Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.2

Form of Note

THIS NOTE HAS BEEN MADE FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO OR FOR SALE IN
CONNECTION WITH THE DISTRIBUTION THEREOF AND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”). THIS NOTE MAY NOT BE SOLD, TRANSFERRED, OR ASSIGNED (“TRANSFER”)
UNLESS IT IS SUBSEQUENTLY REGISTERED OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND THE
MAKER CONSENTS IN WRITING TO SUCH TRANSFER. THE COMMON STOCK ISSUABLE UPON CONVERSION HEREOF HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED
OR ASSIGNED IN THE ABSCENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE
REASONABLY ACCEPTABLE TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS
SOLD PURSUANT TO RULE 144 UNDER SAID ACT. ANY SUCH SALE, ASSIGNMENT OR TRANSFER MUST ALSO BE MADE
IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.

					
	 	 	 	 	 
	September
 _____ 
, 2007
	 	 
	 	$540,000

SMART MOVE, INC.

 

7% Unsecured Convertible Note (“Note”)

Due September 2, 2010

Smart Move, Inc., a Delaware corporation (“Maker” or the “Company”), for value received,
promises to pay to the order of                     , whose address is
                                        (the “Holder”), the principal sum of Five Hundred Forty Thousand
($540,000) Dollars with an annualized rate of interest from the date hereof of seven percent (7%)
per annum until maturity. Interest shall be due and payable quarterly in arrears on the first day
of March, June, September and December of each year and at the Maturity Date or upon any prepayment
or acceleration of the maturity of this Note. Such interest payments shall be made in cash or,
subject to the Company’s election to offer to pay interest by means of a stock issuance and the
Holder’s acceptance of such offer, in shares of Common Stock corresponding to the amount of accrued
interest at the same $1.80 Conversion Price applicable to the principal of this Note. The entire
Principal shall be due and payable to the Holder on or before September 2, 2010. Maker may at any
time or from time to time, upon giving Holder at least forty-five (45) days advance written notice
of Maker’s intention to do so, make a voluntary prepayment, whether in full or in part, of this
Note, without premium or penalty.

	1.	 	NOTE

This Note in the principal amount of Five Hundred Forty Thousand ($540,000) Dollars is the
[Initial] Closing Note purchased by the Holder pursuant to that certain Note and Warrant Purchase
Agreement dated September
 _____ 
, 2007. This Note is unsecured.

	2.	 	CONVERSION AT OPTION OF HOLDER; AUTOMATIC CONVERSION

	 	A.	 	Conversion at Option of Holder. The Holder shall have the right (the
“Conversion Right”) at any time or from time to time prior to the day this Note is paid
in full, to convert all or any part of the outstanding and unpaid principal amount of
this Note as shall remain unpaid at the effective date of the conversion, into, fully
paid and non-assessable shares of Common Stock, par value $.0001 per share, at a
conversion price of $1.80 per share (the “Conversion Price”). The Conversion Right may
be exercised notwithstanding Maker’s issuance of a notice of intention to make a
voluntary prepayment, and the effective date of an elective conversion is the date of
Holder’s delivery of a “Conversion Notice” in the form attached hereto.

 

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	 	B.	 	Automatic Conversion. The Note will automatically convert into shares of the
Company’s common stock on the date when closing bid price of a share of the Company’s
common stock equals $3.75 per share or greater for twenty (20) of thirty (30)
consecutive trading days on the American Stock Exchange, provided that the underlying
 shares have either been registered for resale by the holders of the securities pursuant
to certain piggyback registration rights granted to the Holder as described in paragraph
D below or are eligible to be sold under and subject to Rule 144 under the Securities
Act of 1933.

	 	C.	 	Mechanics of Conversion. The Holder shall effect any elective conversions by
delivering to the Company a completed notice in the form attached hereto as Exhibit “A”
(a “Conversion Notice”). Unless the Holder is converting the entire principal amount
outstanding under this Note or an Automatic Conversion has occurred, the Holder is not
required to physically surrender this Note to the Company in order to effect
conversions. Conversions hereunder shall have the effect of lowering the outstanding
principal amount of this Note plus any accrued and unpaid interest thereon paid in
equity securities in an amount equal to the applicable conversion. The Company shall
maintain records showing the principal amount converted and the date of such conversions
and will promptly notify Holder if an Automatic Conversion occurs. Upon conversion of
the entire unpaid principal amount of this Note and any accrued, unpaid interest,
whether in connection with a conversion at the option of Holder pursuant to exercise of
the Conversion Right or pursuant to an Automatic Conversion, this Note shall be
surrendered by the Holder to the Company for cancellation and a certificate representing
the Common Stock issued to Holder therefor shall be delivered to Holder. No fractional
 shares or scrip shall be issued upon any conversion of this Note. Instead of any
fractional shares that would otherwise be issuable upon conversion of this Note, the
Company shall pay a cash adjustment in respect of such fractional interest in an amount
equal to that fractional interest of the Conversion Price at which the Note was
converted.

	3.	 	RESERVATION OF AUTHORIZED SHARES; EFFECT OF RECAPITALIZATION; PIGGYBACK REGISTRATION RIGHTS

	 	A.	 	Reservation of Authorized Shares. The Company agrees and represents that until
this Note is paid in full or converted, the Company will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance of
Common Stock upon the full conversion of this Note. The Company further agrees and
represents that upon issuance, such shares will be duly and validly issued, fully paid
and non-assessable and that the Company will instruct its transfer agent to issue
certificates for the Common Stock issuable upon conversion of this Note.

	 	B.	 	Effect of Capital Reorganization or Reclassification.  If the number of
outstanding shares of Common Stock of the Company shall be increased or decreased as a
result of a stock split, a reverse stock split or similar recapitalization or
reclassification of stock not involving any change in the shareholder’s equity or the
aggregate market value of shares outstanding as a result thereof, the per share
Conversion Price shall be proportionately adjusted so that the percentage of the Common
Stock acquirable by the Holder upon conversion immediately prior to the event and
immediately following the event remains the same.

	 	C.	 	Piggyback Registration Rights. If the Company proposes to register any of its
stock or other securities under the 1933 Act (including for this purpose a registration
effected by the Company for stockholders other than the Holder, but excluding any
registration statement relating either to the sale of securities to employees of the
Company pursuant to a stock option, stock purchase or similar plan, a registration made
on Form S-4 or any successor forms then in effect, or an SEC Rule 145 transaction), the
Company shall, at such time, promptly give Holder written notice of such registration.
Upon the written request of Holder given within thirty (30) days after such notice by
the Company, the Company shall cause to be registered under the 1933 Act, the number of
 shares acquired or acquirable by Holder upon conversion that Holder has requested to be
registered, provided, however, that if the offering is an underwritten offering, and the
underwriter for the offering requires a limitation of the number of shares to be
included in such registration, such limitation shall be applied on a pro-rata basis
among all other holders of piggyback registration rights. The expense of any such
registration shall be paid by the Company.

 

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	4.	 	EVENTS OF DEFAULT

A default shall be defined as one or more of the following events (“Event of Default”)
occurring and continuing:

	 	(a)	 	The Maker shall fail to pay any interest payment on this
Note when due for a period of thirty (30) days after notice of such default
has been sent by the Holder to the Maker.

	 	(b)	 	The Maker shall dissolve or terminate the existence of the
Maker.

	 	(c)	 	The Maker shall file a petition in bankruptcy, make an
assignment for the benefit of its creditors, or consent to or acquiesce in
the appointment of a receiver for all or substantially all of its property,
or a petition for the appointment of a receiver shall be filed against the
Maker and remain unstayed for at least ninety (90) days.

Upon the occurrence of an Event of Default, the Holder of this Note may, by written notice to
the Maker, declare the unpaid principal amount and all accrued interest of the Note immediately due
and payable.

	5.	 	SECURITY FOR PAYMENT OF THE NOTE(S)

This Note is unsecured.

	6.	 	EFFECTIVE DATE OF THE NOTE

The Effective Date of this Note for purposes of its status as a binding legal obligation of
the Maker is the date hereof, which is also the date after which interest shall accrue on the
unpaid principal balance hereof.

	7.	 	STATUS OF HOLDER

The Maker may treat the Holder of this Note as the absolute owner of this Note for the purpose
of making payments of principal or interest and for all other purposes, and shall not be affected
by any notice to the contrary, unless the Maker so consents in writing.

	8.	 	SECURITIES ACT RESTRICTIONS

This Note has not been registered for sale under the Act. This Note may not be sold, offered
for sale, pledged, assigned or otherwise disposed of, unless certain conditions are satisfied, as
more fully set forth in the Note and Warrant Purchase Agreement. The shares of Common
Stock issuable upon conversion of this Note may not be sold or transferred unless (i) they
first shall have been registered under the Securities Act of 1933, as amended, and applicable
state securities laws,(ii) the Company shall have been furnished with an opinion of legal counsel
(in form, substance and scope reasonably acceptable to Company) to the effect that such sale or
transfer is exempt from the registration requirements of the Act or (iii) they are sold pursuant
to Rule 144 under the Act. Each certificate for shares of Common Stock issuable upon conversion of
this Note that have not been so registered and that have not been sold pursuant to an exemption
that permits removal of the legend, shall bear a legend substantially in the following form, as
appropriate:

 

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“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
TRANSFERRED OR ASSIGNED IN THE ABSCENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE
REASONABLY ACCEPTABLE TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS
SOLD PURSUANT TO RULE 144 UNDER SAID ACT. ANY SUCH SALE, ASSIGNMENT OR TRANSFER MUST ALSO BE MADE
IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.”

	9.	 	ATTORNEYS’ FEES

The prevailing party in an action to enforce this Note shall be entitled to reasonable
attorneys’ fees, costs and collection expense.

	10.	 	MISCELLANEOUS.

(a) Successors and Assigns. The Holder may not assign, transfer or sell this Note to any
party without the express written consent of the Maker, such consent not to be unreasonably
withheld or delayed. This Note shall be binding upon and shall inure to the benefit of the parties
and their respective heirs, successors and assigns. Subject to the foregoing permitted transfers
and status of lawful successors, this Note shall not be enforceable by any other third party.

(b) Entire Agreement. This Note contains all oral and written agreements, representations and
arrangements between the parties with respect to its subject matter, and no representations or
warranties are made or implied, except as specifically set forth herein. No modification, waiver
or amendment of any of the provisions of this Note shall be effective unless in writing and signed
by both parties to this Note.

(c) Notices. Any notice or other communication to be given hereunder shall be in writing and
personally delivered or delivered via overnight mail, with written receipt therefor, or by a
nationally recognized overnight delivery service, charges and postage prepaid, properly addressed
to the party to receive such notice, at the following address for such party (or at such other
address as shall be specified by like notice given to the appropriate party):

	 	 	 	 	 
	if to Holder:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	if to the Company:

	 	Smart Move, Inc.	 	 
	 

	 	5990 Greenwood Plaza Blvd., Suite 390	 	 
	 

	 	Greenwood Village, CO 80111	 	 
	 

	 	Attn: Executive Officers	 	 

Such notice shall be effective upon personal or overnight delivery or five (5) days after
mailing by certified mail.

 

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(d) Section Headings. The headings of the various sections of the Note have been inserted as
a matter of convenience for reference only and shall be of no legal effect.

(e) Severability. If any provision of this Note is invalid, illegal or unenforceable, the
balance of this Note shall remain in effect, and if any provision is inapplicable to any person or
circumstance, it shall nevertheless remain applicable to all other persons and circumstances. If
it shall be found that any interest or other amount deemed interest due hereunder shall violate
applicable laws governing usury, the applicable rate of interest due hereunder shall automatically
be lowered to equal the maximum permitted rate of interest.

(f) Applicable Law. This Note shall be deemed to have been made in the State of Colorado, and
any and all performance hereunder, or breach thereof, shall be interpreted and construed pursuant
to the laws of the State of Colorado without regard to conflict of laws rules applied in the State
of Colorado. The parties hereto hereby consent to personal jurisdiction and venue exclusively in
the State of Colorado with respect to any action or proceeding brought with respect to this Note.

(g) Waiver of Jury Trial.  THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

  

(h) Lost, Stolen or Mutilated Note. If this Note is lost, stolen, mutilated or destroyed,
the Company will, on such reasonable terms with respect to indemnity or otherwise as it may in its
discretion impose, issue a new note of like denomination, tenor, and date as this Note.  Any such
new note shall constitute an original contractual obligation of the Company, and the lost, stolen,
mutilated or destroyed, as applicable, Note shall be null and void.

IN WITNESS WHEREOF, the Company has caused this Unsecured Convertible Note to be duly executed
by a duly authorized officer as of the date set forth above.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Maker:	 	Accepted by Holder:
	Smart Move, Inc.	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	By:	 	 	 	Print Name:
	 

	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Title:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

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EXHIBIT “A”

 

NOTICE OF CONVERSION

 

(To be executed by the Holder in order to elect to convert the Note)

TO:  

The undersigned hereby irrevocably elects to convert the principal amount of the above Note
into Shares of Common Stock of SMART MOVE, INC., according to the conditions stated therein, as of
the Conversion Date written below.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Conversion Date:
	 	 	 	 	 	 	 	 
	Applicable Conversion Price:
	 	 	 	 	 	$	1.80	 
	Signature:
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	Note amount converted:
	 	 	 	 	 	$	 	 
	Number of shares of Common Stock to be issued:
	 	 	 	 	 	 	 	 
	Please issue the shares of Common Stock in the
	 	 	 	 	 	 	 	 
	following name and to the following address:
	 	 	 	 	 	 	 	 
	Issue to:
	 	 	 	 	 	 	 	 
	Authorized Signature:
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	Phone Number:
	 	 	 	 	 	 	 	 
	Broker DTC Participant Code:
	 	 	 	 	 	 	 	 
	Account Number:
	 	 	 	 	 	 	 	 

If this name is different from the name of the Holder, the Holder will have to show compliance for
such transfer with federal and applicable state securities laws or in accordance with the plan of
distribution in any Registration Statement.

By submitting this Notice of Conversion, the undersigned Holder represents and warrants to the
Company that Holder is an accredited investor as that term is defined in SEC Rule 501(a) or
otherwise able to evaluate the risks and merits of an investment, that the Holder is a
sophisticated investor as required by SEC Rule 506, that it has completed such investigation into
the Company and the securities being acquired pursuant to this Notice of Conversion as the
undersigned (in consultation with its advisors) has determined appropriate, and that it is
submitting this Notice of Conversion of its own volition and free will.

	 	 	 	 	 	 	 
	By:

	 	   
	 	Date:
	 	 
	 

	 	 
	 	 	 	 
	Name:

	 	 	 	   	 	 
	Address:

	 	 	 	   	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	Social Security Number	 	   	 	 

 

6Filed by Bowne Pure Compliance

 

Exhibit 10.3

Form of Warrant

This Warrant and the underlying shares of Common Stock represented by this Warrant have not
been registered under the Securities Act of 1933 (the “Act”), and are “restricted securities” as
that term is defined in Rule 144 under the Act. The securities may not be offered for sale, sold
or otherwise transferred except pursuant to an effective registration statement under the Act, or
pursuant to an exemption from registration under the Act, the availability of which is to be
established to the satisfaction of the Company.

			
	 	 	 
	September
 _____ 
, 2007
	 	Warrant No.
 _____ 

***SMART MOVE, INC.***

WARRANT TO PURCHASE SHARES OF COMMON STOCK

Warrant to Purchase [100,000] Shares

(subject to adjustment as set forth herein)

Exercise Price [$7.50] Per Share

(subject to adjustment as set forth herein)

VOID AFTER 3:00 P.M., MOUNTAIN TIME, ON

December 5, 2011

THIS CERTIFIES THAT                                         , is entitled to purchase from Smart Move, Inc., a
Delaware corporation (hereinafter called the “Company”) with its principal office located at 5990
Greenwood Plaza Blvd., Suite 390, Greenwood Village, Colorado 80111, at any time before 3:00 P.M.,
Mountain Time, on December 5, 2011 (the “Termination Date”), at the purchase price of [$7.50] per
share, the number of shares (the “Shares”) of the Company’s common stock (the “Common Stock”) set
forth above. The number of Shares purchasable upon exercise of this Warrant and the Exercise Price
per Share shall be subject to adjustment from time to time as set forth in Section 4 below if the
number of outstanding shares of Common Stock of the Company shall be increased or decreased as a
result of a stock split, a reverse stock split or similar recapitalization or reclassification of
stock not involving any change in the shareholder’s equity or the aggregate market value of shares
outstanding as a result thereof,

SECTION 1. DEFINITIONS.

In addition to the terms defined elsewhere in this Warrant, the terms set forth on the
Definitions Schedule to this Warrant shall have the meanings set forth on such Schedule.

SECTION 2. COVERED SHARES; EXERCISE OF WARRANT.

Subject to the conditions set forth in this Warrant, the Warrant may be exercised in whole or
in part during the Exercise Period, but in no event subsequent to the end of the Exercise Period,
by the surrender of the Warrant (with the subscription form attached to this Warrant duly completed
and executed) at the principal office of the Company at 5990 Greenwood Plaza Blvd, Suite 390,
Greenwood Village, Colorado 80111, and upon payment of the applicable Exercise Price in cash or
other immediately available funds. At the option of the exercising Holder, payment may be made by
(a) cash or other immediately available funds.

The right granted by the Warrant to acquire Shares shall expire at the end of the Exercise
Period, and such right shall be wholly null and void to the extent the Warrant is not exercised
before that time. The Company shall pay all reasonable expenses, taxes and other charges payable in
connection with the preparation, execution and delivery of any certificates or other documents
evidencing the Shares under this §2. Notwithstanding the surrender of the Warrant upon its
exercise, the rights and obligations of the Company and the Holders as set forth in this Warrant
shall continue in full force and effect.

 

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SECTION 3. RESERVATION.

At all times during the Exercise Period, the Company shall reserve and keep available the
maximum number of authorized but unissued Shares, solely for the purpose of issuing, upon the
exercise of the Warrant, a number of Shares equal to the number of Underlying Shares.

SECTION 4. ADJUSTMENT OF NUMBER OF SHARES.

The number of Warrant Shares and the Warrant Price shall be subject to adjustment if the
number of outstanding Shares of Common Stock of the Company shall be increased or decreased as a
result of a stock split, a reverse stock split or similar recapitalization or reclassification of
stock not involving any change in the shareholder’s equity or the aggregate market value of shares
outstanding as a result thereof. The Warrant Price and number of Shares shall be proportionately
adjusted so that the percentage of the Common Stock acquirable by the Holder upon exercise
immediately prior to the event and immediately following the event remains the same.

SECTION 5. DISSOLUTION OR LIQUIDATION; DIVIDENDS AND DISTRIBUTIONS.

Upon any proposed distribution of the assets of the Company in dissolution or liquidation, the
Company shall mail notice of such distribution to each Holder and shall make no distribution to its
shareholders until the expiration of forty five (45) days from the date of mailing of such notice.
Upon receipt of such notice, each Holder may exercise the Warrant at any time prior to the
expiration of such 45-day period and thereafter receive any distributions made to shareholders of
the Company in connection with such dissolution or liquidation.

SECTION 6. FULLY PAID SHARES; TAXES; FRACTIONAL SHARES.

The Company covenants and agrees that the Warrant Shares will, at the time of delivery upon
the exercise of the Warrant, be validly issued and outstanding and be fully paid and nonassessable.
The Company further covenants and agrees that it will pay when due and payable any and all federal
and state issuance taxes that may be payable in respect of the Warrant or any Warrant Shares or
certificates issued upon the exercise of the Warrant. The Company shall not, however, be required
to pay any tax which may be payable in respect of any Transfer involving a Transfer of Warrant
Shares in the name other than that of a Holder, and any such tax shall be paid by the Holder
requiring such Transfer. Fractional Warrant Shares shall be issued upon the exercise of the Warrant
in any case in which the Underlying Shares are not a whole number and the Holder does not agree to
accept cash in lieu of such fractional Warrant Shares.

SECTION 7. NOTIFICATION OF SHAREHOLDER MATTERS.

Prior to the exercise in full of the Warrant, the Company shall use reasonable efforts to
cause any notice submitted to the shareholders of the Company also to be provided to the Holder,
but shall have no liability to the Holder for failure to provide any such notice with respect to
any matters which are disclosed by the Company to its shareholders or which are available to
shareholders pursuant to the Company’s electronic filings with the Securities and Exchange
Commission (“SEC”) under the Securities Exchange Act of 1934.

 

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SECTION 8. RESTRICTIONS ON TRANSFERABILITY OF WARRANTS AND SHARES; COMPLIANCE WITH LAWS.

8.1. In General. Neither the Warrant nor any Warrant Shares shall be Transferred
except upon the conditions specified in this Warrant, which conditions are intended to insure
compliance with the provisions of the Securities Act (or any similar federal statute at the time in
effect) and any applicable state securities laws in respect of any such Transfer.

8.2. Restrictive Legend. The Warrant Shares shall be represented by certificates,
and, unless otherwise permitted by the provisions of this §8.2, shall be marked with a legend
reading substantially as follows:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
TRANSFERRED OR ASSIGNED IN THE ABSCENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE
REASONABLY ACCEPTABLE TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR UNLESS
SOLD PURSUANT TO RULE 144 UNDER SAID ACT. ANY SUCH SALE, ASSIGNMENT OR TRANSFER MUST ALSO BE MADE
IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS.

If a registration statement covering the Warrant or any Warrant Shares shall become effective under
the Securities Act and under any applicable state securities laws, or if the Company shall receive
an opinion of counsel reasonably satisfactory to the Company (which shall include counsel to the
Company and counsel to the original Holder of the Warrant) that, in the opinion of such counsel,
such legend is not required (including, without limitation, because of the availability of an
exemption afforded by Rule 144(k) under the Securities Act), the Company shall, or shall instruct
its transfer agents and registrars to, remove such legend or issue new Warrants or certificates
without such legend. Upon the reasonable written request of a Holder, the Company shall forthwith
request counsel to render an opinion with respect to the matters covered in this paragraph, and the
Company shall pay all expenses in connection with such matters.

SECTION 9. PIGGYBACK REGISTRATION RIGHTS.

9.1 Piggyback Registration Rights. If the Company proposes to register any of
its stock or other securities under the 1933 Act (including for this purpose a registration
effected by the Company for stockholders other than the Holder, but excluding any registration
statement relating either to the sale of securities to employees of the Company pursuant to a stock
option, stock purchase or similar plan, a registration made on Form S-4 or any successor forms then
in effect, or an SEC Rule 145 transaction), the Company shall, at such time, promptly give Holder
written notice of such registration. Upon the written request of Holder given within thirty (30)
days after such notice by the Company, the Company shall cause to be registered under the 1933 Act,
the number of Warrant Shares acquired or acquirable by the Holder upon Exercise of the Warrant has
requested to be registered, provided, however, that if the offering is an underwritten offering,
and the underwriter for the offering requires a limitation of the number of shares to be included
in such registration, such limitation shall be applied on a pro-rata basis among all other holders
of piggyback registration rights. The expense of any such registration shall be paid by the
Company.

9.2 Indemnification.

A. The Company agrees to indemnify and hold harmless, to the extent permitted by law,
each Holder of registrable securities under §9.1, its officers, directors, partners, employees and
agents and each Person who controls such Holder (within the meaning of the Securities Act) against
all losses, claims, damages, liabilities and expenses arising out of or based upon any untrue or
alleged untrue statement of material fact contained in any registration statement, prospectus or
preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same are caused by or contained in any information
furnished in writing to the Company by such Holder expressly for use therein or by such Holder’s
failure to deliver a copy of the registration statement or prospectus or any amendments or
supplements thereto after the Company has furnished such Holder with a sufficient number of copies
of the same. In connection with an underwritten offering, the Company will indemnify such
underwriters, their officers and directors and each Person who controls such underwriters (within
the meaning of the Securities Act) to the same extent as provided above with respect to the
indemnification of the Holders of registrable securities.

 

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B. In connection with any registration statement in which the shares of a Holder of
registrable securities are being registered for resale pursuant to §9. hereof, each such Holder
will furnish to the Company in writing such information and affidavits as the Company reasonably
requests for use in connection with any such registration statement or prospectus and, to the
extent permitted by law, will indemnify and hold harmless the Company, its directors, officers,
employees and agents and each Person who controls the Company (within the meaning of the Securities
Act) against all losses, claims, damages, liabilities and expenses arising out of or based upon any
untrue or alleged untrue statement of material fact contained in any registration statement,
prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission
or alleged omission of a material fact required to be stated therein or necessary to make the
statements therein not misleading, but only to the extent that such untrue statement or omission is
contained in any information or affidavit so furnished in writing by such Holder and is not cured
in a timely manner; provided that the obligation to indemnify will be individual to each Holder and
will be limited to the amount of proceeds received by such Holder from the sale of registrable
securities pursuant to such registration statement.

C. Any person entitled to indemnification hereunder will (i) give prompt written notice
to the indemnifying party of any claim with respect to which it seeks indemnification and (ii)
unless in the reasonable judgment of such indemnified party a conflict of interest between such
indemnified and indemnifying parties exists with respect to such claim, permit such indemnifying
party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified
party. If such defense is assumed, the indemnifying party will not be subject to any liability for
any settlement made by the indemnified party without its consent (but such consent will not be
unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume the
defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for
all parties indemnified by such indemnifying party with respect to such claim, unless in the
reasonable judgment of legal counsel to any indemnified party a conflict of interest exists between
such indemnified party and any other of such indemnified parties with respect to such claim.

D. The indemnification provided for under this Agreement will remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified party or any
officer, director or controlling person of such indemnified party and will survive the transfer of
securities. The Company also agrees to make such provisions, as are reasonably requested by any
indemnified party, for contribution to such party in the event the Company’s indemnification is
unavailable for any reason.

9.3 Participation in Underwritten Registration. No Holder or person claiming any
rights attributable to Holder’s interest may participate in any registration hereunder which is
underwritten unless such person (a) agrees to sell such person’s securities on the basis provided
in any underwriting arrangements approved by the person or persons entitled hereunder to approve
such arrangements and (b) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents required under the terms of such
underwriting arrangements; provided that no Holder of registrable securities included in any
underwritten registration shall be required to make any representations or warranties to the
Company or the underwriters other than representations and warranties regarding such Holder and
such Holder’s intended method of distribution.

 

4

 

SECTION 10. LOST, STOLEN WARRANTS, ETC.

If the Warrant or any certificates evidencing Warrant Shares shall be mutilated, lost, stolen
or destroyed, the Company shall issue a new Warrant or certificate of like date, tenor and
denomination and deliver the same in exchange and substitution for and upon surrender and
cancellation of the mutilated Warrant or certificate, or in lieu of the Warrant or certificate
lost, stolen or destroyed, upon receipt of evidence reasonably satisfactory to the Company (an
affidavit of the Holder shall be deemed sufficient) of the loss, theft or destruction of such
Warrant or certificate.

SECTION 11. MISCELLANEOUS.

11.1. Holder Not A Shareholder. Except as otherwise specifically provided in this
Warrant, prior to the exercise of the Warrant no Holder shall be entitled to any of the rights of a
shareholder of the Company, including the right as a shareholder to (a) vote or consent or (b)
receive dividends or any other distributions made in respect of Shares.

11.2. Notices. Any notice, demand or delivery to be made pursuant to the provisions
of this Warrant shall be in writing and (a) shall be deemed to have been given or made one day
after the date sent (i) if by the Company, by prepaid overnight delivery addressed to each Holder
at its last known address appearing on the books of the Company maintained for such purpose or (ii)
if by a Holder, by prepaid overnight delivery, addressed to the Company at the Company’s address as
set forth in §2; and (b) if given by courier or confirmed facsimile transmission shall be deemed to
have been made or given when received. Each Holder and the Company may each designate a different
address by notice to the other in the manner provided in this §11.2.

11.3. Successors and Assigns. Subject to all conditions and limitations contained
herein and to the requirements of applicable law, this Warrant and the rights evidenced by the
Warrant shall inure to the benefit of and be binding upon the lawful successors and assigns of the
Company and each Holder. The provisions of this Warrant are intended to be for the benefit of the
Holders of the Warrant or the Warrant Shares and shall be enforceable by the Holders.

11.4. Actions by Holder; Amendments and Waivers. Any provision of this Warrant may be
amended, waived or modified upon the written consent of the Company and the Holder.  Any amendment,
waiver, modification or consent entered into pursuant to this Section 11.4 shall be effective only
in the specific instance and for the specific purpose for which it was given.

11.5. Headings; Severability. The descriptive headings of sections of this Warrant
are provided solely for convenience of reference and shall not, for any purpose, be deemed a part
of this Warrant. Should any part of the Warrant or this Warrant for any reason be declared invalid,
such decision shall not affect the validity of any remaining portion, which shall remain in force
and effect as if the Warrant and this Warrant had been executed with the invalid portion
eliminated. It is the intention of the Company and the Holder that they would have executed and
accepted the remaining portion of the Warrant and this Warrant without including in such remaining
portion any such part, parts or portion which may, for any reason, be hereafter declared invalid.

11.6. Governing Law. The Warrant and this Warrant and all matters concerning the
Warrant and this Warrant shall be governed by the laws of the State of Colorado for contracts
entered into and to be performed in such state without regard to principles of conflicts of laws;
provided however, that with respect to the Company’s internal corporate matters, the laws
of the State of Delaware shall govern.

11.7. Survival of Certain Provisions. Except as otherwise provided, the provisions of
this Warrant shall survive the exercise of the Warrant and shall continue in full force and effect
following such exercise until all Warrant Shares are no longer restricted securities under the
federal securities laws.

 

5

 

11.8. Specific Performance. The Company acknowledges and agrees that the Holders
would be damaged irreparably in the event any of the provisions of this Warrant are not performed
in accordance with their specific terms or otherwise are breached. Accordingly, the Company agrees
that the Holders shall be entitled to an injunction or injunctions to prevent breaches of the
provisions of this Warrant and to enforce specifically this Warrant and the terms and provisions of
this Warrant in any action instituted in any federal or state court in the United States having
jurisdiction over the parties and the matter, in addition to any other remedy to which the Holders
may be entitled, at law or in equity.

11.9. Consent to Jurisdiction. THE COMPANY HEREBY CONSENTS TO THE JURISDICTION OF ANY
STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF DENVER, STATE OF COLORADO AND IRREVOCABLY
AGREES THAT, SUBJECT TO THE HOLDER’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS WARRANT SHALL BE LITIGATED IN SUCH COURTS. THE COMPANY ACCEPTS FOR ITSELF AND IN
CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE
AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND
BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT.
THE COMPANY DESIGNATES AND APPOINTS CHRIS SAPYTA, AND SUCH OTHER PERSON AS MAY HEREAFTER BE
SELECTED BY THE COMPANY WHO IRREVOCABLY AGREES IN WRITING TO SO SERVE AS ITS AGENT TO RECEIVE ON
ITS BEHALF SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDINGS IN ANY SUCH COURT, SUCH SERVICE BEING
HEREBY ACKNOWLEDGED BY THE COMPANY TO BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT. A COPY OF
ANY SUCH PROCESS SO SERVED SHALL BE MAILED BY THE HOLDER BY REGISTERED MAIL TO THE COMPANY AT ITS
ADDRESS PROVIDED IN §12.2 AND SHALL BE DEEMED TO HAVE BEEN RECEIVED BY THE COMPANY FIVE (5) DAYS
AFTER BEING SO MAILED. IF ANY AGENT APPOINTED BY THE COMPANY REFUSES TO ACCEPT SERVICE, THE
COMPANY HEREBY AGREES THAT SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING IN
THIS WARRANT SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT OF HOLDER TO BRING PROCEEDINGS AGAINST THE COMPANY IN THE COURTS OF ANY OTHER
JURISDICTION.

11.10. Waiver of Jury Trial. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES THE
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY
RELATING TO: (A) THIS WARRANT, OR (B) ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN
THE HOLDER AND THE COMPANY; OR (C) ANY CONDUCT, ACTS OR OMISSIONS OF THE COMPANY OR THE HOLDER OR
ANY OF THEIR DIRECTORS, MANAGERS, OFFICERS, EMPLOYEES, AGENTS, PARTNERS, REPRESENTATIVES, ATTORNEYS
OR ANY OTHER PERSONS AFFILIATED WITH THE COMPANY OR THE HOLDER; IN EACH OF THE FOREGOING CASES,
WHETHER SOUNDING IN TORT OR OTHERWISE. EACH OF THE COMPANY AND THE HOLDER ALSO WAIVES ANY BOND OR
SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS WARRANT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH OF THE COMPANY AND THE
HOLDER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT
EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS WARRANT OR TO
ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE WARRANT. EACH OF THE COMPANY AND THE HOLDER
FURTHER WARRANTS AND REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
BY THE COURT.

 

6

 

IN WITNESS WHEREOF, this Warrant has been duly executed as of the day and year first above
written.

	 	 	 
	 

	 	SMART MOVE, INC.
	 
	 	 
	 

	 	 
	 

	 	Chris Sapyta
	 

	 	President

 

7

 

ELECTION TO EXERCISE WARRANT (CASH EXERCISE)

TO: Smart Move, Inc.:

The undersigned registered holder of the Warrant, a true and correct copy of which is attached
to this election notice, irrevocably exercises the Warrant and purchases pursuant to such exercise

 _____ 
Shares of the Company, makes payment of $
 _____ 
for such Shares, and requests that the
certificates for such Shares be issued in the name of the undersigned holder or its nominee and
delivered to such holder at holder’s address on the books of the Company.

	 	 	 	 	 
	Entity Name (if applicable):	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned registered holder of the Warrant attached to this
assignment notice, sells, assigns and transfers unto                      the Warrant and all rights
evidenced by such Warrant and does irrevocably constitute and irrevocably appoints Corporate Stock
Transfer, Inc. or other duly appointed transfer agent for the securities as the undersigned’s
attorney to transfer such Warrant on the books of the Company.

	 	 	 	 	 
	Entity Name

	 	(if applicable):
	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

 

8

 

Warrant Definitions Schedule

As used in this Warrant, the following terms have the following respective meanings:

“Company” means Smart Move, Inc., a Delaware corporation, and any successor to all or
substantially all of the assets and business of Smart Move, Inc. Unless the context otherwise
indicates, “Company” shall also include all Subsidiaries of the Company.

“Exercise Period” means the period commencing on the First Exercise Date and terminating at
3:00 p.m., Denver time, on the Expiration Date.

“Expiration Date,” with reference to this Warrant, means December 5, 2011.

“First Exercise Date” means the date of original issuance of the Warrant.

“Holder” means a registered holder of the Warrant and, if the context so indicates, the holder
of Shares.

“Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute,
and the rules and regulations under such act, all as the same shall be effect at the time.

“Shares” means, shares of the Company’s common stock, par value $.0001 per share, and stock of
any other class into which such shares may hereafter be changed or reclassified.

“Transfer” means any sale, transfer, issuance, assignment, pledge or other disposition or
conveyance of Shares or the Warrant.

“Underlying Shares” means the Shares issuable upon exercise of the Warrant.

“Warrant” means the Warrant issued on the date of this Warrant to the Holder and any warrant
issued in exchange or substitution for the Warrant.

“Warrant Shares” means the Shares obtained upon exercise of the Warrant.

 

9

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