. 

     

    (b)    Notices.
      Any
      notice, demand or request required or permitted to be given by the Company
      or
      the Holder pursuant to the terms of this Warrant shall be in writing and shall
      be deemed delivered (i) when delivered personally or by verifiable facsimile
      transmission, unless such delivery is made on a day that is not a Business
      Day,
      in which case such delivery will be deemed to be made on the next succeeding
      Business Day, (ii) on the next Business Day after timely delivery to an
      overnight courier and (iii) on the Business Day actually received if deposited
      in the U.S. mail (certified or registered mail, return receipt requested,
      postage prepaid), addressed as follows:

    

      
        	 	 
	 	
                If
                  to the Company:

              
	 	 
	 	
                ZAP

              
	 	
                501
                  Fourth Street

              
	 	
                Santa
                  Rosa, California 95401

              
	 	
                Attention:

              	
                Steven
                  Kim

              
	 	
                Telephone:

              	
                (707)
                  525-8658

              
	 	
                Facsimile:

              	
                (707)
                  525-8692

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      
        	 	 
	 	
                with
                  a copy (for informational purposes only) to:

              
	 	 
	 	
                Donahue
                  Gallagher Woods LLP

                Suite
                  1900

                300
                  Lakeside Drive

                Oakland,
                  CA 94612

                Attn: Michael
                  J. Dalton

                Tel: (510)
                  451-0544

                Fax: (510)
                  832-1486

              

      

    

     

    and
      if to
      the Holder, to such address for such party as shall appear on the signature
      page
      of the Securities Purchase Agreement executed by such party, or as shall be
      designated by such party in writing to the other parties hereto in accordance
      this Section
      8(b).

    

    (c)    Amendments
      and Waivers.
      No
      amendment, modification or other change to, or waiver of any provision of,
      this
      Warrant or any other Warrant may be made unless such amendment, modification
      or
      change, or request for waiver, is (A) set forth in writing and is signed by
      the
      Company, (B) consented to in writing by the holders of at least sixty-six
      percent (66%) of the Warrant Shares underlying the Warrants then outstanding,
      and (C) applied to all of the Warrants. Upon the satisfaction of the conditions
      described in (A), (B) and (C) above, this Warrant shall be deemed to incorporate
      the amendment, modification, change or waiver effected thereby as of the
      effective date thereof, even if the Holder did not consent to such amendment,
      modification, change or waiver.
      Notwithstanding the foregoing, the limitation on beneficial ownership set forth
      in Section
      4
      may not
      be amended without the consent of the holders of a majority of the shares of
      Common Stock then outstanding; provided,
      however,
      that
      such limitation may be waived by the Holder upon sixty (60) days’ prior written
      notice to the Company, and such waiver shall be valid and shall not require
      the
      consent of the Company or any other holder of Common Stock or
      Warrants.

     

    (d)    Transfer
      of Warrant.
      The
      Holder may sell, transfer or otherwise dispose of all or any part of this
      Warrant (including without limitation pursuant to a pledge) to any person or
      entity as long as such sale, transfer or disposition is the subject of an
      effective registration statement under the Securities Act of 1933, as amended,
      and applicable state securities laws, or is exempt from registration thereunder,
      and is otherwise made in accordance with the applicable law and applicable
      provisions of the Securities Purchase Agreement. From and after the date of
      any
      such sale, transfer or disposition, the transferee hereof shall be deemed to
      be
      the holder of the portion of this Warrant acquired by such transferee, and
      the
      Company shall, as promptly as practicable, issue and deliver to such transferee
      a new Warrant identical in all respects to this Warrant, in the name of such
      transferee. The Company shall be entitled to treat the original Holder as the
      holder of this entire Warrant unless and until it receives written notice of
      the
      sale, transfer or disposition hereof.

     

    (e)    Lost
      or Stolen Warrant.
      Upon
      receipt by the Company of evidence of the loss, theft, destruction or mutilation
      of this Warrant, and (in the case of loss, theft or destruction) of indemnity
      or
      security reasonably satisfactory to the Company, and upon surrender and
      cancellation of this Warrant, if mutilated, the Company shall execute and
      deliver to the Holder a 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    new
      Warrant identical in all respects to this Warrant.

     

    (f)    Governing
      Law.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of California applicable
      to contracts made and to be performed entirely within the State of
      California.

     

    (g)    Successors
      and Assigns.
      The
      terms and conditions of this Warrant shall inure to the benefit of and be
      binding upon the respective successors (whether by merger or otherwise) and
      permitted assigns of the Company and the Holder. The Company may not assign
      its
      rights or obligations under this Warrant except as specifically required or
      permitted pursuant to the terms hereof.

    

      

     

    

    

    

    [Signature
      Page to Follow]

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has duly executed and delivered this Warrant as
      of
      the Issue Date.

    

    
      	 	 	 
	 	ZAP
	 	 
 	 
 
	 	By:  	/s/ Steven
              Schneider
	 	
              
Name:
              Steven Schneider
	 	Title:
              Chief Executive Officer 

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A to WARRANT

    

    EXERCISE
      NOTICE

    

    

    The
      undersigned Holder hereby irrevocably exercises the right to purchase _________
      of
      the
      shares of Common Stock (“Warrant
      Shares”)
      of
      ZAP evidenced
      by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

    

    1.    Form
      of
      Exercise Price. The Holder intends that payment of the Exercise Price shall
      be
      made as:

    

    ______
      a
Cash
      Exercise
      with
      respect to _________________ Warrant Shares; and/or 

    

    ______
      a
Cashless
      Exercise
      with
      respect to _________________ Warrant Shares, as permitted by Section 5(b) of
      the
      attached Warrant.

    

    

    2.    Payment
      of Exercise Price. In the event that the Holder has elected a Cash Exercise
      with
      respect to some or all of the Warrant Shares to be issued pursuant hereto,
      the
      Holder shall pay the sum of $________________ to the Company in accordance
      with
      the terms of the Warrant.

    

    

    Date:
      ______________________

    

    

    ___________________________________

    Name
      of
      Registered Holder

    

    By:
      _______________________________

    Name:

    Title:

    

    

    

    Holder
      Requests Delivery to be made:
      (check
      one)

    

    
      	
              ྐྵ

            	
              By
                Delivery of Physical Certificates to the Above
                Address

            

    

    

    
      	
              ྐྵ

            	
              Through
                Depository Trust Corporation

            

    

    (Account
      ________________)Exhibit 4.0

     

    
      

      

    

     

    Exhibit
      4.0

    
 

    VOID
      AFTER 5:00 P.M. Insert
      Date,
      2010

     

    The
      Warrant represented by this certificate has not been registered under the
      Securities Act of 1933, as amended, and may not be sold, offered for sale,
      assigned, transferred or otherwise disposed of unless registered pursuant to
      the
      provisions of that Act or an opinion of counsel to the Company is obtained
      stating that such disposition is in compliance with an available exemption
      from
      such registration and the provisions of this Warrant are complied
      with.

    

    (REV
      11-15-06) ORIGINAL DATE: ______

    

    100,000
      Warrants

    SEYCHELLE
      ENVIRONMENTAL TECHNOLOGIES, INC.

    COMMON
      STOCK PURCHASE WARRANTS

    (Void
      after 5:00 p.m. California time, Insert
      Date
      2010)

    

    Certificate
      Evidencing 100,000 Warrants 

    (One
      Warrant is required for the purchase of one share of Common Stock, 

    subject
      to adjustment as provided below)

    

    This
      is
      to certify that, for value received and subject to the conditions herein set
      forth, Name
      and Address
      (the
      "Warrantholder") is entitled to purchase, at any time after 9:00 a.m. California
      time on Insert
      Date
      and in
      any event no later than 5:00 p.m. California time on Insert
      Date,
      2010
      (the "Expiration Date"), such number of shares of Common Stock, $0.001 par
      value, of Seychelle Environmental Technologies, Inc., a Nevada corporation
      (the
      "Company"), as shall equal the number of Warrants evidenced by this Certificate
      (such shares purchasable upon exercise of the Warrants are herein called the
      "Warrant Stock"), at $.40 per share. 

     

    The
      amount per share specified above, as adjusted from time to time pursuant to
      the
      provisions hereinafter set forth, is herein called the "Purchase
      Price."

     

    1.    (a)
      If the
      Company shall, prior to the exercise of these Warrants, divide its outstanding
      shares of Common Stock by recapitalization, reclassification or split-up
      thereof, or if the Company shall declare a stock dividend or distribute shares
      of Common Stock to its stockholders, the number of shares of Common Stock
      purchasable upon exercise of these Warrants immediately prior to such
      subdivision shall be proportionately increased, and if the Company shall at
      any
      time combine the outstanding shares of Common Stock by recapitalization,
      reclassification or combination thereof, the number of shares of Common Stock
      purchasable upon exercise of these Warrants immediately prior to such
      combination shall be proportionately decreased. Any such adjustment to the
      number of shares shall be effective at the close of business on the effective
      date of such subdivision or combination or if any adjustment is the result
      of a
      stock dividend or distribution then the effective date for such adjustment
      based
      thereon shall be the record date therefore.

     

    (b)
      Whenever the number of shares of Common Stock purchasable upon the exercise
      of
      these Warrants is required to be adjusted as provided in this Section 1, the
      Purchase Price shall be adjusted (to the nearest cent) by multiplying such
      Purchase Price immediately prior to such adjustment by a fraction (x) the
      numerator of which shall be the number of shares of Common Stock purchasable
      upon the exercise of these Warrants immediately prior to such adjustment, and
      (y) the denominator of which shall be the number of shares of Common Stock
      so
      purchasable immediately thereafter. 

     

    

    
      
        
          
          

        

        
          -
            1
            -

          
            

          

        

        
          
          

        

      

    

    

     

    (c)
      In
      case of any reclassification of the outstanding shares of Common Stock, other
      than a change covered by paragraph 1(a) hereof or which solely affects the
      par
      value of such shares of Common Stock, or in the case of any merger or
      consolidation of the Company with or into another corporation (other than a
      consolidation or merger in which the Company is the continuing corporation
      and
      which does not result in any reclassification or capital reorganization of
      the
      outstanding shares of Common Stock), or in the case of any sale or conveyance
      to
      another corporation of the property of the Company as an entirety or
      substantially as an entirety in connection with which the Company is dissolved,
      the holder of these Warrants shall have the right thereafter (until the
      expiration of the right of exercise of these Warrants) to receive upon the
      exercise thereof, for the same aggregate Purchase Price payable hereunder
      immediately prior to such event, the kind and amount of shares of stock or
      other
      securities or property receivable upon such reclassification, capital
      reorganization, merger or consolidation, or upon the dissolution following
      any
      sale or other transfer, which a holder of the number of shares of Common Stock
      of the Company would obtain upon exercise of these Warrants immediately prior
      to
      such event; and if any reclassification also results in a change in shares
      of
      Common Stock covered by paragraph 1(a), then such adjustment shall be made
      pursuant to both paragraph 1(a) and this paragraph 1(c). The provisions of
      this
      paragraph 1(c) shall similarly apply to successive reclassifications, or capital
      reorganization, mergers or consolidations, sales or other
      transfers.

     

    (d)
      When
      any adjustment is required to be made pursuant to this Section 1, the Company,
      upon the subsequent written request of any holder of the Warrants, shall
      promptly mail to said holder a certificate setting forth the Purchase Price
      after such adjustment and setting forth a brief statement of the facts requiring
      such adjustment. Such certificate shall also set forth, if applicable, the
      kind
      and amount of stock or other securities or property into which the Warrants
      shall be exercisable following the occurrence of any of the events
      specified.

     

    (e)
      The
      Company shall not be required upon the exercise of any of the Warrants evidenced
      hereby to issue any fraction of shares, but shall make any adjustment therefor
      in cash on the basis of the fair market value of any such fractional interest
      as
      it shall appear on the public market for such shares, or, if there is no public
      market for such shares, then as shall be reasonably determined by the
      Company.

     

    (f)
      The
      Company may at any time in its sole discretion, which shall be conclusive,
      make
      any change in the form of Warrant Certificate that the Company may deem
      appropriate and that does not affect the substance thereof; and any Warrant
      Certificate thereafter issued or signed, whether in exchange or substitution
      for
      an outstanding Warrant Certificate or otherwise, may be in the form as
      changed.

     

    2.
      The
      Company agrees that (i) a number of shares of Common Stock sufficient to provide
      for the exercise of all outstanding Warrants upon the basis hereinbefore set
      forth shall at all times during the term of said Warrants be reserved for the
      exercise thereof, (ii) it shall from time to time, in accordance with the laws
      of the State of Nevada, increase the authorized number of shares of its Common
      Stock if at any time the number of shares of Common Stock remaining unissued
      and
      available for issuance shall not be sufficient to permit exercise of these
      Warrants, and

    

    3.
      Exercise may be made of all or any part of the Warrants evidenced by this
      Certificate by surrendering it, with the purchase form provided for herein
      duly
      executed by the registered owner hereof, at the office of the Company, currently
      located at 33012 Calle Perfecto, San Juan Capistrano, California 92675, or
      at
      such other office or agency as the Company may designate, accompanied by payment
      in full, of the Purchase Price payable in respect of the Warrants being
      exercised by payment in cash or by certified or official bank
      check.

    

    
      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

    

    

     

    4.
      By
      acceptance of this Warrant Certificate the Warrantholder hereby represents,
      warrants and acknowledges to the Company as follows:

     

    (a)
      The
      Warrantholder acknowledges that the purchase, if made, of the Warrant Stock
      involves a high degree of risk and further acknowledges that he can bear the
      economic risk of the acquisition of the Warrant Stock, including the total
      loss
      of his investment.

     

    (b)
      By
      reason of his business and financial experience, the Warrantholder has the
      capacity to protect his own interests in this transaction and is acquiring
      (and
      will acquire) the Warrant Stock for his own account and not with a view to
      distribution.

     

    (c)
      The
      Warrantholder understands that no federal or state agency has passed on or
      made
      any recommendation or endorsement of the Warrants and/or the Warrant
      Stock.

     

    5.    (a)
      The
      exercise of the Warrants and the issuance of Warrant Stock upon such exercise
      shall be subject to compliance by the Company and the Warrantholder with all
      applicable requirements of law relating thereto and with all applicable
      regulations of any stock exchange on which shares of the Company's Common Stock
      may be listed at the time of such exercise and issuance.

     

    (b)
      In
      connection with and as a condition to the exercise of the Warrants, the
      Warrantholder shall execute and deliver to the Company such representations
      in
      writing as may be requested by the Company in order for it to comply with the
      applicable requirements of federal and state securities laws. 

     

    6.
      All
      shares of Common Stock or other securities delivered upon the exercise or
      conversion of the Warrants evidenced hereby shall be validly issued, fully
      paid
      and nonassessable.

    

    7.    (a)  Securities-Laws.
      Neither
      this Warrant nor the Warrant Stock issuable upon the exercise hereof has been
      registered under tmhe Securities Act of 1933, as amended (the "Securities Act"),
      or under any state securities laws and unless so registered may not be
      transferred, sold, pledged, hypothecated or otherwise disposed of unless an
      exemption from such registration is available. In the event Holder desires
      to
      transfer this Warrant or any of the Warrant Stock issued, the Holder must first
      give the Company prior written notice of such proposed transfer including the
      name and address of the proposed transferee. Such transfer may be made only
      either (i) upon registration of the Warrants pursuant to the Securities Act
      of
      1933 and applicable state securities laws; or (ii) upon publication by the
      Securities and Exchange Commission (the "Commission") of a ruling,
      interpretation, opinion or "no action letter" based upon facts presented to
      said
      Commission, or (iii) upon receipt by the Company of an opinion of counsel to
      the
      Company, in either case to the effect that the proposed transfer will not
      violate the provisions of the Securities Act, the Securities Exchange Act of
      1934, as amended, or the rules and regulations promulgated under either such
      act.

    

    (b)
      Conditions
      to Transfer.
      Prior
      to any such proposed transfer, and as a condition thereto, if such transfer
      is
      not made pursuant to an effective registration statement under the Securities
      Act, the Holder will, if requested by the Company, deliver to the Company (i)
      an
      investment covenant signed by the proposed transferee, (ii) an agreement by
      such
      transferee to the impression of the restrictive investment legend set forth
      herein on the certificate or certificates representing the securities acquired
      by such transferee, (iii) an agreement by such transferee that the Company
      may
      place a "stop transfer order" with its transfer agent or registrar, and (iv)
      an
      agreement by the transferee to indemnify the Company to the same extent as
      set
      forth in the next succeeding paragraph.

    

    
      
        
          
          

        

        
          -
            3
            -

          
            

          

        

        
          
          

        

      

    

    

    (c)
      Indemnity.
      The
      Holder acknowledges that the Holder understands the meaning and legal
      consequences of this Section 4, and the Holder hereby agrees to indemnify and
      hold harmless the Company, its representatives and each officer and director
      thereof from and against any and all loss, damage or liability (including all
      attorney's fees and costs incurred in enforcing this indemnity provision) due
      to
      or arising out of (a) the inaccuracy of any representation or the breach of
      any
      warranty of the Holder contained in, or any other breach of, this Warrant,
      (b)
      any transfer of any of this Warrant or the Warrant Stock in violation of the
      Securities Act, the Securities Exchange Act of 1934, as amended, or the rules
      and regulations promulgated under either of such acts, (c) any transfer of
      this
      Warrant or any of the Warrant Stock not in accordance with this Warrant or
      (d)
      any untrue statement or omission to state any material fact in connection with
      the investment representations or with respect to the facts and representations
      supplied by the Holder to counsel to the Company upon which its opinion as
      to a
      proposed transfer shall have been based.

    

    (d)
      Transfer.
      Except
      as restricted hereby, this Warrant and the Warrant Stock issued may be
      transferred by the Holder in whole or in part at any time or from time to time.
      Upon surrender of this Warrant certificate to the Company or at the office
      of
      its stock transfer agent, if any, with the Assignment Form annexed hereto duly
      executed and funds sufficient to pay any transfer tax, and upon compliance
      with
      the foregoing provisions, the Company shall, without charge, execute and deliver
      a new Warrant certificate in the name of the assignee named in such instrument
      of assignment, and this Warrant certificate shall promptly be cancelled. Any
      assignment, transfer, pledge, hypothecation or other disposition of this Warrant
      attempted contrary to the provisions of this Warrant, or any levy of execution,
      attachment or other process attempted upon this Warrant, shall be null and
      void
      and without effect.

     

    8.
      The
      Warrantholder shall not, by virtue of ownership of Warrants, be entitled to
      any
      rights whatsoever of a shareholder of the Company.

     

    9.
      This
      Certificate and these Warrants shall be governed by and construed and
      interpreted in accordance with the internal laws of the State of Nevada. All
      disputes arising hereunder shall be tried in federal or state court located
      in
      Carson County, Nevada (the parties hereby submitting to the exclusive personal
      jurisdiction of and exclusive venue in such courts) and the parties agree that
      their remedies at law hereunder are adequate and exclusive.

     

    10.
      Notice pursuant to these Warrants shall be sufficiently given, if sent by
      first-class mail, postage pre-paid, addressed, if to the Warrantholder, to
      such
      holder at his last known address as it shall appear in the records of the
      Company, and if to the Company, at 33012 Calle Perfecto 
      San Juan
      Capistrano, California 92675, Attn.: Treasurer. The parties may alter the
      addresses to which communications are to be sent hereunder by giving notice
      of
      such change of address to the other party in conformity with the provisions
      of
      this Section for the giving of notice.

     

    11.
      Subject to the restrictions on transfer contained in Section 7 hereof, all
      the
      terms and provisions of these Warrants shall be binding upon and inure to the
      benefit of and be enforceable by the successors and assigns of the parties
      hereto.

     

    12.
      No
      amendment, modification, or supplement of this Certificate shall be binding
      unless executed in writing and signed by the Company and the
      Warrantholder.

     

    Executed
      as of July 25, 2006 in San Juan Capistrano, California.

     

     

    
      	 	 	 
	 	
              SEYCHELLE
                ENVIRONMENTAL TECHNOLOGIES, INC.

            
	 
 	 
 	 
 
	Date: Insert
              Date	By:  	/s/ Insert
              Signature 
	 	
              

              Insert Typed Signature
                Neme 

              
                Insert Typed Signature
                  Neme 

              

            
	 	 

    

     

    

    
      
        
          
          

        

        
          -
            4
            -

          
            

          

        

        
          
          

        

      

    

    

    

    

    

    

    SEYCHELLE
      ENVIRONMENTAL TECHNOLOGIES, INC.

    

    SUBSCRIPTION
      FORM

    

    To
      be
      Executed by the Warrantholder In Order to Exercise Warrants

    

      
        	
                 

                o 

                 

              	
                 

                I
                  hereby deliver $ ______ and irrevocably elect to exercise _______
                  Common
                  Stock Purchase Warrants represented by this Warrant Certificate,
                  and to
                  purchase the securities issuable upon the exercise of such Common
                  Stock
                  Purchase Warrants.

                 

              
	
                 

                o 

                 

              	
                 

                I
                  hereby deliver $ ______ and a promissory note, the terms of which
                  have
                  been approved by the Board of Directors of the Company, in the
                  principal
                  amount of $_________ and irrevocably elect to exercise
                  _________ Common
                  Stock Purchase Warrants represented by this Warrant Certificate,
                  and to
                  purchase the securities issuable upon the exercise of such Common
                  Stock
                  Purchase Warrants.

                 

              

      

    

    

    The
      certificates for the securities to be acquired shall be issued (bearing the
      appropriate legends) in the name of:

    

    (Please
      Insert Name and Social Security or Other Identifying Number)

     

    

    
      

    

     

     

    
      
        

      

    

     

    
      
         

      

      and
        be
        delivered to

       

       

      
        
          

        

         

         

        
          
            

          

        

         

         

        
          
            
              

            

          

        

      

      

      and
        if
        such number of Common Stock Purchase Warrants shall not be all of the Common
        Stock Purchase
        Warrants held by the Warrantholder, that a new Warrant Certificate for the
        balance of such
        Common Stock Purchase Warrants be registered in the name of, and delivered
        to,
        the Warrantholder
        at the address stated below.

       

      

      
        	
                Date:
                  __________________________________

              	 
	 	
                
                  

                  Name (printed)

              
	 	 
	 	
                 

                 

                
                  

                  Signature

              
	 	
                 

                 

                 

              
	 	
                
                  

                  Address

              
	 	
                 

                 

                 

              
	 	
                
                  

                  Social Security No.

              

      

    

     

    
      
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