Document:

EXHIBIT 10.1

 

AMENDMENT NO. 2

TO

SECOND AMENDED AND RESTATED REVOLVING CREDIT AND TERM LOAN AGREEMENT

 

THIS AMENDMENT NO. 2 (“Amendment No. 2”) effective as
of March 31, 2008 (the “Effective Date”), to the Second Amended and
Restated Revolving Credit And Term Loan Agreement among HARDINGE
INC. (the “Borrower”)
the Banks signatory thereto, (the “Banks”) MANUFACTURERS
AND TRADERS TRUST COMPANY, as Agent and Lead Arranger, JPMORGAN
CHASE BANK, N.A., as Syndication Agent, and KEYBANK
NATIONAL ASSOCIATION, as Documentation Agent.

 

This Amendment No. 2 is made with
reference to the following facts:

 

R.1          The
Borrower, the Banks, the Agent, the Syndication Agent and the Documentation
Agent entered into a Second Amended and Restated Revolving Credit And Term Loan
Agreement dated as of November 21, 2006 (as amended by that certain
Amendment No. 1, dated as of February 28, 2008 the “Loan Agreement”).

 

R.2          The
Borrower, the Banks, the Agent, the Syndication Agent and the Documentation
Agent desire to amend  certain of the
terms of the Loan Agreement as outlined in this Amendment No. 2.

 

NOW THEREFORE, in
consideration of the mutual promises and agreements contained herein and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

 

1.             Definitions.  Except as otherwise set forth herein, as used
in this Amendment No. 2, the terms defined in the Loan Agreement shall
have the meanings assigned to them in the Loan Agreement.

 

2.             Amendment.  The definition of “EBITDA” set forth in Section 1.01
of the Credit Agreement is hereby amended in its entirety to read as follows:

 

“EBITDA” means Consolidated Net Income prior to the deduction of
Consolidated Interest Expense, prior to the deduction of federal or foreign corporate
income and corporate franchise taxes, prior to the deduction of depreciation
and amortization and MINUS to the extent included in the determination of
Consolidated Net Income for such period, the sum of the following for the
Borrower and its Consolidated Subsidiaries: (a) interest income, (b) any
extraordinary, unusual or non-recurring income or gains (including, whether or
not otherwise able to be included as a separate item in the statement of
Consolidated net Income for such period, gains on the sales of assets outside
the ordinary course of business), and (c) any other non-cash income, all
as determined on a consolidated basis and PLUS to the extent deducted in the
determination of 

 

 

1

 

 

Consolidated Net Income for such period, the sum of
the following for the Borrower and its Consolidated Subsidiaries: (i) a
pretax loss of $1,700,000 for the quarterly period ending on the Quarterly Date
of December 31, 2007, consisting of a gain of $1,100,000 with respect to
accounts payable offset by a deduction of $2,800,000 relating to profits in
inventory; (ii) a gain on sale of $1,400,000 for sale of the Exeter
England facility for the quarterly period ending on the Quarterly Date of September 30,
2007; and (iii) a net loss of $1,400,000 for the four quarterly periods
ending on the Quarterly Date of March 31, 2008 relating to currency
exchange losses.

 

3.             Representations
and Warranties.  Borrower hereby
represents and warrants to the Agent, in its capacity as an Agent and as a
Bank, and on behalf of the Banks that:

 

3.1           Corporate
Authority.  The execution, delivery
and performance by the Borrower of this Amendment No. 2 has been duly
authorized by all necessary corporate action and does not and will not require
any consent or approval of it shareholders, which has not been obtained, or
contravene its certificate of incorporation or by-laws, as amended to date.

 

3.2           Legally
Enforceable Amendment.  This
Amendment No. 2 and the Loan Agreement, as amended, are legal, valid and
binding obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms, without offset against or defense
thereto or counterclaim of any nature or kind, except to the extent that such
enforcement might be limited by applicable bankruptcy, insolvency or other
similar laws affecting creditors’ rights generally.

 

4.             Miscellaneous.  Except as expressly provided in this
Amendment No. 2, the Loan Agreement and the Loan Documents shall remain
unchanged and in full force and effect, except that each reference in the Loan
Agreement, and in any of the other Loan Documents, and in any agreements,
certificates and notices simultaneously herewith or hereafter executed under or
pursuant to the Loan Agreement or the other Loan Documents, to the “Loan
Agreement”, “this Agreement”, “hereof”, “herein” and similar terms referring to
the Loan Agreement and other Loan Documents, shall be deemed to refer to the
Loan Agreement and the other Loan Documents as amended by this Amendment No. 2.

 

This Amendment No. 2 shall be interpreted and construed according
to its fair meaning and neither for or against any party hereto, irrespective
of which party caused the same to be drafted. 
Each of the parties hereto hereby acknowledges that it has been or has
had the opportunity to be represented by an attorney in connection with the
preparation and execution of this Amendment No. 2.

 

All prior understandings, agreements, representations and warranties,
whether oral or written, between the Borrower and the Agent and/or the Borrower
and the Banks are merged into this Amendment No. 2, which Amendment No. 2
completely expresses their full agreement and has been entered into after full
investigations, neither party relying upon any statement made by anyone else
that is not set forth in this Amendment No. 2.

 

This Amendment No. 2
shall be governed by and construed in accordance with the laws 

 

 

2

 

 

of the State of New York
applicable to contracts made and to be performed in such state, without regard
to conflict of laws principles.

 

The section
headings in this Amendment No. 2 are inserted for convenience only and
shall not be considered a part of this instrument.

 

This Amendment No. 2
may be signed in any number of counterparts and /or facsimile or pdf versions
and each counterpart and/or facsimile or pdf shall constitute an original
instrument, but all such separate counterparts and facsimiles and pdf’s shall
constitute only one and the same instrument.

 

Remainder of page left intentionally blank

 

 

3

 

 

IN
WITNESS WHEREOF, the parties have caused this Amendment No. 2
to be executed as of the date first above written.

 

 

	
   

  	
  HARDINGE INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ J. PATRICK ERVIN

  
	
   

  	
   

  	
  Name:

  	
  J. Patrick Ervin

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  MANUFACTURERS AND TRADERS TRUST COMPANY, as Agent, Lead Arranger and as a Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ SUSAN A. BURTIS

  
	
   

  	
   

  	
  Name:

  	
  Susan A. Burtis

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., as Syndication Agent and as a Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ CHRISTINE DESCHAMPS

  
	
   

  	
   

  	
  Name:

  	
  Christine Deschamps

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KEY BANK NATIONAL ASSOCIATION, as Documentation Agent and as a Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ CARL J. LUGER

  
	
   

  	
   

  	
  Name:

  	
  Carl J. Luger

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

GS-1

 

 

	
   

  	
  NBT BANK, NATIONAL ASSOCIATION, as a Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ RONALD GOODWIN

  
	
   

  	
   

  	
  Name:

  	
  Ronald Goodwin

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

GS-2Exhibit 4.13

 

COMMON
STOCK WARRANT

 

NEITHER THIS WARRANT
NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISPOSITION OF THIS
WARRANT OR THE SHARES FOR WHICH THIS WARRANT IS EXERCISABLE MAY BE
EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR
THE HOLDER, SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED
UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE
COMMISSION.

 

WARRANT TO PURCHASE SHARES OF COMMON STOCK

 

	
   

  	
  Dated:

  	
  April 8, 2008

  

 

THIS CERTIFIES THAT,
for value received, Porter Novelli Life Sciences, LLC, (“Holder”) is entitled
to subscribe for and purchase that number of shares as set forth in Section 1
of the fully paid and nonassessable Common Stock (the “Shares” or the “Common
Stock”) of FAVRILLE, INC., a Delaware corporation (the “Company”), at the
Warrant Price (as hereinafter defined), subject to the provisions and upon the
terms and conditions hereinafter set forth. As used herein, the term “Common
Stock” shall mean the Company’s presently authorized Common Stock.

 

1.             Warrant Price and Number of
Shares.  The “Warrant Price” per share shall initially be $1.80,
subject to adjustment as provided in Section 7 below. This Warrant shall
be exercisable for Ten Thousand (10,000) shares of Common Stock.

 

2.             Conditions to
Exercise.  The purchase right represented by this Warrant may be
exercised at any time, or from time to time, in whole or in part during
the term commencing on the date hereof and ending at 5:00 P.M. Eastern
Standard time on the fifth (5th) annual anniversary of this Warrant.

 

3.             Method of Exercise; Payment;
Issuance of Shares; Issuance of New Warrant.

 

(a)                                  Cash
Exercise. Subject to Section 2 hereof, the
purchase right represented by this Warrant may be exercised by the Holder
hereof, in whole or in part, by the surrender of this Warrant (with a duly
executed Notice of Exercise in the form attached hereto) at the principal
office of the Company (as set forth in Section 17 below) and by payment to
the Company, by check, of an amount equal to the then applicable Warrant Price
per share multiplied by the number of shares then being purchased. In the event
of any exercise of the rights represented by this Warrant, certificates for the
shares of stock so purchased shall be in the name of, and delivered to, the
Holder hereof, or as such Holder may direct (subject to the terms of
transfer contained herein and upon payment by such Holder hereof of any
applicable transfer taxes). Such delivery shall be made within 10 days after
exercise of the Warrant and at the Company’s expense and, unless this Warrant
has been fully exercised or expired, a new Warrant having terms and conditions
substantially identical to this Warrant and representing the portion of the
Shares, if any, with respect to which this Warrant shall not have been
exercised, shall also be issued to the Holder hereof within 10 days after
exercise of the Warrant.

 

(b)                                 Net
Issue Exercise. In lieu of
exercising this Warrant pursuant to Section 3(a), Holder may elect to
receive shares equal to the value of this Warrant (or of any portion thereof
remaining unexercised) by surrender of this Warrant at the principal office of
the Company together with notice of such election, in which event the Company
shall issue to Holder the number of shares of the Company’s Common Stock
computed using the following formula:

 

X = Y (A-B)

A

 

Where X = the number of shares of Common Stock
to be issued to Holder.

 

Y = the number of shares of Common Stock
purchasable under this Warrant (at the date of such calculation).

 

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

 

B = Warrant Price per share (as adjusted to the
date of such calculation).

 

 

(c)                                  Fair
Market Value. For purposes
of this Section 3, “Fair Market Value” of one share of the Company’s
Common Stock shall mean:

 

(i)                                     If
the Common Stock is traded Over-The-Counter or on The NASDAQ Stock Market, LLC
or on another exchange, the per share Fair Market Value for the Common Stock
will be the average of the closing bid and asked prices of the Common Stock
quoted in the Over-The-Counter Market Summary or the closing price quoted on
any exchange on which the Common Stock is listed, whichever is applicable, as
published in the Western Edition of The Wall Street Journal for the ten (10) trading
days prior to the date of determination of Fair Market Value; or

 

(ii)                                  In
any other instance, the per share Fair Market Value for the Common Stock shall
be as determined in good faith by the Company’s Board of Directors.

 

In the event of 3(c)(ii) above, the
Company’s Board of Directors shall prepare a certificate, to be signed by an
authorized Officer of the Company, setting forth in reasonable detail the basis
for and method of determination of the per share Fair Market Value of the
Common Stock. The Board will also certify to the Holder that this per share
Fair Market Value will be applicable to all holders of the Company’s Common
Stock that require a fair market value determination as of the same date as
Holder.

 

(d)                                 Automatic
Exercise. To the extent this Warrant is not
previously exercised, it shall be automatically exercised in accordance with
Sections 3(b) and 3(c) hereof (even if not surrendered) immediately
before its expiration.

 

(e)                                  No Net Cash
Settlement. 
Notwithstanding any other provision of this Warrant to the contrary,
under no circumstances will the Company be required to effect any “net-cash
settlement” (within the meaning of the Financial Accounting Standards Board’s
EITF 00-19, Accounting for Derivative
Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own
Stock) of this Warrant.

 

4.             Representations and Warranties
of Holder and Restrictions on Transfer Imposed by the Securities Act of 1933.

 

(a)                                  Representations
and Warranties by Holder. The Holder
represents and warrants to the Company with respect to this purchase as
follows:

 

(i)                                     The
Holder has substantial experience in evaluating and investing in private
placement transactions of securities of companies similar to the Company so
that the Holder is capable of evaluating the merits and risks of its investment
in the Company and has the capacity to protect its interests. The Holder is an “accredited
investor” as that term is defined in Rule 501 promulgated under the
Securities Act of 1933, as amended (the “Act”).

 

(ii)                                  The
Holder is acquiring the Warrant and the Shares of Common Stock issuable upon
exercise of the Warrant (collectively the “Securities”) for investment for its
own account and not with a view to, or for resale in connection with, any
distribution thereof. The Holder understands that the Securities have not been
registered under the Act by reason of a specific exemption from the
registration provisions of the Act, which depends upon, among other things, the
bona fide nature of the investment intent as expressed herein. In this
connection, the Holder understands that, in the view of the Securities and
Exchange Commission (the “SEC”), the statutory basis for such exemption
may be unavailable if this representation was predicated solely upon a
present intention to hold the Securities for the minimum capital gains period
specified under tax statutes, for a deferred sale, for or until an increase or
decrease in the market price of the Securities or for a period of one year or
any other fixed period in the future.

 

(iii)                               The
Holder acknowledges that the Securities must be held indefinitely unless
subsequently registered under the Act or an exemption from such registration is
available. The Holder is aware of the provisions of Rule 144 promulgated
under the Act (“Rule 144”) which permits limited resale of securities
purchased in a private placement subject to the satisfaction of certain
conditions more fully set forth in such rule.

 

(iv)                              The
Holder further understands that at the time the Holder wishes to sell the
Securities there may be no public market upon which such a sale
may be effected, and that even if such a public market exists, the Company
may not be satisfying the current public information requirements of Rule 144,
and that in such event, the Holder may be precluded from selling the
Securities under Rule 144.

 

 

(v)                                 The
Holder has had an opportunity to discuss the Company’s business, management and
financial affairs with its management. The Holder understands that such
discussions, as well as the written information issued by the Company, were
intended to describe the aspects of the Company’s business and prospects which
it believes to be material but were not necessarily a thorough or exhaustive
description.

 

(vi)                              This
Warrant and the Shares issuable upon exercise of this Warrant (and the
securities issuable, directly or indirectly, upon conversion of the Shares, if
any) may not be transferred or assigned in whole or in part without
compliance with applicable federal and state securities laws by the transferor
and the transferee (including, without limitation, the delivery of investment
representation letters and legal opinions reasonably satisfactory to the
Company, as reasonably requested by the Company) and the transferee agrees to
be bound by all of the terms and conditions of this Warrant. The Company shall
not require Holder to provide an opinion of counsel if the transfer is to any
other affiliate of Holder. Additionally, the Company shall also not require an
opinion of counsel if there is no material question as to the availability of Rule 144.

 

(b)                                 Legends.
Each certificate representing the Securities shall be endorsed with the
following legend:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED UNLESS
COVERED BY AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, A “NO ACTION”
LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH
TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE
SECURITIES AND EXCHANGE COMMISSION, OR (IF REASONABLY REQUIRED BY THE COMPANY)
AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY SUCH
TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

The Company need not enter into its stock
register a transfer of Securities unless the conditions specified in the
foregoing legend are satisfied. The Company may also instruct its transfer
agent not to register the transfer of any of the Shares unless the conditions
specified in the foregoing legend are satisfied.

 

(c)                                  Removal
of Legend and Transfer Restrictions.
The legend relating to the Act endorsed on a certificate pursuant to paragraph
4(b) of this Warrant and the stop transfer instructions with respect to
the Securities represented by such certificate shall be removed and the Company
shall issue a certificate without such legend to the Holder of the Securities
if (i) the Securities are registered under the Act and a prospectus
meeting the requirements of Section 10 of the Act is available or (ii) the
Holder provides to the Company an opinion of counsel for the Holder reasonably
satisfactory to the Company, or a no-action letter or interpretive opinion of
the staff of the SEC reasonably satisfactory to the Company, to the effect that
public sale, transfer or assignment of the Securities may be made without
registration and without compliance with any restriction such as Rule 144.

 

5.             Condition of Transfer or
Exercise of Warrant. It shall be a condition to any transfer or exercise of
this Warrant that at the time of such transfer or exercise, the Holder shall
provide the Company with a representation in writing that the Holder or
transferee is acquiring this Warrant and the shares of Common Stock to be
issued upon exercise, for investment purposes only and not with a view to any
sale or distribution, or will provide the Company with a statement of pertinent
facts covering any proposed distribution. As a further condition to any
transfer of this Warrant or any or all of the shares of Common Stock issuable
upon exercise of this Warrant, other than a transfer registered under the Act,
the Company must have received a legal opinion, in form and substance
satisfactory to the Company and its counsel, reciting the pertinent
circumstances surrounding the proposed transfer and stating that such transfer
is exempt from the registration and prospectus delivery requirements of the
Act. Each certificate evidencing the shares issued upon exercise of the Warrant
or upon any transfer of the shares (other than a transfer registered under the
Act or any subsequent transfer of shares so registered) shall, at the Company’s
option, contain a legend in form and substance satisfactory to the Company
and its counsel, restricting the transfer of the shares to sales or other
dispositions exempt from the requirements of the Act.

 

As
further condition to each transfer, the Holder shall surrender this Warrant to
the Company and the transferee shall receive and accept a Warrant, of like
tenor and date, executed by the Company.

 

6.             Stock Fully Paid; Reservation of
Shares.  All Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be fully paid and
nonassessable, and free from all taxes, liens, and charges with respect to the
issue thereof. During the period within which the rights represented by this
Warrant may be exercised, the Company will at all times have authorized,
and reserved for issuance upon exercise of the purchase rights evidenced by
this Warrant, a sufficient number of shares of its Common Stock to provide for
the exercise of the rights represented by this Warrant.

 

7.             Adjustment for Certain Events.
 In the event of changes in the outstanding Common Stock by reason of
stock dividends, split-ups, recapitalizations, reclassifications, mergers,
consolidations, combinations or exchanges of shares, separations, 

 

 

reorganizations,
liquidations, or the like, the number and class of shares available under
the Warrant in the aggregate and the Warrant Price shall be correspondingly
adjusted, as appropriate, by the Board of Directors of the Company. The
adjustment shall be such as will give the Holder of this Warrant upon exercise
for the same aggregate Warrant Price the total number, class and kind of
shares as it would have owned had the Warrant been exercised prior to the event
and had it continued to hold such shares until after the event requiring
adjustment.

 

8.             Notice of Adjustments.
 Whenever any Warrant Price shall be adjusted pursuant to Section 7
hereof, the Company shall prepare a certificate signed by its chief financial
officer setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment
was calculated, and the Warrant Price and number of Shares issuable upon
exercise of the Warrant after giving effect to such adjustment, and shall cause
copies of such certificate to be mailed (by certified or registered mail,
return receipt required, postage prepaid) within thirty (30) days of such
adjustment to the Holder of this Warrant as set forth in Section 19
hereof.

 

9.             Transferability of Warrant.
This Warrant is transferable on the books of the Company at its principal
office by the registered Holder hereof upon surrender of this Warrant properly
endorsed, subject to compliance with Section 5 and applicable federal and
state securities laws. The Company shall issue and deliver to the transferee a
new Warrant representing the Warrant so transferred. Upon any partial transfer,
the Company will issue and deliver to Holder a new Warrant with respect to the
Warrant not so transferred.

 

10.           No Fractional Shares.  No
fractional share of Common Stock will be issued in connection with any exercise
hereunder, but in lieu of such fractional share the Company shall make a cash
payment therefor upon the basis of the Warrant Price then in effect.

 

11.           Charges, Taxes and Expenses.
Issuance of certificates for shares of Common Stock upon the exercise of this
Warrant shall be made without charge to the Holder for any United States or
state of the United States documentary stamp tax or other incidental expense
with respect to the issuance of such certificate, all of which taxes and
expenses shall be paid by the Company, and such certificates shall be issued in
the name of the Holder.

 

12.           No Stockholder Rights Until
Exercise. This Warrant does not entitle the Holder hereof to any voting
rights or other rights as a stockholder of the Company prior to the exercise
hereof.

 

13.           Registry of Warrant. The
Company shall maintain a registry showing the name and address of the
registered Holder of this Warrant. This Warrant may be surrendered for
exchange or exercise, in accordance with its terms, at such office or agency of
the Company, and the Company and Holder shall be entitled to rely in all
respects, prior to written notice to the contrary, upon such registry.

 

14.           Loss, Theft, Destruction or
Mutilation of Warrant. Upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and, in the case of loss, theft, or destruction, of indemnity reasonably
satisfactory to it, and, if mutilated, upon surrender and cancellation of this
Warrant, the Company will execute and deliver a new Warrant, having terms and
conditions substantially identical to this Warrant, in lieu hereof.

 

15.           Miscellaneous.

 

(a)                                  Issue
Date.  The provisions of this Warrant
shall be construed and shall be given effect in all respect as if it had been
issued and delivered by the Company on the date hereof.

 

(b)                                 Successors.
 This Warrant shall be binding upon any successors or assigns of the
Company.

 

(c)                                  Governing
Law.  This Warrant shall be governed by
and construed in accordance with the laws of the State of California.

 

(d)                                 Headings.
 The headings used in this Warrant are used for convenience only and are
not to be considered in construing or interpreting this Warrant.

 

(e)                                  Saturdays,
Sundays, Holidays.  If the
last or appointed day for the taking of any action or the expiration of any
right required or granted herein shall be a Saturday or a Sunday or shall be a
legal holiday in the State of California, then such action may be taken or
such right may be exercised on the next succeeding day not a legal
holiday.

 

16.           No Impairment. The Company
shall not by any action including, without limitation, amending its articles or
certificate of incorporation or by-laws, any reorganization, transfer of
assets, consolidation, merger, share exchange dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of the Warrant or impair the ability of the
Holder(s) to realize upon the intended economic value hereof, but will at
all times in good faith assist in the 

 

 

carrying out of all
such terms and in the taking of all such action as may be necessary or
appropriate to protect the rights of the Holder(s) hereof against
impairment.

 

17.           Addresses. Any notice required
or permitted hereunder shall be in writing and shall be mailed by overnight
courier, registered or certified mail, return receipt required, and postage pre-paid,
or otherwise delivered by hand or by messenger, addressed as set forth below,
or at such other address as the Company or the Holder hereof shall have
furnished to the other party.

 

	
   

  	
  If to the Company:

  	
  Favrille, Inc.

  
	
   

  	
   

  	
  10445 Pacific Center
  Court

  
	
   

  	
   

  	
  San Diego, CA 92121

  
	
   

  	
   

  	
  Attn: Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the Holder:

  	
  Porter Novelli Life Sciences, LLC

  
	
   

  	
   

  	
  3033 5th
  Avenue, Ste. 400

  
	
   

  	
   

  	
  San Diego,
  California 92103

  
	
   

  	
   

  	
  Attn: Carin Canale,
  President

  

 

18.           Modification and Waiver. The
Warrant and any provision hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the Company and the
Holder of the Warrant.

 

 

IN WITNESS WHEREOF, the Company has caused this
Warrant to be executed by an officer thereunto duly authorized.

 

	
  Dated as of April 8,
  2008.

  
	
   

  
	
  FAVRILLE, INC.

  
	
   

  
	
  By:

  	
  /s/ Tamara A.
  Seymour

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  Tamara A. Seymour

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  

 

 

NOTICE OF EXERCISE

 

TO:

 

1.             The undersigned Warrantholder (“Holder”)
elects to acquire shares of the Common Stock (the “Common Stock”) of Favrille, Inc.
(the “Company”), pursuant to the terms of the Common Stock Warrant dated April 8,
2008 (the “Warrant”).

 

2.             The Holder exercises its rights
under the Warrant as set forth below:

 

o                                    The
Holder elects to purchase              shares
of Common Stock as provided in Section 3(a) and 3(c) and tenders
herewith a check in the amount of $             as
payment of the Warrant Price.

 

o                                    The
Holder elects to net issue exercise the Warrant for shares of Common Stock as
provided in Section 3(b) and 3(c) of the Warrant.

 

3.             The Holder surrenders the Warrant
with this Notice of Exercise.

 

4.             The Holder represents that it is
acquiring the aforesaid shares of Common Stock for investment and not with a
view to, or for resale in connection with, distribution and that the Holder has
no present intention of distributing or reselling the shares unless in
compliance with all applicable federal and state securities laws.

 

5.             Please issue a certificate
representing the shares of the Common Stock in the name of the Holder or in
such other name as is specified below:

 

 

	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Taxpayer I.D.:

  

 

 

	
   

  	
  Porter Novelli Life
  Sciences, LLC

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]