Document:

Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (this “Agreement”)
is made and entered into as of October 20, 2010, effective as of July 01, 2010 (the “Effective Date”), by and between Vringo (Israel) Ltd., an Israeli company, with principal offices located in Bet Shemesh, Israel
(hereinafter: the “Company”), and Ellen Cohl, Israeli I.D no. 313059404 of HaDekel 16, Efrat, Israel (hereinafter: the “Employee”). 
  

	WHEREAS,	the Company and the Employee desire to enter into a written employment agreement which will set forth the terms and conditions upon which the Employee shall be employed
full-time by the Company as VP Finance & Governance. 

 NOW, THEREFORE, the Parties hereby agree, declare and
covenant as follows: 
  

	1.	Preamble and Interpretation 

 The preamble to this Employment Agreement (this “Agreement”) constitutes an integral part hereof. The section headings are intended for convenience purposes only and shall not be used for
the interpretation of this Agreement. 
  

	2.	Declaration of the Parties 

 The Parties hereby declare and affirm as follows: 
  

	2.1	The Agreement is personal and special, and reflects the relationship between the Company and the Employee, and thus, no general and/or special collective labor
agreements shall apply to the relationship between the Parties. 

  

	2.2	The Agreement contains all the payments and/or benefits and/or other conditions of any kind to which the Employee is entitled from the Company, and the Employee shall
not be entitled to any other remuneration and/or benefit from the Company, unless explicitly provided for hereunder. 

  

	2.3	No practice and/or custom which applies between the Company and other employees, if any exist, shall apply to the relationship between the Employee and the Company
unless explicitly incorporated into the Agreement, and then only to the extent so incorporated. If the Company grants to the Employee, on any occasion(s), any benefit of any kind, which is not specified in the Agreement, such grant shall not
constitute a practice and/or custom and/or precedent between the Parties which shall obligate the Company similarly on additional and/or other occasions. 

  

	2.4	The Employee hereby represents towards the Company that: 

  

	 	(a)	no provision of any law, regulation, agreement or other document prohibits her from entering into this Agreement; 

 

	 	(b)	 the execution and delivery of this Agreement and the fulfillment of the terms hereof will not constitute a default under or breach of any agreement or
other 

	 	 
instrument to which she is a party or by which she is bound, including without limitation, any non-competition agreement or confidentiality agreement (particularly as such confidentiality
agreement may relate to the divulgence or use of any proprietary software code known to Employee from prior work experiences), and do not require the consent of any person or entity (including without limitation, of any academic institution).

  

	3.	Description of Position 

  

	3.1	During the term hereof, the Employee shall provide services as VP Finance & Governance to the Company. Without derogating from the generality of the foregoing,
the Employee shall perform such further duties consistent with such position as shall, from time to time, be delegated or assigned to her by her supervisor. 

 

	3.2	The Employee shall perform her duties in accordance with the instructions of the Company’s CEO, or any other person nominated from time to time by the Company, and
shall be obligated to report to her supervisor or to any other person nominated by the Company. 

  

	4.	Obligations and Undertakings of the Employee 

  

	4.1	The Employee shall be employed by the Company in the framework of a full-time position. The Employee undertakes during the period of her employment to devote the
necessary attention, energies, talents, skills, knowledge and experience to the diligent and conscientious performance of her duties and responsibilities hereunder. 

 

	4.2	The Employee shall render her services in a faithful, responsible and competent manner - all in accordance with the terms and conditions set forth hereunder and with
standards that may be established and maintained by the Company from time to time. 

  

	4.3	Save as provided hereunder, the Employee shall not receive in connection with her work for the Company any compensation or benefit of any kind from any source,
including any customer or supplier of the Company, whether directly or indirectly. 

  

	4.4	The Employee undertakes to notify the Company immediately regarding any matter in which she has a personal interest and which may potentially create a conflict of
interest between herself and her work in the Company. 

  

	4.5	The Employee’s duties shall be in the nature of management duties that demand a special level of loyalty and do not enable the Company full control or supervision
of her work hours and rest hours, and accordingly the Law of Work Hours and Rest, 5711-1951 shall not apply to the employment relationship between the Company and the Employee. 

The Employee hereby declares and confirms that she is aware and agrees that her employment in the Company may require working at extra and
unusual hours as well as on days of rest and holidays (other than the Jewish Sabbath and Holidays). The Employee undertakes to work overtime, at the request of the Company and in accordance with the needs of her position, and declares and confirms
that the Salary and all other benefits to which the Employee is entitled in accordance herewith 

  
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includes full compensation for any hours which the Employee will work in excess of the hours provided in the Law of Work and Rest Hours, 5711-1951, and the Employee shall not be entitled to any
extra payment therefor. 
  

	5.	Compensation 

  

	5.1	In consideration for services to be performed by the Employee under this Agreement, the Company shall pay the Employee a gross monthly salary (from time to time, the
“Salary”) of 35,000 New Israel Shekels (NIS), which shall be paid to the Employee by the ninth day of the month following the month for which it is due. The Employee will be entitled to travel expenses. 

 

	5.2	All taxes, levies and other impositions with respect to any of the amounts which will be paid to or on behalf of the Employee under this Agreement, shall be borne by
the Employee. The Company shall deduct and withhold income tax, health insurance and national insurance from the Employee’s Salary, and any other deductions or withholdings that may be required from time to time, pursuant to law.

  

	5.3	Severance Pay and Manager’s Insurance Fund  

  

	 	5.3.1	Effective as of the Effective Date, the Company shall institute a manager’s insurance policy (the “Manager’s Policy”) for the Employee, and
shall pay a sum equal to 15.83% of the Salary towards such Manager’s Policy, of which 8.33% will be on account of severance pay, up to 2.5% on account of disability insurance (the “Disability Policy”), and the remainder on
account of a pension fund (the “Pension Fund”). Pursuant to the Employee’s instructions, the Company shall deduct 5% from the Employee’s Salary to be paid on behalf of the Employee towards such Pension Fund.

  

	 	5.3.2	Payments by the Company towards the Manager’s Policy under this Section 5.3 shall be on account of and not in addition to any statutory obligation to pay
severance pay. 

  

	 	5.3.3	In the event that a portion of the contributions made under this Section 5.3 becomes subject to tax liability (the “Portion”), then the Employee
will be given the option to have the Portion deducted from the contributions to be made hereunder and added to the Salary. 

  

	 	5.3.4	The aforementioned allocations shall be in lieu of any severance payment in compliance with the General Approval of the Minister of Labor which was promulgated pursuant
to Section 14 of the Severance Payment Law of 1963, which General Approval is attached hereto as Exhibit A. 

  

	 	5.3.5	In the event of termination of the Employee’s employment by either the Employee or the Company, the Company shall transfer to the Employee’s possession the
Manager’s Policy, provided that no such transfer shall be made under circumstances which would entitle the Company to deprive the Employee of severance pay under Israeli Law, including the breach of the confidentiality and non-competition
provisions of this Agreement, and/or breach of fiduciary duties. 

  
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	5.4	Further Education Fund (Keren Hishtalmut) Contributions 

 The Company shall, during the period of the Employee’s employment with the Company, make monthly contributions on behalf of the Employee to a recognized Further Education Fund (the “Keren
Hishtalmut”) recognized by the Income Tax Authorities in an amount equal to 7.5% of the Salary. In addition, pursuant to the Employee’s request, the Company shall deduct 2.5% of the Employee’s Salary which deduction shall also be
paid to such Keren Hishtalmut. Subject to any tax payable in respect of such contributions to such Keren Hishtalmut (whether now applicable or arising under any future law), which shall be borne and paid solely by the Employee, all funds
accumulating in the Keren Hishtalmut shall belong to the Employee, and upon the Employee’s written request, the Company shall submit a written request to the Keren Hishtalmut for the release of such funds to the Employee. The Company’s
contributions under this Section 5.4 will continue only up to the applicable tax-exempt “ceiling” under the income tax regulations in effect from time to time. 

 

	6.	Expenses 

 The
Company will reimburse the Employee for all pre-approved expenses and disbursements incurred by her in carrying out her duties under this Agreement, in accordance with the regular practices of the Company regarding the reimbursement of such expenses
and against the submission of the receipts therefor. 
  

	7.	Vacation 

 The
Employee shall be entitled to 24 days of annual vacation, which includes time for pursuit of doctoral studies in Corporate Governance and participation in related conferences. The Employee shall not be allowed to accrue more than twice such number
of vacation days. The Company will be closed for all Jewish and Israeli holidays and on Hol HaMoed of Pessach and Succot each day will constitute a half day of work. 
  

	8.	Recuperation Pay and Sick Leave 

  

	8.1	The Employee shall be entitled to recuperation pay (D’may Havra’a) according to the law. 

 

	8.2	The Employee shall be entitled to sick leave according to the law set forth in the Sickness Pay Law - 1976. 

 

	9.	Termination of Employment 

  

	9.1	The employment of the Employee by the Company shall commence as of the Effective Date. Each of the Company and the Employee shall each be entitled to bring the
Employee’s employment to an end for any reason or for no reason by giving advance written notice (“Prior Notice”) to the other party of thirty (30) days (the “Notice Period”). 

  
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	9.2	Notwithstanding the above, the Company shall be entitled to dismiss the Employee immediately without Prior Notice upon the occurrence of any event in which severance
payments can be denied to the Employee, whether in whole or in part, according to the law prevailing in Israel, from time to time, including without limitation, in any one of the following events: (i) an indictment of the Employee of an offense
constituting a felony or involving moral turpitude, theft or embezzlement, whether or not involving the Company; (ii) the breach by the Employee of any of her confidentiality and/or non-competition obligations under Sections 10 and 12
hereunder; or (iii) an act of Employee in bad faith towards the Company or any other breach of a fiduciary duty towards the Company or any breach of this Agreement. In such event the employment of the Employee shall cease immediately upon the
notice provided by the Company and she shall be entitled to no further compensation under this Agreement that had not accrued by such termination. 

  

	9.3	The Employee undertakes that in the event she ceases to work for the Company, for any reason whatsoever, she will transfer, in an organized manner and according to the
procedures determined by the Company, her position and the documents and projects which she is dealing with or are in her possession or under her control at such time, to whomever the Company shall determine, in a manner which will enable that
person to responsibly perform the duties of the Employee and such that no damage will be caused to the Company. 

  

	10.	Confidentiality 

  

	10.1	The Employee hereby acknowledges that she may be exposed (in the framework of her employment with the Company) to various forms of developments and research undertaken
by the Company (the “Research”). The Employee hereby undertakes to keep secret and maintain in confidence at all times and to do everything in her power to prevent unauthorized disclosure of all information in her possession,
brought to her knowledge or which she has acquired and/or will acquire regarding the Research and/or the Company. The Employee consents to refrain from disclosing to any third party, and not to, directly or indirectly, whether in writing or
otherwise, communicate, publish, reveal, describe, allow access to, divulge or otherwise expose or make available to any person or entity, any work, report of work, or any other information concerning the Research, in whole or in part, or to present
to any third party in any other manner any work, report or information in writing and/or orally, without prior written approval from the Company. The Employee hereby undertakes not to use any information regarding the Research for any purpose
whatsoever. 

  

	10.2	The Employee further acknowledges that in the course of or as a result of, or otherwise in connection with, her engagement with the Company she may receive, learn, be
exposed to, obtain, or have access to the Confidential Information (as defined below). 

  

	10.3	The Employee hereby declares and confirms that she is aware that the Confidential Information, as defined below, is highly confidential and sensitive and its disclosure
will cause immeasurable damage and loss to the Company and its affiliates. 

  

	10.4	 The term “Confidential Information” as used herein, shall mean all information regarding the Company and its affiliates and their
respective business and operations, 

  
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including, without limitation, any commercial, business, financial or technical information, any technology, know-how, inventions, developments, processes, methods, formulae, specifications,
trade secrets, marketing, operations, plans, activities, business information, Company contracts and other documented materials, names of suppliers, distributors, agents, customers, business partners, sources, costs, software, designs, drawings,
engineering, hardware configuration information and/or any other private, confidential and/or proprietary information with regard to the Company and its affiliates. The Employee recognizes that the Company may receive confidential or proprietary
information from third parties, subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. In connection with such duties, such information shall be deemed
Confidential Information hereunder, mutatis mutandis. 

  

	10.5	The Employee undertakes not to make any use of the Confidential Information other than for the purpose of fulfilling her obligations hereunder and to protect and
maintain the Confidential Information in strict confidence at all times subject to the following provisions. The Employee shall not disclose, transfer, use, communicate, disseminate, publish, or in any other manner reveal or divulge, directly or
indirectly, to any third party at any time during or after the term of this Agreement, the Confidential Information or any part thereof, for any purpose whatsoever, unless it is in fulfillment of the Employee’s position and undertakings
hereunder and to the extent necessary. 

  

	10.6	Notwithstanding the foregoing, Confidential Information shall not include information which: (i) is in, or enters, the public domain otherwise than by reason of a
breach hereof by the Employee or any third party; or (ii) is required to be disclosed pursuant to an order of a court of competent jurisdiction or by applicable law or regulation, provided however, that in such event, the Employee be obliged to
inform the Company of such disclosure as soon as possible and the Employee shall disclose only that portion of information required by law to be disclosed. 

 

	10.7	All Confidential Information made available to, received by, or generated by the Employee shall remain the exclusive property of the Company, and no license or other
rights in or to the Confidential Information are granted hereby. All files, records, documents, drawings, specifications, equipment, notebooks, notes, memoranda, diagrams, blueprints, bulletins, formula, reports, analyses, computer programs, and
other data of any kind relating to the business of the Company, whether prepared by the Employee or otherwise coming into her possession, and whether classified as Confidential Information or not, shall remain the exclusive property of the Company.
Upon the earlier to occur of the termination or expiration of this Agreement, or upon request by the Company, the Employee shall promptly turn over to the Company all such files, records, documents, drawings, specifications, equipment, notebooks,
notes, memoranda, diagrams, blueprints, bulletins, formulae, reports, analyses, computer progress and other data of any kind concerning the Company which the Employee obtained, received or prepared pursuant to this Agreement, unless specific written
consent is obtained from the Company to release any such record. 

  

	10.8	For the purpose of this Section 10 the term Company shall include any subsidiaries or parent companies of the Company. 

 

	11.	Development Rights 

  
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	11.1	In this Section, “Inventions” shall mean: All inventions, processes, technology, formulae, patents, improvements, mask works, modifications,
discoveries, concepts, ideas, techniques, methods, know-how, designs, and enhancements, products, specifications and drawings, computer programs, whether or not patentable or otherwise protectable, and all intellectual property rights associated
therewith (including copyrights, trade secrets and trademarks), which are invented, made, developed, discovered, conceived or generated in whole or in part, by the Employee, independently, or jointly with others, and which are either:

  

	 	11.1.1	related to the Company’s business or research and development, and invented, made, developed, discovered, or conceived during the Employee’s employment by the
Company; or 

  

	 	11.1.2	developed in whole or in part with the use of any of the Company’s equipment, supplies, facilities (or with facilities rented by the Company or outsourced), or
proprietary information. 

  

	11.2	The Employee shall promptly disclose to the Company all Inventions and keep records relating to the conception and reduction to practice of all Inventions. Such records
shall be the sole and exclusive property of the Company, and the Employee shall surrender possession of such records to the Company upon any suspension or termination of the Employee’s employment with the Company. 

 

	11.3	The Employee hereby agrees and declares that all Inventions and any and all rights, title and interests in and to the Inventions, including, without limitation all
intellectual property rights associated therewith (such as copyrights, patents, mask work rights, etc.) shall be the sole and exclusive property of the Company. 

 The Employee hereby assigns and will in the future assign to the Company (if and to the extent required) all rights, title and interest worldwide she may have or acquire in all Inventions and in all
intellectual property rights based upon such Inventions or derived therefrom, and agrees that all Inventions and all intellectual property rights based on such Inventions or derived therefrom shall be the sole property of the Company and its
assignees, and the Company and its assignees shall be the sole owner of all intellectual property rights and other rights in connection therewith. 
  

	11.4	The Employee shall have no rights, claims or interest of whatsoever kind, in the Inventions or with respect thereto, nor shall the Employee be entitled to any
additional compensation and consideration for fulfilling her duties under this Section 11 or with respect to the Inventions. 

  

	11.5	The Employee shall during and after the term of this Agreement provide the Company with all reasonable information, documentation, and assistance, including the
preparation or execution, as applicable of documents, declarations, assignments, drawings and other data, that the Company may request in order to perfect, enforce, or defend the proprietary rights based on the Inventions or derived therefrom and to
effectuate its title and interest therein. All such actions and assistance shall be provided at the expense of the Company. 

  
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	11.6	For the purpose of this Section 11 the term Company shall include any subsidiaries thereof or any parent companies of the Company. 

 

	12.	Non-Competition 

  

	12.1	The Employee undertakes that, absent the prior written consent of the Company, for so long as she is employed by the Company, she will not be involved, whether directly
or indirectly, in any manner, in any other research, activity or business conflicting with the business of the Company. 

  

	12.2	The Employee further undertakes that, absent the prior written consent of the Company, for a period of 12 months following termination or expiration of her employment
with the Company, she will not be involved, directly or indirectly, in any way, in any research, activity or business which is competitive with the Company or its business in the specific field of its business, including without limitation the
development, production, marketing, distribution and sales of any products and/or services relating to its specific field of business, which compete with the products and/or services developed, or produced by or for the Company and/or marketed,
distributed or sold by the Company in its specific field of business. 

 The Employee hereby expressly acknowledges
that the business and operating market of the Company is worldwide, and consequently the obligations prescribed in this section shall apply on a worldwide basis. 
 For the purpose of this Section 12 “directly or indirectly” includes doing business as an owner, an independent contractor, shareholder, director, partner, manager, agent, employee or
advisor, but does not, however, include the holding of up to 2% of free market shares of publicly traded companies. 
  

	12.3	The Employee also hereby undertakes that for a period of 12 (twelve) months after the termination of the Employee-employer relationship between herself and the Company
for any reason whatsoever, she will not employ, offer to employ or otherwise engage or solicit for employment any person who is or was, during the 12 (twelve) month period prior to the termination of Employee’s employment with the Company, an
employee or exclusive consultant, an exclusive supplier or exclusive contractor of the Company, and shall not conduct, whether directly or indirectly, any activity which intervenes in the commercial relationship between the Company and any of its
employees, contractors, customers, distributors, suppliers or consultants. 

  

	12.4	For the purpose of this Section 12 the term Company shall include any subsidiaries or parent companies of the Company. 

 

	12.5	The Employee acknowledges that the provisions of Sections 10-12 are reasonable and necessary to legitimately protect the Company’s Confidential Information and
property (including intellectual property and goodwill). 

  

	13.	Miscellaneous 

  

	13.1	 Entire Agreement. This Agreement fully embraces the legal relationship between the Parties with respect to the subject matter hereof, and no
previous agreements, 

  
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memorandum of agreements, negotiations, promises, consents, undertakings, representations, warranties or documents which were applied, exchanged or signed by or between any of the Parties prior
to the signing of this Agreement, shall have any force or effect. 

  

	13.2	Waiver. The failure of any Party at any time or times to require performance of any provision hereof shall in no manner affect the right of such Party at a later
time to enforce the same. No waiver by any Party of the breach of any of the terms or covenants in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver
of any breach, or a waiver of any of the terms or covenants contained herein. 

  

	13.3	Modification. There will be no validity to any change in this Agreement, and none of its conditions can be amended other than by a written document containing
the signatures of both Parties. 

  

	13.4	Notice. The addresses of the Parties for the purposes of this Agreement will be as detailed in the Preamble to it, and any notice which is sent via registered
mail from one Party to the other, according to the said address, will be considered as if it were received by the addressee 72 hours after it was sent for delivery at a post office in Israel, and if delivered by hand, at the time at which it was
delivered. 

  

	13.5	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. 

  

	13.6	Inure to the Benefit. This Agreement shall inure to the benefit of the Company and its successors and assigns. 

 

	13.7	Severability. If any provision in this Agreement (or portion thereof) shall be found or be held to be invalid or unenforceable, then the meaning of said
provision shall be construed, to the extent feasible, so as to render the provision enforceable, and if no feasible interpretation would save such provision, it shall be severed from the remainder of this Agreement which shall remain in full force
and effect unless the severed provision is essential and material to the rights or benefits received by any Party. In such event, the Parties shall use best efforts to negotiate, in good faith, a substitute, valid and enforceable provision or
agreement which most nearly effects the Parties’ intent in entering into this Agreement. In the event that the scope or duration of the Employee’s obligations under this Agreement is deemed to exceed the scope or duration permitted by law,
the maximum scope or duration permitted by law shall substitute for the former. 

  

	13.8	Survival. It is hereby clarified that any and all provisions herein which by their terms and/or by their nature, should operate or should have effect following
the termination of the Employee’s employment hereunder or the termination or expiration of this Agreement, including without limitation, the provisions of Sections 10, 11 and 12 herein, shall survive any such termination.

  

	13.9	 Breach of Obligations. The Employee is aware that a breach of her obligations in Sections 10 and 12 of this Agreement, or part of them, will
cause the Company and/or 

  
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the companies related thereto, serious and irreparable damage, and therefore hereby agrees, that if such breach occurs, the Company shall be entitled without prejudice, to take all legal means
necessary, and all and any injunctive relief as is necessary to restrain any further or continuing breach. 

  

	13.10	Choice of Law and Jurisdiction. This Agreement shall be governed by, and construed in accordance with the laws of the State of Israel, and the competent courts
of Jerusalem shall have exclusive jurisdiction to the exclusion of all other courts, in all matters which pertain to this Agreement. 

  

	13.11	It is agreed that this Agreement constitutes, inter alia, notification under the Notification to Employee (Employment Terms) Law, 5762-2002. It is clarified that
nothing in the Agreement derogates from any right to which the Employee is entitled under any law, extension order, collective agreement, if and to the extent applicable. 

 The Parties hereto have hereunto set their hands and signatures on this Employment Agreement as of the 15th day of December, 2010: 

 

							
	 COMPANY
	 		 	EMPLOYEE
			
	Vringo (Israel) Ltd.	 		 	
			
	 /s/ Jonathan Medved
	 		 	 /s/ Ellen Cohl

		 		 		 	Ellen Cohl
	By:	 	Jonathan Medved	 		 	
				
	Title:	 	CEO	 		 	

  
 10fs1a1ex10iii_voiceserve.htm

Exhibit 10.3

Common Stock Purchase Warrant

COMMON STOCK PURCHASE WARRANT

 

To Purchase                      Shares of Common Stock of

 

VOICESERVE, INC.

 

April      , 2010 (the “Issuance Date”)

 

THIS COMMON STOCK PURCHASE WARRANT (the “ Warrant ”) CERTIFIES that, for value received,                      (the “ Holder ”), is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date of this Warrant and on or prior to the fifth anniversary of the date of this Warrant (the “ Termination Date ”) but not thereafter, to subscribe for and purchase from VoiceServe, Inc., a Delaware corporation (the “ Company ”), up to                      shares (the “ Warrant Shares ”) of the Common Stock, par value $0.001 per share, of the Company (the “ Common Stock ”). The purchase price of one share of Common Stock (the “ Exercise Price ”) under this Warrant shall be US $0.50. The Exercise Price and the number of Warrant Shares for which the Warrant is exercisable shall be subject to adjustment as provided herein. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “ Purchase Agreement ”), dated as of April      , 2010, among the Company and the Purchaser parties signatory thereto.

 

1.            Title to Warrant . Prior to the Termination Date and subject to compliance with applicable laws, including transfer restrictions imposed by applicable securities laws, and Section 7 of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, at the office or agency of the Company by the Holder in person or by duly authorized attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly endorsed. The transferee shall sign an investment letter in form and substance reasonably satisfactory to the Company.

 

2            Authorization of Shares . The Company covenants that all Warrant Shares, which may be issued upon the exercise of the purchase rights represented by this Warrant in accordance with the terms of this Warrant, including the payment of the exercise price for such Warrant Shares, will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

3.            Exercise of Warrant .

 

(a)           Exercise of the purchase rights represented by this Warrant may be made at any time or times on or before the Termination Date by delivery to the Company of a duly executed Notice of Exercise Form annexed hereto (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of such Holder appearing on the books of the Company) and surrender of this Warrant, together with payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank in immediately available funds. Certificates for shares purchased hereunder shall be delivered to the Holder within 5 Trading Days from the delivery to the Company of the Notice of Exercise Form, surrender of this Warrant and payment of the aggregate Exercise Price as set forth above (“ Warrant Share Delivery Date ”). This Warrant shall be deemed to have been exercised on the later of the date the Notice of Exercise is delivered to the Company and the date the Exercise Price is received by the Company. The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price and all taxes required to be paid by the Holder, if any, pursuant to Section 5 prior to the issuance of such shares, have been paid. If the Company fails to deliver to the Holder a certificate or certificates representing the Warrant Shares pursuant to this Section 3(a) by the end of business (New York, New York time) on the fifth Trading Day following the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

  

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(b)           If this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

(c)           If at any time after one year from the date of issuance of this Warrant, there is no effective Registration Statement registering the resale of the Warrant Shares by the Holder at such time, this Warrant may also be exercised at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = the VWAP on the Trading Day immediately preceding the date of such election;

 

(B) = the Exercise Price of this Warrant, as adjusted; and

 

(X) = the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

 

“ VWAP ” shall mean, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg Financial L.P. (based on a trading day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time); (b) if the Common Stock is not then listed or quoted on a Trading Market and if prices for the Common Stock are then reported in the “Pink Sheets” published by the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (c) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers and reasonably acceptable to the Company.

 

4.            No Fractional Shares or Scrip . No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price.

 

5.            Charges, Taxes and Expenses . Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 

6.            Closing of Books . The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

  

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7.            Transfer, Division and Combination .

 

(a)        Subject to compliance with any applicable securities laws and the conditions set forth in Sections 1 and 7(e) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b)        This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 7(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.

 

(c)        The Company shall prepare, issue and deliver at its own expense (other than transfer taxes) the new Warrant or Warrants under this Section 7.

 

(d)        The Company agrees to maintain, at its aforesaid office, books for the registration and the registration of transfer of the Warrants.

 

(e)        The Company may require, as a condition of allowing such transfer (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the Securities Act and under applicable state securities or blue sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a) promulgated under the Securities Act or a qualified institutional buyer as defined in Rule 144A(a) under the Securities Act.

 

8.            No Rights as Shareholder until Exercise . This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price (or by means of a cashless exercise), the Warrant Shares so purchased shall be and be deemed to be issued to such Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment.

 

9.            Loss, Theft, Destruction or Mutilation of Warrant . The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

10.            Saturdays, Sundays, Holidays, etc . If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday.

 

  

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11.            Adjustments of Exercise Price and Number of Warrant Shares . The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time in the event that the Company: (i) pays a dividend in shares of Common Stock or make a distribution in shares of Common Stock to holders of its outstanding Common Stock; (ii) subdivides its outstanding shares of Common Stock into a greater number of shares; (iii) combines its outstanding shares of Common Stock into a smaller number of shares of Common Stock; or (iv) issues any shares of its capital stock in a reclassification of the Common Stock, then the number of Warrant Shares purchasable upon exercise of this Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive the kind and number of Warrant Shares or other securities of the Company which it would have owned or have been entitled to receive had such Warrant been exercised in advance thereof. Upon each such adjustment of the kind and number of Warrant Shares or other securities of the Company which are purchasable hereunder, the Holder shall thereafter be entitled to purchase the number of Warrant Shares or other securities resulting from such adjustment at an Exercise Price per Warrant Share or other security obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares purchasable pursuant hereto immediately prior to such adjustment and dividing by the number of Warrant Shares or other securities of the Company that are purchasable pursuant hereto immediately after such adjustment. An adjustment made pursuant to this paragraph shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event.

12.            Subsequent Equity Sales .  In the event that on or subsequent to the Issuance Date, the Company issues or sells any Common Stock, any securities which are convertible into or exchangeable for its Common Stock or any convertible securities, or any warrants or other rights to subscribe for or to purchase or any options for the purchase of its Common Stock or any such convertible securities (the “ Common Stock Equivalents ”) (other than (i) securities which are issued pursuant to the Transaction Documents, (ii) shares of Common Stock or options to purchase such shares issued to employees, consultants, officers or directors in accordance with stock plans approved by the Board of Directors, and shares of Common Stock issuable under options or warrants that are outstanding as of the date of the Transaction Documents or issued in the future pursuant to any stock incentive plan authorized by the Board of Directors, and (iii) shares of Common Stock issued pursuant to a stock dividend, split or other similar transaction at an effective price per share which is less than the Exercise Price, then the Exercise Price in effect immediately prior to such issue or sale shall be reduced to the lowest per share price of Common Stock in such issuance or sale or deemed issuance or sale.

 

13.            Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets . In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the surviving corporation or where there is a change in or distribution with respect to the Common Stock of the Company), or sell, transfer or otherwise dispose of its property, assets or business to another corporation and, pursuant to the terms of such reorganization, reclassification, merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“ Other Property ”), are to be received by or distributed to the holders of Common Stock of the Company, then, from and after the consummation of such transaction or event, the Holder shall have the right thereafter to receive, instead of the Warrant Shares, at the option of the Holder, (a) upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other Property receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event or (b) cash equal to the value of this Warrant as determined in accordance with the Black-Scholes option pricing formula. For purposes of this Section 12, “common stock of the successor or acquiring corporation” shall include stock of such corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 12 shall similarly apply to successive reorganizations, reclassifications, mergers, consolidations or disposition of assets.

 

14.            Notice of Adjustment . Whenever the number of Warrant Shares or number or kind of securities or other property purchasable upon the exercise of this Warrant or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof to the Holder, which notice shall state the number of Warrant Shares (and other securities or property) purchasable upon the exercise of this Warrant and the Exercise Price of such Warrant Shares (and other securities or property) after such adjustment, setting forth a brief statement of the facts requiring such adjustment and setting forth the computation by which such adjustment was made.

 

  

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15.            Notice of Corporate Action . If at any time:

 

(a)        the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or other distribution, or

 

(b)        there shall be any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of the Company with, or any sale, transfer or other disposition of all or substantially all the property, assets or business of the Company to, another corporation or,

 

(c)        there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company;

 

then, in any one or more of such cases, the Company shall give to Holder (i) prior written notice of the date on which a record date shall be selected for such dividend or distribution or for determining rights to vote in respect of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, liquidation or winding up, and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing clause also shall specify (i) the date on which the holders of Common Stock shall be entitled to any such dividend or distribution, and the amount and character thereof, and (ii) the date on which any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up is to take place and the time, if any such time is to be fixed, as of which the holders of Common Stock shall be entitled to exchange their Warrant Shares for securities or other property deliverable upon such disposition, dissolution, liquidation or winding up. Each such written notice shall be sufficiently given if addressed to Holder at the last address of Holder appearing on the books of the Company and delivered in accordance with Section 16(d).

 

15.            Authorized Shares . The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable 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 the Trading Market upon which the Common Stock may be listed.

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

  

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16.            Miscellaneous .

 

(a)         Jurisdiction . All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement relating to the same.

 

(b)         Restrictions . The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered for resale, will have restrictions upon resale imposed by state and federal securities laws.

 

(c)         Nonwaiver and Expenses . No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

(d)         Notices . Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

(e)         Limitation of Liability . No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

(f)         Successors and Assigns . Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder or holder of Warrant Shares.

 

(g)         Amendment . This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

(h)         Severability . Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

(i)         Headings . The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

  

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized.

 

Dated: April      , 2010

 

	  	  
	
VOICESERVE, INC.

	  	  
	
By:

	  
	
Name:

	  
	
Title:

	  

 

  

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NOTICE OF EXERCISE

 

To: VoiceServe, Inc.

 

(1) The undersigned hereby elects to purchase                      Warrant Shares of 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.

 

(2) Payment shall take the form of (check applicable box):

 

o   in lawful money of the United States; or

 

o    the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 3(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 3(c).

 

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

 

__________________________________________

 

The Warrant Shares shall be delivered to the following:

 

__________________________________________

 

__________________________________________

 

__________________________________________

 

__________________________________________

 

(4) Accredited Investor . The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.

 

(PURCHASER)

By:          _____________________________________

Name:     _____________________________________

Title:       _____________________________________

Dated:    _____________________________________

 

 

  

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ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute this form and supply required information. Do not use this form to exercise the warrant.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to                                                                                     whose address is                                                               .

 

	  	  	  
	  	
    

	
Dated:___________ ,    _______

	  	  
	
Holder’s Signature

	
    

	
__________________________________________

	  	  
	
Holder’s Address:

	
    

	
__________________________________________

	  	  
	  	
    

	
__________________________________________

	  	  
	  	
    

	
__________________________________________

 

	  	  
	
Signature Guaranteed:

	  

 

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 whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

 

 

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