Document:

Exhibit 4.2

 

THIS WARRANT AND THE
SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
STATE SECURITIES LAWS OR UNLESS THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT THE REGISTRATION OF SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

WARRANT TO PURCHASE

SHARES OF COMMON STOCK

OF

SP HOLDING CORPORATION

Expires
                  ,
2012

No.: W-                                                                                                                                 Number
of
Shares:              

Date of Issuance:                  
, 2007

FOR VALUE RECEIVED, the
undersigned, SP Holding Corporation, a Delaware corporation (together with its
successors and assigns, the “Issuer”), hereby certifies that
                            
(“Holder”), or the Holder’s registered assigns, is entitled to subscribe
for and purchase, during the Term (as hereinafter defined), up
to                  
(            )
shares (subject to adjustment as hereinafter provided) of the duly authorized,
validly issued, fully paid and non-assessable Common Stock of the Issuer, at an
exercise price per share equal to the Warrant Price then in effect, subject,
however, to the provisions and upon the terms and conditions hereinafter set
forth.  Capitalized terms used in this
Warrant and not otherwise defined herein shall have the respective meanings
specified in Section 12 hereof.

1.             Term.  The term of this Warrant shall commence on                   ,
2007 and shall expire at 5:00 p.m., eastern time, on
                  ,
2012 (such period being the “Term”).

2.             Method of Exercise; Payment;
Issuance of New Warrant; Transfer and Exchange.

(a)           Time
of Exercise.  The purchase rights
represented by this Warrant may be exercised in whole or in part during the
Term.

(b)           Method
of Exercise.  The Holder hereof may
exercise this Warrant, in whole or in part, by the surrender of this Warrant
(with the exercise form attached hereto duly executed) at the principal office
of the Issuer, and by the payment to the Issuer of an amount of consideration
therefor equal to the Warrant Price in effect on the date of such exercise
multiplied by the number of shares of Warrant Stock with respect to which this
Warrant is then being exercised, payable at such Holder’s election (i) by
certified or official bank check or by wire transfer to an account designated
by the Issuer, (ii) by “cashless exercise” in accordance with the provisions of
Section 2(c), or (iii) by a combination of the foregoing methods of payment
selected by the Holder of this Warrant.

(c)           Cashless
Exercise.  Notwithstanding any
provisions herein to the contrary and commencing twelve (12) months following
the Original Issue Date, if (i) the Per Share Market Value of one share of
Common Stock is greater than the Warrant Price (at the date of exercise) and
(ii) a registration statement under the Securities Act providing for the resale
of the Warrant Stock is not then in effect, in lieu of exercising this Warrant
by payment of cash, the Holder may exercise this Warrant by a cashless exercise
and shall receive the number of shares of Common Stock equal to an amount (as
determined below) by surrender of this Warrant at the principal office of the
Issuer together with the properly endorsed Notice of Exercise in which event
the Issuer shall issue to the Holder a number of shares of 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 the Holder.

Y =                              the
number of shares of Common Stock purchasable upon exercise of all of the
Warrant or, if only a portion of the Warrant is being exercised, the portion of
the Warrant being exercised.

A =                            the
Per Share Market Value of one share of Common Stock.

B =          the
Warrant Price.

(d)           Issuance
of Stock Certificates.  In the event
of any exercise of this Warrant in accordance with and subject to the terms and
conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding five (5) calendar days after the
exercise notice is delivered to the Issuer (the “Delivery Date”) or, at
the request of the Holder (provided that a registration statement under the
Securities Act providing for the resale of the Warrant Stock is then in
effect), issued and delivered to the Depository Trust Company (“DTC”)
account on the Holder’s behalf via the Deposit Withdrawal Agent Commission
System (“DWAC”) within a reasonable time, and the Holder hereof shall be
deemed for all purposes to be the holder of the shares of Warrant

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Stock so purchased as of the date of such exercise and (ii) unless this
Warrant has expired, a new Warrant representing the number of shares of Warrant
Stock, if any, with respect to which this Warrant shall not then have been
exercised (less any amount thereof which shall have been canceled in payment or
partial payment of the Warrant Price as hereinabove provided) shall also be
issued to the Holder hereof at the Issuer’s expense within such time.

(e)           Transferability
of Warrant.  Subject to Section 2(f)
hereof and prior to the occurrence of a Public Event, this Warrant may be
transferred by a Holder only with the prior written consent of the Issuer,
which consent will not be unreasonably withheld.  If transferred pursuant to this paragraph,
this Warrant may be transferred on the books of the Issuer by the Holder hereof
upon surrender of this Warrant at the principal office of the Issuer, properly
endorsed (by the Holder executing an assignment in the form attached hereto)
and upon payment by the Holder of any necessary transfer tax or other
governmental charge imposed upon such transfer. 
This Warrant is exchangeable at the principal office of the Issuer for
Warrants to purchase the same aggregate number of shares of Warrant Stock, each
new Warrant to represent the right to purchase such number of shares of Warrant
Stock as the Holder hereof shall designate at the time of such exchange.  All Warrants issued on transfers or exchanges
shall be dated the Original Issue Date and shall be identical with this Warrant
except as to the number of shares of Warrant Stock issuable pursuant thereto.

(f)            Compliance
with Securities Laws.

(i)            The
Holder of this Warrant, by acceptance hereof, acknowledges and agrees that this
Warrant and the shares of Warrant Stock to be issued upon exercise hereof are
being acquired solely for the Holder’s own account and not as a nominee for any
other party, and for investment purposes only and not with a view to the resale
or distribution of any part thereof, and that the Holder will not offer, sell
or otherwise dispose of this Warrant or any shares of Warrant Stock to be
issued upon the exercise hereof except pursuant to an effective registration
statement, or an exemption from registration, under the Securities Act and any applicable
state securities laws.  The Holder
represents and warrants to the Issuer that the Holder is an “accredited
investor” as such term is defined in Rule 501 of Regulation D promulgated under
the Securities Act.

(ii)           Except
as provided in Section 2(f)(iii) below, this Warrant and all certificates
representing shares of Warrant Stock issued upon exercise hereof shall be
stamped or imprinted with a legend in substantially the following form:

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
AND UNDER

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APPLICABLE STATE SECURITIES LAWS OR UNLESS THE ISSUER SHALL HAVE
RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

(iii)          Subject
to the satisfaction of the conditions set forth in this Section 2(f)(iii), the
Issuer agrees to reissue this Warrant or certificates representing any of the
Warrant Stock, without the legend set forth above if at such time, prior to
making any transfer of any such securities, the Holder shall give written
notice to the Issuer describing the manner and terms of such transfer.  Such proposed transfer will not be effected
until: (a) either (i) the Issuer has received an opinion of counsel reasonably
satisfactory to the Issuer, to the effect that the registration of such
securities under the Securities Act is not required in connection with such
proposed transfer, (ii) a registration statement under the Securities Act
covering such proposed disposition has been filed by the Issuer with the
Securities and Exchange Commission and has become effective under the
Securities Act, or (iii) the Holder provides the Issuer with reasonable
assurances that such security can be sold pursuant to Rule 144 under the
Securities Act; and (b) either (i) the Issuer has received an opinion of
counsel reasonably satisfactory to the Issuer, to the effect that registration
or qualification under the securities or “blue sky” laws of any state is not
required in connection with such proposed disposition, or (ii) compliance with
applicable state securities or “blue sky” laws has been effected or a valid
exemption exists with respect thereto. 
The Issuer will respond to any such notice from a holder as soon as is
practicable, but in no event later than five (5) business days after the Issuer’s
receipt of such notice.  In the case of
any proposed transfer under this Section 2(f)(iii), the Issuer will use
reasonable efforts to comply with any such applicable state securities or “blue
sky” laws, but shall in no event be required, (x) to qualify to do business in
any state where it is not then qualified, (y) to take any action that would
subject it to tax or to the general service of process in any state where it is
not then subject, or (z) to comply with state securities or “blue sky” laws of
any state for which registration by coordination is unavailable to the
Issuer.  The restrictions on transfer
contained in this Section 2(f)(iii) shall be in addition to, and not by way of
limitation of, any other restrictions on transfer contained in any other
section of this Warrant.

3.             Stock Fully Paid; Reservation of
Shares; Covenants.

(a)           Stock
Fully Paid; Reservation of Shares. 
The Issuer represents, warrants, covenants and agrees that all shares of
Warrant Stock which may be issued upon the exercise of this Warrant or
otherwise hereunder will, when issued in accordance with the terms of this
Warrant, be duly authorized, validly issued, fully paid and non-assessable and
free from all liens and encumbrances created by or through the Issuer.  The Issuer further covenants and agrees that
during the period within which this Warrant may be exercised, the Issuer will
at all times have authorized and reserved for the purpose of issuance upon
exercise of this Warrant a number of shares of Common Stock equal to

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at least one hundred twenty percent (120%) of the aggregate number of
shares of Common Stock required to provide for the exercise of this Warrant.

(b)           Covenants.  The Issuer shall not by any action,
including, without limitation, amending its Certificate of Incorporation or the
by-laws, or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this
Warrant.  Without limiting the generality
of the foregoing, the Issuer will (i) not permit the par value, if any, of its
Common Stock to exceed the then effective Warrant Price, (ii) not amend or
modify any provision of its Certificate of Incorporation or by-laws in any
manner that would adversely affect the rights of the Holders of the Warrants,
(iii) take all such action as may be reasonably necessary in order that the
Issuer may validly and legally issue fully paid and non-assessable shares of
Common Stock, free and clear of any liens and encumbrances (other than as
provided herein) upon the exercise of this Warrant, and (iv) use its best
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be reasonably
necessary to enable the Issuer to perform its obligations under this Warrant.

(c)           Loss,
Theft, Destruction of Warrants.  Upon
receipt of evidence satisfactory to the Issuer of the ownership of and the
loss, theft, destruction or mutilation of any Warrant and, in the case of any
such loss, theft or destruction, upon receipt of indemnity or security
satisfactory to the Issuer or, in the case of any such mutilation, upon
surrender and cancellation of such Warrant, the Issuer will make and deliver,
in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of
like tenor and representing the right to purchase the same number of shares of
Common Stock.

4.             Effect of Reorganization, Etc.

(a)           Reorganization,
Consolidation, Merger, Etc.  In case
at any time or from time to time, the Issuer shall (i) effect a reorganization,
(ii) consolidate with or merge into any other Person, or (iii) transfer all or
substantially all of its properties or assets to any other Person under any
plan or arrangement contemplating the dissolution of the Issuer, then, in each
such case, as a condition to the consummation of such a transaction, proper and
adequate provision shall be made by the Issuer whereby the Holder, on the
exercise hereof at any time after the consummation of such reorganization,
consolidation or merger or the effective date of such dissolution, as the case
may be, shall receive (from the surviving entity or the parent of the surviving
entity in a reorganization, consolidation or merger), in lieu of the Warrant
Stock issuable on such exercise prior to such consummation or such effective
date, the stock and other securities and property to which such Holder would
have been entitled upon the consummation of such reorganization, consolidation
or merger (the amount of which shall be computed on the basis of the actual
exchange ratio on which such transaction was predicated) or in connection with
such dissolution, as the case may be, if such Holder had so exercised this
Warrant, immediately prior thereto.

 5
 

(b)           Assumption
of Warrant; Continuation of Terms. 
Upon any reorganization, consolidation, merger or transfer referred to
in this Section 4, this Warrant shall be assumed by the surviving entity or the
parent of the surviving entity (as applicable) in any such reorganization,
consolidation or merger (as applicable), shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and
other securities and property receivable on the exercise of this Warrant after
the consummation of such reorganization, consolidation or merger, as the case
may be, and shall be binding upon the issuer of any such stock or other
securities, including, in the case of any such transfer, the Person acquiring
all or substantially all of the properties or assets of the Issuer, whether or
not such person shall have expressly assumed the terms of this Warrant.

5.             Extraordinary
Events Regarding Common Stock.  In
the event that the Issuer shall (a) issue additional shares of the Common Stock
as a dividend or other distribution on outstanding Common Stock issued by the
Issuer (b) subdivide its outstanding shares of Common Stock, or
(c) combine its outstanding shares of the Common Stock into a smaller
number of shares of the Common Stock, then, in each such event, the Warrant
Price shall, simultaneously with the happening of such event, be adjusted by
multiplying the then Warrant Price by a fraction, the numerator of which shall
be the number of shares of Common Stock outstanding immediately prior to such
event and the denominator of which shall be the number of shares of Common
Stock outstanding immediately after such event, and the product so obtained
shall thereafter be the Warrant Price then in effect. The Warrant Price, as so
adjusted, shall be readjusted in the same manner upon the happening of any
successive event or events described herein in this Section 5.  The number of shares of Warrant Stock that
the Holder shall thereafter, on the exercise hereof as provided in Section 2,
be entitled to receive shall be adjusted to a number determined by multiplying
the number of shares of Warrant Stock that would otherwise (but for the
provisions of this Section 5) be issuable on such exercise by a fraction of
which (a) the numerator is the Warrant Price that would otherwise (but for the
provisions of this Section 5) be in effect, and (b) the denominator is the
Warrant Price in effect on the date of such exercise (taking into account the
provisions of this Section 5). 
Notwithstanding the foregoing, in no event shall the Exercise Price be
less than the par value of the Common Stock.

6.             Issuance of Additional Shares of
Common Stock.

(a)           In
the event the Issuer shall at any time following the Original Issue Date issue
any Additional Shares of Common Stock (otherwise than as provided in Section 4
and 5), at a price per share less than the Warrant Price then in effect or
without consideration (a “Dilutive Issuance”), then the Warrant Price
upon each such issuance shall be adjusted to that price determined in
accordance with the following formula:

	
  Adjusted Warrant Price =

  	
   

  	
  (OS x WP) + NI

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OS + NS

  	
   

  
					

 

 6
 

Where:                                                         OS
=       Outstanding shares of Common Stock
prior to the Dilutive Issuance.

WP =      Warrant
Price in effect prior to the Dilutive Issuance.

NI =                         Aggregate
consideration received by the Issuer upon the Dilutive Issuance in dollars.

NS =                      Number of
Additional Shares of Common Stock issued in the Dilutive Issuance.

(b)           No
adjustment of the number of shares of Common Stock for which this Warrant shall
be exercisable shall be made under Section 6(a) upon the issuance of any
Additional Shares of Common Stock which are issued pursuant to the exercise of
any Common Stock Equivalents, if any such adjustment shall previously have been
made upon the issuance of such Common Stock Equivalents (or upon the issuance
of any warrant or other rights therefor) pursuant to Section 6(c).

(c)           Issuance
of Common Stock Equivalents.  If at
any time the Issuer shall issue or sell any Common Stock Equivalents, whether
or not the rights to exchange or convert thereunder are immediately
exercisable, and the aggregate price per share for which Common Stock is
issuable upon such conversion or exchange plus the consideration received by
the Issuer for issuance of such Common Stock Equivalent divided by the number
of shares of Common Stock issuable pursuant to such Common Stock Equivalent
(the “Aggregate Per Common Share Price”) shall be less than the Warrant
Price then in effect, or if, after any such issuance of Common Stock
Equivalents, the price per share for which Additional Shares of Common Stock
may be issuable thereafter is amended or adjusted, and such price as so amended
shall make the Aggregate Per Common Share Price be less than the Warrant Price
in effect at the time of such amendment or adjustment, then the Warrant Price
upon each such issuance or amendment shall be adjusted as provided in Section
6(a).  No further adjustment of the
Warrant Price then in effect shall be made under this Section 6(c) upon the
issuance of any Common Stock Equivalents which are issued pursuant to the
exercise of any warrants or other subscription or purchase rights therefor, if
any such adjustment shall previously have been made upon the issuance of such
warrants or other rights pursuant to this Section 6(c).  No further adjustments of the Warrant Price
then in effect shall be made upon the actual issue of such Common Stock upon
conversion or exchange of such Common Stock Equivalents.

(d)           Superseding
Adjustment.  If, at any time after
any adjustment of the number of shares of Common Stock for which this Warrant
is exercisable and the Warrant Price then in effect shall have been made
pursuant to Section 6(c) as the result of any issuance of Common Stock
Equivalents, and (i) such Common Stock Equivalents, or the right of conversion
or exchange in such Common Stock Equivalents, shall expire, and all or a
portion of such or the right of conversion or exchange with respect to all or a
portion of such Common Stock Equivalents, as the case may be, shall not have
been exercised, or (ii) the consideration per share for which shares of Common
Stock are

 7
 

issuable pursuant to such Common Stock Equivalents shall be increased,
then such previous adjustment shall be rescinded and annulled and the
Additional Shares of Common Stock which were deemed to have been issued by
virtue of the computation made in connection with the adjustment so rescinded
and annulled shall no longer be deemed to have been issued by virtue of such
computation.  Upon the occurrence of an
event set forth in this Section 6(d), there shall be a recomputation made of
the effect of such Common Stock Equivalents on the basis of: (i) treating the
number of Additional Shares of Common Stock theretofore actually issued
pursuant to the previous exercise of Common Stock Equivalents or any such right
of conversion or exchange, as having been issued on the date or dates of any
such exercise and for the consideration actually received and receivable
therefor, and (ii) treating any such Common Stock Equivalents which then remain
outstanding as having been granted or issued immediately after the time of such
increase of the consideration per share for which Additional Shares of Common
Stock are issuable under such Common Stock Equivalents; whereupon a new
adjustment of the number of shares of Common Stock for which this Warrant is
exercisable and the Warrant Price then in effect shall be made, which new
adjustment shall supersede the previous adjustment so rescinded and annulled.

7.             Other Provisions applicable to
Adjustments under Sections 4, 5 and 6. 
The following provisions shall be applicable to the making of
adjustments of the number of shares of Common Stock for which this Warrant is
exercisable and the Warrant Price then in effect provided for in Sections 4, 5
and 6:

(a)           Computation
of Consideration.  To the extent that
any Additional Shares of Common Stock or any Common Stock Equivalents (or any
warrants or other rights therefor) shall be issued for cash consideration, the
consideration received by the Issuer therefor shall be the amount of the cash
received by the Issuer therefor, or, if such Additional Shares of Common Stock
or Common Stock Equivalents are offered by the Issuer for subscription, the
subscription price, or, if such Additional Shares of Common Stock or Common
Stock Equivalents are sold to underwriters or dealers for public offering
without a subscription offering, the initial public offering price (in any such
case subtracting any amounts paid or receivable for accrued interest or accrued
dividends and without taking into account any compensation, discounts or
expenses paid or incurred by the Issuer for and in the underwriting of, or
otherwise in connection with, the issuance thereof).  In connection with any merger or
consolidation in which the Issuer is the surviving corporation (other than any
consolidation or merger in which the previously outstanding shares of Common
Stock of the Issuer shall be changed to or exchanged for the stock or other
securities of another corporation), the amount of consideration therefore shall
be, deemed to be the fair value, as determined reasonably and in good faith by
the Board, of such portion of the assets and business of the non-surviving
corporation as the Board may determine to be attributable to such shares of
Common Stock or Common Stock Equivalents, as the case may be.  The consideration for any Additional Shares
of Common Stock issuable pursuant to any warrants or other rights to subscribe
for or purchase the same shall be the consideration received by the Issuer for
issuing such warrants or other rights plus the additional consideration payable
to the Issuer upon exercise of such warrants or other rights.  The consideration for any Additional Shares
of Common Stock issuable pursuant to the terms of any Common

 8
 

Stock Equivalents shall be the consideration received by the Issuer for
issuing warrants or other rights to subscribe for or purchase such Common Stock
Equivalents, plus the consideration paid or payable to the Issuer in respect of
the subscription for or purchase of such Common Stock Equivalents, plus the
additional consideration, if any, payable to the Issuer upon the exercise of
the right of conversion or exchange in such Common Stock Equivalents.  In the event of any consolidation or merger
of the Issuer in which the Issuer is not the surviving corporation or in which
the previously outstanding shares of Common Stock of the Issuer shall be
changed into or exchanged for the stock or other securities of another
corporation, or in the event of any sale of all or substantially all of the
assets of the Issuer for stock or other securities of any corporation, the
Issuer shall be deemed to have issued a number of shares of its Common Stock
for stock or securities or other property of the other corporation computed on
the basis of the actual exchange ratio on which the transaction was predicated,
and for a consideration equal to the fair market value on the date of such
transaction of all such stock or securities or other property of the other
corporation.  In the event any
consideration received by the Issuer for any securities consists of property
other than cash, the fair market value thereof at the time of issuance or as
otherwise applicable shall be as determined in good faith by the Board.  In the event Common Stock is issued with
other shares or securities or other assets of the Issuer for consideration
which covers both, the consideration computed as provided in this Section 7(a)
shall be allocated among such securities and assets as determined in good faith
by the Board.

(b)           When
Adjustments to Be Made.  The
adjustments required by Sections 4, 5 and 6 shall be made whenever and as often
as any specified event requiring an adjustment shall occur, except that any
adjustment of the number of shares of Warrant Stock for which this Warrant is
exercisable that would otherwise be required may be postponed (except in the
case of a subdivision or combination of shares of the Common Stock, as provided
for in Section 5) up to, but not beyond the date of exercise if such adjustment
either by itself or with other adjustments not previously made adds or
subtracts less than one percent (1%) of the shares of Warrant Stock for which
this Warrant is exercisable immediately prior to the making of such
adjustment.  Any adjustment representing
a change of less than such minimum amount (except as aforesaid) which is
postponed shall be carried forward and made as soon as such adjustment,
together with other adjustments required by this Section 7 and not previously
made, would result in a minimum adjustment or on the date of exercise. For the
purpose of any adjustment, any specified event shall be deemed to have occurred
at the close of business on the date of its occurrence.

(c)           Fractional
Interests.  In computing adjustments
under Sections 4, 5 and 6, fractional interests in Common Stock shall be taken
into account to the nearest one one-hundredth (1/100th) of a share.

(d)           When
Adjustment Not Required.  If the
Issuer shall take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend or distribution or subscription or
purchase rights and shall, thereafter and before the distribution to stockholders
thereof, legally abandon its plan to pay or deliver such dividend,
distribution, subscription or purchase rights, then thereafter no adjustment
shall

 9
 

be required by reason of the taking of such record and any such
adjustment previously made in respect thereof shall be rescinded and annulled.

(e)           Form
of Warrant after Adjustments.  The
form of this Warrant need not be changed because of any adjustments in the
Warrant Price or the number and kind of Securities purchasable upon the
exercise of this Warrant.

8.             Notice of
Adjustments.  Whenever the Warrant
Price or number of shares of Warrant Stock shall be adjusted pursuant to
Sections 4, 5 and 6 hereof (for purposes of this Section 8, each an “adjustment”),
the Issuer shall cause its Chief Financial Officer to prepare and execute a
certificate setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment
was calculated (including a description of the basis on which the Board made
any determination hereunder), and the Warrant Price and Warrant Share Number
after giving effect to such adjustment, and shall cause copies of such
certificate to be delivered to the Holder of this Warrant promptly after each
adjustment.  Absent manifest error, such
certificate shall be final and binding on the parties hereto.

9.             Fractional Shares.  No fractional shares of Warrant Stock will be
issued in connection with any exercise hereof, but in lieu of such fractional
shares, the Issuer shall round the number of shares to be issued upon exercise
up to the nearest whole number of shares.

10.           Ownership Cap and Certain Exercise
Restrictions.

(a)           Notwithstanding
anything to the contrary set forth in this Warrant, at no time may a Holder of
this Warrant exercise this Warrant if the number of shares of Common Stock to
be issued pursuant to such exercise would exceed, when aggregated with all
other shares of Common Stock owned by such Holder at such time, the number of
shares of Common Stock which would result in such Holder beneficially owning
(as determined in accordance with Section 13(d) of the Exchange Act and the
rules thereunder) in excess of 4.99% or 9.99% of the then issued and
outstanding shares of Common Stock; provided, however, that upon
a holder of this Warrant providing the Issuer with sixty-one (61) days notice
(the “Waiver Notice”) that such Holder would like to waive this Section
10(a) with regard to any or all shares of Common Stock issuable upon exercise
of this Warrant, this Section 10(a) will be of no force or effect with regard
to all or a portion of the Warrant referenced in the Waiver Notice; provided,
further, that this provision shall be of no further force or effect
during the sixty-one (61) days immediately preceding the expiration of the term
of this Warrant.

(b)           The
Holder may not exercise the Warrant hereunder to the extent such exercise would
result in the Holder beneficially owning (as determined in accordance with
Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.99%
of the then issued and outstanding shares of Common Stock, including shares
issuable upon exercise of the Warrant held by the Holder after application of
this Section; provided, however, that upon a holder of this
Warrant providing the Issuer with a Waiver Notice that such holder would like
to waive this Section 10(b) with regard to any or all

 10
 

shares of Common Stock issuable upon exercise of this Warrant, this
Section 10(b) shall be of no force or effect with regard to those shares of
Warrant Stock referenced in the Waiver Notice; provided, further,
that this provision shall be of no further force or effect during the sixty-one
(61) days immediately preceding the expiration of the term of this Warrant.

11.            Call.  Notwithstanding anything herein to the
contrary, beginning twelve (12) months after the effective date of the
registration statement under the Securities Act providing for the resale of the
Warrant Stock issued pursuant to the Subscription Agreement (the “Registration
Statement”), the Issuer, at its option, may call (a “Call”) up to
one hundred percent (100%) of this Warrant if the Per Share Market Value of the
Common Stock has been greater than $5.00 for a period of twenty (20)
consecutive Trading Days immediately prior to the date of delivery of the Call
Notice (a “Call Notice Period”) by providing the Holder of this Warrant
written notice pursuant to Section 16 (the “Call Notice”); provided,
that (i) the Registration Statement is then in effect and has been
effective, without lapse or suspension of any kind, for a period of sixty (60)
consecutive calendar days, (ii) trading in the Common Stock shall not have been
suspended by the Securities and Exchange Commission or the OTC Bulletin Board
(or other exchange or market on which the Common Stock is trading), (iii) the
Issuer is in material compliance with the terms and conditions of this Warrant
and the Subscription Agreement and (iv) the Issuer is not in possession of
material non-public information; provided, further, that the
Registration Statement is in effect from the date of delivery of the Call
Notice until the date which is the later of (1) the date the Holder exercises
the Warrant pursuant to the Call Notice and (2) the 10th day after the Holder receives the Call Notice
(the “Early Termination Date”). 
The rights and privileges granted pursuant to this Warrant with respect
to the shares of Warrant Stock subject to the Call Notice (the “Called
Warrant Shares”) shall expire on the Early Termination Date if this Warrant
is not exercised with respect to such Called Warrant Shares prior to such Early
Termination Date.  In the event this
Warrant is not exercised with respect to the Called Warrant Shares, the Issuer
shall remit to the Holder of this Warrant (A) $0.01 per Called Warrant Share
and (B) a new Warrant representing the number of shares of Warrant Stock, if
any, which shall not have been subject to the Call Notice upon the Holder
tendering to the Issuer the applicable Warrant certificate.  Notwithstanding anything in the foregoing to
the contrary, if the Holder may not exercise this Warrant as a result of the
restrictions contained in Section 10 hereof, the Call Notice shall be deemed
null and void and shall not be deemed effective until the date that the Holder
may exercise this Warrant in accordance with Section 10 hereof.

12.           Definitions.  For the purposes of this Warrant, the
following terms have the following meanings:

“Additional Shares of Common Stock” means all shares of Common
Stock issued by the Issuer after the Original Issue Date, and all shares of
Other Common, if any, issued by the Issuer after the Original Issue Date,
except: (i) securities issued (other than for cash) in connection with a
merger, acquisition, or consolidation, (ii) securities issued pursuant to the
conversion or exercise of convertible or exercisable securities issued or
outstanding on or prior to the Original Issue Date (iii) the Warrant

 11
 

Stock, (iv) securities issued in connection with bona
fide strategic license agreements or other partnering arrangements so long as
such issuances are not for the purpose of raising capital, (v) Common Stock
issued or the issuance or grants of non-plan options to purchase Common Stock
to consultants, directors and/or employees which have been approved by the Board,(vi) securities issued pursuant to,
and/or in connection with, a bona fide firm underwritten public offering of the
Issuer’s securities, (vii) the issuance of Common Stock upon the exercise or
conversion of any securities described in clauses (i) through (vi) above.

“Board” shall mean the Board of Directors of the Issuer.

“Capital Stock” means and includes (i) any and all shares,
interests, participations or other equivalents of or interests in (however
designated) corporate stock, including, without limitation, shares of preferred
or preference stock, (ii) all partnership interests (whether general or
limited) in any Person which is a partnership, (iii) all membership interests
or limited liability company interests in any limited liability company, and (iv)
all equity or ownership interests in any Person of any other type.

“Certificate of Incorporation” means the Certificate of
Incorporation of the Issuer as in effect on the Original Issue Date, and as
hereafter from time to time amended, modified, supplemented or restated in
accordance with the terms hereof and thereof and pursuant to applicable law.

“Common Stock” means the Common Stock, $0.01par
value per share, of the Issuer and any other Capital Stock into which such
stock may hereafter be changed.

“Common Stock Equivalent” means any Convertible Security or
warrant, option or other right to subscribe for or purchase any Additional
Shares of Common Stock or any Convertible Security, except the convertible
promissory notes issued by the Issuer in connection with the issuance of this
Warrant.

“Convertible Securities” means evidences of Indebtedness, shares
of Capital Stock or other Securities which are or may be at any time
convertible into or exchangeable for Additional Shares of Common Stock.  The term “Convertible Security” means one of
the Convertible Securities.

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, or any similar federal statute then in effect.

“Holders” mean the Persons who shall from time to time own any
Warrant.  The term “Holder” means one of
the Holders.

“Independent Appraiser” means a nationally recognized or major
regional investment banking firm or firm of independent certified public
accountants of recognized standing (which may be the firm that regularly examines
the financial statements of the Issuer) that is regularly engaged in the
business of appraising the Capital Stock or assets of corporations or other
entities as going concerns, and which is not affiliated with either the Issuer
or the Holder of any Warrant.

 12

“Issuer” means SP Holding Corporation, a Delaware corporation,
and its successors.

“Majority Holders” means at any time the Holders of Warrants
exercisable for a majority of the shares of Warrant Stock issuable under the
Warrants at the time outstanding.

“Original Issue Date” means                 
    , 2007.

“OTC Bulletin Board” means the over-the-counter electronic
bulletin board.

“Other Common” means any other Capital Stock of the Issuer of
any class which shall be authorized at any time after the date of this Warrant
(other than Common Stock) and which shall have the right to participate in the
distribution of earnings and assets of the Issuer without limitation as to
amount.

“Person” means an individual, corporation, limited liability
company, partnership, joint stock company, trust, unincorporated organization,
joint venture, Governmental Authority or other entity of whatever nature.

“Per Share Market Value” means on any particular date (a) the
last closing sale price per share of the Common Stock on such date on the OTC
Bulletin Board or another registered national stock exchange on which the
Common Stock is then listed, or if there is no such price on such date, then
the closing sale price on such exchange or quotation system on the date nearest
preceding such date, or (b) if the Common Stock is not listed then on the OTC
Bulletin Board or any registered national stock exchange, the average of the
closing bid and asked prices for a share of Common Stock in the
over-the-counter market, as reported by the OTC Bulletin Board or in the
National Quotation Bureau Incorporated or similar organization or agency
succeeding to its functions of reporting prices) at the close of business on
such date, or (c) if the Common Stock is not then reported by the OTC Bulletin
Board or the National Quotation Bureau Incorporated (or similar organization or
agency succeeding to its functions of reporting prices), then the average of
the “Pink Sheet” quotes for the five (5) trading days preceding such date of
determination, or (d) if the Common Stock is not then publicly traded the fair
market value of a share of Common Stock as determined by an Independent
Appraiser mutually agreed upon (in good faith) by the Majority Holders and the
Board; provided, however, that all determinations of the Per
Share Market Value shall be appropriately adjusted for any stock dividends,
stock splits or other similar transactions during such period.  The determination of fair market value by an
Independent Appraiser shall be based upon the fair market value of the Issuer
determined on a going concern basis as between a willing buyer and a willing
seller and taking into account all relevant factors determinative of value, and
shall be final and binding on all parties.

“Public Company” means the Issuer or the successor of the Issuer
after the occurrence of a Public Event.

 13
 

“Public Event” means the date upon which the Issuer becomes a
publicly traded company or it or any successor is owned by a publicly traded
company, by way or merger, share exchange or otherwise.

“Securities” means any debt or equity securities of the Issuer,
whether now or hereafter authorized, any instrument convertible into or
exchangeable for Securities or a Security, and any option, warrant or other
right to purchase or acquire any Security. 
“Security” means one of the Securities.

“Securities Act” means the Securities Act of 1933, as amended,
or any similar federal statute then in effect.

“Term” has the meaning specified in Section 1 hereof.

“Warrant Price” initially means Two Dollars and Fifty Cents
($2.50), as such price may be adjusted from time to time as shall result from
the adjustments specified in this Warrant, including Sections 4, 5 and 6
hereto.

“Warrant Stock” means Common Stock issuable upon exercise of any
Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

13.           Other Notices.  In case at any time:

(a)           the
Issuer shall make any distributions to the holders of Common Stock; or

(b)           the
Issuer shall authorize the granting to all holders of its Common Stock of
rights to subscribe for or purchase any shares of Capital Stock of any class or
other rights; or

(c)           there
shall be any reclassification of the Capital Stock of the Issuer; or

(d)           there
shall be any capital reorganization by the Issuer; or

(e)           there
shall be any (i) consolidation or merger involving the Issuer or (ii) sale,
transfer or other disposition of all or substantially all of the Issuer’s
property, assets or business (except a merger or other reorganization in which
the Issuer shall be the surviving corporation and its shares of Capital Stock
shall continue to be outstanding and unchanged and except a consolidation,
merger, sale, transfer or other disposition involving a wholly-owned
subsidiary); or

(f)            there
shall be a voluntary or involuntary dissolution, liquidation or winding-up of
the Issuer or any partial liquidation of the Issuer or distribution to holders
of Common Stock;

then, in each of such cases, the Issuer shall give written notice to
the Holder of the date on which (i) the books of the Issuer shall close or a
record shall be taken for such

 14
 

dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take
place.  Such notice also shall specify
the date as of which the holders of Common Stock of record shall participate in
such dividend, distribution or subscription rights, or shall be entitled to
exchange their certificates for Common Stock for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger,
disposition, dissolution, liquidation or winding-up, as the case may be.  Such notice shall be given at least twenty
(20) days prior to the action in question and not less than ten (10) days prior
to the record date or the date on which the Issuer’s transfer books are closed
in respect thereto.  Except as otherwise
specifically provided herein, no holder, as such, of this Warrant shall be
entitled to vote or receive dividends or be deemed the holder of shares of the
Issuer for any purpose, nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a
stockholder of the Issuer or any right to vote, give or withhold consent to any
corporate action (whether any reorganization, issue of stock, reclassification
of stock, consolidation, merger, conveyance or otherwise), receive notice of
meetings, receive dividends or subscription rights, or otherwise, prior to the
issuance to the holder of this Warrant of the Warrant Shares which he or she is
then entitled to receive upon the due exercise of this Warrant.  Notwithstanding anything to the contrary
contained herein, the Holder acknowledges and agrees that the Issuer shall not
be obligated to provide to the Holder any notice as provided in this Section 13
with respect to the Public Event contemplated by the Issuer as of the date of
this Warrant.

14.           Amendment and
Waiver.  Any term, covenant,
agreement or condition in this Warrant may be amended, or compliance therewith
may be waived (either generally or in a particular instance and either
retroactively or prospectively), by a written instrument or written instruments
executed by the Issuer and the Majority Holders; provided, however,
that no such amendment or waiver shall reduce the Warrant Share Number,
increase the Warrant Price, shorten the period during which this Warrant may be
exercised or modify any provision of this Section 14 without the consent of the
Holder of this Warrant.  No consideration
shall be offered or paid to any person to amend or consent to a waiver or
modification of any provision of this Warrant unless the same consideration is
also offered to all holders of the Warrants.

15.           Governing Law;
Jurisdiction.  This Warrant shall be
governed by and construed in accordance with the internal laws of the State of
New York, without giving effect to any of the conflicts of law principles which
would result in the application of the substantive law of another
jurisdiction.  This Warrant shall not be
interpreted or construed with any presumption against the party causing this
Warrant to be drafted.  The Issuer and
the Holder agree that venue for any dispute arising under this Warrant will lie
exclusively in the state or federal courts located in New York County, New
York, and the parties irrevocably waive any right to raise forum non conveniens
or any other argument that New York is not the proper venue.  The Issuer and the Holder irrevocably consent
to personal jurisdiction in the state and federal courts of the state of New
York.  The Issuer and the Holder consent
to process being served in any such suit, action or proceeding by mailing a
copy thereof to such party at the address in effect for notices to it under
this Warrant and agrees that such service shall constitute good and sufficient
service of

 15
 

process and notice
thereof.  Nothing in this Section 15
shall affect or limit any right to serve process in any other manner permitted
by law.  THE PARTIES HEREBY WAIVE ALL
RIGHTS TO A TRIAL BY JURY.

16.           Notices.  Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery by telecopy or facsimile at the
address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first
business day following such delivery (if delivered other than on a business day
during normal business hours where such notice is to be received) or (b) on the
second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such
mailing, whichever shall first occur.  The
addresses for such communications shall be:

	
  If to the Issuer:

  	
   

  	
  SP Holding Corporation

  
	
   

  	
   

  	
  c/o Organic To
  Go, Inc.

  
	
   

  	
   

  	
  601 Union
  Street, Suite 3700

  
	
   

  	
   

  	
  Seattle, WA
  98101

  
	
   

  	
   

  	
  Attention: Chief
  Executive Officer

  
	
   

  	
   

  	
  Tel. No.: (206)
  838-4699

  
	
   

  	
   

  	
  Fax No.: (206)
  838-4695

  
	
   

  	
   

  	
   

  
	
  If to any
  Holder:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Any party hereto may from time to time change its address for notices
by giving written notice of such changed address to the other party hereto.

17.           Warrant Agent.  The Issuer may, by written notice to each
Holder of this Warrant, appoint an agent for the purpose of issuing shares of
Warrant Stock on the exercise of this Warrant pursuant to Section 2 hereof,
exchanging this Warrant pursuant to subsection Section 2 hereof or replacing
this Warrant pursuant to Section 3 hereof, or any of the foregoing, and
thereafter any such issuance, exchange or replacement, as the case may be,
shall be made at such office by such agent.

18.           Remedies.  The Issuer stipulates that the remedies at
law of the Holder of this Warrant in the event of any default or threatened
default by the Issuer in the performance of or compliance with any of the terms
of this Warrant are not and will not be adequate and that, to the fullest
extent permitted by law, such terms may be specifically enforced by a decree
for the specific performance of any agreement contained herein or by an
injunction against a violation of any of the terms hereof or otherwise.

 16
 

19.           Successors and
Assigns.  This Warrant and the rights
evidenced hereby shall inure to the benefit of and be binding upon the
successors and assigns of the Issuer, the Holder hereof and (to the extent
provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall
be enforceable by any such Holder or Holder of Warrant Stock.

20.           Modification and
Severability.  If, in any action
before any court or agency legally empowered to enforce any provision contained
herein, any provision hereof is found to be unenforceable, then such provision
shall be deemed modified to the extent necessary to make it enforceable by such
court or agency.  If any such provision
is not enforceable as set forth in the preceding sentence, the unenforceability
of such provision shall not affect the other provisions of this Warrant, but
this Warrant shall be construed as if such unenforceable provision had never
been contained herein.

21.           Headings.  The headings of the Sections of this Warrant
are for convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 17
 

IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day
and year first above written.

	
   

  	
  SP HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Jason
  Brown

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  

 

 18

EXERCISE FORM

SP HOLDING CORPORATION

The undersigned                              ,
pursuant to the provisions of the within Warrant, hereby elects to purchase          
shares of Common Stock of SP Holding Corporation covered by the within Warrant.

	
  Dated:
  

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
							

 

Number of shares of
Common Stock beneficially owned or deemed beneficially owned by the Holder on
the date of Exercise:                                   

ASSIGNMENT

FOR VALUE RECEIVED,                                 
hereby sells, assigns and transfers unto                                 
the within Warrant and all rights evidenced thereby and does irrevocably
constitute and appoint                                 ,
attorney, to transfer the said Warrant on the books of the within named
corporation.

	
  Dated: 

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
							

 

PARTIAL ASSIGNMENT

FOR VALUE RECEIVED,                                 
hereby sells, assigns and transfers unto                                 
the right to purchase                   
shares of Warrant Stock evidenced by the within Warrant together with all
rights therein, and does irrevocably constitute and appoint                                 ,
attorney, to transfer that part of the said Warrant on the books of the within
named corporation.

	
  Dated: 

  	
   

  	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
							

 

FOR USE BY THE ISSUER ONLY:

This Warrant No. W-                
canceled (or transferred or exchanged) this          
day of                   ,
         , shares of Common Stock
issued therefor in the name of                          ,
Warrant No. W-                  
issued for                               
shares of Common Stock in the name of                                                    .Exhibit 10.1

BURNHAM HILL PARTNERS

A DIVISION OF PALI CAPITAL INC.

	
  570 LEXINGTON AVENUE

  	
  TEL 212-980-2200

  
	
  NEW YORK, NEW YORK 10022

  	
  FAX 212-980-9466

  

December 18, 2006

Mr. Jason Brown 

Chief Executive Officer 

Organic Holding Company, Inc. 

Doing business as “Organic To Go” 

601 Union Street, Suite 3700 

Seattle, WA 98101

Dear Jason,

This letter Agreement
(the “Agreement”) confirms the
engagement of Burnham Hill Partners, a division of Pali Capital, Inc. (“BHP”) by Organic Holding Company, Inc.
d/b/a Organic To Go (the “Company”)
to act as its placement agent in connection with capital raising through a
series of transactions exempt from registration under the Securities Act of
1933, as amended, and in compliance with the applicable securities laws and
regulations. The parties presently expect to conduct the sale of convertible
promissory notes and warrants to investors for a total investment of $5.6
million (the “Private Placement”),
followed by a sale of equity securities for $4.0 million (subject to a $2.0
million over-allotment at the Company’s discretion) and a related reverse
merger with a company (“PubCo”)
whose shares are publicly traded (collectively, the “Reverse Merger”). The sale of securities in the Reverse Merger
is expected to reflect the following terms: (1) a $24 million pre-money
valuation for the Company for the $4.0 million raised in the Reverse Merger,
and the stockholders of Pubco owning 5% of PubCo determined on a fully-diluted
basis immediately after the Reverse Merger (determined without taking into
account outstanding warrants held by BHP
and any other placement agents on the effective date of the Reverse Merger),
(2) each investor will purchase (i) shares of PubCo Common Stock and (ii)
warrants to purchase PubCo Common Stock (using 20% warrant coverage) (the “Reverse Merger Warrants”), with an exercise
price equal to 200% of the per share price paid by investors for equity
securities in the Reverse Merger. Other than the exercise price, the warrants
will be of like-kind to those warrants issued in the promissory note financing.

In connection with BHP’s
engagement hereunder, the Company shall compensate BHP as set forth below:

(a)                    Upon and
subject to the final closing of the Private Placement resulting in Gross Proceeds
(as defined below) of not less than $5.6million,
the Company shall upon the Closing by wire transfer (see wire instructions
attached) (1) pay BHP a closing fee with respect to securities issued before
the date of this Agreement as described on Attachment A, and (2) issue
BHP warrants as described on Attachment A having terms described in
paragraph (c) below.

(b)                   Upon and
subject to the final closing of the Private Placement resulting in Gross
Proceeds of not less than $5.6 million, the Company shall pay BHP a closing fee
equal to 10.0% of the Gross Proceeds from the Private Placement received after
the date of this Agreement, and upon and subject to the closing of the Reverse
Merger a closing fee equal to 10.0% of the Gross Proceeds from the Reverse Merger
(collectively, the “Closing Fee”),
provided that if sub-placement
agents are used at BHP’s discretion in connection with the Private Placement
and/or the Reverse Merger (which is expected), the total closing lees payable
to Burnham shall be reduced by the fees paid to the sub-placement agents (which
shall not exceed 7.0% of the Gross Proceeds).

For purposes hereof, the term “Gross Proceeds” shall mean the aggregate
proceeds received by the Company from the sale of securities at each closing of
the Private Placement or the Reverse Merger, and in determining whether $5.6
million in Gross Proceeds have been received in the Private Placement, $1.45
million in proceeds from the Company’s previous bridge financing shall be
included.

(c)                    Upon and
subject to the final closing of the Private Placement resulting in Gross
Proceeds of not less than $5.6 million, the Company shall (i) issue BHP or its
assigns (subject to compliance with applicable securities laws in the event of
an assignment) warrants for a nominal price to purchase such number of

shares of the Common Stock of the Company equal to
10.0% of the aggregate number of shares of Common Stock purchased or ultimately
received by Investors after the date of this Agreement in the Private Placement
(but determined without taking into account shares issued in connection with
the conversion of $1.45 million in previously issued convertible promissory
notes into the Private Placement), which warrants shall be exercisable for five
(5) years from the date of such closing, at an exercise price equal to 110% of
the price paid by Investors in the Private Placement, provided that if sub-agents are used at
BHP’s discretion in connection with the Private Placement, the warrants issued
to BHP shall be reduced by the warrants issued to the sub-agents (which shall
be issued in compliance with applicable securities laws). The terms of the
warrants shall be set forth in warrant agreements in form and substance
satisfactory to BHP and the Company, shall be non-redeemable, provide for
cashless exercise, and shall otherwise contain terms substantially identical to
those applicable to the Securities issued to Investors in the Private
Placement, including, without limitation, anti-dilution provisions and
registration rights.

(d)                   Upon and
subject to the final closing of the Reverse Merger, the Company shall (i) issue
BHP or its assigns (subject to compliance with applicable securities laws in
the event of an assignment) warrants for a nominal price to purchase such
number of shares of the Common Stock of the Company equal to 10.0% of the
aggregate number of shares of Common Stock purchased or ultimately received by
Investors after the date of this Agreement in the Reverse Merger (but
determined without taking into account (i) the Reverse Merger Warrants and (ii)
the shares issuable upon exercise of the Reverse Merger Warrants), which
warrants shall be exercisable for five (5) years from the date of such closing,
at an exercise price equal to 110% of the price paid by Investors in the Reverse
Merger, provided that if
sub-agents are used at BHP’s discretion in connection with the Reverse Merger,
the warrants issued to BHP shall be reduced by the warrants issued to the
sub-agents (which shall be issued in compliance with applicable securities
laws). The terms of the warrants shall be set forth in warrant agreements in
form and substance satisfactory to BHP and the Company, shall be
non-redeemable, provide for cashless exercise, and shall otherwise contain
terms substantially identical to those applicable to the Securities issued to
Investors in the Reverse Merger, including, without limitation, anti-dilution
provisions and registration rights.

BHP shall not have any right to advise or participate
in any sale of the assets or securities of the Company or any successor in
interest, or any merger of the Company or any successor in interest except in
connection with the Reverse Merger as described above.

In addition to the above, the Company agrees to
reimburse BHP or its personnel for reasonable out-of-pocket expenses (which
amount shall not exceed $10,000 without the prior approval of the Company)
incurred in connection with this Agreement. All fees and expenses hereunder are
payable in cash and shall be a condition to closing of any financing.

It is the intention of the parties under this
Agreement that by December 31, 2006, the Company shall have entered into an
agreement to effect the Reverse Merger.

If at least $4.0 million is not received from
investors and deposited into the escrow in connection with the Reverse Merger
by January 31, 2007, then by February 5, 2007, BHP, its designees or assigns at
its option shall either (a) invest in the Reverse Merger so that Gross Proceeds
from the Reverse Merger are at least $4,000,000, or (b) lend, or cause Cipher
Capital Partners, LLC or its affiliates or designees to lend, the Company
$800,000 on the same terms as the Company’s outstanding Convertible Promissory
Bridge Notes, except that no warrants shall be issued to such lender or BHP in
connection with such loan (but the cash fee shall be payable to BHP in
connection with such loan). (This paragraph shall be referred to as the “Funding Plan” paragraph).

In connection with this Agreement, the Company has
furnished BHP with all information concerning the Company which BHP reasonably
deems appropriate and has and will provide BHP with access to its officers,
directors, employees, accountants, counsel and other representatives
(collectively, the “Representatives”),
it being understood that BHP will rely solely upon such information supplied by
the Company and its Representatives without assuming any responsibility for the
independent investigation or verification thereof. All non-public information
concerning the Company that is given to BHP will be used solely in the course
of the performance of our services hereunder and will be treated confidentially
by us for so long as it remains non-public. Except as otherwise required by
law, BHP will not disclose any information to any third party without the
consent of the Company. If we are requested to render an opinion from a
financial point of view regarding any aspect of this Agreement, the nature,
scope and fees

 2
 

associated with our analysis
as well as the form and substance of our opinion shall be such as we deem
appropriate and will be covered under a separate letter agreement.

Notice(s)
given pursuant to any of the provisions of this Agreement shall be given in
writing and shall be sent by overnight courier or personally delivered (a) if
to the Company, to the Company’s Chief Executive Officer at the address listed
above; and (b) if to BHP, to its offices at 570 Lexington Avenue, 3rd floor, New York, NY 10022,
Attention: Jason Adelman, Managing Director for delivery before October 31,
2006 or 590 Madison Avenue, 5th Floor,
New York, NY 10022, Attention: Jason Adelman, Managing Director for delivery on
or after November 1, 2006.

No
advice or opinion rendered by BHP, whether formal or informal, may be
disclosed, in whole or in part, or summarized, excerpted from or otherwise
referred to without our prior written consent, which may not be unreasonably
withheld. In addition, BHP may not be otherwise referred to without its prior
written consent. Since BHP will be acting on behalf of the Company in
connection with its engagement hereunder, the Company has entered into a
separate letter Agreement, dated the date hereof, providing for the
indemnification by the Company of BHP and certain related persons and entities.

BHP’s
engagement hereunder shall expire on the earlier of (a) May 15, 2007 or (b) the
date forty-five (45) days after the Company delivers to BHP a copy of the
Company’s audited financial statements for the year ended December 31, 2006
with the signed audit report thereon (the “Expiration
Date”), subject to earlier termination as provided in the next
sentence. If the conditions of the Funding Plan paragraph above are not met,
either party may, upon ten (10) days written notice to the other party,
terminate this Agreement, provided however, that in the event of termination,
BHP will continue to be entitled to its full fees provided for herein in the
event that at any time prior to the Expiration Date, the Company completes a
financing or other similar transaction or event consistent with the purpose and
intent of this Agreement.

BHP
is a division of Pali Capital Inc. This Agreement shall remain in full force
and effect as to BHP and the Company, and shall be deemed fully assigned, in
the event that BHP becomes an independent entity. In connection with this
Agreement, BHP is acting as an independent contractor with duties owing solely
to the Company. Our engagement is for the limited purposes set forth under this
Agreement, and the rights and obligations of each of BHP and the Company are
herein defined. As such, each of BHP and the Company agrees that the other
party has no fiduciary duty to it or its stockholders, officers and directors
as a result of the engagement described in this Agreement. This Agreement shall
be governed by and construed in accordance with the laws of the State of New
York without regard to conflicts of law principles thereof. This Agreement may
not be amended or modified except in writing signed by each of the parries
hereto.

This
letter and the attached Indemnification Agreement contain the entire Agreement
of the parties with respect to the subject matter hereof and supersede and take
precedence over all prior Agreements or understandings, whether oral or written
with respect to such subject matter. The invalidity or unenforceability of any
provision of this letter Agreement shall not affect the validity or
enforceability of any other provisions of this Agreement or the Indemnification
Agreement, which shall remain in full force and effect.

We
are delighted to accept this engagement and look forward to working with you on
this assignment. Please confirm that the foregoing is in accordance with your
understanding by signing and returning to us the enclosed duplicate of this
Agreement.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Burnham Hill Partners

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Illegible

  
	
   

  	
   

  	
  Name:

  	
  Illegible

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

(signatures
continued)

Accepted
and agreed to as of the date first written above:

 3
 

 

	
  Organic Holding Company, Inc. d/b/a

  Organic To Go

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Jason Brown

  	
   

  
	
  Name:

  	
  Jason Brown

  
	
  Title:

  	
  Chief Executive Officer

  
				

 

 4

	
  TO:

  	
  Burnham Hill Partners

  	
  Date: December 18, 2006

  
	
   

  	
  A division of Pall Capital Inc.

  	
   

  
	
   

  	
  570 Lexington Avenue

  	
   

  
	
   

  	
  New York, NY 10022

  	
   

  

 

In connection with your engagement pursuant to our
letter Agreement of even date herewith (the “Engagement”),
we agree to indemnify and hold harmless Burnham Hill Partners, a division of
PallCapital Inc. (“BHP”) and its
affiliates, the respective directors, officers, partners, agents and employees
of BHP and its affiliates, and each other person, if any, controlling BHP or
any of its affiliates or successor in interest (collectively, “Indemnified Persons”), from and against,
and we agree that no Indemnified Person shall have any liability to us or our
owners, parents, affiliates, security holders or creditors for, any losses,
claims, damages or liabilities (including actions or proceedings in respect
thereof) (collectively “Losses”)
(A) related to or arising out of (i) our actions or failures to act (including
statements or omissions made, or information provided, by us or our agents) or
(ii) actions or failures to act by an Indemnified Person with our consent or in
reliance on our actions or failures to act, or (B) otherwise related to or
arising out of the Engagement or your performance thereof, except that this
clause (B) shall not apply to any Losses that are finally judicially determined
to have resulted primarily from your bad faith or gross negligence or breach of
the letter Agreement. If such indemnification is for any reason not available
or insufficient to hold you harmless, we agree to contribute to the Losses
involved in such proportion as is appropriate to reflect the relative benefits
received (or anticipated to be received) by us and by you with respect to the
Engagement or, if such allocation is judicially determined unavailable, in such
proportion as is appropriate to reflect other equitable considerations such as
the relative fault of us on the one hand and of you on the other hand;
provided, however, that, to the extent permitted by applicable law, the
Indemnified Persons shall not be responsible for amounts which in the aggregate
are in excess of the amount of all fees actually received by you from us in
connection with the Engagement. Relative benefits to us, on the one hand, and
you, on the other hand, with respect to the Engagement shall be deemed to be in
the same proportion as (i) the total value paid or proposed to be paid or
received or proposed to be received by us or our security holders, as the case
may be, pursuant to the transaction(s), whether or not consummated,
contemplated by the Engagement bears to (ii) all fees paid or proposed to be
paid to you by us in connection with the Engagement.

We will reimburse each Indemnified Person for all
expenses (including reasonable fees and disbursements of counsel) as they are
incurred by such Indemnified Person in connection with investigating, preparing
for or defending any action, claim, investigation, inquiry, arbitration or
other proceeding (“Action”)
referred to above (or enforcing this Agreement or any related engagement
Agreement), whether or not in connection with pending or threatened litigation
in which any Indemnified Person is a party, and whether or not such Action is
initiated or brought by you. We further agree that we will not settle or
compromise or consent to the entry of any judgment in any pending or threatened
Action in respect of which indemnification may be sought hereunder (whether or
not an Indemnified Person is a party therein) unless we have given you
reasonable prior written notice thereof and used all reasonable efforts, after
consultation with you, to obtain an unconditional release of each Indemnified
Person from all liability arising therefrom.

If multiple claims are brought against you in any
Action with respect to at least one of which indemnification is permitted under
applicable law and provided for under this Agreement, we agree that the judge
or arbitrator rendering the judgment, arbitration award or other monetary award
shall conclusively determine which claims we must indemnify you for under this
Agreement and the amount of our monetary liability for indemnification on
account of such claims. In the event that you are called or subpoenaed to give
testimony in a court of law, we agree to pay your expenses related thereto and
for every day or part thereof that we are required to be there or in
preparation thereof. Our obligations hereunder shall be in addition to any
rights that any Indemnified Person may have at common law or otherwise. Solely
for the purpose of enforcing this Agreement, we hereby consent to personal
jurisdiction and to service and venue in any court in which any claim which is
subject to this Agreement is brought by or against any Indemnified Person. We
acknowledge that in connection with the Engagement you are acting as an
independent contractor with duties owing solely to us. YOU HEREBY AGREE, AND WE
HEREBY AGREE ON OUR OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW,
ON BEHALF OF OUR SECURITY HOLDERS, TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH
RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT OF THE ENGAGEMENT,
YOUR PERFORMANCE THEREOF OR THIS AGREEMENT.

The provisions of this Agreement shall apply to the
Engagement (including related activities prior to the date hereof) and any
modification thereof and shall remain in full force and effect regardless of
the completion or termination of the Engagement. This Agreement and any other
Agreements relating to the Engagement shall be governed by and construed in
accordance with the laws of the state of New York, without regard to conflicts
of law principles thereof.

	
  Accepted and Agreed: 

  	
  Very truly yours,

  
	
   

  	
   

  
	
  Burnham Hill Partners

  	
  Client:

  	
  Organic Holding Company, Inc. d/b/a Organic To Go

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Illegible

  	
   

  	
  By:

  	
  /s/ Jason Brown

  
	
   

  	
  Name: Illegible 

  	
   

  	
    Name: Jason Brown

  
	
   

  	
  Title :  Managing
  Director

  	
   

  	
    Title: Chief Executive Officer

  
					

 

Attachment A

$5.6M Bridge Loan

$1.6M converted from original bridge

$4M from new note holders

	
  The balance of the

  	
   

  	
  $4,000,000

  	
   

  	
  PERCENTAGE

  	
   

  	
  CASH PAYMENTS

  	
   

  	
  WARRANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Payment

  to BHP

  	
   

  	
  Payment to 

  Cannaccord

  Adams

  	
   

  	
  Payment to BHP

  	
   

  	
  Payment to 

  Cannaccord

  Adams

  	
   

  	
  Payment

  to BHP

  	
   

  	
  Payment to 

  Cannaccord

  Adams

  	
   

  
	
  1. Vicis Capital

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
  5

  	
  %

  	
  5

  	
  %

  	
  $

  	
  75,000

  	
   

  	
  $

  	
  75,000

  	
   

  	
  $

  	
  75,000

  	
   

  	
  75,000

  	
   

  
	
  2. Rob Ellin

  	
   

  	
  $

  	
  500,000

  	
   

  	
  5

  	
  %

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  	
   

  	
   

  	
  $

  	
  25,000

  	
   

  	
  —

  	
   

  
	
  3. David Valentine

  	
   

  	
  $

  	
  100,000

  	
   

  	
  10

  	
  %

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  	
  —

  	
   

  
	
  4. David Wilstein

  	
   

  	
  $

  	
  100,000

  	
   

  	
  10

  	
  %

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  	
  —

  	
   

  
	
  5. Jon Emery

  	
   

  	
  $

  	
  125,000

  	
   

  	
  2

  	
  %

  	
   

  	
   

  	
  $

  	
  2,500

  	
   

  	
   

  	
   

  	
  $

  	
  2,500

  	
   

  	
  —

  	
   

  
	
  6. Shaula Massena

  	
   

  	
  $

  	
  50,000

  	
   

  	
  2

  	
  %

  	
   

  	
   

  	
  $

  	
  1,000

  	
   

  	
   

  	
   

  	
  $

  	
  1,000

  	
   

  	
  —

  	
   

  
	
  7. Ted Rouse

  	
   

  	
  $

  	
  100,000

  	
   

  	
  2

  	
  %

  	
   

  	
   

  	
  $

  	
  2,000

  	
   

  	
   

  	
   

  	
  $

  	
  2,000

  	
   

  	
  —

  	
   

  
	
  8. Doug Carroll

  	
   

  	
  $

  	
  100,000

  	
   

  	
  2

  	
  %

  	
   

  	
   

  	
  $

  	
  2,000

  	
   

  	
   

  	
   

  	
  $

  	
  2,000

  	
   

  	
  —

  	
   

  
	
  9. Hass Hassan

  	
   

  	
  $

  	
  75,000

  	
   

  	
  2

  	
  %

  	
   

  	
   

  	
  $

  	
  1,500

  	
   

  	
   

  	
   

  	
  $

  	
  1,500

  	
   

  	
  —

  	
   

  
	
  10. Stuart Rudick

  	
   

  	
  $

  	
  100,000

  	
   

  	
  2

  	
  %

  	
   

  	
   

  	
  $

  	
  2,000

  	
   

  	
   

  	
   

  	
  $

  	
  2,000

  	
   

  	
  —

  	
   

  
	
  11. Jerry Lauderstein

  	
   

  	
  $

  	
  50,000

  	
   

  	
  2

  	
  %

  	
   

  	
   

  	
  $

  	
  1,000

  	
   

  	
   

  	
   

  	
  $

  	
  1,000

  	
   

  	
  —

  	
   

  
	
  TOTAL CURRENT DISTRIBUTION>>

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  132,000

  	
   

  	
  $

  	
  75,000

  	
   

  	
  $

  	
  132,000

  	
   

  	
  75,000

  	
   

  

 

BURNHAM
HILL PARTNERS 

A DIVISION OF PALI CAPITAL INC.

Wire
Instructions

Bank: Citibank, NA

ABA: 021-000-089

Account: 519-71819

Beneficiary: Pali Capital, Inc. (Burnham Hill Division)

Contact: Hilary Bergman (212) 259-2602

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]