Document:

Warrant issued to The Investor Relations Group

 
Exhibit
10.43 
 
Warrant No.
C-             
 
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE
SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS REGISTERED UNDER THE SECURITIES ACT AND QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS OR UNLESS SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT
REQUIRED. 
 
THE SECURITIES REPRESENTED BY THIS
CERTIFICATE AND THE RIGHTS OF HOLDERS THEREOF ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OTHER RESTRICTIONS, AND THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE (INCLUDING ANY FUTURE HOLDERS) IS BOUND BY THE TERMS OF AN
AGREEMENT BETWEEN THE ORIGINAL HOLDER AND THE COMPANY AND A REPRESENTATION LETTER DELIVERED BY THE HOLDER TO THE COMPANY (COPIES OF WHICH MAY BE OBTAINED FROM THE COMPANY). 
 
WARRANT TO PURCHASE SHARES 
OF COMMON STOCK OF CARDIMA, INC. 
 
This certifies that, for value received,
                                        
         (the “Holder”), is entitled, subject to the terms and conditions set forth below, to purchase from Cardima, Inc., a Delaware corporation (the “Company”) in whole or in part, ONE
HUNDRED SIXTY THOUSAND (160,000) fully paid and nonassessable shares of the Company’s Common Stock, par value $0.001 per share (the “Warrant Shares”) at a price of $0.90 per share (the “Stock Purchase Price”) at any time or
from time to time up to and including 5:00 p.m. (Pacific time) on the Expiration Date (as defined below), upon surrender to the Company at its principal office at 47266 Benicia Street, Fremont, California 94538 (or at such other location as the
Company may advise Holder in writing) of this Warrant properly endorsed with the Form of Subscription attached hereto duly filled in and signed and upon payment by cash, cashier’s check or wire transfer of immediately available funds of the
aggregate Stock Purchase Price for the number of shares for which this Warrant is being exercised determined in accordance with the provisions hereof or otherwise as hereinafter provided, such exercise to be conditioned upon the accuracy of all
representations and warranties contained in Section 7 hereof. The Stock Purchase Price and the number of shares purchasable hereunder are subject to adjustment as provided in Section 3 of this Warrant. “Expiration Date” means October 30,
2007. This Warrant is issued pursuant to the Letter Agreement between the Company and Holder dated as of October 22, 2002 (the “Agreement”). 
 

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1.    Exercise of Warrant 
 
1.1    Issuance of Certificates. This Warrant is exercisable at the option of Holder at any time or from time to time prior to or on the Expiration Date for all or a portion
of the shares of Warrant Shares which may be purchased hereunder but if this Warrant is to be exercised only in part, not for less than (i) ten thousand (10,000) Warrant Shares or (ii) such lesser number of shares which may then constitute the
maximum number purchasable (in either case as adjusted for any stock dividend, split, combination, recapitalization or the like with respect to such shares). The Company agrees that the Warrant Shares purchased under this Warrant shall be and are
deemed to be issued to 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. Subject to the provisions of Section 2, certificates for the
Warrant Shares so purchased, together with any other securities or property to which Holder is entitled upon such exercise, shall be delivered to Holder by the Company’s transfer agent at the Company’s expense within a reasonable time
after this Warrant has been exercised. Each stock certificate so delivered shall be in such denominations of Warrant Shares as may be requested by Holder and shall be registered in the name of Holder or such other name as shall be designated by
Holder, subject to the limitations contained in Section 2. If, upon exercise of this Warrant, fewer than all of the Warrant Shares evidenced by this Warrant are purchased prior to the date of expiration of this Warrant, one or more new warrants
substantially in the form of, and on the terms in, this Warrant will be issued for the remaining number of Warrant Shares not purchased upon exercise of this Warrant. 
 
1.2    Payment. Payment of the Stock Purchase Price shall be made
at the option of the Holder by surrender to the Company of this Warrant properly endorsed with the Form of Subscription attached hereto duly filled in and signed and specifying the number of Warrant Shares to be purchased, and payment by cash,
cashier’s check or wire transfer of immediately available funds during normal business hours on any day that is not a Saturday or Sunday or a day on which banks are required or permitted to be closed in the State of California. 
 
2.    Shares to be Fully Paid;
Reservation of Shares. The Company covenants and agrees that all Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable
and free from all preemptive rights of any stockholder and free of all taxes, liens and charges with respect to the issue thereof. The Company further covenants and agrees that during the period within which the rights represented by this Warrant
may be exercised, the Company will use its commercially reasonable efforts to at all times have authorized and reserved, for the purpose of issue or transfer upon exercise of this Warrant, a sufficient number of shares of authorized but unissued
Common Stock. When and as required to provide for the exercise of the rights represented by this Warrant, the Company will take all such action as may be necessary to assure that such shares of Common Stock may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of any domestic securities exchange or automated quotation system upon which the Common Stock may be listed. 
 
3.    Adjustment of Stock Purchase Price; Number of Shares. The Stock Purchase
Price and the number of shares of Warrant Shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to time upon the occurrence of certain events described in this Section 3. 
 
3.1    Adjustment of
Purchase Price. In the event that the Company at any time or from time to time after the issuance of this Warrant shall declare or pay, without consideration, any dividend on the Common Stock payable in Common Stock or in any right to acquire
Common Stock for no consideration, or shall effect a subdivision of the outstanding shares of Common Stock into a greater number of shares of Common Stock (by stock split, reclassification or otherwise than by payment of a dividend in Common Stock
or in any right to acquire Common Stock), or in the event the outstanding shares of Common Stock shall be combined or consolidated, by reclassification or otherwise, into a lesser number of shares of Common Stock, 
 

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then the Stock
Purchase Price in effect immediately prior to such event shall, concurrently with the effectiveness of such event, be proportionately decreased or increased, as appropriate. In the event that the Company shall declare or pay, without consideration,
any dividend on the Common Stock payable in any right to acquire Common Stock for no consideration, then the Company shall be deemed to have made a dividend payable in Common Stock in an amount of shares equal to the maximum number of shares
issuable upon exercise of such rights to acquire Common Stock. Upon each adjustment of the Stock Purchase Price pursuant to this Section 3.1, the holder of this Warrant shall thereafter be entitled to purchase, at the Stock Purchase Price resulting
from such adjustment, the number of shares of Common Stock obtained by multiplying the Stock Purchase Price in effect immediately prior to such adjustment by the number of shares of Common Stock purchasable pursuant hereto immediately prior to such
adjustment, and dividing the product thereof by the Stock Purchase Price resulting from such adjustment. 
 
3.2    Adjustments for Reclassification and Reorganization. If the Common Stock shall be
changed into the same or a different number of shares of any other class or classes of stock, whether by capital reorganization, reclassification or otherwise (other than a subdivision or combination of shares provided for in Section 3.1), the Stock
Purchase Price then in effect shall, concurrently with the effectiveness of such reorganization or reclassification, be proportionately adjusted so that this Warrant shall represent the right to purchase, in lieu of the number of shares of Common
Stock which this Warrant would otherwise represent the right to purchase, a number of shares of such other class or classes of stock equivalent to the number of shares of Common Stock which this Warrant would have otherwise entitled the holder to
purchase immediately before that change. 
 
3.3    Notice of Adjustment. Upon any adjustment of the Stock Purchase Price or any increase or decrease in the number of shares of Common Stock purchasable upon the exercise of this Warrant, the Company
shall within five business days give written notice thereof, by first class mail, postage prepaid, (or by international delivery service, for international addresses) addressed to the registered holder of this Warrant at the address of such holder
as shown on the books of the Company. The notice shall be signed by the Company’s chief financial officer and shall state the Stock Purchase Price resulting from such adjustment and the increase or decrease, if any, in the number of shares
purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. 
 
3.4    Other Notices. If at any time the Company shall propose to:

 

	  	 (a)	  	 declare any cash dividend upon its Common Stock; 

 

	  	 (b)	  	 declare or make any dividend or other distribution to the holders of its Common Stock, whether in cash, property or other securities; 

 

	  	 (c)	  	 effect any reorganization or reclassification of the capital stock of the Company or any consolidation or merger of the Company with or into another corporation or
any sale, lease or conveyance of all or substantially all of the property of the Company; or 

 

	  	 (d)	  	 effect a voluntary or involuntary dissolution, liquidation or winding-up of the Company; 

 
then, in any one or more of said cases, the Company shall give, by certified or registered mail, postage
prepaid, or international delivery service for international deliveries, addressed to the holder of this Warrant at the address of such holder as shown on the books of the Company, (i) at least fifteen (15) business days’ prior written notice
of the date on which the books of the Company shall close or a record shall be taken for such dividend or distribution or for determining rights to vote in respect of any such reorganization, reclassification, consolidation, merger, sale, lease,
conveyance, dissolution, liquidation or winding-up and (ii) 
 

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in the case of
any such reorganization, reclassification, consolidation, merger, sale, lease, conveyance, dissolution, liquidation or winding-up, at least fifteen (15) business days’ written notice of the date when the same shall take place. Any notice given
in accordance with clause (i) above shall also specify, in the case of any such dividend or distribution, the record date for such dividend or distribution. Any notice given in accordance with clause (ii) above shall also specify the date on which
the holders of Common Stock shall be entitled to exchange their Common Stock for securities or other property, if any, deliverable upon such reorganization, reclassification, consolidation/merger, sale, lease, conveyance, dissolution, liquidation or
winding-up, as the case may be. In the event that the Holder of the Warrant does not exercise this Warrant prior to the occurrence of an event described in clause (a) or (b) above, the Holder shall not be entitled to receive the benefits accruing to
existing holders of the Common Stock in such event. Upon the occurrence of an event described in clause (c), the Holder shall be entitled thereafter, upon payment of the Stock Purchase Price in effect immediately prior to such action, to receive
upon exercise of this Warrant, the class and number of shares which the Holder would have been entitled to receive after the occurrence of such event had this Warrant been exercised immediately prior to such event. In connection with the
transactions described in clause (c), the Company will require each person (other than the Company) that may be required to deliver any cash, stock, securities or other property upon the exercise of this Warrant, as provided herein, to assume, by
written instrument delivered to the Holder of this Warrant, (x) the obligations of the Company under this Warrant and (y) the obligation to deliver to such Holder such cash, stock, securities or other property as such Holder may be entitled to
receive in accordance with the provisions of this Section 3. Upon occurrence of an event the proposal of which is described in clause (d), this Warrant shall terminate. Notwithstanding any other provision hereof, no Holder shall have the right to
obtain an injunction or restraining order or otherwise interfere with or prevent the occurrence of any of the actions described in (a)-(d) above. 
 
4.    Issue Tax. The issuance of certificates for the Warrant Shares upon the exercise of the Warrant shall be
made without charge to the Holder of the Warrant for any issue tax in respect thereof; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance
and delivery of any certificate in a name other than that of the then Holder of the Warrant being exercised. 
 
5.    No Voting or Dividend Rights; Limitation of Liability. Nothing contained in this Warrant shall be
construed as conferring upon the Holder hereof the right to vote or to consent or to receive notice as a stockholder in respect of meetings of stockholders for the election of directors of the Company or any other matters or any rights whatsoever as
a stockholder of the Company. Except for the adjustment to the Stock Purchase Price pursuant to Section 3.1 in the event of a dividend on the Common Stock payable in shares of Common Stock, no dividends or interest shall be payable or accrued in
respect of this Warrant or the interest represented hereby or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have been exercised. No provisions hereof, in the absence of affirmative action by the Holder to
purchase shares of Warrant Shares, and no mere enumeration herein of the rights or privileges of the Holder hereof, shall give rise to any liability of such Holder for the Stock Purchase Price or as a stockholder of the Company whether such
liability is asserted by the Company or by its creditors. 
 
6.     Restrictions on Transferability of Securities: Compliance With Securities Act. 
 
6.1    Restrictions on Transferability. The Warrant and the Warrant Shares (collectively, the
“Securities”) shall not be transferable in the absence of a registration under the Securities Act or an exemption therefrom, or in the absence of compliance with any term of the Warrant. Without limiting the foregoing, (i) the Securities
may be offered, resold, pledged or otherwise transferred only (A) in a transaction meeting the requirements of Rule 144 of the SEC (“Rule 144”), or in accordance with another exemption from the registration requirements of the Securities
Act (and based upon an opinion of counsel if the Company so requests) or (B) pursuant to an effective registration statement under the Securities Act, in each case in accordance with the applicable securities laws of any state of the United States
or any other applicable 
 

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jurisdiction
and (ii) Holder will be required to notify any subsequent purchaser or transferee of the resale restrictions set forth above. The Company shall be entitled to give stop transfer instructions to the transfer agent with respect to the Securities in
order to enforce the foregoing restrictions. 
 
6.2    Restrictive Legend. Unless otherwise received in a transaction registered under the Securities Laws and qualified (if necessary) under applicable state securities laws, each certificate representing
the Securities or any other securities issued in respect of the Securities upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the provisions of the Purchase Agreement)
be stamped or otherwise imprinted with a legend substantially in the following form (in addition to any legend required under applicable state securities laws): 
 
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS REGISTERED UNDER THE SECURITIES ACT AND QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS OR
UNLESS SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED. 
 
THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF HOLDERS THEREOF ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OTHER RESTRICTIONS, AND THE HOLDER OF THE SECURITIES REPRESENTED BY
THIS CERTIFICATE (INCLUDING ANY FUTURE HOLDERS) IS BOUND BY THE TERMS OF AN AGREEMENT BETWEEN THE ORIGINAL HOLDER AND THE COMPANY AND A REPRESENTATION LETTER DELIVERED BY THE HOLDER TO THE COMPANY (COPIES OF WHICH MAY BE OBTAINED FROM THE COMPANY).

 
6.3    Exchange of Warrant. Subject to the terms and conditions of the Agreement, the Representation Letter effective October 22, 2002 and delivered to the Company by the Holder in connection with the
issuance of this Warrant (the “Representation Letter”), the terms and conditions hereof, including the restrictions on transfer in this Section 6 hereof, and compliance with applicable federal and state securities laws, upon surrender of
this Warrant to the Company with a duly executed Assignment Form in the form attached hereto and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant or Warrants of like tenor in the name of
the assignee named in such Assignment Form and this Warrant shall promptly be canceled; provided, however, that the Company shall not be required to transfer Warrants to purchase less than ten thousand (10,000) Warrant Shares (in
either case as adjusted for any stock dividend, split, combination, recapitalization or the like with respect to such shares) or to transfer Warrants to a party that is not an employee of the Holder. The term “Warrant” as used herein shall
be deemed to include any Warrants issued in exchange for this Warrant. 
 
6.4    Ownership of Warrant. The Company may deem and treat the person in whose name this Warrant is registered as the holder and owner hereof (notwithstanding any notations
of ownership or writing hereon made by anyone other than the Company) for all purposes and shall not be affected by any notice to the contrary, until presentation of this Warrant for registration of transfer as provided in Section 6.3. 
 

5 

 
7.    Representations and Warranties. 
 
7.1    Representations and Warranties of Holders. The Holder hereby represents and warrants to the Company as follows: 
 
7.1.1    Investment
Intent. The Holder is acquiring the Warrants for investment for its own account only, not as a nominee or agent, and not with a view to, or for resale in connection with, any “distribution” of any part thereof within the meaning of the
Securities Act. The Holder has no present intention of selling, granting any participation in, or otherwise distributing the same. The Holder does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or
grant any participation to such person or to any third person with respect to any of the Securities. The Holder understands that the Securities have not been registered under the Securities Act or registered or qualified under any state securities
law in reliance on specific exemptions therefrom, which exemptions may depend upon, among other things, the bona fide nature of Holder’s investment intent as expressed herein. 
 
7.1.2    Investment Experience. The Holder (i) has such knowledge
and experience in financial and business matters as to be capable of evaluating the merits and risks of acquiring the Warrant and Warrant Shares; (ii) has received all of the information that the Holder has requested from the Company and that the
Holder considers necessary or appropriate for deciding whether to acquire the Warrant and Warrant Shares; (iii) has the ability to bear the economic risks of the prospective investment; and (iv) is able, without materially impairing its financial
condition, to hold the Warrant and Warrants Shares for an indefinite period of time and to suffer complete loss on the investment therein. The Holder is aware of the Company’s business affairs and financial condition and has acquired sufficient
information about the Company to reach an informed and knowledgeable decision to acquire the Securities. The Holder has such business and financial experience, including without limitation, investment is technology and biotechnology companies, as
will enable the Holder to fend for itself, make an informed investment decision and protect its own interests in connection with the purchase of the Securities. 
 
7.1.3    Restricted Securities. The Holder understands that the
Securities it is acquiring are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, the Holder represents that it is familiar with Rule 144 promulgated by the SEC under the
Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. 
 
7.1.4    Accredited Investor. The Holder is an “accredited investor” as such term is
defined in Rule 501 of Regulation D. 
 
7.2    Survival of Representations and Warranties. The representations and warranties made in Section 7.1 of this Warrant will survive the date of this Warrant and will expire on the earlier of (i) the
Expiration Date or (ii) the exercise of this Warrant in full. 
 
8.    Modification and Waiver. Except as otherwise provided herein, this Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of the same is sought. 
 
9.    Notices. Except as otherwise provided herein, any notice, request or other document required or permitted to be given or delivered to the holder hereof or the Company shall be delivered or shall be
sent by United States certified or registered mail, postage prepaid, (or international delivery service for international deliveries) to Holder at its address as shown on the books of the Company or to the Company at the address indicated therefor
in the first paragraph of this Warrant. 
 

6 

 
10.    Descriptive Headings and Governing Law. The descriptive headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of this Warrant.
This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of California (without regard to its conflicts of law provisions). The Holder hereby irrevocably submits to
the jurisdiction of any State or United States Federal court sitting in the Alameda or San Francisco counties in the State of California over any action or proceeding arising out of or relating to this Warrant or any agreement contemplated hereby,
and the Holder irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such State or Federal court. The Holder further waives any objection to venue in such State and any objection to an action or
proceeding in such State based on non-convenient forum. The Holder further agrees that any action or proceeding brought against the Company shall be brought only in the State or United States Federal courts sitting in Alameda or San Francisco
counties in the State of California. THE HOLDER AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL OR ANY CLAIM FOR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS WARRANT. 
 
11.    Lost Warrants or Stock Certificates. The Company represents and warrants to
Holder that upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of any Warrant or stock certificate and, in the case of any such loss, theft or destruction, upon receipt of an indemnity and,
if requested, bond reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of such Warrant or stock certificate, the Company at its expense will make and deliver a new Warrant or stock
certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate. 
 
12.    Amendment. This Warrant may be amended only with the written approval of the Company and the Holder of
this Warrant. 
 
13.    Binding Effect; Benefits. This Warrant shall inure to the benefit of and shall be binding upon the Company and the Holder and their respective heirs, legal representatives, successors and assigns.
Nothing in this Warrant, expressed or implied, is intended to or shall confer on any person other than the Company and the Holder, or their respective heirs, legal representatives, successors or assigns, any rights, remedies, obligations or
liabilities under or by reason of this Warrant. 
 
14.    Fractional Shares. No fractional shares shall be issued upon exercise of this Warrant. The Company shall, in lieu of issuing any fractional share, pay the Holder entitled to such fraction a sum in
cash equal to such fraction multiplied by the market price of the Common Stock on such exercise date, which shall be, on such date, the closing price for the Common Stock or the closing bid if no sales were reported, as quoted on the exchange or
market that is the primary trading market for the Company. 
 
[REMAINDER LEFT INTENTIONALLY BLANK] 
 

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IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officers, thereunto duly authorized effective as of the 22nd day of October, 2002. 
 

	  	  	  CARDIMA, INC., a Delaware corporation

	
	  	  	  By:
	  	  
	  	  	  	  	

	  	  	  	  	  Name:    Ronald R. Bourquin

	  	  	  	  	  Title:      Chief Financial Officer

	
	  ACKNOWLEDGED AND ACCEPTED:

	
	  “HOLDER”
 
 
   

	

	
	  By:
	  	  
	  	  	

	  	  	  Name:
	  	  
	  	  	  	  	

	  	  	  Title:
	  	  
	  	  	  	  	

 

8 

 
FORM OF
SUBSCRIPTION 
 
(To be signed only upon exercise
of Warrant) 
 
To:   Cardima, Inc. 
 
The undersigned, the holder of the within Warrant, hereby
irrevocably elects to exercise such Warrant for, and to purchase thereunder,
                                        
         (                        ) shares of Common Stock of Cardima, Inc.
(the “Company”), and tenders herewith payment in the amount of $                            
therefor. 
 
The certificates for such shares
should be issued in the name of, and delivered to,
                                        
                                 whose address is
                                        
                                        
                                        
                                        
                        
                                        
                                        
    . 
 
The undersigned
represents, unless the exercise of this Warrant has been registered under the Securities Act of 1933, as amended (the “Securities Act”), that (i) the undersigned is acquiring such Common Stock for his or its own account for investment and
not with a view to or for sale in connection with any distribution thereof (except for any resale pursuant to a registration statement under the Securities Act), (ii) the undersigned has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of the undersigned’s investment in the shares of Common Stock, (iii) the undersigned has received all of the information the undersigned requested from the Company and the undersigned
considers necessary or appropriate for deciding whether to purchase the shares, (iv) the undersigned has the ability to bear the economic risks of the undersigned’s prospective investment, (v) the undersigned is able, without materially
impairing his financial condition, to hold the shares of Common Stock for an indefinite period of time and to suffer complete loss on the undersigned’s investment and (vi) the undersigned is an “accredited investor” as defined in
Securities and Exchange Commission Rule 501(a). 
 
Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified here
                                        
                                        
                                    . 
 

	  DATED:
	  	   

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

 

9 

 
THIS WARRANT AND ANY SHARES
ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SUCH ACT OR PURSUANT TO
AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT. 
 
ASSIGNMENT FORM 
 
(To be
executed only upon transfer of this Warrant) 
 
For
value received, the undersigned registered holder of the within Warrant hereby sells, assigns and transfers unto
                                        
     (the “Assignee”) the right represented by such Warrant to purchase                   Warrant Shares and all other rights of
the Holder with respect thereto under the within Warrant, and appoints
                                        
as Attorney to make such transfer on the books of Cardima, Inc. maintained for such purpose, with full power of substitution in the premises. 
 
The undersigned also represents that, by assignment hereof, the Assignee acknowledges that this Warrant and the Warrant Shares to be
issued upon exercise hereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof except under circumstances that will not result in
a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the Warrant Shares so purchased are being acquired for investment and not with a view toward distribution or resale and that such Assignee is an “accredited investor” as defined in Securities and Exchange
Commission Rule 501(a). 
 
 

	  Dated
	  	   

	  	  	  	  
	
	  	  	  	  	
  (Signature)
	  	  
	
	  	  	  	  	
  (Print Name)
	  	  
	
	  	  	  	  	
  (Street Address)
	  	  
	
	  	  	  	  	
  (City)                        (State)           
     (Zip Code)
	  	  

 

10Exhibit 10.1

                             RIO EXPLORATION COMPANY

January 15, 2003

Mr. John F Terwilliger, Chairman
Houston American Energy Corporation
801 Travis, Suite 2020
Houston, TX  77002

                                     Re:   Tambaqui Association Contract
                                           Rio Exploration Company/Hupecol, LLC
                                           State of Casanare, Colombia
                                           Effective Date: December 31, 1997

Dear Mr. Terwilliger,

This  letter,  when  fully  executed,  shall constitute an agreement and binding
contract  effective  January  1,  2003  (the agreement), between Rio Exploration
Company,  a  Texas  Corporation,  8700  Crownhill Blvd., Suite 501, San Antonio,
Texas 78209, represented and acting by and through and under its President, John
T. Saunders, Jr. (hereinafter referred to as "Rio"), and Houston American Energy
Corporation,. a Texas Corporation, 801 Travis, Suite 2020, Houston, Texas 77002,
acting  under  its  Chairman,  John  F.  Terwilliger (hereinafter referred to as
"HAEC").  Rio and HAEC are herein collectively referred to as the "parties," and
each  of the terms Rio and HAEC shall also be deemed to include their respective
parents  or  affiliates,  if  any.

Upon  execution of this agreement, Rio being the equitable and forthcoming legal
owner of a 16.38102% of one hundred percent (100%) interest in Hupecol, LLC, who
is  the legal owner of the Cara Cara Association Contract conveyed to Hupecol by
ECOPETROL,  the  state-owned  oil  company  of  the  Country  of Colombia, dated
December  31,  1997,  in  the State of Casanare, Colombia, has agreed to convey,
transfer,  and  assign  and  by  these  presents  has conveyed, transferred, and
assigned  to  HAEC  a  twelve and one-half percent (12 %) of one hundred percent
(100%) interest in Hupecol, LLC, and the Tambaqui Association Contract, composed
of  36,000  hectares  more or less, and to be known as the Tainbaqui Association
Contract,  issued  by  ECOPETROL  and  the  State  of  Casanare.

It  is  also understood by the parties hereto that Hupecol, LLC, a Texas limited
liability company, is in the process of forming a new limited liability company,
which  will be the sole owner of the Tambaqui Association Contract, of which Rio
will  be assigned, and be the owner of a 16.38102% of one hundred percent (100%)
share of the new "Tambaqui Limited Liability Company." Upon assignment to Rio of
the  "Tambaqui Limited Liability Company," Rio agrees to assign to HAEC a twelve
and  one-half  percent  (12  %)  of  one  hundred percent (100%) interest in the
Tambaqui LLC, within five working days of the date assigned to Rio.

       8700 Crownhill Boulevard, Suite 501, San Antonio, Texas 78209-1130

                                        4
<PAGE>
For  and  in consideration of three hundred and twelve thousand five hundred and
no/100  U.S.  dollars  ($312,500.00),  the  receipt  and sufficiency of which is
hereby  acknowledged  and the commitment and obligation of HAEC to assume twelve
and  one-half percent (12 %) of the drilling and completion cost of the Tambaqui
#2  well,  to  be  commenced  on or about March 15, 2003, as outlined in the AFE
attached  as  Exhibit  "A"  hereto,  the  estimated  cost of the HAEC twelve and
one-half percent (12 %) interest to be one hundred and sixty eight thousand five
hundred and seventy nine and 38/100 U.S. dollars ($168,579.38), Rio hereby makes
this  assignment.

Upon  execution of this agreement by the parties hereof on or before February 1,
2003,  HAEC  agrees to forward a check, made payable to Rio Exploration Company,
in  the amount of three hundred and twelve thousand five hundred and no/100 U.S.
dollars  ($312,500.00),  as  consideration  for  purchasing the Rio interest. In
addition,  HAEC agrees to forward to Hupecol the amount of one hundred and sixty
eight  thousand  five  hundred  and  seventy  nine  and  38/100  U.S.  dollars
($168,579.38)  upon  cash  call  from  Hupecol.

Rio  agrees  to  furnish  HAEC with copies of all data pertinent to the Tambaqui
Block,  including, but not limited to, contracts, geophysical data, log data, or
data  requested  by HAEC that is currently available to Rio and Hupecol, LLC, or
generated  for  the  benefit of the parties and shall be owned by the parties in
proportion  to  their  interest  in  the  contract  and  any such party shall be
entitled  to copy such data. The party or parties requesting such data shall pay
all  cost  of  reproduction  of  such  data.

This  agreement  shall  be  supplemented by a (mutually agreeable by all parties
subject  to the contract) Joint Development and Operating Agreement that will be
attached  to  the  new  "Tambaqui  Limited  Liability Company" incorporating the
principal terms, conditions, and provisions set forth in this agreement and such
other  provisions  as  are  essential  to  the  management  and operation of the
proposed  LLC  and  Association  Contract.

This  agreement shall be construed and interpreted by the parties to be pursuant
to  the  laws  of the State of Texas, irrespective that all operations are being
conducted  in  the  Republic  of  Colombia.  Jurisdiction  and  venue  shall  be
applicable to the "Tambaqui Association Contract" as if the same were within the
boundaries  of  the  State of Texas and governed by the laws and statutes of the
State  of  Texas.

Rio  makes no warranties, express or implied, as to the reserves in place or the
viability  of  the  existing wellbores, or the success of the well to be drilled
under  said  agreement  The  interest  is  sold  "as  is"  subject to all terms,
conditions,  and  provisions  pertaining  thereto.

Effective  January  1, 2003, HAEC agrees to bear twelve and one-half percent (12
%)  of  the  monthly  overhead  being  paid  by  Hupecol  and  its  owners  on a
month-to-month  basis  to  cover  operations  and  overhead attributable to this
agreement.  Presently, the monthly overhead to Hupecol is thirteen thousand five
hundred  and  no/100 U.S. dollars ($13,500.00) per month, resulting in a monthly
contractual  overhead  to  HEAC  effective January 1,, 2003, of one thousand six

                                        1
<PAGE>
hundred  eighty  seven  and  50/100 U.S. dollars ($1,687.50) per month, plus any
additional  overhead  expenses  incurred, which shall remain in force and effect
until  the monthly overhead rates are adjusted by agreement between the parties.

Nothing  contained  in  this  agreement  shall be deemed in any way or manner to
prohibit  or  restrict  in  any  way the right or freedom of any party hereto to
engage  in  oil and gas activities outside the Tambaqui Block in Colombia, South
America.  However, if either party hereto enters into a geological project, such
as  geological  mapping  or other oil and gas activity and decides to go forward
with  an  oil  and  gas  project  and  enters into an association contract, both
parties to this agreement agree to offer each other the right to participate for
a  twelve  and  one-half  percent  (12  %) working interest on or at cost basis,
whether  it  be  with  the companies that are subject to this agreement or their
principles  or  assigns  for  a  period  of  five  years  from  the date of this
agreement.

If  the  foregoing  terms  and  conditions  are  acceptable, please execute your
acceptance  hereof  by  executing  duplicate  originals of this agreement in the
space  provided  below  and  return  one  original  to  Rio.

AGREED TO and ACCEPTED this 15th day of January, 2003.
                            ----

RIO EXPLORATION COMPANY                   HOUSTON AMERICAN ENERGY CORPORATION

By   John T. Saunders, Jr.                By: ' John F. Terwilliger
     President                            Chairman

                                        2
<PAGE>
                                     HUPECOL
                                P. 0. DRAWER 669
                                 BEEVITLE, TEXAS

AUTHORITY FOR EXPENDITURE # 2002-02
DATE:   10/31/02

     WELL:            TAMBAQUI #2
     COUNTRY:         COLUMBIA
     PROSPECT:        TAMBAQUI PROSPECT (offset to Tambaqui #1)
     PROPOSED DEPTH;  5500'
     LOCATION:        x=1,288,940  y=1,031,900 (900 Meters NE of Tambaqui #1)

<TABLE>
<CAPTION>
                                                               Total
                                Acct.  Drilling  Completion  Estimated
Intangible Costs (G/L # 6010)   Codes   Costs      Costs       Costs
------------------------------  -----  --------  ----------  ---------
<S>                             <C>    <C>       <C>         <C>

LOCATION COSTS:
Survey                            105     4,000                  4,000
Location & Road (w/damages)       121    52,000      50,000    102,000
Location Cleanup/Environmental    189    17,000                 17,000

DRILLING COSTS:
Drilling Overhead                 101
Permit Fees/Community
Aid/Security                      109    10,000                 10,000
Rig Mobilization                  119   100,000                100,000
Drilling               ft to      129
  12 days at $9,960.00 / Day      129   119,520     115,488    235,008
Fuel                              248     3,900       3,900      7,800
Water                             141     2,400       2,400      4,800
Drilling & Completion
Fluids/chemicals                  133    45,028       5,750     50,778
Drill Bits                        137    37,388                 37,338
Cementing Services                169    25,312      23,357     48,668
Casing Crews/Labor/Inspections    213    11,590      10,728     22,318
Surface Equip. Rental             210    50,993      23,013     74,006
Drillstring & Downhole Rental     211     3,406       1,975      5,381
Directional Drilling Services     139
Hauling & Freight/Air             206     3,600       2,400      6,000
Roustabout & Misc. Services       218     4,250       3,000      7,250
Mud & Cuttings Disposal           193
Communication Expenses            230     3,600                  3,600
Gate Guard                        215
Tubular / BOP Testing             541
Plugging Costs (if necessary)     175

EVALUATION COSTS:
Electric Logging                  149    83,550                 83,550
Mud Log Services                  145    13,920       4,140     18,060
Core & Paleo Analysis             157
Drill Stem Testing                161

COMPLETION COSTS:
Completion Unit                   181
Cased Hole Wireline Services      173                16,409     16,409
Well Testing / DST                266     7,717      51,775     59,492
Well Stimulation Treatments       177

MISC. COSTS:
Supervision                       551    25,500      18,000     43,500
Drilling Liability Ins.           573
VAT (Taxes)                       576                80,678     80,678
Contingencies                     280    62,338      27,958     90,296
</TABLE>

<PAGE>
                                     HUPECOL
                                 P.0. DRAWER 669
                                 BEEVILLE, TEXAS

AFE  #     2002-02
Well:      TAMBAQUI#2

<TABLE>
<CAPTION>
                                                                                      Total
                                                     Acct.  Drilling   Completion   Estimated
TANGIBLE COSTS (G/L #1150)                           Costs    Costs       Costs       Costs
--------------------------                           -----  ---------  -----------  ----------
<S>                                                  <C>    <C>        <C>          <C>

WELLHEAD EQUIPMENT:
Brandenhead                                            435
Casing Spool                                           435      2,494                    2,494
Tubing Spool                                           430                   6,688       6,688
Christmas Tree                                         430                  11,818      11,818

COMPLETION EQUIPMENT:
Packers                                                425      1,751        1,751       3,502
Gravel Pack & Equipment                                178                  50,000      50,000
Downhole Pump                                          482

TUBULARS:
Conductor                                              402      2,000                    2,000
Surface       500' of 9-5/8", N80 Buttr                404     10,000                   10,000
Intermediate                                           406
Liner                                                  408
Production    5500' of 7", 26# N80 Buttr               410                  82,500      82,500
Tubing        5400' of 3-1/2", 9.3# N80 EUE 8rd        415                  45,900      45,900
Sucker Rods                                            481

SURFACE EQUIPMENT:
Line Heaters                                           455
Heater Treater                                         455
Tanks                                                  440
Dehydration                                            470
Separation                                             450
Gas Mess                                               475
Flowlines                                              420
Pump Equipment (Cavity Pump)                           480                   5,800       5,800
Engines                                                483
Elec. Equipment & Power lines                          462
Misc. Valves, Fittings, Etc.                           465
Installation Costs                                     495

----------------------------------------------------------------------------------------------

          Total Tangible Costs                              $  16,245  $   204,457  $  220,702

----------------------------------------------------------------------------------------------

          GRAND TOTAL                                       $ 703,207  $   645,428  $1,348,635

----------------------------------------------------------------------------------------------
</TABLE>

This  AFE  is an Estimate of Costs only. Approval of same is a commitment to pay
your  proportionate share of the actual costs in drilling to the objective depth
specified  or  complete  the  work  herein  specified.

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]