Document:

csev_ex1001.htm

 

EXHIBIT 10.01

 

FINAL

 

 

LOAN EXTENSION AGREEMENT

 

This LOAN EXTENSION AGREEMENT (this “Agreement”) is dated as of December 10, 2010, by and between ONE Bio, Corp., a Florida corporation trading on the OTC Bulletin Board under the symbol “ONBI.OB” (the “Borrower”), and each of the purchasers listed on Schedule 1 to the Purchase Agreement (as defined below) (the “Purchasers”).

 

Reference is herein made to that certain Securities Purchase and Registration Rights Agreement, by and between the Borrower and the Purchasers, dated as of January 8, 2010 (the “Purchase Agreement”), that certain form of Amended and Restated Promissory Note, which form was executed by the Borrower and each of the Purchasers on August 12, 2010 in the principal amounts with respect to each such Purchaser as specified on Schedule 1 to the Purchase Agreement (each, an “Amended Note” and, collectively, the “Amended Notes”), and that certain Loan Extension and Modification Agreement, dated August 12, 2010, by and among the Borrower and the Purchasers (the “August Modification Agreement”). Capitalized terms not otherwise defined herein shall have the meaning ascribed to such term in the August Modification Agreement and, to the extent no meaning is ascribed to such term in the August Modification Agreement, shall have the meaning ascribed to such term in the Purchase Agreement.

 

WITNESSETH:

 

WHEREAS, pursuant to the August Modification Agreement, the Purchasers were each issued an Amended Note, with each such note maturing on the Maturity Date (as defined in the Amended Notes) of December 10, 2011, unless extended to January 10, 2011 with the written consent of each of the respective Purchasers;

 

WHEREAS, pursuant to the August Modification Agreement, upon the closing of a New Financing prior to the Amended Maturity Date, the Borrower would immediately issue the New Warrants to the Purchasers for the right to purchase a certain number of shares of Common Stock;

 

WHEREAS, the Borrower seeks the Purchasers’ consent to extend the Maturity Date (as defined in the Amended Notes) of all the Amended Notes to January 31, 2011, and the Purchasers, upon and subject to all covenants, terms and conditions provided herein, and on the basis of the facts and statements contained in the foregoing recitals, are willing to consent to such an extension of the Maturity Date (as defined in the Amended Notes); and

 

WHEREAS, in addition to the extension of the Maturity Date (as defined in the Amended Notes), the Borrower also seeks the Purchasers’ consent to modify certain terms and conditions of the August Modification Agreement with respect to the issuance of the New Warrants, as more fully set forth herein, and the Purchasers, upon and subject to all covenants, terms and conditions provided herein and in the Amended Loan Documents, and on the basis of the facts and statements contained in the foregoing recitals, are willing to consent to such modifications.

 

  

  

  

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and Purchasers agree as follows:

1.           Further Extension of Maturity Date.  In accordance with the terms of the Amended Notes, each of the undersigned Purchasers hereby agree to further extend the Maturity Date (as defined in the Amended Notes) to January 31, 2011 (such date being the “Amended Maturity Date” for purposes of this Agreement).  Borrower and Purchasers shall continue to negotiate in good faith additional extensions beyond January 31, 2011, provided however, that such parties shall be under no obligation to agree to any such additional extensions.

2.           Adjustment of New Warrant Issuance.  Purchasers and the Borrower hereby agree that the terms under which the New Warrants (whose exercise price is not yet fixed) issuable to each of the Purchasers pursuant to the terms of the August Modification Agreement shall be as set forth in the August Modification Agreement, except that (a) the term “New Financing” (i) for purposes of determining whether any New Warrants are to be issued and (ii) as used in the New Warrants, shall also include any one or more related private offerings or placements of Common Stock or other private placements of equity or convertible debt financing raising in excess of $5 million in aggregate gross proceeds, and (b) references to Amended Maturity Date in Sections 3 and 4 of the August Modification Agreement shall be to the Amended Maturity Date as set forth in this Agreement. For purposes of this Section 2 and the New Warrants, one or more offerings or placements shall be deemed “related” if part of a series by contract or otherwise consummated within 120 days of each other.

3.           Issuance of Extension Warrants.  In exchange for the Purchasers’ agreement to extend the Maturity Date of the Amended Notes, on January 1, 2011 the Borrower shall issue to the Purchasers warrants (the “Extension Warrants”), that shall be immediately exercisable for a period of five (5) years following the date of issuance and which shall entitle the Purchasers to purchase up to an aggregate of 60,000 shares of Common Stock at an initial exercise price of $3.75 per share, for cash or on a cashless exercise basis, and otherwise in the form previously agreed upon for the New Warrants, with the number of such Extension Warrants issued pursuant hereto to be allocated among the Purchasers in accordance with Schedule 1 attached hereto.

4.           Individual Purchaser Option to Elect Cash Payments in Lieu of New Warrants.  The Cancellation Premium set forth in Section 5 of the August Modification Agreement shall continue to be payable on the dates set forth in the August Modification Agreement as modified by this Agreement, provided, however, that if the Company closes a New Financing prior to the Amended Maturity Date set forth in this Agreement, each Purchaser may nonetheless elect, in its discretion, by written notice to the Company given at any time, but no later than five Business Days after the last to occur of (x) the closing of the New Financing and (y) receipt by such Purchaser of notice of such closing, to either (a) retain the New Warrants issued or proposed to be issued by the Company, or (b) in exchange for or in lieu of the New Warrants, to accept cash payments payable (on a pro rata basis among those Purchasers who so elect) in the amounts and on the dates that that the Cancellation Premium would have payable (to such Purchasers who so elect) had the Company not closed a New Financing prior to the Amended Maturity Date set forth in this Agreement.

  

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           5.           Fees and Expenses.  The Borrower shall promptly reimburse Purchasers for all of Purchasers’ due diligence, legal fees and other out-of-pocket expenses incurred in connection with the preparation and negotiation of this Agreement. Borrower concurrently with execution of this Agreement is advancing $12,500 to Purchasers as a partial advance reimbursement of such due diligence expenses (such $12,500 representing the full fees of Lender’s local diligence advisor in the PRC, but not including such advisor’s expenses which shall be reimbursed by Borrower) and $10,000 to Purchasers as a partial advance reimbursement of such legal expenses, and the extension of the Maturity Date contemplated by this Agreement shall be ineffective if such advances are not received by December 22, 2010.

           6.           Enforceability.  Except as specifically modified herein, the August Modification Agreement and the Amended Loan Documents remain in full force and effect.

           7.           Borrower Representations and Warranties.  Borrower, by execution of this Agreement, hereby represents and warrants that as of the date hereof, with the understanding that Purchasers are expressly relying thereon as an inducement to enter in this Agreement and extend the maturity of the Amended Notes:

           (a) no Event of Default has occurred or is continuing;

           (b) Borrower’s most recent Quarterly Report on SEC Form 10-Q for the three months and nine months ended September 30, 2010, and its most recent preliminary prospectus filed on November 22, 2010 as part of its Registration Statement  No. 333-164848, did not as of the date of their filing, and do not as of this date, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

           (c) Borrower has provided Purchasers with a comprehensive schedule of all of Borrower’s and its subsidiaries’ and controlled affiliates’ (including the WFOE Subsidiaries’) bank accounts and cash balances as of November 30, 2010 or a more recent date (the “Current Cash Schedule”).  The Current Cash Schedule reflects all cash and cash-equivalents on hand of the Borrower and its Subsidiaries and controlled affiliates (including the WFOE Subsidiaries) (“Borrower Cash”) as of its date.

           (d) The Borrower Cash is not subject to any pledge, lien or security interest in favor of any bank, other lender or other third party.

 

(e) The Borrower Cash is not subject to any contract or agreement with any party to which the Borrower, any of its Subsidiaries, including the WFOE Subsidiaries, or any legal or beneficial owners of any of the WFOE Subsidiaries is a party, that restricts, limits or conditions Borrower’s or any of the WFOE Subsidiaries’ access to the Borrower cash for use as distributions or fees to the Borrower (in the case of the WFOE Subsidiaries) or otherwise for use by the Borrower for repayment of the Amended Notes,

  

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(f) While the Borrower or its WFOE Subsidiaries will be required to comply with certain PRC administrative procedures necessary to obtain certain required permits and approvals in order for the WFOE Subsidiaries to remit funds in non-PRC currency to the Borrower as distributions or fees, (i) to Borrower’s knowledge neither Borrower nor any WFOE Subsidiary has taken or omitted to take any action, whether in the course of its organization, transfers of ownership, operation or otherwise, that could result in failure to obtain all such required permits and approvals, (ii) Borrower has no reason to believe that such permits and approvals, when requested, will not be obtained within a reasonable period of time from  the date of the initiation of such request, and (ii) other than compliance with such administrative procedures, to Borrowers’ knowledge, neither Borrower nor any WFOE Subsidiary is subject to any legal restriction on its ability to obtain prompt and immediate access to Borrower Cash for use as distributions or fees to the Borrower (in the case of the WFOE Subsidiaries) or otherwise for use by the Borrower for repayment of the Amended Notes. Acceptance by the Purchasers of the foregoing representation shall not be deemed to extend, modify or amend the existing grace or cure periods in the Amended Notes.

 

(g) To the Borrower’s knowledge after due inquiry as to both facts and applicable PRC law, the WFOE Subsidiaries are not subject to any legal, regulatory or contractual restrictions that would prohibit, restrict or otherwise impair their ability to immediately remit payment in full of an amount equal to all amounts due under the Amended Notes in PRC currency to a PRC bank account held by any agent, nominee or transferee of the Purchasers and without compliance with PRC administrative procedures that would otherwise be applicable to distributions or fees to the Borrower if the payment were to be made in other than PRC currency or to a non-PRC entity. Borrower shall, within 10 days of any joint Purchaser request made after execution and delivery of this Agreement, cause the WFOE Subsidiaries established in the PRC to adopt Board resolutions stating that such WFOE Subsidiary agrees to transfer, to a designated agent, nominee or transferee of the Purchasers, promptly upon their first demand following any Event of Default under the Amended Notes, funds in an amount equal to all sums then due and owing under the Amended Notes and this Agreement.

 

           Concurrently herewith and as a condition to the effectiveness of this Agreement, Borrower is delivering to the Purchaser a certification of its Chief Executive Officer and Chief Financial Officer as to the accuracy of the foregoing representations and warranties.

           8.           Amendment and Waiver.  No term, covenant, agreement or condition of this Agreement may be amended unless in a writing and executed by all of the parties hereto affected thereby.  No waiver of any term, covenant, agreement or condition of this Agreement by a party shall be effective unless in writing executed by the waiving party.

           9.           Successors and Assigns.  This Agreement shall be binding on and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not, except that the assignment of the rights and obligations of the Borrower hereunder shall be subject to the restrictions on transfers and assignments contained in the Amended Loan Documents.

  

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   10.           Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement in any number of separate counterparts, each of which, when so executed, shall be deemed an original, and all of said counterparts taken together shall be deemed to constitute but one and the same instrument.

           11.           Integration and Severability.  This Agreement, taken together with the August Modification Agreement and the Amended Loan Documents, embodies the entire agreement and understanding among the Purchasers and the Borrower with respect to the matters addressed herein, and supersedes all prior agreements and understandings relating to the subject matter hereof.  In case any one or more of the provisions contained in this Agreement or in any instrument contemplated hereby, or any application thereof, shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein, and any other application thereof, shall not in any way be affected or impaired thereby.

           13.           Conflict with Existing Loan Documents.  Notwithstanding any provision to the contrary contained in this Agreement, the August Modification Agreement, or any of the Amended Loan Documents, if any of the provisions of the August Modification Agreement or the Amended Loan Documents conflict with or are inconsistent with the provisions of this Agreement, this Agreement shall control and govern.

           14.           Captions.  The captions and headings of this Agreement are for convenience of reference only and shall not affect the interpretation of this Agreement.

           15.           Governing Law.  WITH RESPECT TO ANY ACTION OR DISPUTE BETWEEN BORROWER AND THE PURCHASERS THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

           16.           Loan Extension Agreement.  It is the intention and understanding of the parties hereto that this Agreement shall act as an extension of the Loan and that this Agreement shall not act as a novation of such Loan.

 

[Signature Page to Immediately Follow]

 

  

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IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.

 

	 	 	BORROWER:	 
	 	 	 	 	 
	 	 	ONE BIO, CORP.	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	 	By:	
 
/s/ Marius Silvasan

	 
	
 

	 	 
 

	
 

	 
	
 

	 	 
Title:

	
 

	 
	 	 	 
Address:   

	 
8525 NW 53rd Terr., Suite C101

 
Doral, Fl 33166

Attention: Chief Executive Officer

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
PURCHASERS:

	 
	 	 	 	 	 
	 	 	 
UTA CAPITAL LLC,

 
a Delaware limited liability company

	 
	 	 	 	 	 
	 	 	 
By:

	YZT Management LLC, its Managing Member	 
	 	 	 	 	 
	 	 	 
By:

	/s/ Udi Toledano	 
	 	 	 
Name:

	Udi Toledano	 
	 	 	 
Title:

	Managing Member	 
	 	 	Address:  	 
100 Executive Drive, Suite 330

	 
	 	 	 	 
West Orange, NJ 07052

	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
FRONTIER PTY LTD,

 
an Australian Company

	 
	 	 	 
 

	 
	 	 	 
By:

	/s/ Michael Karp	 
	 	 	 
Name:

	Michael Karp	 
	 	 	 
Title:

	Director	 
	 	 	Address:	 
Level 3

 
468 St. Kilda Road

Melbourne Vic. 3004

 
Australia

	 

 

  

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 PURCHASERS CONT’D:

	
  

	 	
GAL DYMANT

	
  

	 	
/s/ Gal Dymant

	
  

	 	
Gal Dymant

	
  

	 	
Address:

	
Flat B, 21/F

	
  

	 	
Tower 1, Estoril Court

	
  

	 	
55 Garden Road

	
  

	 	
Hong Kong, HK

	
  

	 	
ALAN FOURNIER

	
  

	 	
/s/ Alan Fournier

	
  

	 	
Alan Fournier

	
  

	 	
Address:

	
11 Spring Hollow Road

Far Hills, New Jersey 07931

                      

 

  

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Schedule 1

 

	
Purchasers

	 	
Principal Amount of the Amended Notes

	 	
Extension Warrants to be Issued to Purchasers

	
UTA Capital LLC

	 	
$  2,000,000.00

	 	
40,000

	
Gal Dymant

	 	
$   350,000.00

	 	
7,000

	
Alan Fournier

	 	
$   550,000.00

	 	
11,000

	
Frontier Pty Ltd

	 	
$  100,000.00

	 	
2,000

	
Total

	 	
$  3,000,000.00

	 	
60,000ex4-1.htm

EXHIBIT 4.1

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF OR IN ACCORDANCE WITH APPLICABLE LAW.

WARRANT TO PURCHASE STOCK

 

	Corporation:	ACCELERIZE NEW MEDIA, INC.	 
	Number of Shares:	See below.	 
	Class of Stock:	Common	 
	Initial Exercise Price:	See below.	 
	Issue Date:	January 3, 2011	 
	Expiration Date:	January 3, 2016	 

 

THIS WARRANT CERTIFIES THAT AGILITY CAPITAL II, LLC or registered assignee (“Holder”) is entitled to purchase the number of fully paid and nonassessable shares (the “Shares”) of Common Stock of ACCELERIZE NEW MEDIA, INC. (the “Company”), in the number, at the price, and for the term specified above.  The number of Shares that may be purchased is equal to the quotient derived by dividing (i) $150,000 by (ii) the Warrant Price.  The Warrant Price is equal to the lower of (i) the average closing price of the Company’s Common Stock for the 15 days prior to the Issue Date and (ii) the price per share at which the Company sells or issues its capital stock after the Issue Date in a transaction or series of transactions in which the Company receives at least $500,000, provided that such price per share shall in no case be less the price per share of the Company’s Series B Preferred Stock including any adjustments provided for therein.

 

ARTICLE 1.           EXERCISE

 

1.1           Method of Exercise.  Holder may exercise this Warrant by delivering this Warrant and a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company.  Unless Holder is exercising the conversion right set forth in Section 1.2, Holder shall also deliver to the Company a check for the aggregate Warrant Price for the Shares being purchased.

 

1.2           Conversion Right.  In lieu of exercising this Warrant as specified in Section 1.1, Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares by (b) the fair market value of one Share.  The fair market value of the Shares shall be determined pursuant to Section 1.3.

 

1.3           Fair Market Value.  The fair market value of the Shares shall be the closing price of the Shares reported for the business day immediately before Holder delivers its Notice of Exercise to the Company.

 

1.4           Delivery of Certificate and New Warrant.  Promptly after Holder exercises or converts this Warrant, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised or converted and has not expired, a new Warrant representing the Shares not so acquired.

 

1.5           Replacement of Warrants.  On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, or surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

 

ARTICLE 2.           ADJUSTMENTS TO THE SHARES.

 

2.1           Stock Dividends, Splits, Etc.  If the Company declares or pays a dividend on its common stock payable in common stock, or other securities, subdivides the outstanding common stock into a greater amount of common stock, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred.

 

  

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2.2           Reclassification, Exchange or Substitution.  Upon any reclassification, exchange, substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon exercise or conversion of this Warrant, the number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised immediately before such reclassification, exchange, substitution, or other event.

 

2.3           Adjustments for Combinations, Etc.  If the outstanding Shares are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased.

 

2.4           Price Adjustment.  If the Company issues additional common shares (including shares of common stock ultimately issuable upon conversion of a security convertible into common stock) after the date of the Warrant and the consideration per additional common share is less than the Warrant Price in effect immediately before such issue, the Warrant Price shall be reduced, concurrently with such Issue, to such lower price.  Upon each adjustment of the Warrant Price, the number of Shares issuable upon exercise of the Warrant shall be increased to equal the quotient obtained by dividing (a) the product resulting from multiplying (i) the number of Shares issuable upon exercise of the Warrant and (ii) the Warrant Price, in each case as in effect immediately before such adjustment, by (b) the adjusted Warrant Price.  Notwithstanding any provision of this Section 2.4, neither the Warrant Price nor the number of Shares shall be adjusted for any options issued to employees, directors, or officers under any stock option plan of the Company.

 

2.5           Loan Default.  Upon the occurrence of an Event of Default under the Loan Agreement between the Company and the Holder dated as of the Issue Date (the “Loan Agreement”) and notice to the Company, the number of Shares that Holder may acquire under this Warrant shall increase by 50,000, and shall increase by an additional 75,000 Shares on the thirtieth day thereafter, and on each thirtieth day after that for so long as the Event of Default is continuing, up to a maximum additional Shares of 350,000.  The Warrant Price from and after the occurrence of an Event of Default shall be the lesser of (a) the Warrant Price that would otherwise be applicable and (b) the average closing price of Borrower’s common stock for the 15 day period immediately prior to such occurrence.

 

2.6           No Impairment.  The Company shall not, by amendment of its Certificate of Incorporation or through a reorganization, transfer of assets, consolidation, merger, 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 to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out all the provisions of this Article 2 and in taking all such action as may be necessary or appropriate to protect Holder’s rights under this Article against impairment.  If the Company takes any action affecting the Shares or its common stock other than as described above that adversely affects Holder’s rights under this Warrant, the Warrant Price shall be adjusted downward and the number of Shares issuable upon exercise of this Warrant shall be adjusted upward in such a manner that the aggregate Warrant Price of this Warrant is unchanged.

 

2.7           Certificate as to Adjustments.  Upon each adjustment of the Warrant Price, the Company at its expense shall promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based.  The Company shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price.

 

ARTICLE 3.           REPRESENTATIONS AND COVENANTS OF THE COMPANY.

 

3.1           Representations and Warranties.  The Company hereby represents and warrants to the Holder that all Shares that may be issued upon the exercise of the purchase right represented by this Warrant, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws.

 

  

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3.2           Notice of Certain Events.  If the Company proposes at any time (a) to declare any dividend or distribution upon its common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to the holders of any class or series of its stock any additional shares of stock of any class or series or other rights; (c) to effect any reclassification or recapitalization of common stock; (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate, dissolve or wind up unless the Company shall be the Surviving Entity; or (e) offer holders of registration rights the opportunity to participate in an underwritten public offering of the company’s securities for cash (except to the extent such offer occurs within 30 days of the Issue Date of this Warrant), then, in connection with each such event, the Company shall give Holder (1) at least 20 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; (2) in the case of the matters referred to in (c) and (d) above at least 20 days prior written notice of the date when the same will take place (and specifying the date on which the holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event); and (3) in the case of the matter referred to in (e) above, the same notice as is given to the holders of such registration rights.

 

3.3           Registration Rights. The Shares, or the common stock into which the Shares are convertible, shall be “Registrable Securities”, and Holder shall have the rights of a “Holder” in respect of piggyback and S-3 registrations under such registration rights agreement or investor rights agreement as may be entered into from time to time among the Company and the Purchasers named therein.

 

3.4           Information Rights.  So long as the Holder holds this Warrant and/or any of the Shares, the Company shall deliver to the Holder (a) within one hundred twenty (120) days after the end of each fiscal year of the Company, the annual audited financial statements of the Company certified by independent public accountants of recognized standing and (b) within forty-five (45) days after the end of each of the first three quarters of each fiscal year, the Company’s quarterly, unaudited financial statements, provided Company need not provide such information for any period in which Company has filed Form 10Q with the Securities and Exchange Commission.

 

ARTICLE 4.           MISCELLANEOUS.

 

4.1           Term.  This Warrant is exercisable, in whole or in part, at any time and from time to time on or before the Expiration Date set forth above.

 

4.2           Legends.  This Warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR IN ACCORDANCE WITH APPLICABLE LAW.

 

4.3           Compliance with Securities Laws on Transfer.  This Warrant and the Shares issuable upon exercise 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.

 

4.4           Transfer Procedure.  Subject to the provisions of Section 4.3, Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company notice of the portion of the Warrant being transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this Warrant to the Company for reissuance to the transferee(s) (and Holder, if applicable), provided that no such notice shall be required for a transfer to an affiliate of Holder.

 

  

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4.5           Notices.  All notices and other communications from the Company to the Holder, or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company or the Holder, as the case may be, in writing by the Company or such Holder from time to time.

 

4.6           Waiver.  This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

 

4.7           Attorneys’ Fees.  In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees.

 

4.8           Governing Law.  This Warrant shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its principles regarding conflicts of law.

 

	  	ACCELERIZE NEW MEDIA, INC.
	  	  	  
	  	  	  
	  	By:	
/s/ Brian Ross                                                             

	  	 	  
	  	Name:	
Brian Ross                                                             

	  	  	  
	  	Title:	
CEO                                                             

 

  

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APPENDIX 1

 

NOTICE OF EXERCISE

 

1.           The undersigned hereby elects to purchase ______________ shares of the Common Stock of ACCELERIZE NEW MEDIA, INC. pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full.

 

1.           The undersigned hereby elects to convert the attached Warrant into Shares in the manner specified in the Warrant.  This conversion is exercised with respect to ______________ of the Shares covered by the Warrant.

 

[Strike paragraph that does not apply.]

 

2.           Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below:

 

Agility Capital II, LLC

____________________

____________________

Or Registered Assignee

 

3.           The undersigned represents it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or distribution thereof except in compliance with applicable securities laws.

 

	
Agility Capital II, LLC or Registered Assignee

	  	  
	  	  	  
	  	  	  
	 	  	  
	
(Signature)

	  	  
	  	  	  
	  	  	  
	 	  	  
	
(Date)

	  	  

 

 

 

5

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