Document:

exhibit_10-1.htm

  

  

  

Execution Version

 

Exhibit 10.1

THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS SUBORDINATE TO ANY AND ALL INDEBTEDNESS, OBLIGATIONS AND LIABILITIES OF THE MAKER HEREOF TO THE EXTENT SET FORTH IN THAT CERTAIN
INTERCREDITOR AGREEMENT DATED AS OF MAY 7, 2009, TO WHICH REFERENCE IS HEREBY MADE FOR A MORE FULL STATEMENT THEREOF.

PROMISSORY NOTE

 

	 $________________ 	 May __, 2009

 

For value received, and intending to be legally bound, nFinanSe, Inc., a Nevada corporation, and nFinanSe Payments Inc., a Nevada corporation (collectively, the “Borrowers”) hereby promise to pay to the order of
____________________________, a _____________________ (the “Holder”), the principal sum of _______________________ ($_________) on July 31, 2009 (the “Maturity Date”), together with interest from the date hereof on the principal amount outstanding from time to time at an annual rate equal to ten percent (10%) per annum.  Accrued and unpaid interest
shall be due on June 5, 2009 and on the fifth Business Day of each month thereafter until all obligations hereunder are satisfied in full.  All payments hereunder shall be made in lawful currency of the United States in immediately available funds.

1. Definitions.  All capitalized terms used but not otherwise defined in this Promissory Note shall have the meanings given to such terms in, or by reference in,
the Security Agreement, dated as of the date of this Note (the “Security Agreement”), by and between the Borrower, Holder, Agent (as defined in the Security Agreement) and the other lenders set forth therein.

 

2. Acceleration.  This Note and the obligations hereunder will be accelerated in the event of any Equity Financing.  As used herein, “Equity Financing”
shall mean any financing round completed by the Borrowers prior to the Maturity Date involving the issuance and sale of stock to at least one institutional investor with net proceeds of at least Three Million Dollars and Zero Cents ($3,000,000.00).

 

3. Joint and Several Obligations.  The obligations of Borrowers hereunder are joint and several.

 

4. Prepayments.  The outstanding principal amount of this Note may be prepaid, in whole or in part, without penalty. Such prepayments shall be applied first to
accrued and unpaid interest and then to principal in the inverse order of maturity.

 

5. Security.  The obligations, liabilities and indebtedness of the Borrowers evidenced by this Note are secured by the Collateral as defined by the Security Agreement.

 

6. Events of Default.  The occurrence of any of the following events shall constitute an “Event
of Default” hereunder:

 

a. failure of Borrowers to pay (i) any interest or any fees within three Business Days of the date when due hereunder, in each case whether at stated maturity, by acceleration or otherwise, (ii) any principal of the Loans when due, whether
at stated maturity, by acceleration or otherwise or (iii) any expenses payable by Borrowers to any Agent or Lender hereunder within five days after receipt by Borrowers from Agent or any applicable Lender of notice that such expenses are payable;

 

b. any representation or warranty, contained in this Agreement, the other Credit Documents or any other agreement, document, instrument or certificate between the Borrowers and Agent or any Lender or executed by the Borrowers in favor
of Agent or any Lender shall prove untrue in any material respect on or as of the date it was made or was deemed to have been made;

 

c. failure of the Borrowers to comply with any other covenant contained in the other Credit Documents or any other agreement, document, instrument or certificate among the Borrowers and Agent or any Lender or executed by the Borrowers
in favor of Agent or any Lender and, in the event such breach or failure to comply is capable of cure, such breach or failure to comply is not cured within 30 days after its occurrence;

 

d. dissolution, liquidation, winding up or cessation of the business (or any material portion of the business) of a Borrower, or the failure of a Borrower to meet its debts generally as they mature, or the calling of a meeting of a Borrower’s
creditors for purposes of compromising a Borrower’s debts;

 

e. the commencement by or against a Borrower of any bankruptcy, insolvency, arrangement, reorganization, receivership or similar proceedings with respect to it under any federal or state law and, in the event any such proceeding is commenced
against a Borrower, such proceeding is not dismissed within 60 days;

 

 

 

 

f. the occurrence of a default or event of default (in each case which shall continue beyond the expiration of any applicable grace periods) under, or the occurrence of any event that results in or would permit the termination or acceleration
of the maturity of any other Indebtedness of Borrowers and the aggregate principal amount of all such Indebtedness with respect to which a default or an event of default has occurred, or the maturity of which is accelerated or permitted to be accelerated, exceeds $100,000; or

 

g. any Event of Default (as defined in the Amended and Restated Loan Agreement).

 

	
7.  
	
Rights and Remedies upon a Default or an Event of Default:

 

a. Upon the occurrence and during the continuance of a Default or an Event of Default each Lender may cease making Loans. Upon the occurrence and during the continuance of any Event of Default, Agent may declare all Obligations to be
immediately due and payable without presentment, demand, protest or any other action or obligation of Agent or any Lender.

 

b. Upon acceleration of the Obligations as provided in clause (a), Agent may, from time to time, take any and all such action as Agent may elect to enforce any and all rights and interests created and existing under the Credit Documents,
or arising under applicable law, including without limitation, all rights and remedies existing under the Security Agreement, all rights of setoff and the following rights (the enumeration of any such rights not intended to be exhaustive and the exercise of any right shall not preclude the exercise of any other rights):

 

i. The right to take possession of, send notices regarding and collect directly the Collateral, with or without judicial process (including, without limitation, the right to notify the United States postal authorities to redirect mail
addressed to Borrowers or to an address designated by Agent); or

 

ii. By its own means or with judicial assistance, enter any or all of Borrowers’ premises and take possession of the Collateral, or render it unusable, or dispose of the Collateral on such premises, without any liability for rent,
storage, utilities or other sums, and Borrowers shall not resist or interfere with such action, or take any other action permitted to be taken by a secured party under the Code; or

 

iii. Require Borrowers at Borrowers’ expense to assemble all or any part of the Collateral and make it available to Agent at any place designated by Agent.

 

c. Borrowers agree that a notice received by them at least 10 days before the time of any intended public sale or of the time, after which any private sale or other disposition of the Collateral is to be made, shall be deemed to be reasonable
notice of such sale or other disposition. If permitted by applicable law, any perishable Inventory or other Collateral which threatens to speedily decline in value or which is sold on a recognized market may be sold immediately by Agent without prior notice to Borrowers. Borrowers covenant and agree not to interfere with or impose any obstacle to Agent’s exercise of its rights and remedies hereunder with respect to the Collateral. Agent shall have no obligation to clean up or prepare the Collateral for
sale. If Agent sells any of the Collateral upon credit, Borrowers will only be credited with payments actually made by the purchaser that are received by Agent and applied to the Obligations. Agent may, in connection with any sale of the Collateral, specifically disclaim any warranties of title or the like.

 

8. Nature of Remedies.  All rights and remedies granted Agent and/or Lenders hereunder and under the other Credit Documents, or otherwise available at law or in
equity, shall be deemed concurrent and cumulative, and not alternative remedies, and Agent may proceed with any number of remedies at the same time or at different times until all Obligations are satisfied in full. The exercise of any one right or remedy shall not be deemed a waiver or release of any other right or remedy, and Agent, upon or at any time after the occurrence of an Event of Default, may proceed against Borrowers, any guarantor, or their Property at any time, under any agreement, with any available
remedy and in any order. Nothing contained in this Agreement or the other Credit Documents shall be deemed to compel Agent or Lenders at any time to accept a cure of any Event of Default hereunder. In no event shall prior recourse to any Collateral be a prerequisite to Agent’s right to demand payment of any Obligation from Borrowers or any guarantor upon the occurrence and during the continuance of any Event of Default.

 

9. Waiver by the Borrowers.  The Borrowers hereby waive protest, demand, notice of nonpayment and all other notices in connection with the delivery, acceptance,
performance or enforcement of this Note.

 

 

 

 

10. Waiver of Jury Trial.  The Borrowers and the Holder (by acceptance of this Note) each hereby irrevocably
and unconditionally waives any and all rights that such party may have to a jury trial in connection with any litigation or other proceeding arising with respect to any rights and obligations of the parties hereto.

 

11. Successors and Assigns.  This Note and all obligations evidenced by this Note shall be binding upon the Borrowers and the successors and permitted assigns
of the Borrowers, and shall, together with the rights and remedies of the Holder arising under this Note, inure to the benefit of the Holder, its successors and permitted assigns and any future holder of this Note or the obligations evidenced by this Note; provided, however, that the Borrowers shall not transfer or assign the obligations evidenced by this Note without the express written consent of the Holder or such future holder.

 

12. Governing Law.  This Note shall be governed by, and construed and enforced in accordance with the laws of the State of New York, without regard to its otherwise
applicable conflicts of laws rules.

 

13. Severability.  The provisions of this Note are to be deemed severable and the invalidity, illegality or unenforceability of one or more of the provisions of
this Note in any jurisdiction shall not affect the validity, legality or enforceability of the remaining provisions of this Note in such jurisdiction, or the validity, legality or enforceability of this Note, including any such provision, in any other jurisdiction.

 

14. No Modification.  No modification of this Note shall be binding or enforceable unless in writing and signed by the Holder and the Borrowers.

 

[remainder of this page intentionally left blank.]

 

 

 

 

 

 

 

 

 

DB1/62916230.1

  

  

  

IN WITNESS WHEREOF, the undersigned Borrowers, intending to be legally bound, execute this Note as of the date first set forth above.

nFinanSe Inc.

By: ___________________________

Name:

Title:

nFinanSe Payments Inc.

By: ___________________________

Name:

Title:

DB1/62916230.1exhibit_10-2.htm

  

  

  

 

Exhibit 10.2

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE TRANSFERRED OR DISPOSED OF EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION WHICH, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, QUALIFIES AS AN EXEMPT TRANSACTION UNDER THE SECURITIES ACT, THE APPLICABLE STATE SECURITIES LAW AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER

	
Warrant No.: ____________
	
Warrant to Purchase ___________

	
Issue Date: _____________
	
Shares of Common Stock

WARRANT TO PURCHASE COMMON STOCK

OF

nFinanSe Inc.

           This is to certify that, for value received, __________________________ (the “Holder”), is entitled to purchase, subject to the terms set forth below, from nFinanSe Inc., a Nevada corporation (the
“Company”), during the period commencing on the date first written above and expiring one (1) year thereafter, unless extended pursuant to Section 1(b) below (the “Exercise Period”), an aggregate of _________________________ (_____________) fully paid and non-assessable shares of the Company’s common stock, $0.001 par value per share (the “Common
Stock”), at a per share purchase price of $0.50 (the “Exercise Price”).  The Exercise Price and the number of such shares are subject to adjustment, from time to time, as provided below.  The shares of Common Stock deliverable upon such exercise are hereinafter sometimes referred to as the “Warrant Shares.”  This Warrant
is herein referred to as the “Warrant”.

           Section 1.                      Exercise Period.  In the event that the expiration of the
Exercise Period shall fall on a Saturday, Sunday or United States federally recognized holiday, the expiration of the Exercise Period shall be extended to 5:00 P.M. (E.S.T.) on the first business day following such Saturday, Sunday or recognized holiday (the “Expiration Date”).

           Section 2.                      Exercise of Warrant.

                      a.           Manner of Exercise.  The Warrant may be exercised by the Holder,
in whole or in part, at any time and from time to time during the Exercise Period, by (i) the surrender of the Warrant to the Company, with the Notice of Exercise attached hereto as Annex A (the “Notice of Exercise”) duly completed and executed on behalf of the Holder, at the principal office of the Company or such other office or agency of the Company as it may designate
by notice in writing to the Holder (the “Principal Office”), and (ii) the delivery of payment to the Company of the Exercise Price for the number of Warrant Shares specified in the Notice of Exercise in any manner specified in Section 2(d) below.

                      b.           Issuance of Warrant Shares.  Such Warrant Shares shall be deemed
to be issued to the Holder as the record holder of such Warrant Shares as of the close of business on the date on which the Warrant shall have been surrendered and payment of the Exercise Price shall have been made for the Warrant Shares as aforesaid.  As promptly as practicable thereafter, but in any event within five (5) business days, the Company shall deliver to the Holder a stock certificate(s) for the Warrant Shares specified in the Notice of Exercise.  If the Warrant shall have been
exercised only in part, the Company shall, at the time of delivery of the stock certificate(s), also deliver to the Holder, at the Company’s expense, a new warrant evidencing the right to purchase the remaining number of Warrant Shares, which new warrant shall in all other respects be identical to the Warrant.

                      c.           Restrictive Legends.  Each stock certificate representing the Warrant
Shares held by the Holder shall be endorsed by the Company with a legend substantially similar to that legend at the beginning of the Warrant.

 

                      d.           Payment of Exercise Price.  The Exercise Price shall be payable
in cash or its equivalent, payable by wire transfer of immediately available funds to a bank account specified by the Company or by certified or bank cashiers’ check in lawful money of the United States of America.

e.           Fractional Shares.  The Company shall not issue fractions of Warrant Shares upon exercise of the Warrant or scrip in lieu thereof.  If any fraction of a Warrant Share would be issuable
upon exercise of the Warrant, the Company shall in lieu thereof pay to the person entitled thereto an amount in cash equal to such fraction, calculated to the nearest one-hundredth (1/100) of a share, multiplied by the Exercise Price.

           Section 3.                      Adjustment to Exercise Price and Warrant Shares.  The Exercise
Price in effect from time to time and the number of Warrant Shares shall be subject to adjustment in certain cases as set forth in this Section 3:

                      a.           Stock Split.  If, at any time after the date hereof, the number
of shares of the Company’s capital stock outstanding is increased by a stock dividend or by a subdivision or split-up of shares, then, following the record date for the determination of holders of capital stock entitled to receive such stock dividend, subdivision or split-up, the Exercise Price shall be appropriately decreased and the aggregate number of Warrant Shares shall be increased in proportion to such increase in outstanding shares.  The foregoing provisions shall similarly apply to successive
stock dividends, subdivisions or split-ups.

 

 

 

                      b.           Reverse Stock-Split.  If, at any time after the date hereof, the
number of shares of capital stock outstanding is decreased by a combination or reverse-split of the outstanding shares, then, following the record date for such combination or reverse-split, the Exercise Price shall be appropriately increased and the aggregate number of Warrant Shares shall be decreased in proportion to such decrease in outstanding shares.  The foregoing provisions shall similarly apply to successive combinations or reverse-splits.

                      c.           Merger, Sale of Assets, Change of Control.  In the event that the
Company shall (i) consolidate with or merge with or into another person or entity, (ii) sell, transfer or lease all or substantially all of its assets, (iii) change its Common Stock into property or other securities, or (iv) enter into and consummate a transaction constituting a Change of Control (as defined below) (each, a “Triggering Transaction”), the Warrant shall terminate and shall thereafter represent the right to receive the
cash, evidences of indebtedness or other property as the Holder would have received had the Holder been the record owner, at the time of completion of such Triggering Transaction, of that number of Warrant Shares receivable upon exercise of the Warrant in full, less the aggregate Exercise Price payable in connection with the full exercise of the Warrant.  The Company shall notify the Holder in writing, setting forth the terms of any such Triggering Transaction (including the proposed closing date for
the consummation of such Triggering Transaction, which shall not be less than fifteen (15) days from the effective date of such notice) and all documents required to be executed in order to consummate any such Triggering Transaction, and the Holder shall be required to execute such documents to the same extent and upon the same terms as required of other holders of Common Stock.  The Holder shall deliver to the Company at least seven (7) days prior to the proposed closing date referred to above all
documents previously furnished to the Holder for execution in connection with such Triggering Transaction.  The limitations contained in Section 5(a) below will terminate and cease to be in effect at the time of the Triggering Transaction.  “Change of Control” shall mean (i) the sale of the Company to one or more independent third parties, in a single transaction or series of related transactions, (ii) the merger,
combination or consolidation of the Company into or with another corporation or (iii) any other transaction or occurrence, pursuant to which or as a result of which any independent third party or parties acquire capital stock or other securities of the Company possessing the voting power to elect a majority of the Board of Directors of the Company (whether by merger or consolidation or issuance, sale or transfer of the Company’s capital stock or otherwise).

                      d.           Notice of Adjustment.  In each case of an adjustment or readjustment
of the Exercise Price and the number of Warrant Shares pursuant to this Section 3, the Company shall, at its expense, notify the Holder of such event including information regarding (i) such adjustment or readjustment, and (ii) the Exercise Price and number of Warrant Shares in effect following such adjustment or readjustment (including the amount, if any, of other securities and property that at the time would be received upon the exercise of the Warrant).

           Section 4.                      Exchange and Replacement.

                      a.           Manner of Exchange and Replacement.  The Warrant is exchangeable,
upon surrender of the Warrant by the Holder to the Company at the Principal Office, for new warrants of like tenor registered in the Holder’s name and representing in the aggregate the right to purchase the same number of Warrant Shares purchasable hereunder, each of such new warrants to represent the right to purchase such number of Warrant Shares as shall be designated by the Holder at the time of surrender.

                      b.           Issuance of New Warrant.  Upon receipt by the Company of (i) evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of the Warrant, and (ii) (A) in the case of loss, theft or destruction, an indemnity agreement reasonably satisfactory in form and substance to the Company, or (B) in the case of mutilation, the Warrant, the Company, at its expense, shall execute and deliver, in lieu of the Warrant, a new warrant of like tenor and amount to the Holder.

 

 

 

           Section 5.                      Limitations on Exercise.

                      a.           Notwithstanding anything to the contrary contained in the Warrant, the Warrant shall not be exercisable by the Holder hereof to the extent
(but only to the extent) that, if exercisable by the Holder, the Holder or any of its affiliates would beneficially own in excess of 9.99% (the “Maximum Percentage”) of the then issued and outstanding shares of Common Stock.  To the extent the above limitation applies, the determination of whether the Warrant shall be exercisable (vis-a-vis other convertible, exercisable or exchangeable securities owned by the Holder) and of
which warrants shall be exercisable (as among all warrants owned by the Holder) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be).  No prior inability to exercise the Warrant pursuant to this Section 5(a) shall have any effect on the applicability of the provisions of this Section 5(a) with respect to any subsequent determination of exercisability.  For the purposes
of this Section 5(a), beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage ownership) shall be determined by the Holder in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. The provisions of this Section 5(a) shall be implemented in a manner otherwise than in strict conformity with the terms this Section 5(a) to correct this Section 5(a) (or any
portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage limitation.  The limitations contained in this Section 5(a) shall apply to a successor Holder of the Warrant.  For purposes of the Warrant, in determining the number of issued and outstanding shares of Common Stock, the Holder may rely on the number
of issued and outstanding shares of Common Stock as reflected in (i) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission (as the case may be), (ii) a more recent public announcement by the Company, or (iii) any other notice by the Company setting forth the number of shares of Common Stock issued and outstanding.  For any reason at any time, upon the written or oral request of the Holder, the Company shall
within three (3) business days confirm orally and in writing to the Holder the number of shares of Common Stock then issued and outstanding, including by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock, including, without limitation, pursuant to the Warrant.

                      b.           The limitations contained in Section 5(a) above will terminate and cease to be in effect three (3) business days before the Expiration Date.

           Section 6.                      Representations and Warranties of the Company.  The Company
represents and warrants to the Holder that all shares of Common Stock which may be issued upon the exercise of the Warrant will, upon issuance in accordance with the terms of the Warrant, be validly issued, fully paid and non-assessable.

           Section 7.                      Covenants of the Company.  The Company covenants and agrees
that it shall take all such action as may be required to ensure that the Company shall at all times have authorized and reserved a sufficient number of shars of its Common Stock to provide for the exercise of the Warrant.

           Section 8.                      No Stockholder Rights.  The Holder shall not be entitled
to vote or receive dividends or be deemed the holder of the Warrant Shares or any other securities of the Company that may at any time be issuable upon the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any other matter submitted to the stockholders of the Company at any meeting thereof, or to give or withhold consent to any corporate
action (whether upon any recapitalization, issuance or reclassification of capital stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise, until the Warrant shall have been exercised as provided herein.

           Section 9.                       Restrictions on Transfer.  The Warrant may not be transferred
or assigned by the Holder to any person without the prior written consent of the Company.

           Section 10.                     Notice.  Unless otherwise provided in the Warrant, all notices,
requests, consents and other communications hereunder shall be in writing, shall be sent by U.S. Mail or a nationally recognized overnight express courier postage prepaid, and shall be deemed given one day after being so sent, or if delivered by hand shall be deemed given on the date of such delivery to such party, or if sent to such party (in the case of a Holder) at the address provided to the Company by the Holder at the time of issuance of the Warrant or (in the case of the Company) at 3923 Coconut Palm Drive,
Suite 107, Tampa, Florida 33619, Attention: Chief Financial Officer, or to such other address as is designated by written notice, similarly given to each other party hereto.

           Section 11.                      Miscellaneous.

                      a.           Governing Law.  The Warrant shall be construed in accordance with
and governed by the laws of the State of Florida (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction).

                      b.           Prevailing Party’s Costs and Expenses.  The prevailing party
in any mediation, arbitration or legal action to enforce or interpret the Warrant shall be entitled to recover from the non-prevailing party all costs and expenses, including reasonable and documented attorneys’ fees, incurred in such action or proceeding.

 

 

 

                      c.           Failure to Pursue Remedies.  Except where a time period is specified,
no delay on the part of any party in the exercise of any right, power, privilege or remedy hereunder shall operate as a waiver thereof, nor shall any exercise or partial exercise of any such right, power, privilege or remedy preclude any further exercise thereof or the exercise of any other right, power, privilege or remedy.

                      d.           Amendment and Waiver.  No provision of the Warrant may be amended,
modified or waived except upon the written consent of the party against whom such amendment, modification or waiver is to be enforced.  The failure of any party to enforce any of the provisions of the Warrant shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of the Warrant in accordance with its terms.

                      e.           Assignment; Binding Effect.  The rights and obligations of the
Company set forth herein may not be assigned or delegated by the Company without the prior written consent of the Holder.  Pursuant to Section 9 hereof, the rights and obligations of the Holder set forth herein may not be assigned or delegated by the Holder without the prior written consent of the Company.  The Warrant shall be binding upon and inure to the benefit of all of the parties and, to the extent permitted by the Warrant, their successors, legal representatives and assigns.

                      f.           Severability.  If any term or provision of the Warrant, or the
application thereof to any person or circumstance, shall, to any extent, be invalid or unenforceable, the remainder of the Warrant, or its application to other persons or circumstances, shall not be affected thereby, and each term and provision of the Warrant shall be enforced to the fullest extent permitted by law.

                      g.           Construction.  Whenever the context requires, the gender of any
word used in the Warrant includes the masculine, feminine or neuter, and the number of any word includes the singular or plural.  Unless the context otherwise requires, all references to articles and sections refer to articles and sections of the Warrant, and all references to annexes are to annexes attached hereto, each of which is made a part hereof for all purposes.

                      h.           Headings.  The headings and subheadings in the Warrant are included
for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of the Warrant or any provision hereof.

                      i.           Facsimile.  Delivery of an executed signature page of the Warrant
by facsimile transmission shall be as effective as delivery of a manually executed signature page.

[SIGNATURE ON THE FOLLOWING PAGE]

 

 

 

 

 

 

 

 

 

DB1/62882801.1

  

  

  

           IN WITNESS WHEREOF, the Company has caused the Warrant to be executed by its duly authorized officer as of the date first written above.

nFinanSe Inc.

By: __________________________

      Name:

      Title:

 

 

 

 

 

 

 

 

 

 

DB1/62882801.1

  

  

  

Annex A

NOTICE OF EXERCISE

To: nFinanSe Inc.

           The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby elects to purchase (check applicable box):

 

           ________ shares of the Common Stock of the Company covered by such Warrant.

 

           The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant.  Such payment takes the form of:

 

           ______ in lawful money of the United States.

 

           In exercising the Warrant, the undersigned hereby confirms and acknowledges that the shares of Common Stock to be issued upon exercise are being acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that the undersigned
will not offer, sell or otherwise dispose of any such shares of Common Stock except under circumstances that will not result in a violation of the registration provisions of the Securities Act of 1933, as amended, or any applicable state securities laws.

 

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

 

 

                                                      Name:_____________________________________

 

           Please issue a new warrant for the unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified below:

 

                                                      Name:_____________________________________

_________________                                              ___________________________________________

(Date)                                                                           Signature
of Holder

 

 

 

 

DB1/62882801.1

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