Document:

exv10w4

 

Exhibit 10.4

A SMART MOVE L.L.C.

2005 PRIVATE WARRANTS

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) OR THE SECURITIES COMMISSION OF
ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER THIS WARRANT NOR THE SHARES
ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES
LAWS, OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES
ACT AND UNDER PROVISIONS OF APPLICABLE STATE SECURITIES LAWS. THE WARRANTS ARE SUBJECT TO
REDEMPTION AND MAY NOT BE EXERCISED AFTER THE REDEMPTION DATE.

2005-                    

WARRANT CERTIFICATE

A SMART MOVE L.L.C.

                    Warrants

     This
Warrant Certificate certifies that ______ or registered assigns (the “Warrant Holder”), is the
registered owner of the above-indicated number of Warrants (“Warrants”) expiring at 5:00 p.m.,
Denver, Colorado, local time, on ___, 2010 (the “Expiration Date”). Each Warrant entitles the
Warrant Holder to purchase from A Smart Move L.L.C. (the “Company”), a Colorado limited liability
company, at any time commencing on the date it is issued but before the Expiration Date, one fully
paid and non-assessable share of Shares of the Company at a purchase price of $10.00 per Share (the
“Exercise Price”) upon surrender of this Warrant Certificate, with the exercise form hereon duly
completed and executed, with payment of the Exercise Price, at the principal office of the Company,
but only subject to the conditions set forth herein and in the Terms of Warrants (“Warrant Terms”).
The Exercise Price, the number of Shares purchasable upon exercise of each Warrant, the number of
Warrants outstanding and the Expiration Date are subject to adjustments upon the occurrence of
certain events set forth in the Warrant Terms. Reference is hereby made to the other provisions of
this Warrant Certificate and the provisions of the Warrant Terms, all of which are hereby
incorporated by reference herein and made a part of this Warrant Certificate and which shall for
all purposes have the same effect as though fully set forth at this place.

     Upon due presentment for registration of transfer of this Warrant Certificate at the office of
the Company a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants, subject to any adjustments made in accordance with the Warrant
Terms, shall be issued to the transferee in exchange for this Warrant Certificate, subject to the
limitations provided in the Warrant Terms.

     The Warrant Holder evidenced by this Warrant Certificate may exercise or convert all or any
whole number of such Warrants in the manner stated hereon and in the Warrant Terms. The Exercise
Price shall be payable in lawful money of the United States of America in cash or by certified or
cashier’s check or bank draft payable to the order of the Company. Upon any exercise or conversion
of any Warrants evidenced by this Warrant Certificate in an amount less than the number of Warrants so evidenced, there shall be issued
to the Warrant Holder

 

 

a new Warrant Certificate evidencing the number of Warrants not so exercised
or converted. No adjustment shall be made for any dividends on any shares issued upon exercise or
conversion of this Warrant.

     No Warrant may be exercised or converted after 5:00 p.m., Colorado time, on the Expiration
Date, and any Warrant not exercised or converted by such time shall become void.

     This Warrant Certificate, when surrendered to the Company, in person or by attorney duly
authorized in writing, may be exchanged, in the manner and subject to the limitations provided in
the Warrant Terms, without payment of a charge, except for any tax or other governmental charge
imposed in connection with such exchange, for another Warrant Certificate or Warrant Certificates
of like tenor and evidencing a like number of Warrants, subject to any adjustment made in
accordance with the Warrant Terms.

     The Company may deem and treat the registered holder hereof as the absolute owner of this
Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by
anyone) for all purposes and the Company shall not be affected by any notice to the contrary. No
Warrant Holder, as such, shall have the rights of a stockholder of the Company, either at law or in
equity, and the rights of the Warrant Holder, as such, are limited to those rights expressly
provided in the Warrant Terms and in the Warrant Certificates.

     The Company shall not be required to issue fractions of Warrants upon any such adjustment or
to issue fractions of shares upon the exercise of any Warrants after any such adjustment, but the
Company, in lieu of issuing any such fractional interest, shall pay an amount in cash equal to such
fraction times the current market value of one Warrant or one share, as the case may be, determined
in accordance with the Warrant Terms.

     Unless the amendment is able to be effected by the Company in accordance with the Warrant
Terms, the Warrant Terms are subject to amendment only upon the approval of holders of not less
than a majority of the outstanding Warrants, except that no such amendment shall accelerate the
Expiration Date or increase the Exercise Price without the approval of all the holders of all
outstanding Warrants.

     IMPORTANT: The Warrants represented by this Certificate may not be exercised or
converted by a Warrant Holder unless at the time of exercise or conversion the underlying Shares
are qualified for sale, by registration or otherwise, in the state where the Warrant Holder resides
or unless the issuance of the Shares would be exempt under the applicable state securities laws.
Further, a registration statement under the Securities Act of 1933, as amended, covering the
exercise or conversion of the Warrants must be in effect and current at the time of exercise or
conversion unless the issuance of Shares upon any exercise or conversion is exempt from the
registration requirements of the Securities Act of 1933, as amended. Notwithstanding the
provisions hereof, unless such registration statement and qualification are in effect and current
at the time of exercise or conversion, or unless exemptions are available, the Company may decline
to permit the exercise or conversion of the Warrants and the holder hereof would then only have the
choice of either attempting to sell the Warrants, if a market existed therefor, or letting the
Warrants expire.

TERMS OF WARRANTS

     Section 1      Definitions

     The following terms used in this document shall have the following meanings (unless otherwise
expressly provided herein):

     The “Act.” The Securities Act of 1933, as amended.

     The “Commission.” The Securities and Exchange Commission.

     The “Company.” A Smart Move L.L.C., a Colorado limited liability company.

 

 

     “Shares.” The Shares of the Company representing undivided limited liability company
interests, whether now or hereafter authorized, holders of which have the right to participate in
the distribution of earnings and assets of the Company without limit as to the amount or
percentage.

     “Current Market Price.” The Current Market Price shall be determined as follows:

     (a) if the security at issue is listed on a national securities exchange or admitted to
unlisted trading privileges on such an exchange or quoted on either the Nasdaq National Market or
the Nasdaq Small Cap Market, the Current Market Price shall be the last reported sale price of that
security on such exchange or system on the day immediately before the event; or, if no such sale is
made on such day, the average of the highest closing bid and lowest asked price for such day on
such exchange or system; or

     (b) if the security at issue is not so listed or quoted or admitted to unlisted trading
privileges, the Current Market Price shall be the last reported sale price of that security on the
OTC Bulletin Board on the day immediately before the event; or if no such sale is made on such day,
the average of the last reported highest bid and lowest asked prices quoted on the OTC Bulletin
Board on the last business day prior to the day of the event; or

     (c) if the security at issue is not so listed or quoted or admitted to unlisted trading
privileges and bid and asked prices are not reported, the Current Market Price shall be determined
in such reasonable manner as may be prescribed from time to time by the Board of Directors of the
Company, subject to the objection and arbitration procedure as described in Section 16 below.

     “Exercise Date.” September 30, 2005.

     “Exercise Period.” The period commencing on the Exercise Date and extending to and through
the Expiration Date.

     “Exercise Price.” $10.00 per Share, as modified in accordance with Section 9, below.

     “Expiration Date.” 5:00 p.m. Colorado time on September 30, 2010; provided, however, if
such date shall be a holiday or a day on which banks are authorized to close in the State of
Colorado, the Expiration Date shall mean 5:00 p.m. Denver Time on the next following day which in
the State of Colorado is not a holiday or a day on which banks are authorized to close.

     “Holder” or “Warrant Holder.” The person to whom a warrant certificate is issued, and any
valid transferee thereof pursuant to Section 10 below.

     “Nasdaq.” The electronic securities market operated by The Nasdaq Stock Market, Inc.

     “OTC Bulletin Board.” An electronic quotation medium operated by The Nasdaq Stock Market,
Inc.

     “Private Placement.” The private placement by the Company of securities pursuant to a
Placement Agent Agreement dated as of June 30, 2005, between the Company and Bathgate Capital
Partners LLC as Placement Agent.

     “Termination of Business.” Any sale, lease or exchange of all, or substantially all, of the
Company’s assets or business or any dissolution, liquidation or winding up of the Company.

     “Warrants.” The Warrants issued in accordance with the terms of this Agreement and any
Warrants issued in substitution for or replacement of such Warrants, or any Warrants into which
such Warrants may be divided or exchanged.

     “Warrant Shares.” The Shares acquired upon exercise of a Warrant, and the Shares underlying
unexercised portions of a Warrant.

 

 

     Section 2      Warrants and Issuance of Warrant Certificates

     2.1 Description of Warrants. Each Warrant shall initially entitle the Warrant Holder to
purchase one Share on exercise thereof, subject to modification and adjustment as hereinafter
provided in Section 9. The Company shall deliver Warrant Certificates in required whole number
denominations to the person entitled thereto in connection with the original issuance of Warrant
Certificates or any transfer or exchange permitted under this Agreement.

     2.2 Warrant Shares. Except as provided in Sections 3.3 and 3.4 hereof, share Certificates
representing the Warrant Shares shall be issued only on or after the Exercise Date upon exercise of
the Warrants or upon transfer or exchange of the Warrant Shares following exercise of the Warrants.

     2.3 Form of Certificates. The Warrant Certificates shall be substantially in the form
attached hereto as Exhibit A and may have such letters, numbers or other marks of identification
and such legends, summaries or endorsements printed, lithographed or engraved thereon as the
Company may deem appropriate and as are not inconsistent with the provisions of this Agreement.
The Warrant Certificates shall be dated as of the date of issuance, whether on initial issuance,
transfer, exchange or in lieu of mutilated, lost, stolen or destroyed Warrant Certificates.

     2.4 Execution of Certificates. The Warrant Certificates shall be executed on behalf of the
Company by its President and Secretary, by manual signatures or by facsimile signatures printed
thereon, and shall have imprinted thereon a facsimile of the Company’s seal. If any person whose
facsimile signature has been placed upon any Warrant Certificate as the signature of an officer of
the Company shall have ceased to be such officer before such Warrant Certificate is countersigned,
issued and delivered, such Warrant Certificate may be countersigned, issued and delivered with the
same effect as if such person had not ceased to be such officer. Any Warrant Certificate may be
signed by, or may bear the facsimile signature of, any person who at the actual date of the
preparation of such Warrant Certificate shall be a proper officer of the Company to sign such
Warrant Certificate even though such person was not such an officer upon the date of this
Agreement.

     2.5 Mutilated, Lost, Stolen, or Destroyed Certificate. In case the certificate or
certificates evidencing the Warrants shall be mutilated, lost, stolen or destroyed, the Company
shall, at the request of the Warrant Holder, issue and deliver in exchange and substitution for and
upon cancellation of the mutilated certificate or certificates, or in lieu of and substitution for
the certificate or certificates lost, stolen or destroyed, a new Warrant Certificate or
Certificates of like tenor and representing an equivalent right or interest, but only upon receipt
of evidence satisfactory to the Company of such loss, theft or destruction of such Warrant and a
bond of indemnity, if requested, also satisfactory in form and amount, at the applicant’s cost.
Applicants for such substitute Warrant Certificate shall also comply with such other reasonable
regulations and pay such other reasonable charges as the Company may prescribe.

     2.6 Exchange of Certificate. Any Warrant Certificate may be exchanged for another certificate
or certificates entitling the Warrant Holder to purchase a like aggregate number of Shares as the
certificate or certificates surrendered then entitled such Warrant Holder to purchase. Any Warrant
Holder desiring to exchange a Warrant Certificate shall make such request in writing delivered to
the Company, and shall surrender, properly endorsed, with signatures guaranteed, the certificate
evidencing the Warrant to be so exchanged. Thereupon, the Company shall execute and deliver to the
person entitled thereto a new Warrant Certificate as so requested.

     Section 3      Term of Warrants; Exercise of Warrant

     3.1 Exercise of Warrant. Subject to the terms of this Agreement, the Warrant Holder shall
have the right, at any time during the Exercise Period, to purchase from the Company up to the
number of fully paid and nonassessable Shares to which the Warrant Holder may at the time be
entitled to purchase pursuant to this Agreement, upon surrender to the Company, at its principal
office, of the certificate evidencing the Warrants to be exercised, together with the purchase form
on the reverse thereof, duly filled in and signed, and upon payment to the Company of the Exercise
Price for the number of Shares in respect of which such Warrants are then exercised,
but in no event for less than 100 Shares (unless fewer than an aggregate of 100 shares are then
purchasable under all outstanding Warrants held by a Warrant Holder).

 

 

     3.2 Payment of Exercise Price. Payment of the aggregate Exercise Price shall be made in cash
or by check, or any combination thereof.

     3.3 Delivery of Warrant Certificate. Subject to Section 3.6 and to Section 10, upon receipt
of a Warrant Certificate with the exercise form thereon duly executed, together with payment in
full of the Exercise Price for the Warrant Shares being purchased by such exercise, the Warrant
Agent shall requisition from any transfer agent for the Warrant Shares, and upon receipt shall make
delivery of certificates evidencing the total number of whole Warrant Shares for which Warrants are
then being exercised, together with cash as provided in Section 4.6 hereof in respect of any
fractional Warrant Shares otherwise issuable upon such surrender. The certificates shall be in
such names and denominations as are required for delivery to, or in accordance with the
instructions of the Warrant Holder; provided that if fewer than all Warrant Shares issuable on
exercise of a Warrant Certificate are purchased, the Warrant Agent (if so requested) shall issue
such balance Warrant Certificate for the balance of the Warrant Shares. Such certificates for the
Warrant Shares shall be deemed to be issued, and the person to whom such Warrant Shares are issued
of record shall be deemed to have become a holder of record of such Warrant Shares, as of the date
of the surrender of such Warrant Certificate and payment of the Exercise Price, whichever shall
last occur; provided further that if the books of the Company with respect to the Warrant Shares
shall be closed as of such date, the certificates for such Warrant Shares shall be deemed to be
issued, and the person to whom such Warrant Shares are issued of record shall be deemed to have
become a record holder of such Warrant Shares as of the date on which such books shall next be open
(whether before, on or after the applicable Expiration Date) but at the Exercise Price and upon the
other conditions in effect upon the date of surrender of the Warrant Certificate and payment of the
Exercise Price, whichever shall have last occurred, to the Company.

     3.4 Cancellation of Certificates. All Warrant Certificates surrendered upon exercise of
Warrants shall be canceled.

     3.5 Fractional Shares. On exercise of the Warrants by the Warrant Holders, the Company shall
not be required to deliver fractions of Shares; provided, however, that the Company shall purchase
such fraction for an amount in cash equal to the Current Market Price of such fraction, computed on
the trading day immediately preceding the day upon which such Warrant Certificate was surrendered
for exercise. By accepting a Warrant Certificate, the holder thereof expressly waives any right to
receive a Warrant Certificate evidencing any fraction of a Warrant or to receive any fractional
share of securities upon exercise of a Warrant, except as expressly provided in this Section.

     3.6 Status as Shareholder. Upon receipt of the Warrant Certificate by the Company as
described in Sections 3.3 above, the Holder shall be deemed to be the holder of record of the
Shares issuable upon such exercise, notwithstanding that the transfer books of the Company may then
be closed or that certificates representing such Shares may not have been prepared or actually
delivered to the Holder.

     Section 4.      Reservation of Warrant Shares

     There has been reserved, and the Company shall at all times keep reserved so long as the
Warrants remain outstanding, out of its authorized and unissued Shares, such number of Shares as
shall be subject to purchase under the Warrants. The Company covenants that all Warrant Shares that
may be issued and delivered to a Warrant Holder upon the exercise of a Warrant and payment of the
Exercise Price shall be validly issued, fully paid and nonassessable, and free from all taxes,
liens and charges with respect to the issuance thereof. Every transfer agent for the Shares and
other securities of the Company issuable upon the exercise of the Warrants will be irrevocably
authorized and directed at all times to reserve such number of authorized shares and other
securities as shall be requisite for such purpose. The Company will supply every such transfer
agent with duly executed stock and other certificates, as appropriate, for such purpose and will provide or otherwise make available
any cash which may be payable as provided in Section 4.6 hereof.

     Section 5.      Redemption

 

 

     5.1. Right to Redeem. The Company may, at its option, redeem the Warrants in whole or in part
on a pro rata basis for a redemption price of $.01 per Warrant (the “Redemption Price”) on 30 days
prior written notice to the Warrant Holders. The right to redeem the Warrants may be exercised by
the Company only in the event (i) the Company has been reorganized, through merger or otherwise,
into a corporation, (ii) the Company’s Membership Interest is listed on, or trades on, an exchange
registered under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) or on
Nasdaq, (iii) the Current Market Price for the Membership Interest of the reorganized company has
exceeded 150% of the Exercise Price during a period of at least 20 of the 30 trading days
immediately preceding the date of mailing of the notice of redemption, (ii) either (a) the Company
has in effect a current registration statement (or a post-effective amendment to an existing
registration statement) with the Commission registering the Warrant Shares, or (b) all of the
Warrant Shares can be sold immediately pursuant to an exemption from the registration requirements
of the Securities Act of 1933, as amended, and (iv) the expiration of the 30 day notice period is
within the Exercise Period. In the event the Company exercises its right to redeem the Warrants,
the Expiration Date will be deemed to be, and the Warrants will be exercisable until, the close of
business on the date fixed for redemption in such notice (the “Redemption Date”). If any Warrant
called for redemption is not exercised by such time, it will cease to be exercisable and the
Warrant Holder thereof will be entitled only to the Redemption Price.

     5.2. Termination of Rights. From and after the Redemption Date, all rights of the holders of
record of redeemed Warrants (except the right to receive the Redemption Price) shall terminate, but
only if (i) no later than one day prior to the Redemption Date the Company shall have irrevocably
deposited with the Paying Agent a sufficient amount to pay on the Redemption Date the Redemption
Price for all Warrants called for redemption, and (ii) the notice of redemption shall have stated
the name and address of the Paying Agent and the intention of the Company to deposit such amount
with the Paying Agent no later than one day prior to the Redemption Date.

     5.3. Payment of Redemption Price. The Paying Agent shall pay to the holders of record of
redeemed Warrants all amounts received by the Paying Agent for the redemption of Warrants to which
the holders of record of such redeemed Warrants who shall have surrendered their Warrants are
entitled. Any amounts deposited by the Company with the Paying Agent to pay the Redemption Price
for all Warrants called for redemption that are not required for redemption of Warrants may be
withdrawn by the Company. Any amounts deposited by the Company with the Paying Agent to pay the
Redemption Price for all Warrants called for redemption that shall be unclaimed six months after
the Redemption Date may be withdrawn by the Company, and thereafter the holders of the Warrants
called for redemption for which such funds were deposited shall look solely to the Company for
payment. The Company shall be entitled to the interest, if any, on funds deposited with the Paying
Agent, and the Warrantholders of redeemed Warrants shall have no right to any such interest.

     5.4. Failure to Make Deposit. If the Company fails to make a sufficient deposit with the
Paying Agent as provided above, the Warrant holder of any Warrants called for redemption may at the
option of the Holder (i) by notice to the Company declare the notice of redemption a nullity as to
such Holder, or (ii) maintain an action against the Company for the Redemption Price. If the
Warrantholder brings such an action, the Company will pay the reasonable attorney’s fees of the
Holder. If the Holder fails to bring an action against the Company for the Redemption Price within
60 days after the Redemption Date, the Holder shall be deemed to have elected to declare the notice
of redemption to be a nullity as to such Holder and such notice shall be without any force or
effect as to such Holder.

     Section 6.      Payment of Taxes

     The Company will pay all documentary stamp taxes, if any, attributable to the initial issuance
of the Warrants or the securities comprising the Warrant Shares and any tax (except federal or
state income tax) which may be payable in respect of any transfer or exercise of the Warrants or
the securities comprising the Warrant Shares.

     Section 7.      Warrant Securities to be Fully Paid

     The Company covenants that all Warrant Securities that may be issued and delivered to a Holder
of this Warrant upon the exercise of this Warrant and payment of the Exercise Price will be, upon
such delivery, validly and duly issued, fully paid and nonassessable.

 

 

     Section 8.      Registration of Transfer

     8.1. Exchange of Certificate. A Warrant Certificate may be exchanged for another certificate
or certificates entitling the Warrant Holder to purchase a like aggregate number of Shares as the
certificate or certificates surrendered then entitled such Warrant Holder to purchase. Any Warrant
Holder desiring to exchange a Warrant Certificate shall make such request in writing delivered to
the Company, and shall surrender, properly endorsed, with signatures guaranteed, the certificate
evidencing the Warrant to be so exchanged. Thereupon, the Company shall execute and deliver to the
person entitled thereto a new Warrant Certificate as so requested.

     8.2. Assignment or Transfer. Any assignment or transfer of a Warrant shall be made by the
presentation and surrender of the Warrant Certificate to the Company, accompanied by a duly
executed Assignment Form. Upon the presentation and surrender of these items to the Company, the
Company, at its own expense, shall execute and deliver to the new Holder or Holders a new Warrant
Certificate or Warrant Certificates, in the name of the new Holder or Holders as named in the
Assignment Form, and the Warrant Certificate presented or surrendered shall at that time be
canceled.

     8.3 Ownership Records. The Warrant Agent shall keep books for registration of ownership and
transfer of Warrant Certificates. Such books shall show the names and addresses of the respective
holders of the Warrant Certificates and the number of Warrants evidenced by each such Warrant
Certificate.

     8.4 Ownership Prior to Presentment. Prior to due presentment for registration of transfer
thereof, the Company may treat the Warrant Holder as the absolute owner thereof (notwithstanding
any notations of ownership or writing thereon made by anyone other than the Company) and the
parties hereto shall not be affected by any notice to the contrary.

     Section 9      Adjustment of Exercise Price and Shares

     The number and kind of securities purchasable upon the exercise of the Warrants and the
Warrant Price shall be subject to adjustment from time to time upon the happening of certain
events, as follows:

     9.1 Adjustments. The number of Warrant Shares purchasable upon the exercise of the Warrants
shall be subject to adjustments as follows:

     (a) In case the Company shall (i) pay a dividend in Shares or securities convertible into
Shares or make a distribution to its stockholders in Shares or securities convertible into Shares;
(ii) subdivide its outstanding Shares; (iii) combine its outstanding Shares into a smaller number
of Shares; or (iv) issue by reclassification of its Shares other securities of the Company; then
the number of Warrant Shares purchasable upon exercise of the Warrants immediately prior thereto
shall be adjusted so that the Warrant 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 would have been
entitled to receive immediately after the happening of any of the events described above, had such
Warrants been exercised immediately prior to the happening of such event or any record date with
respect thereto. Any adjustment made pursuant to this subsection 9.1(a) shall become effective
immediately after the effective date of such event retroactive to the record date, if any, for such
event.

     (b) If, prior to the expiration of the Warrants by exercise, by their terms, or by redemption,
the Company shall be recapitalized by reclassifying its outstanding Shares into shares with a
different par value, or in the event of any other material change of the capital structure of the
Company or of any successor corporation by reason of any reclassification, recapitalization or
conveyance, prompt, proportionate, equitable, lawful and adequate provision shall be made whereby
any Warrant Holder shall thereafter have the right to purchase, on the basis and the terms and
conditions specified in this Agreement, in lieu of the Warrant Shares theretofore purchasable on the exercise of any Warrant, such securities or assets as may be issued or
payable with respect to or in exchange for the number of Warrant Shares theretofore purchasable on
exercise of the Warrants had such reclassification, recapitalization or conveyance not taken place;
and in any such event, the rights of any Warrant Holder to any adjustment in the number of Warrant
Shares purchasable on exercise of such Warrant, as set forth above, shall continue to be preserved
in respect of any stock, securities or assets which the Warrant Holder becomes entitled to
purchase.

 

 

     (c) In case the Company shall issue rights, options, warrants, or convertible securities to
all or substantially all holders of its Shares, without any charge to such holders, entitling them
to subscribe for or purchase Shares at a price per share which is lower at the record date
mentioned below than the then Current Market Price, the number of Shares thereafter purchasable
upon the exercise of each Option shall be determined by multiplying the number of Shares
theretofore purchasable upon exercise of the Options by a fraction, of which the numerator shall be
the number of Shares outstanding immediately prior to the issuance of such rights, options,
warrants or convertible securities plus the number of additional Shares offered for subscription or
purchase, and of which the denominator shall be the number of Shares outstanding immediately prior
to the issuance of such rights, options, warrants, or convertible securities plus the number of
shares which the aggregate offering price of the total number of shares offered would purchase at
such Current Market Price. Such adjustment shall be made whenever such rights, options, warrants,
or convertible securities are issued, and shall become effective immediately and retroactively to
the record date for the determination of shareholders entitled to receive such rights, options,
warrants, or convertible securities.

     (d) In case the Company shall distribute to all or substantially all holders of its Shares
evidences of its indebtedness or assets (excluding cash dividends or distributions out of earnings)
or rights, options, warrants, or convertible securities containing the right to subscribe for or
purchase Shares (excluding those referred to in subsection 9.1(b) above), then in each case the
number of Warrant Shares thereafter purchasable upon the exercise of the Warrants shall be
determined by multiplying the number of Warrant Shares theretofore purchasable upon exercise of the
Warrants by a fraction, of which the numerator shall be the then Current Market Price on the date
of such distribution, and of which the denominator shall be such Current Market Price on such date
minus the then fair value (determined as provided in subsection 9.1(g)(y) below) of the portion of
the assets or evidences of indebtedness so distributed or of such subscription rights, options,
warrants, or convertible securities applicable to one share. Such adjustment shall be made
whenever any such distribution is made and shall become effective on the date of distribution
retroactive to the record date for the determination of stockholders entitled to receive such
distribution.

     (e) No adjustment in the number of Warrant Shares purchasable pursuant to the Warrants shall
be required unless such adjustment would require an increase or decrease of at least one percent in
the number of Warrant Shares then purchasable upon the exercise of the Warrants or, if the Warrants
are not then exercisable, the number of Warrant Shares purchasable upon the exercise of the
Warrants on the first date thereafter that the Warrants become exercisable; provided, however, that
any adjustments which by reason of this subsection are not required to be made immediately shall be
carried forward and taken into account in any subsequent adjustment.

     (f) Whenever the number of Warrant Shares purchasable upon the exercise of the Warrant is
adjusted, as herein provided, the Exercise Price payable upon exercise of the Warrant shall be
adjusted by multiplying such Exercise Price immediately prior to such adjustment by a fraction, of
which the numerator shall be the number of Warrant Shares purchasable upon the exercise of the
Warrant immediately prior to such adjustment, and of which the denominator shall be the number of
Warrant Shares so purchasable immediately thereafter.

     (g) For the purpose of this subsection, the term “Shares” shall mean (i) the class of
securities designated as the Shares of the Company at the date of this Agreement, or (ii) any other
class of stock resulting from successive changes or reclassifications of such Shares consisting
solely of changes in par value, or from par value to no par value, or from no par value to par
value. In the event that at any time, as a result of an adjustment made pursuant to this Section,
the Warrant Holder shall become entitled to purchase any securities of the Company other than
Shares, (y) if the Warrant Holder’s right to purchase is on any other basis than that available to
all holders of the Company’s Shares, the Company shall obtain an opinion of an independent
investment banking firm valuing such other securities; and (z) thereafter the number of such other
securities so purchasable upon exercise of the Warrants shall be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Warrant Shares contained in
this Section.

     (h) Upon the expiration of any rights, options, warrants, or conversion privileges, if such
shall have not been exercised, the number of Shares purchasable upon exercise of the Warrants, to
the extent the Warrants have not then been exercised, shall, upon such expiration, be readjusted
and shall thereafter be such as they would have been had they been originally adjusted (or had the
original adjustment not been required, as the case may be) on the basis of (i) the fact that the
only Shares so issued were the Shares, if any, actually issued or sold upon the exercise of such
rights, options, warrants, or conversion privileges, and (ii) the fact that such Shares, if any,
were

 

 

issued or sold for the consideration actually received by the Company upon such exercise plus
the consideration, if any, actually received by the Company for the issuance, sale or grant of all
such rights, options, warrants, or conversion privileges whether or not exercised; provided,
however, that no such readjustment shall have the effect of decreasing the number of Shares
purchasable upon exercise of the Warrants by an amount in excess of the amount of the adjustment
initially made in respect of the issuance, sale, or grant of such rights, options, warrants, or
conversion rights.

     9.2 No Adjustment for Dividends. Except as provided in subsection 9.1, no adjustment in
respect of any dividends or distributions out of earnings shall be made during the term of the
Warrants or upon the exercise of the Warrants.

     9.3 No Adjustment in Certain Cases. No adjustments shall be made pursuant to this Section in
connection with the grant or exercise of presently authorized or outstanding options to purchase.

     9.4 Preservation of Purchase Rights upon Reclassification, Consolidation, etc. In case of any
consolidation of the Company with or merger of the Company into another corporation, or in case of
any sale or conveyance to another corporation of the property, assets, or business of the Company
as an entirety or substantially as an entirety, the Company or such successor or purchasing
corporation, as the case may be, shall execute an agreement that the Warrant Holder shall have the
right thereafter upon payment of the Exercise Price in effect immediately prior to such action to
purchase, upon exercise of the Warrants, the kind and amount of shares and other securities and
property which it would have owned or have been entitled to receive after the happening of such
consolidation, merger, sale, or conveyance had the Warrants been exercised immediately prior to
such action. In the event of a merger described in Section 368(a)(2)(E) of the Internal Revenue
Code of 1986, in which the Company is the surviving corporation, the right to purchase Warrant
Shares under the Warrants shall terminate on the date of such merger and thereupon the Warrants
shall become null and void, but only if the controlling corporation shall agree to substitute for
the Warrants, its Warrants which entitle the holder thereof to purchase upon their exercise the
kind and amount of shares and other securities and property which it would have owned or been
entitled to receive had the Warrants been exercised immediately prior to such merger. Any such
agreements referred to in this subsection 9.4 shall provide for adjustments, which shall be as
nearly equivalent as may be practicable to the adjustments provided for in this Section. The
provisions of this subsection shall similarly apply to successive consolidations, mergers, sales,
or conveyances.

     9.5 Par Value of Shares. Before taking any action which would cause an adjustment effectively
reducing the portion of the Exercise Price allocable to each Warrant Share below the par value per
share of the Shares issuable upon exercise of the Warrants, the Company will take any corporate
action which may, in the opinion of its counsel, be necessary in order that the Company may validly
and legally issue fully paid and nonassessable Shares upon exercise of the Warrants.

     9.6 Independent Public Accountants. The Company may retain a firm of independent public
accountants of recognized national standing (which may be any such firm regularly employed by the
Company) to make any computation required under this Section, and a certificate signed by such firm
shall be conclusive evidence of the correctness of any computation made under this Section.

     9.7 Statement on Warrant Certificates. Irrespective of any adjustments in the number of
securities issuable upon exercise of the Warrants, Warrant Certificates theretofore or thereafter
issued may continue to express the same number of securities as are stated in the similar Warrant
Certificates initially issuable pursuant to this Agreement. However, the Company may, at any time in its sole discretion (which shall be
conclusive), make any change in the form of Warrant Certificate that it may deem appropriate and
that does not affect the substance thereof; and any Warrant Certificate thereafter issued, whether
upon registration of transfer of, or in exchange or substitution for, an outstanding Warrant
Certificate, may be in the form so changed.

     9.8 Treasury Stock. For purposes of this Section, Shares owned or held at any relevant time
by, or for the account of, the Company, in its treasury or otherwise, shall not be deemed to be
outstanding for purposes of the calculations and adjustments described.

 

 

     9.9 Officers’ Certificate. Whenever the Exercise Price or the aggregate number of Warrant
Securities purchasable pursuant to this Warrant shall be adjusted as required by the provisions of
this Section, the Company shall promptly prepare an officers’ certificate executed by the Company’s
President and Secretary or Assistant Secretary, describing the adjustment and setting forth, in
reasonable detail, the facts requiring such adjustment and the basis for and calculation of such
adjustment in accordance with the provisions of this document. Each such officers’ certificate
shall be made available to the Holders for inspection at all reasonable times, and the Company,
after each such adjustment, shall promptly deliver a copy of the officers’ certificate relating to
that adjustment to the Holders. The officers’ certificate described in this subsection shall be
deemed to be conclusive as to the correctness of the adjustment reflected therein if, and only if,
no Holder delivers written notice to the Company of an objection to the adjustment within 30 days
after the officers’ certificate is delivered to the Holders. The Company will make its books and
records available for inspection and copying during normal business hours by the Holder so as to
permit a determination as to the correctness of the adjustment. If written notice of an objection
is delivered by a Holder to the Company and the parties cannot reconcile the dispute, the Holder
and the Company shall submit the dispute to arbitration pursuant to the provisions of Section 16
below. Failure to prepare or provide the officers’ certificate shall not modify the parties’
rights hereunder.

     Section 10.      Restrictions on Transfer; Registration Rights.

     10.1. Restrictions on Transfer. The Warrant Holder agrees that prior to making any
disposition of the Warrants or the Warrant Shares, the Warrant Holder shall give written notice to
the Company describing briefly the manner in which any such proposed disposition is to be made; and
no such disposition shall be made if the Company has notified the Warrant Holder that in the
opinion of counsel reasonably satisfactory to the Warrant Holder a registration statement or other
notification or post-effective amendment thereto (hereinafter collectively a “Registration
Statement”) under the Act is required with respect to such disposition and no such Registration
Statement has been filed by the Company with, and declared effective, if necessary, by, the
Commission.

     10.2. Piggy-Back Registration Right. If at any time prior to the Expiration Date the Company
files a registration statement with the Commission pursuant to the Act, or pursuant to any other
act passed after the date of this Agreement, which filing provides for the sale of securities by
the Company to the public, or files a Regulation A offering statement under the Act, the Company
shall offer to the Holder or Holders of this Warrant and the holders of any Warrant Securities the
opportunity to register or qualify the Warrant Securities at the Company’s sole expense, regardless
of whether the Holder or Holders of this Warrant or the holders of Warrant Securities or both may
have previously availed themselves of any of the registration rights described in this Section 10;
provided, however, that in the case of a Regulation A offering, the opportunity to qualify shall be
limited to the amount of the available exemption after taking into account the securities that the
Company wishes to qualify. Notwithstanding anything to the contrary, this subsection shall not be
applicable to a registration statement registering securities issued pursuant to an employee
benefit plan or as to a transaction subject to Rule 145 promulgated under the Act or which a form
S-4 registration statement could be used; nor shall it be applicable to the first underwritten
registered public offering of the Company.

     The Company shall deliver written notice to the Holder or Holders of this Warrant and to any
holders of the Warrant Securities of its intention to file a registration statement or Regulation A
offering statement under the Act at least 60 days prior to the filing of such registration
statement or offering statement, and the Holder or Holders and holders of Warrant Securities shall
have 30 days thereafter to request in writing that the Company register or qualify the Warrant
Securities or the Warrant Securities underlying the unexercised portion of this Warrant in
accordance with this subsection. Upon the delivery of such a written request within the specified
time, the Company shall be obligated to include in its contemplated registration statement or
offering statement all information necessary or advisable to register or qualify the Warrant Securities or Warrant
Securities underlying the unexercised portion of this Warrant for a public offering, if the Company
does file the contemplated registration statement or offering statement; provided, however, that
neither the delivery of the notice by the Company nor the delivery of a request by a Holder or by a
holder of Warrant Securities shall in any way obligate the Company to file a registration statement
or offering statement. Furthermore, notwithstanding the filing of a registration statement or
offering statement, the Company may, at any time prior to the effective date thereof, determine not
to offer the securities to which the registration statement or offering statement relates.
Notwithstanding the foregoing, if, as a qualification of any offering in any state or jurisdiction
in which the Company (by vote of its Board of Directors) or any underwriter determines in good
faith that it wishes to offer securities registered in the offering, it is required that

 

 

offering expenses be allocated in a manner different from that provided above, then the offering expenses
shall be allocated in whatever manner is most nearly in compliance with the provisions set out
above.

     The Company shall comply with the requirements of this Section 10.2 and the related
requirements of Section 10.5 at its own expense. That expense shall include, but not be limited
to, legal, accounting, consulting, printing, federal and state filing fees, NASD fees,
out-of-pocket expenses incurred by counsel, accountants and consultants retained by the Company,
and miscellaneous expenses directly related to the registration statement or offering statement and
the offering. However, this expense shall not include the portion of any underwriting commissions,
transfer taxes and the underwriter’s accountable and nonaccountable expense allowances attributable
to the offer and sale of the Warrant, Warrant Securities and the Warrant Securities underlying the
unexercised portion of this Warrant, all of which expenses shall be borne by the Holder or Holders
of this Warrant and the holders of the Warrant Securities registered or qualified.

     10.3. Inclusion of Information. In the event that the Company registers or qualifies the
Warrant Securities pursuant to Section 10.2 above, the Company shall include in the registration
statement or qualification, and the prospectus included therein, all information and materials
necessary or advisable to comply with the applicable statutes and regulations so as to permit the
public sale of the Warrant Securities or the Warrant Securities underlying the unexercised portion
of this Warrant. As used in Section 10.2, reference to the Company’s securities shall include, but
not be limited to, any class or type of the Company’s securities or the securities of any of the
Company’s subsidiaries or affiliates.

     10.4 Condition of Company’s Obligations. As to each registration statement or offering
statement, the Company’s obligations contained in this Section 10 shall be conditioned upon a
timely receipt by the Company in writing of the following:

     (a) Information as to the terms of the contemplated public offering furnished by and
on behalf of each Holder or holder intending to make a public distribution of the Warrant
Securities or Warrant Securities underlying the unexercised portion of the Warrant; and

     (b) Such other information as the Company may reasonably require from such Holders or
holders, or any underwriter for any of them, for inclusion in the registration statement or
offering statement.

     10.5 Additional Requirements. In each instance in which the Company shall take any action to
register or qualify the Warrant Securities or the Warrant Securities underlying the unexercised
portion of this Warrant, if any, pursuant to this Section, the Company shall do the following:

     (a) supply to the Holders of the Warrant and the holders of Warrant Securities whose
Warrant Securities are being registered or qualified, if requested by such Holders, one copy
of each registration statement or offering statement, and all amendments thereto, and a
reasonable number of copies of the preliminary, final or other prospectus or offering
circular, all prepared in conformity with the requirements of the Act and the rules and
regulations promulgated thereunder, and such other documents as the Holders shall reasonably
request;

     (b) cooperate with respect to (i) all necessary or advisable actions relating to the
preparation and the filing of any registration statements or offering statements, and all
amendments thereto, arising from the provisions of this Section, (ii) all reasonable efforts to establish an exemption from
the provisions of the Act or any other federal or state securities statutes, (iii) all
necessary or advisable actions to register or qualify the public offering at issue pursuant
to federal securities statutes and the state “blue sky” securities statutes of each
jurisdiction that the Holders of the Warrant or holders of Warrant Securities shall
reasonably request, and (iv) all other necessary or advisable actions to enable the Holders
of the Warrant Securities to complete the contemplated disposition of their securities in
each reasonably requested jurisdiction; and

     (c) keep all registration statements or offering statements to which this Section
applies, and all amendments thereto, effective under the Act for a period of at least 9
months after their initial effective

 

 

date and cooperate with respect to all necessary or
advisable actions to permit the completion of the public sale or other disposition of the
securities subject to a registration statement or offering statement.

     10.6 Reciprocal Indemnification. In each instance in which pursuant to this Section the
Company shall take any action to register or qualify the Securities or the Warrant Securities
underlying the unexercised portion of this Warrant, prior to the effective date of any registration
statement or offering statement, the Company and each Holder or holder of Warrants or Warrant
Securities being registered or qualified shall enter into reciprocal indemnification agreements, in
the form customarily used by reputable investment bankers with respect to public offerings of
securities. These indemnification agreements also shall contain an agreement by the Holder or
shareholder at issue to indemnify and hold harmless the Company, its officers and directors from
and against any and all losses, claims, damages and liabilities, including, but not limited to, all
expenses reasonably incurred in investigating, preparing, defending or settling any claim, directly
resulting from any untrue statements of material facts, or omissions to state a material fact
necessary to make a statement not misleading, contained in a registration statement or offering
statement to which this Section applies, if, and only if, the untrue statement or omission directly
resulted from information provided in writing to the Company by the indemnifying Holder or
shareholder expressly for use in the registration statement or offering statement at issue.

     10.7 Survival. The Company’s obligations described in this Section shall continue in full
force and effect regardless of the exercise, surrender, cancellation or expiration of this Warrant.

     Section 11      Merger or Consolidation of the Company

     The Company will not merge or consolidate with or into any other corporation or sell all or
substantially all of its property to another corporation, unless the provisions of Section 9.4 are
complied with.

     Section 12      Modification of Agreement.

     The Company may by supplemental agreement make any changes or corrections in this Agreement it
shall deem appropriate to cure any ambiguity or to correct any defective or inconsistent provision
or mistake or error herein contained. Additionally, the Company may make any changes or
corrections deemed necessary which shall not adversely affect the interests of the Warrant Holders,
including lowering the exercise price or extending the Exercise Period of the Warrants; provided,
however, this Agreement shall not otherwise be modified, supplemented or altered in any respect
except with the consent in writing of the Warrant Holders who hold not less than a majority of the
Warrants then outstanding and provided further that no such amendment shall accelerate the Warrant
Expiration Date or increase the Exercise Price without the approval of all the holders of all
outstanding Warrants.

     Section 13      Notices to Warrant Holders

     13.1 Declaration of Dividend; Reorganization; Dissolutions; Etc. If, prior to the expiration
of this Warrant either by its terms or by its exercise in full, any of the following shall occur:

     (i) the Company shall declare a dividend or authorize any other distribution on its Shares; or

     (ii) the Company shall authorize the granting to the stockholders of its Shares of rights to
subscribe for or purchase any securities or any other similar rights; or

     (iii) any reclassification, reorganization or similar change of the Shares, or any
consolidation or merger to which the Company is a party, or the sale, lease, or exchange of any
significant portion of the assets of the Company; or

     (iv) the voluntary or involuntary dissolution, liquidation or winding up of the Company; or

     (v) any purchase, retirement or redemption by the Company of its Shares;

 

 

     then, and in any such case, the Company shall deliver to the Holder or Holders written notice
thereof at least 30 days prior to the earliest applicable date specified below with respect to
which notice is to be given, which notice shall state the following:

          (u) the purpose for which a record of stockholders is to be taken;

          (w) the number, amount, price, and nature of the Shares or other stock, securities, or
assets which will be deliverable on Warrant Shares following exercise of the Warrants if such
exercise occurs prior to the record date for such action;

          (x) the date on which a record is to be taken for the purpose of such dividend,
distribution or rights, or, if a record is not to be taken, the date as of which the
stockholders of Shares of record to be entitled to such dividend, distribution or rights are to
be determined;

          (y) the date on which such reclassification, reorganization, consolidation, merger, sale,
transfer, dissolution, liquidation, winding up or purchase, retirement or redemption is expected
to become effective, and the date, if any, as of which the Company’s stockholders of Shares of
record shall be entitled to exchange their Shares for securities or other property deliverable
upon such reclassification, reorganization, consolidation, merger, sale, transfer, dissolution,
liquidation, winding up, purchase, retirement or redemption; and

          (z) if any matters referred to in the foregoing clauses (x) and (y) are to be voted upon by
stockholders of Shares, the date as of which those stockholders to be entitled to vote are to be
determined.

     13.2 Failure to Give Notice. Without limiting the obligation of the Company hereunder to
provide notice to each Warrant Holder, it is agreed that failure of the Company to give notice
shall not invalidate corporate action taken by the Company.

     Section 14      No Rights as Shareholder

     Nothing contained in this Agreement or in the Warrants shall be construed as conferring upon
the Warrant Holder or its transferees any rights as a shareholder of the Company, including the
right to vote, receive dividends, consent or receive notices as a shareholder in respect to any
meeting of shareholders for the election of directors of the Company or any other matter. The
Company covenants, however, that for so long as this Warrant is at least partially unexercised, it
will furnish any Holder of this Warrant with copies of all reports and communications furnished to
the shareholders of the Company. In addition, if at any time prior to the expiration of the
Warrants and prior to their exercise, any one or more of the following events shall occur:

     (a) any action which would require an adjustment pursuant to Section 10.1 or 10.4; or

     (b) a dissolution, liquidation, or winding up of the Company (other than in connection with a
consolidation, merger, or sale of its property, assets, and business as an entirety or
substantially as an entirety) shall be proposed:

then the Company shall give notice in writing of such event to the Warrant Holder, as provided in
Section 13 hereof, at least 20 days prior to the date fixed as a record date or the date of closing
the transfer books for the determination of the stockholders entitled to any relevant dividend,
distribution, subscription rights or other rights or for the determination of stockholders entitled
to vote on such proposed dissolution, liquidation, or winding up. Such notice shall specify such
record date or the date of closing the transfer books, as the case may be. Failure to mail or
receive notice or any defect therein shall not affect the validity of any action taken with respect
thereto.

     Section 15      Notices

     15.1 The Company. All notices, demands, claims, elections, opinions, requests or other
communications hereunder (however characterized or described) shall be in writing and shall be
deemed duly given

 

 

or made if (and then two business days after) sent by registered or certified
mail, return receipt requested, postage prepaid and addressed to, in the case of the Company as
follows:

A Smart Move L.L.C.

5350 S. Roslyn Street, Suite 380

Greenwood Village, CO 80111

Attn: CEO

     15.2 The Warrant Holders. Any distribution, notice or demand required or authorized by this
Agreement to be given or made by the Company to or on the Warrant Holders shall be sufficiently
given or made if sent by mail, first class, certified or registered, postage prepaid, addressed to
the Warrant Holders at their last known addresses as they shall appear on the registration books
for the Warrant Certificates maintained by the Company.

     15.3 Effectiveness of Notice. The Company may send any notice, demand, claim, election,
opinion, request or communication hereunder to the intended recipient at the address set forth
above using any other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail or electronic mail), but no such notice, demand, claim, election,
opinion, request or other communication shall be deemed to have been duly given or made unless and
until it actually is received by the intended recipient. The Company may change the address to
which notices, demands, claims, elections, opinions, requests and other communications hereunder
are to be delivered by giving the Warrant Holders notice in the manner herein set forth.

     Section 16      Arbitration

     The Company and the Holder, and by receipt of a Warrant Certificate or any Warrant Shares, all
subsequent Holders or holders of Warrant Shares, agree to submit all controversies, claims,
disputes and matters of difference with respect to this Agreement and the Warrant Certificates,
including, without limitation, the application of this Section, to arbitration in Denver, Colorado,
according to the rules and practices of the American Arbitration Association from time to time in
force; provided, however, that if such rules and practices conflict with the applicable procedures
of Colorado courts of general jurisdiction or any other provisions of Colorado law then in force,
those Colorado rules and provisions shall govern. This agreement to arbitrate shall be
specifically enforceable. Arbitration may proceed in the absence of any party if notice of the
proceeding has been given to that party. The parties agree to abide by all awards rendered in any
such proceeding. These awards shall be final and binding on all parties to the extent and in the
manner provided by the rules of civil procedure enacted in Colorado. All awards may be filed, as a
basis of judgment and of the issuance of execution for its collection, with the clerk of one or
more courts, state or federal, having jurisdiction over either the party against whom that award is
rendered or its property. No party shall be considered in default hereunder during the pendency of
arbitration proceedings relating to that default.

     Section 17      Miscellaneous Provisions

     17.1 Persons Benefiting. This Agreement shall be binding upon and inure to the benefit of the
Company, the Warrant Agent and their respective successors and assigns and the Warrant Holders. By
acceptance of a Warrant Certificate, the Holder accepts and agrees to comply with all of the terms
and provisions hereof.

     Nothing in this Agreement is intended or shall be construed to confer on any other person any
right, remedy or claim or to impose on any other person any duty, liability or obligation.

     17.2 Severability. If any term contained herein shall be held, declared or pronounced void,
voidable, invalid, unenforceable or inoperative for any reason by any court of competent
jurisdiction, government authority or otherwise, such holding, declaration or pronouncement shall
not affect adversely any other term, which shall otherwise remain in full force and effect, and the
effect of such holding, declaration or pronouncement shall be limited to the territory or
jurisdiction in which made.

     17.3 Termination. This Agreement shall terminate as of the close of business on the
Expiration Date, or such earlier date upon which all Warrants shall have been exercised or
redeemed; except that the exercise of a

 

 

Warrant in full or the Expiration Date shall not terminate
the provisions of this Agreement as it relates to holders of Warrant Shares.

     17.4 Governing Law. These terms and each Warrant Certificate issued hereunder shall be deemed
to be a contract under the laws of the State of Colorado and for all purposes shall be construed in
accordance with the laws of said state without giving effect to conflicts of laws provisions of
such state.

     17.5 Agreement Available to Warrant Holders. A copy of these terms shall be available at all
reasonable times at the office of the Warrant Agent for inspection by any Warrant Holder. As a
condition of such inspection, the Company may require any Warrant Holder to submit a Warrant
Certificate held of record for inspection.

     17.6 Counterparts. This Agreement may be executed in any number of counterparts, each of such
counterparts shall for all purposes be deemed to be an original and all such counterparts shall
together constitute but one and the same instrument.

     17.7 Failure to Perform. If the Company fails to perform any of its obligations hereunder, it
shall be liable to the Warrant Holder for all damages, costs and expenses resulting from the
failure, including, but not limited to, all reasonable attorney’s fees and disbursements.

     17.8 Paragraph Headings. Paragraph headings used in this Warrant are for convenience only and
shall not be taken or construed to define or limit any of the terms or provisions of this Warrant.
Unless otherwise provided, or unless the context shall otherwise require, the use of the singular
shall include the plural and the use of any gender shall include all genders.

          IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be signed by its
President and by its Secretary, each by a facsimile of said officers’ signatures, and has caused a
facsimile of its corporate seal to be imprinted hereon.

	 	 	 	 	
	Dated:
9-30-05                                    

	 	A SMART MOVE L.L.C.
	 

		 	a Colorado limited liability company
	 
		 	 	
	By:    
	/s/ Edward Johnson

	 	By:   	 /s/ Chris Sapyta
	                            Secretary

	 	                 CEO

 

 

ASSIGNMENT

(Form of Assignment to be Executed if the Warrant Holder

Desires to Transfer Warrants Evidenced Hereby)

     FOR VALUE RECEIVED,                                     
               
               
               
hereby sells, assigns and transfers to
               
               
              
                
               
               
               
               
            .

(Please print name and address including zip code)

Please insert social security, federal

tax ID number or other identifying number:

                                                                                                    

 

                                                                     
                                Warrants represented by this Warrant Certificate and does hereby irrevocably constitute and
appoint                                                             , Attorney, to transfer said Warrants on the books of the Company with full power
of substitution.

	 	 	 
	Dated:                                        

	 	                                                                                
	 

	 	           Signature
	 

	 	(Signature must conform in all respects
	 

	 	to name of holder as specified on the
	 

	 	face of this Warrant Certificate.)

			
	Note:	 	Any transfer or assignment of this Warrant Certificate is subject to compliance with
the restrictions on transfer imposed under the Warrant Terms.

 

 

EXERCISE

(Form of Exercise to be Executed if the Warrant Holder

Desires to Exercise Warrants Evidenced Hereby)

TO THE COMPANY:

     The
undersigned hereby irrevocably elects to exercise ______ Warrants represented by this Warrant
Certificate and to purchase thereunder the full number of Shares issuable upon exercise of said
Warrants and enclose $                     as the purchase price therefor, and requests that
certificates for such shares shall be issued in the name of, and cash for any fractional shares
shall be paid to,

Please insert Social Security Number or other

identifying number:

 

 

(Please print name and address, including zip code)

and, if said number of Warrants shall not be all the Warrants evidenced by this Warrant
Certificate, that a new Warrant Certificate for the unexercised number of Warrants may be assigned
under the form of Assignment appearing hereon.

	 	 	 	 	 
	Dated:                                         

	 	Signature:
	 	                                                                                
	 

	 	 	 	(Signature must conform in all respects
	 

	 	 	 	to name of holder as specified on the
	 

	 	 	 	face of this Warrant Certificate)exv10w5

 

Exhibit 10.5

SECURED PROMISSORY NOTE

	 	 	 
	$[Amount]

	 	Greenwood Village, Colorado

[September 26, 2005]

     FOR VALUE RECEIVED, A SMART MOVE L.L.C., a Colorado limited liability company, 5350 S. Roslyn
Street, Suite 380, Greenwood Village, Colorado 80111, and its successors and assigns, (the “Maker”)
promises to pay to the order of [INVESTOR] at [INVESTOR ADDRESS] (the “Holder”) or at such other
place as Holder may from time to time designate in writing, the principal sum of [One Hundred
Thousand Dollars ($100,000.00)] in lawful money of the United States of America, together with
interest on so such thereof as is from time to time outstanding at the rate hereinafter provided,
and payable as hereinafter provided.

     1. Interest Rate. The unpaid balance of this Note shall bear interest at the rate of
twelve percent (12%) per annum, simple interest.

     2. Payment/Maturity Date. Interest on the Note shall be paid semi-annually, on the
first day of the the months of April and October, beginning April 1, 2006, and continuing until
twenty-four (24) months from the date of the Note. Beginning on the first day of the twenty-fifth
month (i.e., [                    ], 2007), the Company will pay principal and interest on the note in sixty (60)
monthly payments of $[                                        ], until the total outstanding principal balance hereof, together with
accrued and unpaid interest, shall be paid.

     3. Default Interest and Attorney Fees. Upon declaration of a default hereunder, the
balance of the principal remaining unpaid, interest accrued thereon, and all other costs, and fees
shall bear interest at the rate of eighteen percent (18%) per annum from the date of default. In
the event of default, the Maker and all other parties liable hereon agree to pay all costs of
collection, including reasonable attorneys’ fees.

     4. Security Agreement. This Note is subject to a Security Agreement of even date
between the Maker and the Holder.

     5. Interest Calculation. Daily interest shall be calculated on a 365-day year and the
actual number of days in each month.

     6. Conversion. Holder may convert the balance of the Note, or any portion thereof,
and all accrued interest into common shares of the Company at any time. The conversion price shall
be $10.00 share.

     7. Prepayment. This Note may be prepaid, in whole only, at any time without premium
or penalty. The Company may exercise its right to prepay all or a portion of the outstanding
principal balance by sending to Holder forty five (45) days’ prior written notice of such
prepayment.

     8. Costs of Collection. Maker agrees that if, and as often as, this Note is placed in
the hands of an attorney for collection or to defend or enforce any of Holder’s rights hereunder or under any instrument securing payment of this Note, Maker shall pay to Holder its reasonable
attorneys’ fees and all court costs and other expenses incurred in connection therewith, regardless
of whether a lawsuit is ever commenced or whether, if commenced, the same proceeds to judgment or
not. Such costs and expenses shall include, without limitation, all costs, reasonable attorneys’
fees, and expenses incurred by Holder in connection with any insolvency, bankruptcy,
reorganization, foreclosure, deed in lieu of foreclosure or similar proceedings involving Maker or
any endorser, surety, guarantor, or other person liable for this Note which in any way affect the
exercise by Holder of its rights and remedies under this Note, or any other document or instrument
securing, evidencing, or relating to the indebtedness evidenced by this Note.

     9. Default. At the option of Holder, the unpaid principal balance of this Note and
all accrued interest thereon shall become immediately due, payable, and collectible, without notice
or demand, upon the occurrence at any time of any of the following events, each of which shall be
deemed to be an event of default hereunder.

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     (a) Maker’s failure to make any payment of principal, interest, or other charges on or
before the date on which such payment becomes due and payable under this Note;

     (b) Maker’s breach or violation of any agreement or covenant contained in this Note, or
in any other document or instrument securing, evidencing, or relating to the indebtedness
evidenced by this Note;

     (c) Dissolution, liquidation or termination of Maker.

     10. Application of Payments. Any payment made against the indebtedness evidenced by
this Note shall be applied against the following items in the following order: (1) costs of
collection, including reasonable attorneys’ fees incurred or paid and all costs, expenses, default
interest, late charges and other expenses incurred by Holder and reimbursable to Holder pursuant to
this Note (as described herein); (2) default interest accrued to the date of said payment; (3)
ordinary interest accrued to the date of said payment; and (4) finally, outstanding principal.

     11. Assignment of Note. This Note may not be assigned by Maker. The Note may be
assigned by Holder with the express written consent of the Maker.

     12. Non-Waiver. No delay or omission on the part of Holder in exercising any rights
or remedy hereunder shall operate as a waiver of such right or remedy or of any other right or
remedy under this Note. A waiver on any one or more occasion shall not be construed as a bar to or
waiver of any such right and/or remedy on any future occasion.

     13. Maximum Interest. In no event whatsoever shall the amount paid, or agreed to be
paid, to Holder for the use, forbearance, or retention of the money to be loaned hereunder
(“Interest”) exceed the maximum amount permissible under applicable law. If the performance or
fulfillment of any provision hereof, or any agreement between Maker and Holder shall result in
Interest exceeding the limit for Interest prescribed by law, then the amount of such Interest shall
be reduced to such limit. If, from any circumstance whatsoever, Holder should receive as Interest
an amount which would exceed the highest lawful rate, the amount which would be excessive Interest shall be applied to the reduction of the principal balance owing hereunder
(or, at the option of Holder, be paid over to Maker) and not to the payment of Interest.

     14. Purpose of Loan. Maker certifies that the loan evidenced by this Note is obtained
for business or commercial purposes and that the proceeds thereof will not be used primarily for
personal, family, household or agricultural purposes.

     15. Waiver of Presentment. Maker and the endorsers, sureties, guarantors and all
persons who may become liable for all or any part of this obligation shall be jointly and severally
liable for such obligation and hereby jointly and severally waive presentment and demand for
payment, notice of dishonor, protest and notice of protest, and any and all lack of diligence or
delays in collection or enforcement hereof. Said parties consent to any modification or extension
of time (whether one or more) of payment hereof, the release of all or any part of the security for
the payment hereof, and the release of any party liable for payment of this obligation. Any
modification, extension, or release may be without notice to any such party and shall not discharge
said party’s liability hereunder.

     16. Governing Law. As an additional consideration for the extension of credit, Maker
and each endorser, surety, guarantor, and any other person who may become liable for all or any
part of this obligation understand and agree that the loan evidenced by this Note is made in the
State of Colorado and the provisions hereof will be construed in accordance with the laws of the
State of Colorado, and such parties further agree that in the event of default this Note may be
enforced in any court of competent jurisdiction in the State of Colorado, and they do hereby submit
to the jurisdiction of such court regardless of their residence or where this Note or any
endorsement hereof may be executed.

     17. Binding Effect. The term “Maker” as used herein shall include the original Maker
of this Note and any party who may subsequently become liable for the payment hereof as an assumer
with the consent of the

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Holder, provided that Holder may, at its option, consider the original
Maker of this Note alone as Maker unless Holder has consented in writing to the substitution of
another party as Maker.

     18. Relationship of Parties. Nothing herein contained shall create or be deemed or
construed to create a joint venture or partnership between Maker and Holder, Holder is acting
hereunder as a lender only.

     19. Severability. Invalidation of any of the provisions of this Note or of any
paragraph, sentence, clause, phrase, or word herein, or the application thereof in any given
circumstance, shall not affect the validity of the remainder of this Note.

     20. Amendment. This Note may not be amended, modified, or changed, except only by an
instrument in writing signed by both of the parties.

     21. Time of the Essence. Time is of the essence for the performance of each and every
obligation of Maker hereunder.

     IN
WITNESS WHEREOF, the undersigned has executed this Note this 26th day of September, 2005.

	 	 	 	 	 
	 	 	A SMART MOVE L.L.C.
	 	 	a Colorado Limited Liability Company
	 
	 	 	 	 
	 

	 	By: 	/s/ Chris Sapyta
	 

	 	 	 
	 

	 	 	 	Manager

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