EXHIBIT 10.2
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN-REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (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 OR APPLICABLE BLUE SKY LAWS.
THE REGISTERED HOLDER OF THIS WARRANT, BY ITS ACCEPTANCE HEREOF, AGREES THAT IT
WILL NOT SELL, TRANSFER OR ASSIGN THIS WARRANT EXCEPT AS HEREIN PROVIDED.
▇▇. ▇▇▇▇-▇
▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
For the Purchase of 250,000 Shares of Common Stock
of
SMARTSERV ONLINE, INC.
(a Delaware corporation)
1. Warrant.
THIS CERTIFIIES THAT, in exchange for due consideration, the
sufficiency of which is hereby acknowledged, paid by or on behalf of ▇▇▇▇ ▇.
▇▇▇▇▇▇ (the "Holder"), as registered owner of this Warrant, to SMARTSERV ONLINE,
INC. (the "Company"), the Holder is entitled, at any time and from time to time
during the period commencing on January 10, 2005 and expiring on and after 5:00
p.m., New York time on January 10, 2010(the "Exercise Period"), to subscribe
for, purchase and receive, in whole or in part, up to 250,000 shares of Common
Stock, $.01 par value (the "Common Stock"), of the Company. This Warrant is
initially exercisable as to each share of Common Stock covered thereby at two
dollar and ten cents ($2.10) per share (the "Exercise Price"). The term
"Exercise Price" shall mean the initial exercise price or such exercise price,
as adjusted in the manner provided herein, depending on the context.
2. Exercise
In order to exercise this Warrant, the exercise form attached hereto
must be duly executed, completed and delivered to the Company, together with
this Warrant and payment of the Exercise Price for the shares of the Common
Stock being purchased. If the rights represented hereby shall not be exercised
on or before the end of the Exercise Period, this Warrant shall become and be
void and without further force or effect and all rights represented hereby shall
cease and expire.
3. Restrictions on Transfer; Registration of Transfers.
3.1 Restrictions on Transfer. The registered Holder of this Warrant,
by acceptance hereof, agrees that prior to any proposed transfer of this Warrant
or any securities purchased upon exercise of this Warrant, if such transfer is
not made pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the "Act"), the Holder will, if requested by the
Company, deliver to the Company:
(i) an opinion of counsel reasonably satisfactory in form and
substance to the Company that the Warrant or the securities
purchased upon exercise of this Warrant may be transferred without
registration under the Act;
EXHIBIT 10.2
(ii) an agreement by the proposed transferee to the placement of the
restrictive investment legend set forth below on the Warrant or the
securities to be received upon exercise of the Warrant;
(iii) an agreement by such transferee that the Company may place a
notation in the stock books of the Company or a "stop transfer
order" with any transfer agent or registrar with respect to the
securities purchased upon exercise of this Warrant; and
(iv) an agreement by such transferee to be bound by the provisions
of this Section 3 relating to the transfer of such Warrant or the
securities purchased upon exercise of such Warrant.
Each Warrant Holder agrees that each Warrant and each certificate
representing securities purchased upon exercise of this Warrant shall bear a
legend as follows unless such securities have been registered under the Act:
"The securities represented by this certificate have not been
registered under the Securities Act of 1933, as amended (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 or applicable blue sky laws."
3.2 Registration of Transfers. In order to make any permitted
assignment, the Holder must deliver to the Company the assignment form attached
hereto duly executed and completed, together with this Warrant and payment of
all transfer taxes, if any, payable in connection therewith. The Company shall
immediately transfer the number of Warrants specified in the assignment form on
the books of the Company and shall execute and deliver a new warrant or warrants
of like tenor to the appropriate assignee(s) expressly evidencing the right to
purchase the number of shares of Common Stock purchasable hereunder or such
portion of such number as shall be contemplated by such assignment.
EXHIBIT 10.2
4. New Warrants to be Issued.
4.1 Partial Exercise or Transfer. Subject to the restrictions in
Section 3 hereof, this Warrant may be exercised or assigned in whole or in part.
In the event of the exercise or assignment hereof in part only, upon surrender
of this Warrant for cancellation, together with the duly executed exercise or
assignment form and funds sufficient to pay any required transfer tax, the
Company shall cause to be delivered to the Holder without charge a new warrant
or new warrants of like tenor with this Warrant in the name of the Holder
evidencing the right to purchase, in the aggregate, the remaining number of
underlying shares of Common Stock purchasable hereunder after giving effect to
any such partial exercise or assignment.
4.2 Lost Certificate. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
and of an indemnification in favor of the Company, reasonably satisfactory to
it, the Company shall execute and deliver a new warrant of like tenor and date.
Any such new warrant executed and delivered as a result of such loss, theft,
mutilation or destruction shall constitute an additional contractual obligation
on the part of the Company.
5. Adjustments to Exercise Price and Number of Securities.
5.1 Subdivision and Combination. In case the Company shall at any
time subdivide or combine the outstanding shares of Common Stock, the Exercise
Price shall forthwith be proportionately decreased in the case of subdivision or
increased in the case of combination.
EXHIBIT 10.2
5.2 Adjustment in Number of Shares. Upon each adjustment of the
Exercise Price pursuant to the provisions of this Section 5, the number of
shares of Common Stock issuable upon the exercise of this Warrant shall be
adjusted to the nearest full number obtained by multiplying the Exercise Price
in effect immediately prior to such adjustment by the number of shares of Common
Stock issuable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product so obtained by the adjusted Exercise Price.
5.3 Recapitalization. For the purpose of this Warrant, the term
"Common Stock" shall also mean any other class of stock resulting from
successive changes or reclassifications of Common Stock consisting solely of
changes in par value, or from par value to no par value, or from no par value to
par value.
5.4 Merger or Consolidation. In case of any consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder(s), in lieu of this Warrant, a supplemental warrant providing that
the holder of each warrant then outstanding or to be outstanding shall have the
right thereafter (until the stated expiration of such warrant) to receive, upon
exercise of such warrant, the kind and number of shares of stock and other
securities and property receivable upon such consolidation or merger, by a
holder of the number of shares of Common Stock of the Company for which such
warrant might have been exercised immediately prior to such consolidation,
merger, sale or transfer. Each such supplemental warrant shall provide for
adjustments, which shall be identical to the adjustments provided in Section 5.
The above provision of this Section shall similarly apply to successive
consolidations or mergers.
5.5 Redemption of Warrants. This Warrant cannot be redeemed by the
Company without the prior written consent of the Holder.
5.6 Elimination of Fractional Interests. The Company shall not be
required to issue certificates representing fractions of shares of Common Stock
upon the exercise of the Warrant, nor shall it be required to issue scrip or pay
cash in lieu of any fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction up to
the nearest whole number of shares of Common Stock or other securities,
properties or rights as shall be issuable upon the exercise thereof.
6. Reservation.
The Company shall at all times reserve and keep available out of its
authorized shares of Common Stock, solely for the purpose of issuance upon
exercise of the Warrant, such number of shares of Common Stock or other
securities, properties or rights as shall be issuable upon the exercise thereof.
The Company covenants and agrees that, upon exercise of the Warrant and payment
of the Exercise Price therefor, all shares of Common Stock and other securities
issuable upon such exercise shall be duly and validly issued, fully paid and
nonassessable.
7. Certain Notice Requirements.
7.1 Holder's Right to Receive Notice. Nothing herein shall be
construed as conferring upon the Holder the right to vote or consent or to
receive notice as a stockholder for the election of directors or any other
matter, or as having any rights whatsoever as a stockholder of the Company. If,
however, at any time prior to the expiration of the Warrant and its exercise,
any of the events described in Section 7.2 shall occur, then, in one or more of
said events, the Company shall give written notice of such event at least ten
(10) 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 vote on
such proposed dissolution, liquidation, winding up or sale. Such notice shall
specify such record date or the date of the closing of the transfer books, as
the case may be.
EXHIBIT 10.2
7.2 Events Requiring Notice. The Company shall be required to give
the notice described in this Section 7 upon a dissolution, liquidation or
winding up of the Company (other than in connection with a consolidation or
merger) or a sale of all or substantially all of its property, assets and
business shall be proposed.
7.3 Notice of Change in Exercise Price. The Company shall, promptly
after an event requiring a change in the Exercise Price pursuant to Section 5
hereof, send notice to the Holders of such event and change (the "Price
Notice"). The Price Notice shall describe the event causing the change and the
method of calculating same and shall be certified as being true and accurate by
the Company's Chief Financial Officer.
7.4 Transmittal of Notices. All notices, requests, consents and
other communications under this Warrant shall be in writing and shall be deemed
to have been duly given or made when hand delivered, or when delivered by
responsible overnight courier:
(i) If to the registered Holder of this Warrant, to:
▇▇▇▇ ▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇▇
(ii) if to the Company, to:
SmartServ Online, Inc.
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Chief Executive Officer
Either the Holder or the Company may change its address by notice given pursuant
to this Section 7.4.
8. Miscellaneous.
8.1 Amendments. The Company and the Holder may from time to time
supplement or amend this Warrant.
8.2 Headings. The headings contained herein are for the sole purpose
of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Warrant.
8.3 Entire Agreement. This Warrant (together with the other
agreements and documents being delivered pursuant to or in connection with this
Warrant) constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof, and supersedes all prior agreements and
understandings of the parties, oral and written, with respect to the subject
matter hereof.
8.4 Binding Effect. This Warrant shall inure solely to the benefit
of, and shall be binding upon, the Holder and the Company and their permitted
assignees, respective successors, and legal representatives, and no other person
shall have or be construed to have any legal or equitable right, remedy or claim
under or in respect of or by virtue of this Warrant or any provisions herein
contained.
8.5 Governing Law: Submission to Jurisdiction. This Warrant shall be
governed by and construed and enforced in accordance with the laws of the State
of Delaware, without giving effect to principles of conflicts of laws. Any
action, proceeding or claim against the Company or the Holder arising out of, or
relating in any way to this Warrant shall be brought and enforced in the courts
of the Common Pleas of ▇▇▇▇▇▇▇▇▇▇ County, Pennsylvania or of the United States
of America for the Eastern District of Pennsylvania, and the Company and the
Holder irrevocably submit to such jurisdiction, which jurisdiction shall be
exclusive. The parties hereto waive any objection to such exclusive jurisdiction
and that such courts represent an inconvenient forum.
EXHIBIT 10.2
8.6 Waiver. The failure of the Company or the Holder to at any time
enforce any of the provisions of this Warrant shall not be deemed or construed
to be a waiver of any such provision, nor in any way to affect the validity of
this Warrant or any provision hereof or the right of the Company or any Holder
to thereafter enforce each and every provision of this Warrant. No waiver of any
breach, noncompliance or nonfulfillment of any of the provisions of this Warrant
shall be effective unless set forth in a written instrument executed by the
party or parties against whom or which enforcement of such waiver is sought; and
no waiver of any such breach, noncompliance or nonfulfillment shall be construed
or deemed to be a waiver of any other or subsequent breach, noncompliance or
nonfulfillment.
IN WITNESS WHEREOF, the Company has caused this Warrant to be signed
by its duly authorized officer effective as of the 10th day of January, 2005.
SMARTSERV ONLINE, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
-----------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: Chief Executive Officer
EXHIBIT 10.2
Form to be used to exercise Warrant:
SMARTSERV ONLINE, INC.
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Date:
---------------------------
The undersigned hereby elects irrevocably to exercise the within
Warrant and to purchase shares of Common Stock of SmartServ Online,
Inc. and hereby makes payment of $ (at the rate of $ per
share) in payment of the Exercise Price pursuant thereto. The undersigned
represents that it is an accredited investor within the meaning of Regulation D
of the General Rules and Regulations under the Securities Act of 1933, as
amended. Please issue the shares as to which this Warrant is exercised in
accordance with the instructions given below.
------------------------------
Signature
------------------------------
Signature Guaranteed
INSTRUCTIONS FOR REGISTRATION OF SECURITIES
NAME
---------------------------------------------------------------------------
(Print in Block Letters)
ADDRESS
-------------------------------------------------------------------------
NOTICE: The signature to this form must correspond with the name as
written upon the face of the within Warrant in every particular without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank, other than a savings bank, or by a trust company or by a firm having
membership on a registered national securities exchange.
EXHIBIT 10.2
Form to be used to assign Warrant:
ASSIGNMENT
(To be executed by the registered Holder to effect a transfer of the
within Warrant):
FOR VALUE RECEIVED, does hereby
sell, assign and transfer unto the right to
purchase shares of Common Stock of SmartServ Online, Inc. (the
"Company") evidenced by the within Warrant and does hereby authorize the Company
to transfer such right on the books of the Company.
Dated:
---------------
------------------------------
Signature
------------------------------
Signature Guaranteed
NOTICE: The signature to this form must correspond with the name as
written upon the face of the within Warrant in every particular without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank, other than a savings bank, or by a trust company or by a firm having
membership on a registered national securities exchange.