NEITHER
THE WARRANT NOR THE COMMON STOCK WHICH MAY BE ACQUIRED UPON THE
EXERCISE HEREOF ("WARRANT SHARES"), HAS BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
SECURITIES LAWS OF ANY STATE AND NEITHER THE WARRANT NOR THE
WARRANT SHARES MAYBE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT THERETO
UNDER THE ACT AND COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES
LAW, OR UNLESS THE COMPANY RECEIVES AN OPINION FROM ITS COUNSEL,
THAT SUCH REGISTRATION IS NOT REQUIRED.
WORLDWIDE EXCELLENCE,
INC.
(A Delaware
Corporation)
WARRANT
CERTIFICATE
VOID AFTER 5:00 P.M., NEW
YORK, NEW YORK LOCAL TIME THREE (3) YEARS AFTER THE COMMENCEMENT
DATE
WARRANT TO PURCHASE SUCH
NUMBER OF SHARES OF THE COMPANY AS SHALL UPON THE CLOSING (AS
DEFINED BELOW)
BE EQUAL TO ___ THOUSAND
(___,000) SHARES
OF
COMMON STOCK, $.001 PAR
VALUE OF MFC DEVELOPMENT CORP.
WORLDWIDE EXCELLENCE, INC.
, a Delaware corporation (the "
Company "), hereby certifies that_________("
Holder "), or Holder's successors and assigns, for
value received, is entitled to purchase from the Company commencing
on ____________(the " Commencement Date ") and
until 5:00 p.m., New York City local time, three (3) years after
the Commencement Date (the " Term "), such number
of shares of common stock, par value $.01 of the Company as shall
upon the closing of the transaction (the " Closing
") set forth in the Acquisition Agreement dated as of July 29, 2005
by and among the Company, the current stockholders of the Company
and MFC Development Corp. (" MFC ") be equal to
____ thousand (___,000) shares (each, a " Warrant
Share ") (for each dollar invested in the Notes, the
Holder is entitled to a warrant to purchase one Warrant Share) of
common stock, $.001 par value per share (the " MFC
Common Stock "), of MFC, at a purchase
price of $1.00 per share (the " Exercise Price
").
1.
Exercise of
Warrants . Upon thirty (30) days written notice, and then
upon presentation and surrender of this Warrant Certificate, with
the attached Purchase Form duly executed, together with payment of
the Exercise Price by certified check or official bank check in the
applicable amount at the office of Gersten Savage LLP, counsel to
the Company, at 600 Lexington Avenue, New York, New York 10022, the
Company shall deliver to the Holder hereof, as promptly as
practicable, certificates representing the Warrant Shares being
purchased. This Warrant Certificate may be exercised in whole or in
part (but not for less than 10,000 Warrant Shares, except with
respect to the final exercise) and, in case of the exercise hereof
in part only, the Company, upon surrender hereof, will deliver to
the Holder a new Warrant Certificate or Warrant Certificates of
like tenor entitling the Holder to purchase the number of Warrant
Shares as to which this Warrant Certificate has not been
exercised.
2.
Exchange
.
At any time prior to the exercise
hereof, upon presentation and surrender to the Company, this
Warrant Certificate may be exchanged, alone or with other Warrant
Certificates of like tenor registered in the name of the Holder,
for another Warrant Certificate or other Warrant Certificates of
like tenor in the name of the Holder exercisable for the same
aggregate number of Warrant Shares as the Warrant Certificate or
Warrant Certificates surrendered.
3.
Rights and Obligations of
Warrant Holders . The Holder of this Warrant Certificate shall
not, by virtue hereof, be entitled to any rights of a stockholder
in the Company, either at law or in equity; provided, however, if
any Warrant Shares are issued to the Holder upon exercise of a
portion or all of the Warrants represented hereby, such Holder
shall, for all purposes, be deemed to have become the Holder of
record of such stock on the date upon which this Warrant
Certificate, together with a duly executed Purchase Form, was
surrendered, regardless of the date of delivery of such share
certificate, except that if upon the date of surrender of such
Warrant Certificate the transfer books for the shares of common
stock of the Company shall be closed, the Holder shall not be
deemed to have become the Holder of record of such stock until the
date upon which such books shall be opened. Unless required by law
or applicable rule of any national securities exchange, such
transfer books shall not be closed at any one time for a period
longer than thirty (30) days. The rights of the Holder are limited
to those expressed herein and the Holder, by acceptance of this
Warrant Certificate, consents to and agrees to be bound by and to
comply with all the provisions of this Warrant Certificate,
including, but not limited to, all the obligations imposed upon the
Holder hereof by this Article "3" of this Warrant Certificate. In
addition, the Holder, by accepting this Warrant Certificate, agrees
that the Company may, prior to any presentation for registration or
transfer, deem and treat the person in whose name this Warrant
Certificate is registered as the absolute, true and lawful owner
for all purposes whatsoever, and the Company shall not be affected
by any notice to the contrary.
4.
Warrant
Shares/Legend . The Company agrees that all Warrant Shares
delivered upon exercise of this Warrant Certificate will, upon
delivery, be duly authorized, validly issued, fully paid and
nonassessable, and free from all stamp taxes, liens, and charges
with respect to the purchase thereof. In addition, the Company
agrees at all times to reserve and keep available an authorized
number of shares of Common Stock sufficient to permit the exercise
in full of all outstanding Warrants. The following legend shall
appear on this Warrant Certificate any substitute Warrant
Certificate and on any certificate evidencing any Warrant Shares
which the Holder will receive upon its exercise:
NEITHER
THE WARRANT NOR THE COMMON STOCK WHICH MAY BE ACQUIRED UPON THE
EXERCISE HEREOF ("WARRANT SHARES"), HAS BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
SECURITIES LAWS OF ANY STATE AND NEITHER THE WARRANT NOR THE
WARRANT SHARES MAYBE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT THERETO
UNDER THE ACT AND COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES
LAW, OR UNLESS THE COMPANY RECEIVES AN OPINION FROM ITS COUNSEL,
THAT SUCH REGISTRATION IS NOT REQUIRED.
5.
Disposition of Warrant
Certificates or Warrant Shares
.
The Holder of this Warrant
Certificate and any transferee hereof or of the Warrant Shares, by
their acceptance thereof, hereby agree that (a) no public
distribution of the Warrant or the Warrant Shares will be made in
violation of the provisions of the Securities Act of 1933, as
amended, or the Rules and Regulations promulgated thereunder (such
Act and Rules and Regulations being collectively referred to as the
" Act ") and (b) during such period as delivery of
a prospectus with respect to the Warrants or the Warrant Shares may
be required by the Act, any public distribution of the Warrants or
Warrant Shares will be preceded or accompanied by, and made in a
manner or on terms set forth in, a prospectus meeting the
requirements of Section 10 of the Act, or any future law, and in
compliance with all applicable state laws. The Holder of this
Warrant Certificate and any such transferee hereof further agree
that if any distribution of any of the Warrants or Warrant Shares
is proposed to be made by them, otherwise than by delivery of a
prospectus meeting the requirements of Section 10 of the Act as set
forth above, such action shall be taken only after submission to
the Company of an opinion of counsel, satisfactory in form and
substance to the Company's counsel, in its sole and absolute
discretion, to the effect that the proposed distribution will not
be in violation of the Act or of applicable state law. Furthermore,
it shall be a condition to the transfer of the Warrant Certificate
or Warrants Shares that any transferee thereof deliver to the
Company his or its written agreement to accept and be bound by all
of the terms and conditions of this Warrant Certificate.
6.
Registration
.
The Company further covenants and
agrees to use its best efforts to register the Warrant Shares in
accordance with a separate Registration Rights Agreement by and
among the Company and the Warrant Holders.
(a) Subject and pursuant to the provisions of this
Article "7" of this Warrant Certificate, the Exercise Price, the
Warrants and the Warrant Shares, subject to the Warrant
Certificate, shall be subject to adjustment from time to time as
follows:
(i) If the Company shall hereinafter (A) pay a
dividend or make a distribution on its common stock, in common
stock or any other shares of stock, (B) subdivide its outstanding
common stock into a greater number of shares, (C) combine its
outstanding common stock into a smaller number of shares, or (D)
issue any common stock by reclassification of its common stock,
then and in such event, there shall be a proportional adjustment in
the Exercise Price and in the number of Warrant Shares issuable
upon exercise of each Warrant so that the registered Holder of any
Warrant thereafter exercised shall be entitled to receive the
number of shares of MFC Common Stock, at the same aggregate cost,
that he would have received immediately following such action had
such Warrant been exercised immediately prior thereto. Any
adjustment made pursuant to this subparagraph "(i)" of this
Paragraph "(a)" of this Article "7" of this Warrant Certificate
shall become effective immediately after the record date in the
event of a dividend or distribution and shall become effective
immediately after the effective date in the event of a subdivision,
combination, or reclassification.
(ii) No adjustment in the securities issuable shall
be made unless such adjustment would require an increase or
decrease of at least ten (10%) percent in both the number of shares
otherwise issuable and the Exercise Price; provided, however, that
any adjustments that, by reason of this subparagraph "(ii)" of this
Paragraph "(a)" of this Article "7" of this Warrant Certificate,
are not required to be made shall be carried forward and accounted
for in connectio
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