Document:

exv10w16

 

Exhibit 10.16

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

STARVOX COMMUNICATIONS, INC.

WARRANT TO PURCHASE SERIES A PREFERRED STOCK

			
	 	 	 
	No. PCW-001
	 	August 5, 2005

Void After AUGUST 5, 2008

     This Certifies That, for value received, Sand Hill Finance, LLC, or its assigns (the
“Holder”), is entitled to subscribe for and purchase from Starvox Communications, Inc., a
California corporation, with its principal office at 2728 Orchard Parkway, San Jose, California
95134 (the “Company”) the Exercise Shares at the Exercise Price (each subject to adjustment as
provided herein).

     1. Definitions. As used herein, the following terms shall have the
following respective meanings:

          (a) “Exercise Period” shall mean the period commencing with the date hereof and ending three
years later, unless sooner terminated as provided below.

          (b) “Exercise Price” shall mean $0.525 per Exercise Share subject to adjustment pursuant to
Sections 5 and 7 below.

          (c) “Exercise Shares” shall mean one hundred fifty thousand (150,000) shares of the Company’s
Series A Preferred Stock issuable upon exercise of this Warrant.

     2. Exercise of Warrant. The rights represented by this Warrant may be
exercised in whole or in part at any time during the Exercise Period, by delivery of the following
to the Company at its address set forth above (or at such other address as it may designate by
notice in writing to the Holder):

          (a) An executed Notice of Exercise in the form attached hereto;

          (b) Payment of the Exercise Price either (i) in cash or by check, or (ii) by cancellation of
indebtedness; and

          (c) This Warrant.

 

 

     Upon the exercise of the rights represented by this Warrant, a certificate or certificates for
the Exercise Shares so purchased, registered in the name of the Holder or persons affiliated with
the Holder, if the Holder so designates, shall be issued and delivered to the Holder within a
reasonable time after the rights represented by this Warrant shall have been so exercised. In the
event that this Warrant is being exercised for less than all of the then-current number of Exercise
Shares purchasable hereunder, the Company shall, concurrently with the issuance by the Company of
the number of Exercise Shares for which this Warrant is then being exercised, issue a new Warrant
exercisable for the remaining number of Exercise Shares purchasable hereunder.

     The person in whose name any certificate or certificates for Exercise Shares are to be issued
upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on
the date on which this Warrant was surrendered and payment of the Exercise Price was made,
irrespective of the date of delivery of such certificate or certificates, except that, if the date
of such surrender and payment is a date when the stock transfer books of the Company are closed,
such person shall be deemed to have become the holder of such shares at the close of business on
the next succeeding date on which the stock transfer books are open.

     2.1 Net Exercise. Notwithstanding any provisions herein to the contrary, if the fair market
value of one Exercise Share is greater than the Exercise Price (at the date of calculation as set
forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to
receive shares equal to the value (as determined below) of this Warrant (or the portion thereof
being canceled) by surrender of this Warrant at the principal office of the Company together with
the properly endorsed Notice of Exercise in which event the Company shall issue to the Holder a
number of Exercise Shares computed using the following formula:

	 	 	 	 	 	 	 
	 

	 	X =
	 	Y (A-B)
 

A
	 	 

	 	 	 	 	 
	 

	 	Where X =
	 	the number of Exercise Shares to be issued to the Holder
	 
	 	 	 	 
	 

	 	Y =
	 	the number of Exercise Shares purchasable under the Warrant or,
if only a portion of the Warrant is being exercised, that
portion of the Warrant being canceled (at the date of such
calculation)
	 
	 	 	 	 
	 

	 	A =
	 	the fair market value of one Exercise Share (at the date of such
calculation)
	 
	 	 	 	 
	 

	 	B =
	 	Exercise Price (as adjusted to the date of such calculation)

     For purposes of the above calculation, the fair market value of one Exercise Share shall be
determined by the Company’s Board of Directors in good faith; provided, however, that in the event
that this Warrant is exercised pursuant to this Section 2.1 in connection with the Company’s
initial public offering of its Common Stock, the fair market value per share shall be the product
of (i) the per share offering price to the public of the Company’s initial public offering, and
(ii) the number of shares of Common Stock into which each Exercise Share is convertible at the time
of such exercise.

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     3. Covenants of the Company.

          3.1 Covenants as to Exercise Shares. The Company covenants and agrees that all Exercise
Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon
issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes,
liens and charges with respect to the issuance thereof. The Company further covenants and agrees
that the Company will at all times during the Exercise Period, have authorized and reserved, free
from preemptive rights, a sufficient number of shares of the series of equity securities comprising
the Exercise Shares to provide for the exercise of the rights represented by this Warrant. If at
any time during the Exercise Period the number of authorized but unissued shares of such series of
the Company’s equity securities shall not be sufficient to permit exercise of this Warrant, the
Company will take such corporate action as may, in the opinion of its counsel, be necessary to
increase its authorized but unissued shares of such series of the Company’s equity securities to
such number of shares as shall be sufficient for such purposes.

     4. Representations of Holder.

          4.1 Acquisition of Warrant for Personal Account. The Holder represents and warrants that it
is acquiring the Warrant and the Exercise Shares solely for its account for investment and not with
a view to or for sale or distribution of said Warrant or Exercise Shares or any part thereof. The
Holder also represents that the entire legal and beneficial interests of the Warrant and Exercise
Shares the Holder is acquiring is being acquired for, and will be held for, its account only.

          4.2 Securities Are Not Registered.

               (a) The Holder understands that the Warrant and the Exercise Shares have not been registered
under the Securities Act of 1933, as amended (the “Act’) on the basis that no distribution or
public offering of the stock of the Company is to be effected. The Holder realizes that the basis
for the exemption may not be present if, notwithstanding its representations, the Holder has a
present intention of acquiring the securities for a fixed or determinable period in the future,
selling (in connection with a distribution or otherwise), granting any participation in, or
otherwise distributing the securities. The Holder has no such present intention.

               (b) The Holder recognizes that the Warrant and the Exercise Shares must be held indefinitely
unless they are subsequently registered under the Act or an exemption from such registration is
available. The Holder recognizes that the Company has no obligation to register the Warrant or the
Exercise Shares of the Company, or to comply with any exemption from such registration.

               (c) The Holder is aware that neither the Warrant nor the Exercise Shares may be sold pursuant
to Rule 144 adopted under the Act unless certain conditions are met, including, among other things,
the existence of a public market for the shares, the availability of certain current public
information about the Company, the resale following the required holding period under Rule 144 and
the number of shares being sold during any three month period not exceeding specified limitations.
Holder is aware that the conditions for resale set forth in Rule 144 have not been

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satisfied and that the Company presently has no plans to satisfy these conditions in the
foreseeable future.

          4.3 Disposition of Warrant and Exercise Shares.

               (a) The Holder further agrees not to make any disposition of all or any part of the Warrant or
Exercise Shares in any event unless and until:

                    (i) The Company shall have received a letter secured by the Holder from the Securities and
Exchange Commission stating that no action will be recommended to the Commission with respect to
the proposed disposition;

                    (ii) There is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with said registration statement; or

                    (iii) The Holder shall have notified the Company of the proposed disposition and shall have
furnished the Company with a detailed statement of the circumstances surrounding the proposed
disposition, and if reasonably requested by the Company, the Holder shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, for the Holder to the
effect that such disposition will not require registration of such Warrant or Exercise Shares under
the Act or any applicable state securities laws. The Company agrees that it will not require an
opinion of counsel with respect to transactions under Rule 144 of the Securities Act of 1933, as
amended, except in unusual circumstances.

               (b) The Holder understands and agrees that all certificates evidencing the shares to be issued
to the Holder may bear the following legend:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT’). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE
SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED.

          4.4 Accredited Investor Status. The Holder is an “accredited investor” as defined in
Regulation D promulgated under the Act.

     5. Adjustment of Exercise Price and Number of Exercise Shares.

          5.1 Changes in Securities. In the event of changes in the series of equity securities of the
Company comprising the Exercise Shares by reason of stock dividends, splits, recapitalizations,
reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations,
or the like, the number and class of Exercise Shares available under the Warrant in the aggregate
and the Exercise Price shall be correspondingly adjusted to give the Holder of the Warrant, on
exercise for the same aggregate Exercise Price, the total number, class, and kind

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of shares as the Holder would have owned had the Warrant been exercised prior to the event and
had the Holder continued to hold such shares until after the event requiring adjustment; provided,
however, that such adjustment shall not be made with respect to, and this Warrant shall terminate
if not exercised prior to, the events set forth in Section 7 below. For purposes of this Section 5
and Section 7, the “Aggregate Exercise Price” shall mean the aggregate Exercise Price payable in
connection with the exercise in full of this Warrant. The form of this Warrant need not be changed
because of any adjustment in the number of Exercise Shares subject to this Warrant.

          5.2 Automatic Conversion. Upon the automatic conversion of all outstanding shares of the
series of equity securities comprising the Exercise Shares, this Warrant shall become exercisable
for that number of shares of Common Stock of the Company into which the Exercise Shares would then
be convertible, so long as such shares, if this Warrant had been exercised prior to such offering,
would have been converted into shares of the Company’s Common Stock pursuant to the Company’s
Certificate of Incorporation. In such case, all references to “Exercise Shares” shall mean shares
of the Company’s Common Stock issuable upon exercise of this Warrant, as appropriate.

     6. Fractional Shares. No fractional shares shall be issued upon the
exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares
(including fractions) to be issued upon exercise of this Warrant shall be aggregated for purposes
of determining whether the exercise would result in the issuance of any fractional share. If,
after aggregation, the exercise would result in the issuance of a fractional share, the Company
shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such
fraction a sum in cash equal to the product resulting from multiplying the then current fair market
value of one Exercise Share by such fraction.

     7. Early Termination. In the event of, at any time during the Exercise
Period, an initial public offering of securities of the Company registered under the Act, or an
Acquisition or Asset Transfer (each as defined in the Company’s Articles of Incorporation in effect
as of the date hereof), the Company shall provide to the Holder twenty (20) days advance written
notice of such public offering, Acquisition or Asset Transfer, and this Warrant shall terminate
unless exercised immediately prior to the date such public offering is closed or the closing of
such Acquisition or Asset Transfer.

     8. Market Stand-Off Agreement. Holder shall not sell, dispose of, transfer,
make any short sale of, grant any option for the purchase of, or enter into any hedging or similar
transaction with the same economic effect as a sale, any Common Stock (or Exercise Shares or other
securities) of the Company held by Holder, for a period of time specified by the managing
underwriter(s) (not to exceed one hundred eighty (180) days) following the effective date of a
registration statement of the Company filed under the Act. Holder agrees to execute and deliver
such other agreements as may be reasonably requested by the Company and/or the managing
underwriter(s) which are consistent with the foregoing or which are necessary to give further
effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to such Common Stock (or other securities) until the end of such period.
The underwriters of the Company’s stock are intended third party beneficiaries of this Section 8
and

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shall have the right, power and authority to enforce the provisions hereof as though they were
a party hereto.

     9. No Stockholder Rights. This Warrant in and of itself shall not entitle
the Holder to any voting rights or other rights as a stockholder of the Company.

     10. Transfer of Warrant. Subject to applicable laws and the restriction on
transfer set forth on the first page of this Warrant, this Warrant and all rights hereunder arc
transferable, by the Holder in person or by duly authorized attorney, upon delivery of this Warrant
and the form of assignment attached hereto to any transferee designated by Holder. The transferee
shall sign an investment letter in form and substance satisfactory to the Company.

     11. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it
may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen,
mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation
of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be
at any time enforceable by anyone.

     12. Amendment. Any term of this Warrant may be amended or waived with the
written consent of the Company and the Holder.

     13. Notices, etc. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the party to be
notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (c) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt.

     14. Acceptance. Receipt of this Warrant by the Holder shall constitute
acceptance of and agreement to all of the terms and conditions contained herein.

     15. Governing Law. This Warrant and all rights, obligations and liabilities
hereunder shall be governed by and construed under the laws of the State of California as applied
to agreements among California residents, made and to be performed entirely within the State of
California without giving effect to conflicts of laws principles.

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     In Witness Whereof, the Company has caused this Warrant to be executed by its duly
authorized officer as of August 5, 2006.

	 	 	 	 	 	 	 
	 	 	Starvox Communications, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Douglas S. Zorn
 

	 	 
	 	 	Name: Douglas S. Zorn 

Title: Chief Executive Officer

Address: 2728 Orchard Parkway, San Jose, California 95134	 	 

[Signature Page]

 

 

NOTICE OF EXERCISE

TO: Starvox Communications, Inc.

     (1) o
The undersigned hereby elects to purchase                      shares of Series A Preferred
Stock (the “Exercise Shares”) of Starvox Communications, Inc. (the “Company”) pursuant to the terms
of the attached Warrant, and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

          o
The undersigned hereby elects to purchase                      shares of Series A Preferred Stock
(the “Exercise Shares”) of Starvox Communications, Inc. (the “Company”) pursuant to the terms of
the net exercise provisions set forth in Section 2.1 of the attached Warrant, and shall tender
payment of all applicable transfer taxes, if any.

     (2) Please issue a certificate or certificates representing said Exercise Shares in the name
of the undersigned or in such other name as is specified below:

                                                            

(Name)

                                                            

                                                            

(Address)

     (3) The undersigned represents that (i) the aforesaid Exercise Shares are being acquired for
the account of the undersigned for investment and not with a view to, or for resale in connection
with, the distribution thereof and that the undersigned has no present intention of distributing or
reselling such shares; (ii) the undersigned is aware of the Company’s business affairs and
financial condition and has acquired sufficient information about the Company to reach an informed
and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is
experienced in making investments of this type and has such knowledge and background in financial
and business matters that the undersigned is capable of evaluating the merits and risks of this
investment and protecting the undersigned’s own interests; (iv) the undersigned understands that
Exercise Shares issuable upon exercise of this Warrant have not been registered under the
Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption from
the registration provisions of the Securities Act, which exemption depends upon, among other
things, the bona fide nature of the investment intent as expressed herein, and, because such
securities have not been registered under the Securities Act, they must be held indefinitely unless
subsequently registered under the Securities Act or an exemption from such registration is
available; (v) the undersigned is aware that the aforesaid Exercise Shares may not be sold pursuant
to Rule 144 adopted under the Securities Act unless certain conditions are met and until the
undersigned has held the shares for the number of years prescribed by Rule 144, that among the
conditions for use of the Rule is the availability of current information to the public about the
Company and the Company has not made such information available and has no present plans to do so;
and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid
shares of Exercise Shares unless

1.

 

and until there is then in effect a registration statement under the Securities Act covering
such proposed disposition and such disposition is made in accordance with said registration
statement, or, if reasonably requested by the Company, the undersigned has provided the Company
with an opinion of counsel satisfactory to the Company, stating that such registration is not
required.

	 	 	 	 	 	 	 
	 

(Date)

	 	 
	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

(Print name)
	 	 

2.

 

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form

and supply required information. Do not use this

form to purchase shares.)

     For Value Received, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 
	Address:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 

Dated:                    , 20___

	 	 	 	 	 
	Holder’s Signature:
	 	 	 	 
	 
	Holder’s Address:

	 	 
	 	 
	 

	 	 	 	 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face
of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations
and those acting in a fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.

3.exv10w17

 

Exhibit 10.17

No. CW-____

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS. SUCH
SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

WARRANT TO PURCHASE TWO HUNDRED TWENTY FIVE THOUSAND

SHARES OF COMMON STOCK OF

STARVOX COMMUNICATIONS, INC.

Void after January 30, 2009

     This certifies that                                         , or its permitted assigns (the “Holder”), for value
received, is entitled to purchase from STARVOX COMMUNICATIONS, INC., a California corporation (the
“Company”), having a place of business at 2202 N. First Street, San Jose, California 95131 a
maximum of                                          (                    ) fully paid and nonassessable shares of the
Company’s Common Stock, par value $.001 per share (the “Warrant Shares”), at a price per share of
$0.525 (the “Stock Purchase Price”) at any time or from time to time up to and including 5:00 p.m.
(Pacific time) January 30, 2009 (the “Expiration Date”), upon surrender to the Company at its
principal office (or at such other location as the Company may advise the Holder in writing) of
this Warrant properly endorsed with the Form of Subscription attached hereto as Annex A
duly filled in and signed and, if applicable, upon payment of the aggregate Stock Purchase Price
for the number of shares for which this Warrant is being exercised determined in accordance with
the provisions hereof. The Stock Purchase Price may be paid by cash, check, wire transfer or by the
surrender of promissory notes or other instruments representing indebtedness of the Company to the
Holder. The Stock Purchase Price and the number of shares purchasable hereunder are subject to
adjustment as provided in Section 3 of this Warrant.

     This Warrant is subject to the following terms and conditions:

     1. EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES.

          1.1 General. This Warrant is exercisable at the option of the holder of record hereof, at any
time or from time to time, up to the Expiration Date for all or any part of the shares of Common
Stock (but not for a fraction of a share) which may be purchased hereunder. The Company agrees that
the Warrant Shares shall be and are deemed to be issued to the Holder hereof as the record owner of
the Warrant Shares as of the close of business on the date on which this Warrant shall have been
surrendered, properly endorsed, the completed, executed Form of Subscription delivered and payment
made for the Warrant Shares. Certificates for Warrant Shares so purchased, together with any other
securities or property to which the Holder hereof is entitled upon such exercise, shall be
delivered to the Holder hereof by the Company at the Company’s expense within a

 

 

reasonable time after the rights represented by this Warrant have been so exercised. In case
of a purchase of less than all the shares which may be purchased under this Warrant, the Company
shall cancel this Warrant and execute and deliver a new Warrant or Warrants of like tenor for the
balance of the shares purchasable under the Warrant surrendered upon such purchase to the Holder
hereof within a reasonable time. Each stock certificate so delivered shall be in such denominations
of Warrant Shares as may be requested by the Holder hereof and shall be registered in the name of
such Holder.

          1.2 Net Issue Exercise. Notwithstanding any provisions herein to the contrary, in lieu of
exercising this Warrant in the manner provided above, the Holder may elect to receive shares equal
to the value (as determined below) of this Warrant (or the portion thereof being canceled) by
surrender of this Warrant at the principal office of the Company together with the properly
endorsed Form of Subscription and notice of such election in which event the Company 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 Warrant Shares to be issued to the Holder

Y = the number of Warrant Shares purchasable under the Warrant or, if only a portion
of the Warrant is being exercised, the portion of the Warrant being exercised (at the
date of such calculation)

A = the fair market value of one Warrant Share (at the date of such calculation) B =
Stock Purchase Price (as adjusted to the date of such calculation)

For purposes of this Section 1.2, the fair market value of each Warrant Share on the date of
calculation shall mean with respect to each Warrant Share:

               (a) if the exercise is in connection with an initial public offering of the Company’s Common
Stock, and if the Company’s Registration Statement relating to such public offering has been
declared effective by the Securities and Exchange Commission, then the fair market value per share
shall be the product of (x) the initial “Price to Public” specified in the final prospectus with
respect to the offering and (y) the number of shares of Common Stock into which each Warrant Share
is convertible at the date of calculation;

               (b) if this Warrant is exercised after, and not in connection with, the Company’s initial
public offering, and if the Company’s Common Stock is traded on a securities exchange or The Nasdaq
Stock Market or actively traded over-the-counter:

                    (1) if the Company’s Common Stock is traded on a securities exchange or The Nasdaq Stock
Market, the fair market value shall be deemed to be the product of (x) the average of the closing
prices over a thirty (30) day period ending three days before date of calculation and (y) the
number of shares of Common Stock into which each Warrant Share is convertible on such date; or

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                    (2) if the Company’s Common Stock is actively traded over-the-counter, the fair market value
shall be deemed to be the product of (x) the average of the closing bid or sales price (whichever
is applicable) over the thirty (30) day period ending three days before the date of calculation and
(y) the number of shares of Common Stock into which each Warrant Share is convertible on such date;
or

               (c) if neither (a) nor (b) is applicable, the fair market value of each Warrant Share shall be
the highest price per share which the Company could obtain on the date of calculation from a
willing buyer (not a current employee or director) for Warrant Shares sold by the Company, from
authorized but unissued shares, as determined in good faith by the Board of Directors, unless the
Company is at such time in the process of an Organic Change (as described in Section 3.3 below), in
which case the fair market value of each Warrant Share shall be deemed to be the value received by
the holders of such stock in connection with such event.

     2. RESERVATION OF SHARES. The Company further covenants and agrees that, during the period
within which the rights represented by this Warrant may be exercised, the Company will at all times
have authorized and reserved, for the purpose of issue or transfer upon exercise of the
subscription rights evidenced by this Warrant, a sufficient number of shares of authorized but
unissued Common Stock, or other securities and property, when and as required to provide for the
exercise of the rights represented by this Warrant. The Company will take all such action as may be
necessary to assure that such Warrant Shares may be issued as provided herein without violation of
any applicable law or regulation, or of any requirements of any domestic securities exchange upon
which the Common Stock may be listed; provided, however, that the Company shall not
be required to effect a registration under federal or state securities laws with respect to such
exercise.

     3. ADJUSTMENT OF STOCK PURCHASE PRICE AND NUMBER OF SHARES. The Stock Purchase Price and the
number of shares purchasable upon the exercise of this Warrant shall be subject to adjustment from
time to time upon the occurrence of certain events described in this Section 3. Upon each
adjustment of the Stock Purchase Price, the Holder of this Warrant shall thereafter be entitled to
purchase, at the Stock Purchase Price resulting from such adjustment, the number of shares obtained
by multiplying the Stock Purchase Price in effect immediately prior to such adjustment by the
number of shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the
product thereof by the Stock Purchase Price resulting from such adjustment.

          3.1 Subdivision or Combination of Stock. In case the Company shall at any time subdivide its
outstanding shares of Common Stock into a greater number of shares, the Stock Purchase Price in
effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in
case the outstanding Warrant Shares of the Company shall be combined into a smaller number of
shares, the Stock Purchase Price in effect immediately prior to such combination shall be
proportionately increased.

          3.2 Dividends in Common Stock, Other Stock, Property, Reclassification. If at any time or from
time to time the Holders of Common Stock (or any shares of stock or other

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securities at the time receivable upon the exercise of this Warrant) shall have received or
become entitled to receive, without payment therefor,

               (a) Common Stock or any rights or options to subscribe for, purchase or otherwise acquire
Common Stock by way of dividend or other distribution,

               (b) any cash paid or payable otherwise than as a cash dividend, or

               (c) Common Stock or additional stock or other securities or property (including cash) by way
of spin-off, split-up, reclassification, combination of shares or similar corporate rearrangement,
(other than shares of Common Stock issued as a stock split or adjustments in respect of which shall
be covered by the terms of Section 3.1 above), then and in each such case, the Holder hereof shall,
upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of
Common Stock receivable thereupon, and without payment of any additional consideration therefor,
the amount of stock and other securities and property (including cash in the cases referred to in
clause (b) above and this clause (c)) which such Holder would hold on the date of such exercise had
he been the holder of record of such Common Stock as of the date on which holders of Common Stock
received or became entitled to receive such shares or all other additional stock and other
securities and property.

          3.3 Reorganization, Reclassification, Consolidation, Merger or Sale. If any recapitalization,
reclassification or reorganization of the capital stock of the Company, or any consolidation or
merger of the Company with another corporation, or the sale of all or substantially all of its
assets or other transaction shall be effected in such a way that holders of Common Stock shall be
entitled to receive stock, securities, or other assets or property (an “Organic Change”), then, as
a condition of such Organic Change, lawful and adequate provisions shall be made by the Company
whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the
Warrant Shares issuable upon the exercise of the rights represented hereby immediately prior to
such event) such shares of stock, securities or other assets or property as may be issued or
payable with respect to or in exchange for a number of outstanding shares of such Common Stock
equal to the number of shares of such stock issuable upon the exercise of the rights represented
hereby immediately prior to such event. In the event of any Organic Change, appropriate provision
shall be made by the Company with respect to the rights and interests of the Holder of this Warrant
to the end that the provisions hereof (including, without limitation, provisions for adjustments of
the Stock Purchase Price and of the number of shares purchasable and receivable upon the exercise
of this Warrant) shall thereafter be applicable, in relation to any shares of stock, securities or
assets thereafter deliverable upon the exercise hereof. The Company will not effect any such
consolidation, merger or sale unless, prior to the consummation thereof, the successor corporation
(if other than the Company) resulting from such consolidation or the corporation purchasing such
assets shall assume by written instrument reasonably satisfactory in form and substance to the
Holders hereof, executed and mailed or delivered to the registered Holder hereof at the last
address of such Holder appearing on the books of the Company, the obligation to deliver to such
Holder such shares of stock, securities or assets as, in accordance with the foregoing provisions,
such Holder may be entitled to purchase.

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          3.4 Certain Events. If any change in the outstanding Common Stock of the Company or any other
event occurs as to which the other provisions of this Section 3 arc not strictly applicable or if
strictly applicable, would not fairly protect the purchase rights of the Holder of the Warrant in
accordance with such provisions, then the Board of Directors of the Company shall make an
adjustment in the number and class of shares available under the Warrant, the Stock Purchase Price
or the application of such provisions, so as to protect such purchase rights as aforesaid. The
adjustment shall be such as will give the Holder of the Warrant upon exercise for the same
aggregate Stock Purchase Price the total number, class and kind of shares as it would have owned
had the Warrant been exercised prior to the event and had it continued to hold such shares until
after the event requiring adjustment.

          3.5 Notices of Change.

                    (a) Immediately upon any adjustment in the number or class of shares subject to this Warrant
and of the Stock Purchase Price, the Company shall give written notice thereof to the Holder,
setting forth in reasonable detail and certifying the calculation of such adjustment.

                    (b) The Company shall give written notice to the Holder at least 10 business days prior to the
date on which the Company closes its books or takes a record for determining rights to receive any
dividends or distributions.

                    (c) The Company shall also give written notice to the Holder at least 30 business days prior
to the date on which an Organic Change shall take place.

     4. ISSUE TAX. The issuance of certificates for shares of Common Stock upon the exercise of the
Warrant shall be made without charge to the Holder of the Warrant for any issue tax (other than any
applicable income taxes) in respect thereof; provided, however, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer involved in the issuance
and delivery of any certificate in a name other than that of the then Holder of the Warrant being
exercised.

     5. CLOSING OF BOOKS. The Company will at no time close its transfer books against the transfer
of any warrant or of any shares of Common Stock issued or issuable upon the exercise of any warrant
in any manner which interferes with the timely exercise of this Warrant.

     6. NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY. Nothing contained in this Warrant
shall be construed as conferring upon the Holder hereof the right to vote or to consent or to
receive notice as a shareholder of the Company or any other matters or any rights whatsoever as a
shareholder of the Company. No dividends or interest shall be payable or accrued in respect of this
Warrant or the interest represented hereby or the shares purchasable hereunder until, and only to
the extent that, this Warrant shall have been exercised. No provisions hereof, in the absence of
affirmative action by the holder to purchase shares of Common Stock, and no mere enumeration herein
of the rights or privileges of the holder hereof, shall give rise to any liability of such Holder
for the Stock Purchase Price or as a shareholder of the Company, whether such liability is asserted
by the Company or by its creditors.

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     7. TRANSFERABILITY OF WARRANT. This Warrant may not be transferred.

     8. NO IMPAIRMENT. The Company will not, by amendment of its charter or through reorganization,
consolidation, merger, dissolution, sale of assets or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of the Warrant, but will at all times in
good faith assist in carrying out of all such terms and in the taking of such action as may be
necessary or appropriate in order to protect the rights of the holder of this Warrant against
impairment.

     9. RIGHTS AND OBLIGATIONS SURVIVE EXERCISE OF WARRANT. The rights and obligations of the
Company, of the holder of this Warrant and of the holder Warrant Shares, shall survive the exercise
of this Warrant.

     10. MODIFICATION AND WAIVER. This Warrant and any provision hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party against which
enforcement of the same is sought.

     11. NOTICES. Any notice, request or other document required or permitted to be given or
delivered to the holder hereof or the Company shall be delivered or shall be sent by certified
mail, postage prepaid, to each such holder at its address as shown on the books of the Company or
to the Company at the address indicated therefor in the first paragraph of this Warrant or such
other address as either may from time to time provide to the other.

     12. BINDING EFFECT ON SUCCESSORS. This Warrant shall be binding upon any corporation
succeeding the Company by merger, consolidation or acquisition of all or substantially all of the
Company’s assets. All of the obligations of the Company relating to the Common Stock issuable upon
the exercise of this Warrant shall survive the exercise and • termination of this Warrant. All of
the covenants and agreements of the Company shall inure to the benefit of the successors and
assigns of the holder hereof.

     13. DESCRIPTIVE HEADINGS AND GOVERNING LAW. The description headings of the several sections
and paragraphs of this Warrant are inserted for convenience only and do not constitute a part of
this Warrant. This Warrant shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the laws of the State of California.

     14. LOST WARRANTS. The Company represents and warrants to the Holder hereof that upon receipt
of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation
of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of an
indemnity reasonably satisfactory to the Company, or in the case of any such mutilation upon
surrender and cancellation of such Warrant, the Company, at its expense, will make and deliver a
new Warrant, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant.

     15. FRACTIONAL SHARES. No fractional shares shall be issued upon exercise of this Warrant. The
Company shall, in lieu of issuing any fractional share, pay the holder entitled to such fraction a
sum in cash equal to such fraction multiplied by the then effective Stock Purchase Price.

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     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officer,
thereunto duly authorized this 30th day of January, 2006.

	 	 	 	 	 	 	 
	 	 	STARVOX COMMUNICATIONS, INC.,

a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: Douglas S. Zorn

Title: President and Chief Executive Officer	 	 

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