Document:

FORM OF COMMON STOCK PURCHASE WARRANT

 EXHIBIT 10.7 
 THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH
A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT. 
 COMMON STOCK PURCHASE WARRANT 
  

			
	 Warrant No.             
	  	Number of Shares             

 Salary.com, Inc. 
 Void after                     , 20     
 1. Issuance. This Warrant (the “Warrant”) is issued to
                                 (“Holder”) by Salary.com, Inc., a
Delaware corporation (hereinafter the “Company”) on this          day of                 ,
        . 
 2. Purchase Price; Number of Shares. Subject to the terms and conditions
hereinafter set forth, the registered holder of this Warrant (the “Holder”), commencing on the date hereof, is entitled upon surrender of this Warrant with the subscription form annexed hereto duly executed, at the office of the Company,
195 West Street, Waltham, MA 02451, or such other office as the Company shall notify the Holder of in writing, to purchase from the Company at a price per share (the “Purchase Price”) of $    ,
             fully paid and nonassessable shares of Common Stock, par value $.0001 per share, of the Company (the “Common Stock”). Until such time as this Warrant is
exercised in full or expires, the Purchase Price and the securities issuable upon exercise of this Warrant are subject to adjustment as hereinafter provided. The Company may elect not to permit a transfer of the Warrant if it has not obtained
satisfactory assurance that such transfer: (a) is exempt from the registration requirements of, or covered by an effective registration statement under the Securities Act of 1933, as amended, and the rules and regulations thereunder, and
(b) is in compliance with all applicable state securities laws, including without limitation receipt of an opinion of counsel, which opinion shall be satisfactory to the Company. 

 3. Payment of Purchase Price. The Purchase Price may be paid (i) in cash or by check,
(ii) by the surrender by the Holder to the Company of any promissory notes issued by the Company, with all such notes so surrendered being credited against the Purchase Price in an amount equal to the principal amount thereof plus accrued
interest to the date of surrender, or (iii) by any combination of the foregoing. 
 4. Partial Exercise. This Warrant may be
exercised in part, and the Holder shall be entitled to receive a new warrant, which shall be dated as of the date of this Warrant, covering the number of shares in respect of which this Warrant shall not have been exercised. 
 5. Issuance Date. The person or persons in whose name or names any certificate representing shares of Common Stock is issued hereunder shall be
deemed to have become the holder of record of the shares represented thereby as at the close of business on the date this Warrant is exercised with respect to such shares, whether or not the transfer books of the Company shall be closed. 

6. Expiration Date. This Warrant shall expire on
                     and shall be void thereafter. 
 7. Reserved Shares: Valid Issuance. The Company covenants that it will at all times from and after the date hereof reserve and keep available such number of its authorized shares of Common Stock, free from all
preemptive or similar rights therein, as will be sufficient to permit the exercise of this Warrant in full (the “Warrant Shares”). The Company further covenants that such shares as may be issued pursuant to the exercise of this Warrant
will, upon issuance, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issuance thereof. 
 8. Dividends. If after the date hereof the Company shall subdivide the Common Stock, by split-up or otherwise, or combine the Common Stock, or issue additional shares of Common Stock in payment of a stock
dividend on the Common 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, and
the Purchase Price shall forthwith be proportionately decreased in the case of a subdivision or stock dividend, or proportionately increased in the case of a combination. 
 9. Mergers and Reclassifications. If after the date hereof there shall be any reclassification, capital reorganization or change of the Common Stock (other than as a result of a subdivision, combination or
stock dividend provided for in Section 8 hereof), or any consolidation of the Company with, or merger of the Company into, another corporation or other business organization (other than a consolidation or merger in which the Company is the
continuing corporation and which does not result in any reclassification or change of the outstanding Common Stock), or any sale or conveyance to another corporation or other business organization of all or substantially all of the assets of the
Company, then, as a condition of such reclassification, reorganization, change, consolidation, merger, sale or conveyance, lawful provisions shall be made, and duly executed documents evidencing the same from the Company 
  

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 or its successor shall be delivered to the Holder, so that the Holder shall thereafter have the right to purchase, at a
total price not to exceed that payable upon the exercise of this Warrant in full, the kind and amount of shares of stock and other securities and property receivable upon such reclassification, reorganization, change, consolidation, merger, sale or
conveyance by a holder of the number of shares of Common Stock which might have been purchased by the Holder immediately prior to such reclassification, reorganization, change, consolidation, merger, sale or conveyance, and in any such case
appropriate provisions shall be made with respect to the rights and interest of the Holder to the end that the provisions hereof (including without limitation, provisions for the adjustment of the Purchase Price and the number of shares issuable
hereunder) shall thereafter be applicable in relation to any shares of stock or other securities and property thereafter deliverable upon exercise hereof. 
 10. Fractional Shares. In no event shall any fractional share of Common Stock be issued upon any exercise of this Warrant. If, upon exercise of this Warrant as an entirety, the Holder would, except as provided
in this Section 10, be entitled to receive a fractional share of Common Stock, then the Company shall issue the next higher number of full shares of Common Stock, issuing a full share with respect to such fractional share. 
  

	11.	Notices of Record Date, Etc. In the event of: 

 (a)
any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise
acquire any shares of stock of any class or any other securities or property, or to receive any other right, 
 (b) any reclassification of
the capital stock of the Company, capital reorganization of the Company, consolidation or merger involving the Company, or sale or conveyance of all or substantially all of its assets, or 
 (c) any voluntary or involuntary dissolution, liquidation or winding-up of the Company, 
 then and in each such event the Company will mail or cause to be mailed to the Holder a notice specifying (i) the date on which any such record is to be taken for the purpose of such dividend, distribution or
right, and stating the amount and character of such dividend, distribution or right, or (ii) the date on which any such reclassification, reorganization, consolidation, merger, sale or conveyance, dissolution, liquidation or winding-up is to
take place, and the time, if any is to be fixed, as of which the holders of record in respect of such event are to be determined. Such notice shall be mailed at least 20 days prior to the date specified in such notice on which any such action is to
be taken. 
 12. Amendment. The terms of this Warrant may be amended, modified or waived only with the written consent of the Company
and the Holders. 
  

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 13. Warrant Register; Transfers, Etc. 
 A. The Company will maintain a register containing the names and addresses of the registered holder of this Warrant. The Holder may change its address as
shown on the warrant register by written notice to the Company requesting such change. Any notice or written communication required or permitted to be given to the Holder may be given by certified mail or delivered to the Holder at its address as
shown on the warrant register. 
 B. Subject to compliance with applicable federal and state securities laws, this Warrant may be transferred
by the Holder with respect to any or all of the shares purchasable hereunder. Upon surrender of this Warrant to the Company, together with the assignment hereof properly endorsed, for transfer of this Warrant as an entirety by the Holder, the
Company shall issue a new warrant of the same denomination to the assignee. Upon surrender of this Warrant to the Company, together with the assignment hereof properly endorsed, by the Holder for transfer with respect to a portion of the shares of
Common Stock purchasable hereunder, the Company shall issue a new warrant to the assignee, in such denomination as shall be requested by the Holder hereof, and shall issue to such Holder a new warrant covering the number of shares in respect of
which this Warrant shall not have been transferred. 
 C. In case this Warrant shall be mutilated, lost, stolen or destroyed, the Company
shall issue a new warrant of like tenor and denomination and deliver the same (i) in exchange and substitution for and upon surrender and cancellation of any mutilated Warrant, or (ii) in lieu of any Warrant lost, stolen or destroyed, upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft or destruction of such Warrant (including a reasonably detailed affidavit with respect to the circumstances of any loss, theft or destruction) and of indemnity reasonably
satisfactory to the Company. 
 14. Governing Law. It is the intention of the parties that the internal laws, and not the laws of
conflicts, of the State of Delaware, should govern the enforceability and validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties pursuant to the relationships among them contemplated
herein, whether or not such rights and duties arise directly under this Agreement. 
 15. Successors and Assigns. This Warrant shall
be binding upon the Company’s successors and assigns and shall inure to the benefit of the Holder’s successors, legal representatives and permitted assigns. 
 16. Business Days. If the last or appointed day for the taking of any action required or the expiration of any right granted herein shall be a Saturday or Sunday or a legal holiday in the Commonwealth of
Massachusetts, then such action may be taken or right may be exercised on the next succeeding day which is not a Saturday or Sunday or such a legal holiday. 
  

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 IN WITNESS WHEREOF, the Company has executed this Warrant as of
                    , 20    . 
  

							
		 		 	SALARY. COM, INC.
		 		 	  

				
		 		 	By:	 	  

		 		 	Title:	 	  

	Attest:	 		 		 	
				
	  
	 		 		 	

  

 - 5 - 

 Subscription 
  

					
	 To:
                                       
 
	 		  	Date:
                                

 The undersigned hereby subscribes for
                     shares of Common Stock covered by this Warrant. The certificate(s) for such shares shall be issued in the name of the
undersigned or as otherwise indicated below: 
  

	
	  

	Signature
	
	  

	Name for Registration
	
	  

	Mailing Address

 Assignment 
 For value received                                  
                        hereby sells, assigns and transfers unto    
                                        
                         
 ______________________________________________________________________________ 
 Please print or typewrite name and address of Assignee

 ______________________________________________________________________________ 
 the within Warrant, and does hereby irrevocably constitute and appoint
                                        
                             its attorney to transfer the within Warrant on the books of the within named
Company with full power of substitution on the premises. 
 Dated:
                             
 _________________________________ 
 In the Presence of: 
  
 _________________________________AGREEMENT FOR EXTENSION OF CREDIT

 Exhibit 10.8 
 Confidential 
 Agreement for the Extension of Credit & Conversion of Existing Indebtedness

 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, this agreement for the extension of credit and
conversion of existing indebtedness (this “Agreement”) is hereby entered into effective the 11th day of
April 2003 (the “Effective Date”) between and among Salary.com, Inc., a Delaware corporation located at 888 Worcester Street, Suite 340, Wellesley, MA 02482 (“Salary.com”); Gregory Kent Plunkett, an individual person domiciled at
330 Beacon Street, Unit 93, Boston, MA 02116 (“Plunkett”); and Wianno Ventures LLC (“Wianno Ventures”). 
 1. The undersigned parties
hereby agree to undertake and do everything necessary to complete the following transactions (the “Transactions”), according to the terms and conditions set forth below: 
  

	Transaction	1: Extension of Credit to Salary.com, Inc. 

  

			
	 LENDER:
	  	Wianno Ventures, LLC
		
	 BORROWER:
	  	Salary.com, Inc.
		
	 CREDIT FACILITY:
	  	Up to $2,171,000: Line of credit for general working capital purposes of Salary.com, Inc., and for retirement/conversion of existing indebtedness of the Company. Interest shall be payable
monthly, and principal shall be due at maturity of Promissory Note.
		
	 PROCEEDS:
	  	$ 1,606,000 in cash (from GKP mortgages and released collateral)
		  	 $ 505,000 in converted promissory note (pre-existing Schwartz N/P) 
 $ 60.000 in converted bridge loans (made by GKP in March 2003)
 $ 2,171,000 (“Total
Proceeds”)

		
	 USE OF PROCEEDS:
	  	Proceeds may be used for general working capital purposes of the Company and to retire/convert existing indebtedness of the Company, including (without limitation) the following: (i)
restructuring the Company’s balance sheet by moving items from short term payables to a more stable balance sheet position; (ii) creating a reserve of up to $500,000 in incremental cash for the Company’s future use; and (iii) any other
purpose intended to increase the likelihood of attracting additional equity financing.
		
		  	Specifically, the parties contemplate that proceeds may be used for the following purposes:
		
		  	$1,105,000 to General Bank to retire existing senior credit facility;
		  	$ 61,000 to collateralize existing letter of credit with General Bank;
		  	 $ 505,000 in Notes Payable to Lender (to retire existing Schwartz note);
 1 500,000 for general working capital and miscellaneous payables.

 Confidential 
  

			
	MATURITY DATE:	  	One year from Closing Date, or upon the occurrence of an Event of Default (as defined by the parties in final documentation).
		
	FACILITY REQUIREMENT:	  	(1) Completion by Lender of first mortgages in connection with some or all of the following residential properties:
		
		  	 •      26 Grayton Avenue, Hyannis Port, MA

		
		  	 •      272 Craigville Beach Road, Hyannis Port, MA

		
		  	 •      430 Scudder Avenue, Hyannis Port, MA

		
		  	 •      382 Commonwealth Ave, Apt. l3, Boston, MA

		
		  	(2) Approval by Salary.com Board of Directors of final binding legal documentation in connection with all proposed transactions;
		
		  	(3) Preparation and filing of security interests for the benefit of Lender;
		
		  	(4) Simultaneous retirement (through payment in full) of Salary.com’s existing credit facility with General Bank;
		
		  	(5) No material changes in the business prospects or the current level of operating cash flow generated by the Company prior to closing.
		
	LOAN FEE TO LENDER	  	1% of Total Proceeds
		
	INTEREST PAYMENTS:	  	Interest Payments shall be due semi-monthly on the seventh and twenty second business day of each month. Payments shall be made by wire transfer or otherwise, as Lender shall direct. (Assuming
52,171,000 in proceeds drawn down, the first semi-monthly payment would total $7,688.80.)
		
	PRE-PAYMENT OF PRINCIPAL	  	Total of the loan facility availability may be permanently reduced at any time by Salary.com. Line of credit may be drawn down or paid down without reducing availability. Loan may be prepaid in
part or in full at any time without penalty.
		
	WARRANTS TO LENDER:	  	No warrants.
		
	INTEREST RATE:	  	The interest rate payable by Salary.com to Lender shall be 4.25% above the WSJ prime rate (4.25 % at 4/9/03), adjusted quarterly. In the event Salary.com fails to make any interest payment on
its due date, and further fails to cure within five days of receipt of notice of such failure to pay (sent to the Company with copies to the Board of Directors), then the interest rate payable by Salary.com shall be adjusted to 18% for the life of
the facility.

  

 2 

 Confidential 
  

			
	LENDER’S COMMITMENT FEE	  	Lender will receive a commitment fee equal to 6.00% of balances available but not drawn down. This fee structure is designed to encourage Borrower to reduce credit line over time and to
compensate Lender for its cost of capital. No commitment fees will be payable on amounts drawn down upon which interest is being paid.
		
	COLLATERAL:	  	Lender will be granted a senior secured position with blanket security interest in all business assets of Salary.com Inc., including the right to: (i) have all deposits from credit card
collections (currently approximately $120,000 per month) assigned to and directly deposited to Lender’s account upon written notice; and (ii) implement a lock box and assignment of receivables to Lender, upon written notice at any time and for
any reason. In addition, Salary.com agrees to make best efforts to remain current on all other debt obligations, including but not limited to, payments owing to Subordinated Debt holders.
		
	STATEMENT OF BUSINESS CONDITIONS AND PARTIES’ INTENT:	  	Lender is providing capital to a business that is growing, prospering and cash-flow positive from operations. In the event that Salary.com should become cash flow negative from operations for
any three consecutive months or face extraordinary threats to its business and subscription revenue streams, the Company may need to reduce headcount and/or spending to such a level that the Company re-establishes a cash flow positive position that
is maintainable and allows for the repayment of senior and subordinated debt. Salary.com’s Board of Directors understands and agrees that, as a result of its decision to enter into the proposed transaction, the Company’s management may
subsequently be required to sacrifice short-term growth in order to repay debt and ensure the Company’s long-term viability.
		
	COVENANTS & EVENTS OF DEFAULT:	  	Final form of note shall include covenants and events of default similar to those proposed by General Bank.
		
	OTHER:	  	(1) Borrower will be responsible for all out-of-pocket expenses and legal fees incurred by Lender (including mortgage closing costs and costs associated with “points” charged by the
mortgage lender, attorney’s fees for loan documents/warrants agreement preparation, and UCC search and filings). Estimated legal fees and other expenses are $15,000.
		
		  	(2) All of Lender’s rights hereunder shall be assignable without Borrower’s consent.

  

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 Confidential 
  

	Transaction	2: Conversion of Existing Indebtedness into Equity 

  

			
	ISSUER:	  	Salary.com, Inc.
		
	PURCHASER:	  	Gregory Kent Plunkett (individually)
		  	330 Beacon Street, #93
		  	Boston, MA 02116
		
	SECURITIES PURCHASED:	  	Approximately 11,119,280 shares of Salary.com Common Stock
		
	PURCHASE PRICE:	  	Consideration worth $277,982, consisting of the following:
		
		  	 •      Forgiveness of $130,000 in existing short-term notes held by GKP;

		
		  	 •      Forgiveness of $147,982 in expenses presently due and payable to GKP.

		
		  	In addition, GKP will provide Salary.com with the following:
		
		  	 •      Agreement to defer payment of $234,375 in past due salary, until such time as Salary.com can make
such payments without materially impacting its ability to operate. (This item would appear on Salary.com’s balance sheet as long term-1 deferred compensation.)

		
		  	 •      Confirmation of GKP’s December 31, 2002 waiver of all interest due in 2002 from bridge loan
proceeds ($209,364.10 as of December 31, 2002).

		
	ANTI-DILUTION PROTECTION:	  	GKP shall be entitled to weighted average anti-dilution protection at the price of $.25/share.
		
	OTHER:	  	(1) Upon completion of this transaction, GKP shall be entitled to receive a cash payment for any business expenses incurred by him for which reimbursement has not yet been received or exchanged
above.
		
		  	(2) Salary.com’s Board of Directors board agrees to actively seek out an equity investment of up to $1,500,000 in a preferred series security, convertible into 1 common share, at a price
per preferred share of $.25. Preferably this funding would be attracted from existing investors (e.g., Lyric Ventures) interested in increasing their investment in the Company.

  

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 Confidential 
 2. The terms of this Agreement are severable. If for any reason any part hereof shall be found to be unenforceable, the remaining terms and conditions of this Agreement shall be enforced in full. 
 3. The validity, interpretation and performance of this Agreement shall be governed by and construed in accordance with the internal law of the Commonwealth of
Massachusetts, without giving effect to conflict of law principles. This Agreement shall be deemed to have been made in Massachusetts, and the parties agree that any action relating to the terms and provisions of this Agreement shall be commenced in
Massachusetts in any court of competent jurisdiction. 
 4. No variations or modifications of this Agreement shall be deemed valid unless reduced to writing
and signed by the parties hereto. 
 5. This Agreement may be executed in counterparts and via facsimile, each of which shall be deemed an original but all
of which shall together constitute one and the same instrument. 
 IN WITNESS WHEREOF, the undersigned parties have executed this Agreement as of the
Effective Date, and it shall be binding upon and inure to the benefit of the heirs, successors and assigns of the parties hereto. 
  

											
		 	SALARY.COM, INC.	 		 	WIANNO VENTURES, LLC
				
		 	 /s/ Richard J. Cellini
	 		 	 /s/ Julianne Pemberton

		 	By:	 	Richard J. Cellini	 		 	By:	 	Julianne Pemberton
		 	Its:	 	Chief Financial Officer	 		 	Its:	 	General Partner
		 	Date:	 	April 09, 2003	 		 	Date:	 	9 May 2003
					
		 	GREGORY KENT PLUNKETT	 		 		 	
					
		 	 /s/ Gregory Plunkett
	 		 		 	
		 	By:	 	Gregory Plunkett	 		 		 	
		 	Date:	 	5-09-03	 		 		 	

  

 5

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