Document:

Form of Preferred Warrants issued by Registrant to some of its Series A Preferred Stock holders

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

WARRANT TO PURCHASE PREFERRED STOCK

of

MOVEMONEY, INC.

This Warrant is issued to __________, or his registered assigns (“Holder”) by MoveMoney, Inc., a Delaware corporation (the “Company”), on March 12, 2001 (“Warrant Issue Date”).  This Warrant is issued in connection with the Company’s issuance to the Holder of a Convertible Promissory Note dated as of March 12, 2001 (the “Note”), for the principal amount of __________ ($_____).

1.

    Purchase Shares.  Subject to the terms and conditions hereinafter set forth, the Holder is entitled, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the holder hereof in writing), to purchase from the Company up to that number of fully paid and nonassessable shares of Series A Preferred Stock of the Company (the “Preferred Stock”) equal to $50,000 divided by the price per share of equity securities sold to investors in the Company’s next transaction in which the Company sells equity securities and obtains net proceeds in an amount not less than Three Million dollars ($3,000,000) (a “Qualified Equity Financing”).  The number of shares of Preferred Stock issuable pursuant to this Section 1 (the “Shares”) shall be subject to adjustment pursuant to Section 8 hereof. 

2.

    Exercise Price.  The purchase price for the Shares shall be the Preferred A Conversion Price, which is the price of the equity securities sold to investors in the Company’s next transaction in which the Company sells equity securities and obtains net proceeds in an amount not less than Three Million Dollars ($3,000,000).

3.

    Exercise Period.  This Warrant shall be exercisable, in whole or in part, during the term commencing on the Warrant Issue Date and ending at 5:00 p.m. on March 12, 2011; provided, however, that in the event of (a) the closing of the issuance and sale of shares of Common Stock of the Company in the Company’s first underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “IPO”), (b) the closing of the Company’s sale or transfer of all or substantially all of its assets, or (c) the closing of the acquisition of the Company by another entity by means of merger, consolidation or other transaction or series of related transactions, resulting in the exchange of the outstanding shares of the Company’s capital stock such that the stockholders of the Company prior to such transaction own, directly or indirectly, less than 50% of the voting power of the surviving entity, this Warrant shall, on the date of such event, no longer be exercisable and become null and void.  In the event of a proposed transaction of the kind described above, the Company shall notify the holder of the Warrant at least fifteen (15) days prior to the consummation of such event or transaction.

4.

    Representations and Warranties of  Investor

.  Investor represents and warrants to the Company upon the acquisition of the Note and the Warrant purchased by Investor pursuant hereto, and upon conversion of such Note and exercise of such Warrant, as follows:

(a)

                   
Investment Experience

.  Investor is an accredited investor within the meaning of Regulation D prescribed by the Securities and Exchange Commission pursuant to the Act and, by virtue of Investor’s experience in evaluating and investing in private placement transactions of securities in companies similar to the Company, such Investor is capable of evaluating the merits and risks of such Investor’s investment in the Company and has the capacity to protect Investor’s own interests.

(b)

                  
 Investment Intent

.  Investor is acquiring the Shares for investment for Investor’s own account and not with a view to, or for resale in connection with, any distribution thereof. Investor understands that the Shares have not been registered under the Act by reason of a specific exemption from the registration provisions of the Act that depends upon, among other things, the bona fide nature of the investment intent as expressed herein.

(c)

                   
Rule 144

.  Investor acknowledges that the Shares must be held indefinitely unless subsequently registered under the Act, or unless an exemption from such registration is available. Investor is aware of the provisions of Rules 144 and 144A promulgated under the Act that permit limited resale of securities purchased in a private placement subject to the satisfaction of certain conditions.

5.

       Method of Exercise.  While this Warrant remains outstanding and exercisable in accordance with Section 3 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby.  Such exercise shall be effected by:

(a)

                    the surrender of the Warrant, together with a duly executed copy of the form of Notice of Election attached hereto, to the Secretary of the Company at its principal offices; and

(b)

                        the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Shares being purchased.

6.

        Net Exercise.  In lieu of exercising this Warrant pursuant to Section 4, the Holder may elect to receive, without the payment by the Holder of any additional consideration, shares of Preferred Stock equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to the holder hereof a number of shares of Preferred Stock computed using the following formula:

Y (A - B)

X = 

       A

Where:

X =

The number of shares of Preferred Stock to be issued to the Holder pursuant to this net exercise;

Y =

The number of Shares in respect of which the net issue election is made; 

A =

The fair market value of one share of the Preferred Stock at the time the net issue election is made; 

B =

The Exercise Price (as adjusted to the date of the net issuance).

For purposes of this Section 6, the fair market value of one share of Preferred Stock (or, to the extent all such Preferred Stock has been converted into the Company’s Common Stock) as of a particular date shall be determined as follows:  (i) if traded on a securities exchange or through the Nasdaq National Market, the value shall be deemed to be the average of the closing prices of the securities on such exchange over the thirty (30) day period ending three (3) days prior to the net exercise election; (ii) if traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the thirty (30) day period ending three (3) days prior to the net exercise; and (iii) if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Board of Directors of the Company; provided, that, if the Warrant is being exercised upon the closing of the IPO, the value will be the initial “Price to Public” of one share of such Preferred Stock (or Common Stock issuable upon conversion of such Preferred Stock) specified in the final prospectus with respect to such offering.

7.

        Certificates for Shares.  Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates for the number of Shares so purchased shall be issued as soon as practicable thereafter (with appropriate restrictive legends, if applicable), and in any event within thirty (30) days of the delivery of the subscription notice.

8.

        Issuance of Shares.  The Company covenants that the Shares, when issued pursuant to the exercise of this Warrant, will be duly and validly issued, fully paid and nonassessable and free from all taxes, liens, and charges with respect to the issuance thereof.

9.

        Adjustment of Exercise Price and Number of Shares.  The number of and kind of securities purchasable upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

(a)

                       
Subdivisions, Combinations and Other Issuances.  If the Company shall at any time prior to the expiration of this Warrant subdivide its Preferred Stock, by split-up or otherwise, or combine its Preferred Stock, or issue additional shares of its Preferred Stock or Common Stock as a dividend with respect to any shares of its Preferred Stock, the number of Shares issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination.  Appropriate adjustments shall also be made to the purchase price payable per share, but the aggregate purchase price payable for the total number of Shares purchasable under this Warrant (as adjusted) shall remain the same.  Any adjustment under this Section 9(a) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

(b)

                       
Reclassification, Reorganization and Consolidation.  In case of any reclassification, capital reorganization, or change in the Preferred Stock of the Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section 9(a) above), then, as a condition of such reclassification, reorganization, or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable in connection with such reclassification, reorganization, or change by a holder of the same number of shares of Preferred Stock as were purchasable by the Holder immediately prior to such reclassification, reorganization, or change.  In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per share payable hereunder, provided the aggregate purchase price shall remain the same.

(c)

                       
Notice of Adjustment.  When any adjustment is required to be made in the number or kind of shares purchasable upon exercise of the Warrant, or in the Warrant Price, the Company shall promptly notify the holder of such event and of the number of shares of Preferred Stock or other securities or property thereafter purchasable upon exercise of this Warrant.

10.

       
No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant, but in lieu of such fractional shares the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect.  

11.

        No Stockholder Rights.  Prior to exercise of this Warrant, the Holder shall not be entitled to any rights of a stockholder with respect to the Shares, including (without limitation) the right to vote such Shares, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and such holder shall not be entitled to any notice or other communication concerning the business or affairs of the Company.  However, nothing in this Section 10 shall limit the right of the Holder to be provided the Notices required under this Warrant.

12.

        Transfers of Warrant.  Subject to compliance with applicable federal and state securities laws, this Warrant and all rights hereunder are transferable in whole or in part by the Holder to any person or entity upon written notice to the Company.  The transfer shall be recorded on the books of the Company upon the surrender of this Warrant, properly endorsed, to the Company at its principal offices, and the payment to the Company of all transfer taxes and other governmental charges imposed on such transfer.  In the event of a partial transfer, the Company shall issue to the holders one or more appropriate new warrants. 

13.

        Successors and Assigns.  The terms and provisions of this Warrant and the Purchase Agreement shall inure to the benefit of, and be binding upon, the Company and the Holder hereof and their respective successors and assigns.

14.

        Amendments and Waivers.  Any term of this Warrant may be amended and the observance of any term of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Holder. Any waiver or amendment effected in accordance with this Section shall be binding upon each holder of any Shares purchased under this Warrant at the time outstanding (including securities into which such Shares have been converted), each future holder of all such Shares, and the Company. 

15.

        Notices.  All notices required under this Warrant and shall be deemed to have been given or made for all purposes (i) upon personal delivery, (ii) upon confirmation receipt that the communication was successfully sent to the applicable number if sent by facsimile; (iii) one day after being sent, when sent by professional overnight courier service, or (iv) five days after posting when sent by registered or certified mail.  Notices to the Company shall be sent to the principal office of the Company (or at such other place as the Company shall notify the Holder hereof in writing).  Notices to the Holder shall be sent to the address of the Holder on the books of the Company (or at such other place as the Holder shall notify the Company hereof in writing).

16.

        Attorneys’ Fees.  If any action of law or equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled to its reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which it may be entitled.

17.

        Captions.  The section and subsection headings of this Warrant are inserted for convenience only and shall not constitute a part of this Warrant in construing or interpreting any provision hereof.

18.

        Governing Law.  This Warrant shall be governed by the laws of the State of Texas as applied to agreements among Texas residents made and to be performed entirely within the State of Texas.

IN WITNESS WHEREOF, MoveMoney, Inc. caused this Warrant to be executed by an officer thereunto duly authorized.

MoveMoney, Inc.

By: /s/ BALA VISHWANATH

Balamani S Vishwanath,

President

NOTICE OF EXERCISE

To:  MoveMoney, Inc.

The undersigned hereby elects to [check applicable subsection]:

________

(a)

Purchase _________________ shares of Series A Preferred Stock of MoveMoney, Inc. pursuant to the terms of the attached Warrant and payment of the Exercise Price per share required under such Warrant accompanies this notice;

OR 

________

(b)

Exercise the attached Warrant for [all of the shares] [________ of the shares] [cross out inapplicable phrase] purchasable under the Warrant pursuant to the net exercise provisions of Section 5 of such Warrant.

The undersigned hereby represents and warrants that the undersigned is acquiring such shares for its own account for investment purposes only, and not for resale or with a view to distribution of such shares or any part thereof.

WARRANTHOLDER:

_________________________________________

By:

[NAME]

Address:

Date:

Name in which shares should be registered:

SCHEDULE OF SERIES A PREFERRED STOCKHOLDERS HOLDING PREFERRED WARRANTS

 

	SERIES A STOCKHOLDER

	PREFERRED WARRANTS

	 

  Murphy, Kenneth

	300,000

	Webber, Neil

	500,000

	Lynch, Jack

	400,000

	Moncrief, Mike

	450,000

	Robert, Meador

	50,000

	Tulume Ontario, Inc.

	99,952

	Burns, Frank

	100,000

	Beach, Richard

	100,000

	Reinhardt, Ernie

	54,076

	Patuel, Sara

	50,000

	Meetrix, Inc.

	50,000

	TOTAL

	2,154,028Form of Waiver and Consent Agreement dated as of August 2, 2004 by and between Registrant and certan purcahsers of Series A Preferred Stock

WAIVER AND CONSENT AGREEMENT

FOR GOOD AND VALUABLE CONSIDERATION, including the opportunity to consider an initial public offering attempt for Smarte Solutions, Inc., a Delaware corporation (the “Company”), the receipt and sufficiency of which are hereby acknowledged, the undersigned, being holders of issued and outstanding shares of the Series A Convertible Preferred Stock, $0.001 par value per share (“Series A Preferred Stock”), of the Company hereby:

(1)

waive any and all rights to receive adjustments to the Conversion Price of the Series A Preferred Stock for certain dilutive issuances as set forth in Article IV, Section 3 of the Company’s Amended and Restated Certificate of Incorporation (the “Restated Certificate”) with respect to the issuance of; (i) stock purchase warrants to be issued to those lenders in the Company’s proposed $2,500,000 Bridge Financing (the “Bridge Financing”) pursuant to the terms and conditions of the Stock Purchase Warrant attached hereto as Exhibit “A”, (ii) warrants proposed to be issued to Fifth Street Capital, L.L.C., f/k/a Gray Capital Partners, L.L.C. (“Fifth Street”) in connection with the March 30, 2004 Engagement Letter for Bridge Financing, the April 1, 2004 Engagement Agreement, and the April 1, 2004 Marketing Agent Agreement, by and between the Company and Fifth Street, all of which are attached as Exhibit “B” , (iii) shares of the Company’s common stock, par value $0.001 (the “Common Stock”) proposed to be issued to Fifth Street in connection with both the April 1, 2004 Engagement Agreement and the April 1, 2004 Marketing Agent Agreement referenced above and attached as Exhibit “B” , (iv) any shares of Common Stock, of the Company issuable upon the conversion of any of the warrants identified in (i) and (ii) above, (v) shares of Common Stock to be issued in accordance with a proposed stock for stock exchange with Vincera Software, Inc. (“Vincera”) to the Vincera shareholders who consent to the stock for stock exchange, (vi) shares of Common Stock or other securities to be issued by the Company to the public pursuant to a registration statement filed under the Securities Act of 1933, as amended as outlined in both April 1, 2004 Fifth Street letters attached as Exhibit “B” (the “Offering”), and

(2)

consent and agree that each share of Series A Preferred Stock held by the holder whose signature appears below shall automatically be converted by the Company into shares of Common Stock at the Series A Conversion Price (as determined in accordance with the Restated Certificate) at the time in effect immediately upon the Company’s sale of its Common Stock in a public offering pursuant to a registration statement under the Securities Act of 1933, as amended, and

(3)

consent and agree that upon the closing of the proposed transaction with Vincera, the Company is authorized to increase its authorized shares of Common Stock by at least in excess of 16,681,122 shares, par value $0.001 per share for purposes of issuance to the Vincera shareholders in exchange for at least 90% of the issued and outstanding Vincera common stock, and

(4)

consent and agree that in the event of an Offering, the Company is authorized to increase its authorized shares of Common Stock for purposes of issuance to the public in such Offering in such amount as may be determined in connection with the Offering.

IN WITNESS WHEREOF, this Waiver and Consent Agreement is executed and delivered as of the _____ day of August, 2004.

SERIES A SHAREHOLDER:

By:

Name:

        
 

        
         

        
        SCHEDULE OF SERIES A STOCKHOLDERS WHO HAVE EXECUTED
        THE WAIVER AND CONSENT AGREEMENT

	
  SERIES A STOCKHOLDER

	
  SERIES A SHARES

	
  Kenneth W. Murphy Children's Trust

	
  613,873

	
  Neil Webber

	
  612,304

	
  Lee W. Moncrief Trust U/W/O Richard Barto Moncrief

	
  173,927

	
  William Jefferey Mardaga

	
  506,964

	
  Scott McAllister

	
  474,500

	
  Jack F. Lynch

	
  459,268

	
  Robert Meador

	
  415,551

	
  John L. Erickson

	
  405,753

	
  Michael Charles Kline

	
  300,350

	
  Pioneer Financial Services, Ltd.

	
  251,973

	
  Tulume Ontario, Inc.

	
  210,356

	
  Michael Eshelman

	
  204,384

	
  Craig Blaesing

	
  200,000

	
  George W. Fenimore III

	
  200,000

	
  John E. Finch

	
  150,000

	
  M. Frank Burns

	
  115,568

	
  Richard G. Beach

	
  115,341

	
  Maurice J. Maher

	
  113,725

	
  Mary and Ernest Reinhart

	
  109,644

	
  Kevin Neal Summers

	
  103,369

	
  Malcom Summers

	
  103,151

	
  Scott E. Lindsay and Marlene F. Lindsay

	
  100,461

	
  Earl B. Johnson

	
  100,000

	
  Greg Attwood

	
  100,000

	
  Michael J. Maples

	
  100,000

	
  Robert J. Thomas

	
  84,141

	
  James H. Smetzer

	
  80,000

	
  Menzo D. Cheney

	
  70,201

	
  Deborah Hug

	
  61,142

	
  Sara Patuel

	
  54,398

	
  Meetrix Inc.

	
  54,163

	
  KMA (401k) Profit Sharing Plan for the account of Jan T. Mohamed

	
  52,208

	
  KMA (401k) Profit Sharing Plan for the account of Marvin S. King

	
  52,208

	
  KeyBank Natl Assn Investment Advisor for Drain Asset Managemant A Texas Limited Partnership

	
  52,165

	
  Doak Meador

	
  51,187

	
  Timothy J. Kopacka and Kim K. Kopacka

	
  50,768

	
  Miles D. Wilson

	
  50,000

	
  Stacy Riffe

	
  50,000

	
  Jean W. Crecelius

	
  50,000

	
  Kevin McKeand

	
  50,000

	
  Kingfisher Holdings, LLC

	
  48,000

	
  Gayle P. Olivares

	
  41,592

	
  Burl W. Gray

	
  41,592

	
  Laura Cox

	
  40,000

	
  John P. and Patrica A. Padian

	
  40,000

	
  John Eshelman

	
  34,000

	
  Joseph M. Maletz

	
  32,000

	
  Stanley Holdings, LLC

	
  31,482

	
  Jerry D. Goodwin

	
  30,461

	
  David and Lisa Womak

	
  20,905

	
  Kathleen M. Johnson

	
  20,870

	
  Janelle Catherine Curry Trust

	
  10,435

	
  Kay Blanton

	
  20,758

	
  Ben Maher

	
  20,552

	
  D. Scot and Jeannemarie Wilson

	
  20,290

	
  John Tauben

	
  20,231

	
  Philip L. Hartgrove

	
  20,231

	
  Richard and Antoinette Terrell

	
  20,081

	
  Richard S. Toth

	
  20,000

	
  Michael and Cheryl Etie

	
  20,000

	
  Craig J. Wall

	
  20,000

	
  James William Wilson

	
  20,000

	
  James Farrell

	
  20,000

	
  Mathew Joseph Fraser and Sharon Kathleen Fraser

	
  15,116

	
  KMA (401k) Profit Sharing Plan for the account of Barbara W. Sullins

	
  10,435

	
  Arthur V. Basham

	
  10,433

	
  Jeff Tevonian

	
  10,000

	
  Charles Alvin Kline

	
  10,000

	
  Harold E. Hall

	
  10,000

	
  Mathew G. Bauer

	
  10,000

	
  Karen and Robert McCarty

	
  10,000

	
  Charles K. Garcia

	
  10,000

	
  Kenneth W. Murphy Grandchildren's Trust

	
  613,873

	
  Shirley Sharon Murphy Family Trust

	
  613,873

	
  Richard Barto Moncrief U/W/O Richard Barto Moncrief

	
  173,927

	
  Michael J. Moncrief Trust U/W/O Richard Barto Moncrief

	
  173,927

	
  Natalie Rene Barnhart Trust

	
  10,435

	
   TOTAL

	
  
  9,398,541

    

    

EXHIBIT A

STOCK PURCHASE WARRANT

EXHIBIT B

GRAY CAPITAL ENGAGEMENT LETTERS

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