SPESCOM SOFTWARE INC
EX-10.3
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<TYPE>EX-10.3
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<FILENAME>a04-13416_1ex10d3.htm
<DESCRIPTION>EX-10.3
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<p align="right" style="font-weight:bold;line-height:normal;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="right" style="font-weight:bold;line-height:normal;margin:0in 0in 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.3</font></b></p>

<p align="center" style="font-weight:bold;line-height:normal;margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WARRANT TO PURCHASE COMMON STOCK</font></b></p>

<p align="left" style="font-weight:bold;line-height:normal;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS WARRANT AND THE SECURITIES ISSUABLE HEREUNDER
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR THE AVAILABILITY OF
AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND ANY APPLICABLE STATE
SECURITIES LAWS.</font></b></p>

<p style="font-weight:bold;line-height:normal;margin:0in 0in 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WARRANT
TO PURCHASE COMMON STOCK</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="162" valign="top" style="padding:0in 0in 0in 0in;width:121.5pt;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Number
  of Shares:</font></b></p>
  </td>
  <td width="474" valign="top" style="padding:0in 0in 0in 0in;width:355.5pt;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Up to 550,000 shares (subject to adjustment)</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="162" valign="top" style="padding:0in 0in 0in 0in;width:121.5pt;">
  <p style="margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Warrant Price:</font></b></p>
  </td>
  <td width="474" valign="top" style="padding:0in 0in 0in 0in;width:355.5pt;">
  <p style="margin:12.0pt 0in .0001pt;text-align:justify;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.44 per share</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="162" valign="top" style="padding:0in 0in 0in 0in;width:121.5pt;">
  <p style="margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Issuance Date:</font></b></p>
  </td>
  <td width="474" valign="top" style="padding:0in 0in 0in 0in;width:355.5pt;">
  <p style="margin:12.0pt 0in .0001pt;text-align:justify;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">November 5, 2004</font></u></p>
  </td>
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  <td width="162" valign="top" style="padding:0in 0in 0in 0in;width:121.5pt;">
  <p style="margin:12.0pt 0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Expiration Date:</font></b></p>
  </td>
  <td width="474" valign="top" style="padding:0in 0in 0in 0in;width:355.5pt;">
  <p style="margin:12.0pt 0in .0001pt;text-align:justify;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">November 5, 2007</font></u></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="left" style="margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THIS WARRANT CERTIFIES THAT</font></b><font size="2" style="font-size:10.0pt;"> for value received, Mercator Advisory
Group, LLC or its registered assigns (hereinafter called the &#147;<b><i><font style="font-style:italic;font-weight:bold;">Holder</font></i></b>&#148;) is entitled to purchase
from Spescom Software Inc. (hereinafter called the &#147;<b><i><font style="font-style:italic;font-weight:bold;">Company</font></i></b>&#148;),
the above referenced number of fully paid and nonassessable shares (the &#147;<b><i><font style="font-style:italic;font-weight:bold;">Shares</font></i></b>&#148;) of common stock (the &#147;<b><i><font style="font-style:italic;font-weight:bold;">Common Stock</font></i></b>&#148;), of Company, at the
Warrant Price per Share referenced above; the number of shares purchasable upon
exercise of this Warrant referenced above being subject to adjustment from time
to time as described herein. This Warrant is issued in connection with that
certain Subscription Agreement dated as of November 5, 2004, by and between the
Company and Holder (the &#147;<b><i><font style="font-style:italic;font-weight:bold;">Subscription Agreement</font></i></b>&#148;).
The exercise of this Warrant shall be subject to the provisions, limitations
and restrictions contained herein.</font></p>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font></b><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Term and Exercise</font></u></b><font size="2" style="font-size:10.0pt;">.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">1.1&#160; <u>Term</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; This Warrant is exercisable in whole or in
part (but not as to any fractional share of Common Stock), at any time and from
time to time after the date hereof prior to 6:00 p.m. on the Expiration Date
set forth above.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">1.2&#160; <u>Warrant Price</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; The Warrant shall be exercisable at the
Warrant Price described above.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">1.3&#160; <u>Maximum Number&#160; of Shares</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; The maximum number of Shares of Common Stock
exercisable pursuant to this Warrant is 550,000 Shares.&#160; However, notwithstanding anything herein to
the contrary, in no event shall the Holder be permitted to exercise this
Warrant for a number of Shares greater than the number that would cause the
aggregate beneficial ownership of the Company&#146;s
Common Stock (calculated pursuant to Rule 13d-3 of the Securities Exchange Act
of 1934, as amended) of the Holder and all persons affiliated with the Holder
to equal 9.99% of the Company&#146;s Common Stock then outstanding.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">1.4&#160; <u>Procedure for Exercise of Warrant</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; Holder may exercise this Warrant by
delivering the following to the principal office of the Company in accordance
with Section&nbsp;5.1 hereof: (i)&nbsp;a duly executed Notice of Exercise in
substantially the form attached as Schedule&nbsp;A, (ii)&nbsp;payment of the
Warrant Price then in effect for each of the Shares being purchased, as
designated in the Notice of Exercise, and (iii) this Warrant.&#160; Payment of the Warrant Price may be in cash,
certified or official bank check payable to the order of the Company, or wire
transfer of funds to the Company&#146;s account (or any combination of any of the
foregoing) in the amount of the Warrant Price for each share being purchased.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">1.5&#160; <u>Delivery of Certificate and New Warrant</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; In the event of any exercise of the rights
represented by this Warrant, a certificate or certificates for the shares of
Common Stock so purchased, registered in the name of the Holder or such other
name or names as may be designated by the Holder, together with any other
securities or other property which the Holder is entitled to receive upon
exercise of this Warrant, shall be delivered to the Holder hereof, at the
Company&#146;s expense, within a reasonable time, not exceeding fifteen (15)
calendar days, after the rights represented by this Warrant shall have been so
exercised; and, unless this Warrant has expired, a new Warrant representing the
number of Shares (except a remaining fractional share), if any, with respect to
which this Warrant shall not then have been exercised shall also be issued to
the Holder hereof within such time.&#160; The
person in whose name any certificate for shares of Common Stock is issued upon
exercise of this Warrant shall for all purposes be deemed to have become the
holder of record of such shares on the date on which the Warrant was
surrendered and payment of the Warrant Price was received by the Company,
irrespective of the date of delivery of such certificate, except that, if the
date of such surrender and payment is on a date when the stock transfer books
of the Company are closed, such person shall be deemed to have become the
holder of such Shares at the close of business on the next succeeding date on
which the stock transfer books are open.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">1.6&#160; <u>Restrictive Legend</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; Each certificate for Shares shall bear a
restrictive legend in substantially the form as follows, together with any
additional legend required by (i)&nbsp;any applicable state securities laws and
(ii)&nbsp;any securities exchange upon which such Shares may, at the time of
such exercise, be listed:</font></h2>

<p style="font-weight:bold;margin:0in .25in 12.0pt 22.5pt;text-align:left;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">The shares of stock evidenced
by this certificate have not been registered under the U.S. Securities Act of
1933, as amended, and may not be offered, sold, pledged or otherwise
transferred (&#147;transferred&#148;) in the absence of such registration or an
applicable exemption therefrom. In the absence of such registration, such
shares may not be transferred unless, if the Company requests, the Company has
received a written opinion from counsel in form and substance satisfactory to
the Company stating that such transfer is being made in compliance with all
applicable federal and state securities laws.</font></b></p>

<p align="left" style="margin:0in 0in 6.0pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any certificate issued at
any time in exchange or substitution for any certificate bearing such legend
shall also bear such legend unless, in the opinion of counsel for the Holder
thereof (which counsel shall be reasonably satisfactory to the Company), the securities
represented thereby are not, at such time, required by law to bear such legend.</font></p>

<p align="center" style="margin:0in 0in 6.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

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<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">1.7&#160; <u>Fractional Shares</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; No fractional Shares shall be issuable upon
exercise or conversion of the Warrant.&#160;
In the event of a fractional interest, the number of Shares to be issued
shall be rounded down to the nearest whole Share.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;page-break-after:avoid;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font></b><b><u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;font-weight:bold;">Representations</font></u></b><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">, Warranties and Covenants</font></u></b><font size="2" style="font-size:10.0pt;">.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;page-break-after:avoid;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">2.1&#160; <u>Representations and Warranties</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.</font></h2>

<h3 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;text-indent:.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)&#160;&#160; The Company is a corporation duly organized,
validly existing and in good standing under the laws of its state of
incorporation and has all necessary power and authority to perform its
obligations under this Warrant;</font></h3>

<h3 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;text-indent:.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)&#160;&#160; The execution, delivery and performance of
this Warrant has been duly authorized by all necessary actions on the part of
the Company and constitutes the legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms; and</font></h3>

<h3 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;text-indent:.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)&#160;&#160; This Warrant does not violate and is not in
conflict with any of the provisions of the Company&#146;s Articles of Incorporation
or Certificate of Determination, Bylaws and any resolutions of the Company&#146;s
Board of Directors or stockholders, or any agreement of the Company, and no
event has occurred and no condition or circumstance exists that might (with or
without notice or lapse of time) constitute or result directly or indirectly in
such a violation or conflict.</font></h3>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">2.2&#160; <u>Issuance of Shares</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; The Company covenants and agrees that all
shares of Common Stock that may be issued upon the exercise of the rights
represented by this Warrant will, upon issuance, be validly issued, fully paid
and nonassessable, and free from all taxes, liens and charges with respect to
the issue thereof.&#160; The Company further
covenants and agrees that it will pay when due and payable any and all federal
and state taxes which may be payable in respect of the issue of this Warrant or
any Common Stock or certificates therefor issuable upon the exercise of this
Warrant.&#160; The Company further covenants
and agrees that the Company will at all times have authorized and reserved,
free from preemptive rights, a sufficient number of shares of Common Stock to
provide for the exercise in full of the rights represented by this
Warrant.&#160; If at any time the number of
authorized but unissued shares of Common Stock of the Company shall not be
sufficient to effect the exercise of the Warrant in full, subject to the
limitations set forth in Section 1.3 hereto, then the Company will take all
such corporate action as may, in the opinion of counsel to the Company, be
necessary or advisable to increase the number of its authorized shares of
Common Stock as shall be sufficient to permit the exercise of the Warrant in
full, subject to the limitations set forth in Section 1.3 hereto, including without
limitation, using its best efforts to obtain any necessary stockholder approval
of such increase.&#160; The Company further
covenants and agrees that if any shares of capital stock to be reserved for the
purpose of the issuance of shares upon the exercise of this Warrant require
registration with or approval of any governmental authority under any federal
or state law before such shares may be validly issued or delivered upon
exercise, then the Company will in good faith and as expeditiously as possible endeavor
to secure such registration or approval, as the case may be.&#160; If and so long as the Common Stock issuable
upon the exercise of this Warrant is listed on any national securities exchange
or the Nasdaq Stock Market, the Company will, if permitted by the rules of such
exchange or market, list and keep listed on such exchange or market, upon
official notice of issuance, all shares of such Common Stock issuable upon
exercise of this Warrant.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font></b><b><u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;font-weight:bold;">Other</font></u></b><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;"> Adjustments</font></u></b><font size="2" style="font-size:10.0pt;">.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">3.1&#160; <u>Subdivision or Combination of Shares</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; In case the Company shall at any time
subdivide its outstanding Common Stock into a greater number of shares, the
Warrant Price in effect immediately prior to such subdivision shall be
proportionately reduced, and the number of Shares subject to this Warrant shall
be proportionately increased, and conversely, in case the outstanding Common
Stock of the Company shall be combined into a smaller number of shares, the
Warrant Price in effect immediately prior to such combination shall be
proportionately increased, and the number of Shares subject to this Warrant
shall be proportionately decreased.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">3.2&#160; <u>Dividends in Common Stock, Other Stock or
Property</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; If at any
time or from time to time the holders of Common Stock (or any shares of stock
or other securities at the time receivable upon the exercise of this Warrant)
shall have received or become entitled to receive, without payment therefor:</font></h2>

<h3 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;text-indent:.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(a)&#160;&#160; Common Stock, Options or any shares or other
securities which are at any time directly or indirectly convertible into or
exchangeable for Common Stock, or any rights or options to subscribe for,
purchase or otherwise acquire any of the foregoing by way of dividend or other
distribution;</font></h3>

<h3 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;text-indent:.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(b)&#160;&#160; any cash paid or payable otherwise than as a
regular cash dividend; or</font></h3>

<h3 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;text-indent:.25in;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">(c)&#160;&#160; Common Stock or additional shares or other
securities or property (including cash) by way of spin-off, split-up,
reclassification, combination of shares or similar corporate rearrangement
(other than Common Stock issued as a stock split or adjustments in respect of
which shall be covered by the terms of Section 3.1 above) and additional
shares, other securities or property issued in connection with a Change (as
defined below) (which shall be covered by the terms of Section 3.4 below), then
and in each such case, the Holder hereof shall, upon the exercise of this
Warrant, be entitled to receive, in addition to the number of shares of Common
Stock receivable thereupon, and without payment of any additional consideration
therefor, the amount of stock and other securities and property (including cash
in the cases referred to in clause (b) above and this clause (c)) which such
Holder would hold on the date of such exercise had such Holder been the holder
of record of such Common Stock as of the date on which holders of Common Stock
received or became entitled to receive such shares or all other additional
stock and other securities and property.</font></h3>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">3.3&#160; <u>Reorganization, Reclassification,
Consolidation, Merger or Sale</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160;
If any recapitalization, reclassification or reorganization of the share
capital of the Company, or any consolidation or merger of the Company with
another corporation, or the sale of all or substantially all of its shares
and/or assets or other transaction (including, without limitation, a sale of
substantially all of its assets followed by a liquidation) shall be effected in
such a way that holders of Common Stock shall be entitled to receive shares,
securities or other assets or property (a &#147;<u>Change</u>&#148;), then, as a
condition of such Change, lawful and adequate provisions shall be made by the
Company whereby the Holder hereof shall thereafter have the right to purchase
and receive (in lieu of the Common Stock of the Company immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby)
such shares, securities or other assets or property as may be issued or payable
with respect to or in exchange for the number of outstanding Common Stock which
such Holder would have been entitled to receive had such Holder exercised this
Warrant immediately prior to the consummation of such Change.&#160; The Company or its successor shall promptly
issue to Holder a new Warrant for such new securities or other property.&#160; The new Warrant shall provide for adjustments
which shall be as nearly equivalent as may be practicable to give effect to the
adjustments provided for in this Section 3 including, without limitation,
adjustments to the Warrant Price and to the number of securities or property
issuable upon exercise of the new Warrant.&#160;
The provisions of this Section 3.3 shall similarly apply to successive
Changes.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font></b><b><u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;font-weight:bold;">Ownership</font></u></b><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;"> and Transfer</font></u></b><font size="2" style="font-size:10.0pt;">.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">4.1&#160; <u>Ownership of This Warrant</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; 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 this Section 4.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">4.2&#160; <u>Transfer and Replacement</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; Subject to the terms and conditions of this
Warrant and compliance with all applicable securities laws, and upon prior
written consent of the Company, which consent shall not be unreasonably
withheld, this Warrant and all rights hereunder are transferable in whole or in
part upon the books of the Company by the Holder hereof in person or by duly
authorized attorney, and a new Warrant or Warrants, of the same tenor as this
Warrant but registered in</font></h2>

<p align="center" style="margin:0in 0in 6.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div align="left" style="margin:0in 0in 6.0pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div style="font-family:Times New Roman;">

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">the name of the transferee or
transferees (and in the name of the Holder, if a partial transfer is effected)
shall be made and delivered by the Company upon surrender of this Warrant duly
endorsed, at the office of the Company in accordance with Section 6.1
hereof.&#160; Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft or destruction, and,
in such case, of indemnity or security reasonably satisfactory to it, and upon surrender
of this Warrant if mutilated, the Company will make and deliver a new Warrant
of like tenor, in lieu of this Warrant; provided that if the Holder hereof is
an instrumentality of a state or local government or an institutional holder or
a nominee for such an instrumentality or institutional holder an irrevocable
agreement of indemnity by such Holder shall be sufficient for all purposes of
this Warrant, and no evidence of loss or theft or destruction shall be
necessary.&#160; This Warrant shall be promptly
cancelled by the Company upon the surrender hereof in connection with any
transfer or replacement.&#160; Except as
otherwise provided above, in the case of the loss, theft or destruction of a
Warrant, the Company shall pay all expenses, taxes and other charges payable in
connection with any transfer or replacement of this Warrant, other than income
taxes and stock transfer taxes (if any) payable in connection with a transfer
of this Warrant, which shall be payable by the Holder.&#160; Holder will not transfer this Warrant and the
rights hereunder except in compliance with federal and state securities laws
and except after providing evidence of such compliance reasonably satisfactory
to the Company.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Compliance with Securities Laws</font></b><font size="2" style="font-size:10.0pt;">.&#160; By acceptance of this Warrant, the Holder
hereby represents, warrants and covenants that any shares of stock purchased
upon exercise of this Warrant or acquired upon conversion thereof shall be
acquired for investment only and not with a view to, or for sale in connection
with, any distribution thereof; that the Holder has had such opportunity as
Holder has deemed adequate to obtain from representatives of the Company such
information as is necessary to permit the Holder to evaluate the merits and
risks of its investment in the Company; that the Holder is able to bear the economic
risk of holding such shares as may be acquired pursuant to the exercise of this
Warrant for an indefinite period; that the Holder understands that the shares
of stock acquired pursuant to the exercise of this Warrant or acquired upon
conversion thereof will not be registered under the Act (unless otherwise
required pursuant to exercise by the Holder of the registration rights, if any,
previously granted to the registered Holder) and will be &#147;restricted
securities&#148; within the meaning of Rule 144 under the Securities Act of 1933 and
that the exemption from registration under Rule 144 will not be available for
at least one year from the date of exercise of this Warrant, and even then will
not be available unless a public market then exists for the stock, adequate
information concerning the Company is then available to the public, and other
terms and conditions of Rule 144 are complied with; and that all stock
certificates representing shares of stock issued to the Holder upon exercise of
this Warrant or upon conversion of such shares may have affixed thereto a
legend substantially in the form set forth in Section 1.6 above.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160; </font></b><b><u><font size="2" color="black" style="color:windowtext;font-size:10.0pt;font-weight:bold;">Miscellaneous</font></u></b><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;"> Provisions</font></u></b><font size="2" style="font-size:10.0pt;">.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.1</font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">&#160; <b><u><font style="font-weight:bold;">Notices</font></u></b>. &#160;Any notice or other document required or
permitted to be given or delivered to the Holder shall be delivered or
forwarded to the Holder at c/o Mercator Advisory Group, LLC, 555 South Flower
Street, Suite 4500, Los Angeles, California 90071, Attention:&#160; David F. Firestone (Facsimile No. 213/553
8285), or to such other address or number as shall have been furnished to the
Company in writing by the Holder, with a copy to Sheppard Mullin Richter &amp;
Hampton LLP, 333 South Hope Street, 48th Floor, Los Angeles, California
90071-1448 Attention David C. Ulich (Facsimile No. 213/620-1398).&#160; Any notice or other document required or
permitted to be given or delivered to the Company shall be delivered or
forwarded to the Company at 10052 Mesa Ridge Court, Suite 100, San Diego,
California, 92121, Attention:&#160; John Low
(Facsimile No. 858/625-3010), with a copy to Gibson, Dunn &amp; Crutcher LLP,
1881 Page Mill Rd., Palo Alto, California, 94304 Attention: Russell C. Hansen
(Facsimile No. 650/849-5083), or to such other address or number as shall have
been furnished to Holder in writing by the Company.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.2&#160; </font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">All notices, requests and approvals required by this
Warrant shall be in writing and shall be conclusively deemed to be given (i)
when hand-delivered to the other party, (ii) when received if sent by facsimile
at the address and number set forth above; provided that notices given by
facsimile shall not be effective, unless either (a) a duplicate copy of such
facsimile notice is promptly given by depositing the same in the mail, postage
prepaid and addressed to the party as set forth below or (b) the receiving
party delivers a written confirmation of receipt for such notice by any other
method permitted under this paragraph; and further provided that any notice
given by facsimile received after 5:00 p.m. (recipient&#146;s time) or on a
non-business day shall be deemed received on the next business day; (iii) five
(5) business days after deposit in the United States mail, certified, return
receipt requested, postage prepaid, and addressed to the party as set forth
below; or (iv) the next business day after deposit with an international
overnight delivery service, postage prepaid, addressed to the party as set
forth below with next business day delivery guaranteed; provided that the
sending party receives confirmation of delivery from the delivery service
provider.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.3&#160; <u>No Rights as Shareholder; Limitation of Liability</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; This Warrant shall not entitle the Holder to
any of the rights of a shareholder of the Company except upon exercise in
accordance with the terms hereof.&#160; No
provision hereof, in the absence of affirmative action by the Holder to
purchase shares of Common Stock, and no mere enumeration herein of the rights
or privileges of the Holder, shall give rise to any liability of the Holder for
the Warrant Price hereunder or as a shareholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.4&#160; <u>Governing Law</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160;
This Warrant shall be governed by and construed in accordance with the
laws of the State of California as applied to agreements among California
residents made and to be performed entirely within the State of California,
without giving effect to the conflict of law principles thereof.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.5&#160; <u>Binding Effect on Successors</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; This Warrant shall be binding upon any
corporation succeeding the Company by merger, consolidation or acquisition of
all or substantially all of the Company&#146;s assets and/or securities.&#160; All of the obligations of the Company
relating to the Shares issuable upon the exercise of this Warrant shall survive
the exercise and termination of this Warrant.&#160;
All of the covenants and agreements of the Company shall inure to the
benefit of the successors and assigns of the Holder.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;page-break-after:avoid;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.6&#160; <u>Waiver, Amendments and Headings</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by both parties (either generally or in a&#160; particular instance and either retroactively
or prospectively).&#160; The headings in this
Warrant are for purposes of reference only and shall not affect the meaning or
construction of any of the provisions hereof.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;page-break-after:avoid;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.7&#160; <u>Jurisdiction</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160;
Each of the parties irrevocably agrees that any and all suits or
proceedings based on or arising under this Agreement may be brought only in and
shall be resolved in the federal or state courts located in the City of Los Angeles,
California and consents to the jurisdiction of such courts for such
purpose.&#160; Each of the parties irrevocably
waives the defense of an inconvenient forum to the maintenance of such suit or
proceeding in any such court.&#160; Each of
the parties further agrees that service of process upon such party mailed by
first class mail to the address set forth in Section 5.1 shall be deemed in
every respect effective service of process upon such party in any such suit or
proceeding.&#160; Nothing herein shall affect
the right of a Holder to serve process in any other manner permitted by
law.&#160; Each of the parties agrees that a
final non-appealable judgment in any such suit or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on such judgment
or in any other lawful manner.</font></h2>

<h2 align="left" style="color:black;font-weight:normal;line-height:10.5pt;margin:0in 0in 6.0pt;page-break-after:avoid;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">6.8&#160; <u>Attorneys&#146; Fees and Disbursements</u></font></b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;">.&#160; If any action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the prevailing
party or parties shall be entitled to receive from the other party or parties
reasonable attorneys&#146; fees and disbursements in addition to any other relief to
which the prevailing party or parties may be entitled.</font></h2>

<p align="center" style="line-height:10.5pt;margin:0in 0in 6.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div align="left" style="margin:0in 0in 6.0pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="left" style="margin:0in 0in 6.0pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN
WITNESS WHEREOF</font></b><font size="2" style="font-size:10.0pt;">,
the Company has caused this Warrant to be signed by its duly authorized officer
this 5<sup>th</sup> day of November, 2004.</font></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.06%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">COMPANY:</font></b></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.94%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.06%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.94%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SPESCOM SOFTWARE INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.06%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.94%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.06%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.94%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.06%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.26%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">By</font></b></p>
  </td>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:49.68%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">/s/ John W. Low</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.06%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.94%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Print Name: &nbsp;John W. Low</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.06%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:53.94%;">
  <p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Title: &nbsp;Chief
  Financial officer</font></b></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in 6.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE A</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FORM OF NOTICE OF EXERCISE</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">[To
be signed only upon exercise of the Warrant]</font></i></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TO BE EXECUTED BY THE REGISTERED
HOLDER</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TO EXERCISE THE WITHIN WARRANT</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned hereby elects to purchase <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u>&nbsp;</b>shares
of Common Stock (the &#147;Shares&#148;) of Spescom Software, Inc. under the Warrant to
Purchase Common Stock dated October<b><font style="font-weight:bold;">&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></b>,
2004, which the undersigned is entitled to purchase pursuant to the terms of
such Warrant.&#160;&#160; The undersigned has
delivered $<b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>,
the aggregate Warrant Price for <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u>&nbsp;</b>Shares
purchased herewith, in full in cash or by certified or official bank check or
wire transfer.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please issue a certificate or certificates
representing such shares of Common Stock in the name of the undersigned or in
such other name as is specified below and in the denominations as is set forth
below:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;margin-left:35.35pt;">
 <tr>
  <td width="522" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:391.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="522" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:391.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Type Name of Holder as it should appear on the stock certificate]</font></p>
  </td>
 </tr>
 <tr>
  <td width="522" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:391.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="522" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:391.35pt;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="522" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:391.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Requested Denominations &#151; if no denomination is specified, a single
  certificate will be issued]</font></p>
  </td>
 </tr>
 <tr>
  <td width="522" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:391.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="522" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:391.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The initial address of such Holder to be entered on the books of
  Company shall be:</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="394" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:295.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="128" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:96.0pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="394" height="15" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:295.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="128" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:96.0pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="394" height="15" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:295.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="128" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:96.0pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="15" style="height:11.25pt;">
  <td width="394" height="15" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;height:11.25pt;padding:0in .7pt 0in .7pt;width:295.35pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="128" height="15" valign="top" style="height:11.25pt;padding:0in .7pt 0in .7pt;width:96.0pt;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:0in 0in 6.0pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in 6.0pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned
hereby represents and warrants that the undersigned is acquiring such shares
for his own account for investment purposes only, and not for resale or with a
view to distribution of such shares or any part thereof.</font></p>

<p align="left" style="margin:0in 0in 6.0pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="99%" style="border-collapse:collapse;width:99.98%;">
 <tr>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.14%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="48%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:48.48%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="10%" colspan="4" valign="top" style="padding:0in .7pt 0in .7pt;width:10.5%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Print&nbsp;Name:</font></p>
  </td>
  <td width="42%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:42.12%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:5.6%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="47%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:47.02%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.38%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:6.6%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated:</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.02%;">
  <p align="left" style="line-height:normal;margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="354" style="border:none;"></td>
  <td width="31" style="border:none;"></td>
  <td width="11" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="29" style="border:none;"></td>
  <td width="315" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in 6.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
<!-- SEQ.=1,FOLIO='1',FILE='C:\JMS\ctaft\04-13416-1\task225475\13416-1-kq.htm',USER='ctaft',CD='Nov 11 12:14 2004' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FORM OF ASSIGNMENT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(ENTIRE)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[To be signed only upon transfer
of entire Warrant]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TO BE EXECUTED BY THE REGISTERED
HOLDER<br>
TO TRANSFER THE WITHIN WARRANT</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FOR VALUE
RECEIVED</font></b><font size="2" style="font-size:10.0pt;"> <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>
hereby sells, assigns and transfers unto <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>
all rights of the undersigned under and pursuant to the within Warrant, and the
undersigned does hereby irrevocably constitute and appoint <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>
Attorney to transfer the said Warrant on the books of <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>,
with full power of substitution.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="47%" style="border-collapse:collapse;width:47.38%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Type Name of Holder]</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated: </font></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOTICE</font></b></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The signature to
the foregoing Assignment must correspond exactly to the name as written upon
the face of the within Warrant, without alteration or enlargement or any change
whatsoever.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FORM OF ASSIGNMENT<br>
(PARTIAL)</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[To be signed only upon partial
transfer of Warrant]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TO BE EXECUTED BY THE REGISTERED
HOLDER<br>
TO TRANSFER THE WITHIN WARRANT</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FOR VALUE RECEIVED
<b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>
hereby sells, assigns and transfers unto <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>
(i)&nbsp;the rights of the undersigned to purchase <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u>&nbsp;</b>shares
of Common Stock under and pursuant to the within Warrant, and (ii)&nbsp;on a
non-exclusive basis, all other rights of the undersigned under and pursuant to
the within Warrant, it being understood that the undersigned shall retain,
severally (and not jointly) with the transferee(s) named herein, all rights
assigned on such non-exclusive basis.&#160;
The undersigned does hereby irrevocably constitute and appoint <b><u><font style="font-weight:bold;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></b>
Attorney to transfer the said Warrant on the books of Spescom Software,
Inc.,&#160; with full power of substitution.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="47%" style="border-collapse:collapse;width:47.38%;">
 <tr>
  <td width="100%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Type Name of Holder]</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="86%" valign="top" style="padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.2%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated: </font></p>
  </td>
  <td width="86%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:86.8%;">
  <p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOTICE</font></b></p>

<p align="left" style="margin:12.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The signature to
the foregoing Assignment must correspond exactly to the name as written upon
the face of the within Warrant, without alteration or enlargement or any change
whatsoever.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

<div align="left" style="margin:6.0pt 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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