EXHIBIT A
FORM OF COMMON STOCK PURCHASE
WARRANT
This warrant
and the common stock shares issuable upon exercise of this warrant
have not been registered under the securities act of 1933, as
amended (the “Securities Act”). This warrant and the
common stock shares issuable upon exercise of this warrant may not
be sold, offered for sale, pledged or hypothecated in the absence
of an effective registration statement under the securities act or
an opinion of counsel reasonably satisfactory to Accelerize New
Media, Inc. that such registration is not required
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Right to
Purchase FIVE MILLION (5,000,000) shares of Common Stock of
Accelerize New Media, Inc. (subject to adjustment as provided
herein)
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FORM OF COMMON STOCK PURCHASE
WARRANT
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No. MEC _
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Issue Date: September 11,
2008
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ACCELERIZE NEW MEDIA, INC., a corporation
organized and existing under the laws of the State of Delaware (the
“Company”), hereby certifies that, for value received,
MarketingExperiments, LLC, with its principal address at 412 North
First Street, Jacksonville Beach, FL 32250, or its assigns (the
“Holder”) is entitled, subject to the terms set forth
below, including the Vesting Schedule attached hereto as Exhibit A,
to purchase from the Company at any time after the issue date (the
“Issue Date”) until 5:00 p.m., E.S.T. on the fifth
(5th) anniversary of the Issue Date (the “Expiration
Date”), five million (5,000,000) fully paid and nonassessable
shares of Common Stock at a per share purchase price equal to 0.55
dollars ($0.55), which is the closing bid price of the
Company’s Common Stock on the Over-The-Counter Bulleting
Board on the Issue Date. The afore described purchase
price per share, as adjusted from time to time as herein provided,
is referred to herein as the “Purchase Price.” The
number and character of such shares of Common Stock and the
Purchase Price are subject to adjustment as provided
herein. The Company may reduce the Purchase Price
without the consent of the Holder.
As used herein the following terms, unless the
context otherwise requires, have the following respective
meanings:
(a) The
term “Company” shall include Accelerize New Media, Inc.
and any corporation which shall succeed or assume the obligations
of Accelerize New Media, Inc. hereunder.
(b) The
term “Common Stock” includes (a) the Company’s
Common Stock, $0.001 par value per share, and (b) any other
securities into which or for which any of the securities described
in (a) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or
otherwise.
(c) The
term “Other Securities” refers to any stock (other than
Common Stock) and other securities of the Company or any other
person (corporate or otherwise) which the holder of the Warrant at
any time shall be entitled to receive, or shall have received, on
the exercise of the Warrant, in lieu of or in addition to Common
Stock, or which at any time shall be issuable or shall have been
issued in exchange for or in replacement of Common Stock or Other
Securities pursuant to Section 4 herein or otherwise.
(d) The
term “Vesting Schedule” shall mean the vesting schedule
of the Warrants Shares attached hereto as Exhibit A.
(e) The
term “Warrant Shares” shall mean the Common Stock
issuable upon exercise of this Warrant.
1.
Exercise of Warrant .
1.1.
Number of Shares Issuable upon Exercise . From
and after the Issue Date through and including the Expiration Date,
subject to the Vesting Schedule, the Holder hereof shall be
entitled to receive, upon exercise of this Warrant in whole in
accordance with the terms of subsection 1.2 or upon exercise of
this Warrant in part in accordance with subsection 1.3, up to five
million (5,000,000) shares of Common Stock of the Company, subject
to adjustment pursuant to Section 4.
1.2.
Full Exercise . This Warrant may be exercised in
full at the end of the thirty Six (36) month after the Issue Date
by the Holder hereof by delivery of an original or facsimile copy
of the form of subscription attached hereto as Exhibit B
(the “Subscription Form”) duly executed by such Holder
and surrender of the original Warrant within four (4) days of
exercise, to the Company at its principal office or at the office
of its Warrant Agent (as provided hereinafter), accompanied by
payment, in cash, wire transfer or by certified or official bank
check payable to the order of the Company, in the amount obtained
by multiplying the number of shares of Common Stock for which this
Warrant is then exercisable by the Purchase Price then in
effect.
1.3.
Partial Exercise . This Warrant may be exercised
in part (but not for a fractional share) in accordance with the
Vesting Schedule, by surrender of this Warrant in the manner and at
the place provided in subsection 1.2 except that the amount payable
by the Holder on such partial exercise shall be the amount obtained
by multiplying (a) the number of whole shares of Common Stock
designated by the Holder in the Subscription Form by (b) the
Purchase Price then in effect. On any such partial
exercise, the Company, at its expense, will forthwith issue and
deliver to or upon the order of the Holder hereof a new Warrant of
like tenor, in the name of the Holder hereof or as such Holder
(upon payment by such Holder of any applicable transfer taxes) may
request, the whole number of shares of Common Stock for which such
Warrant may still be exercised.
1.4.
Fair Market Value . Fair Market Value of a share of Common
Stock as of a particular date (the “Determination
Date”) shall mean:
(a) If
the Company’s Common Stock is traded on an exchange or is
quoted on the Nasdaq Stock Market, Inc., then the last sale price
reported for the last business day immediately preceding the
Determination Date;
(b) If
the Company’s Common Stock is not traded on an exchange or
quoted on the Nasdaq Stock Market, Inc. but is traded in the
Over-The-Counter Bulletin Board, then the closing bid price
reported for the last business day immediately preceding the
Determination Date;
(c) Except
as provided in clause (d) below, if the Company’s Common
Stock is not publicly traded, then as the Holder and the Company
agree, or in the absence of such an agreement, by arbitration in
accordance with the rules then standing of the American Arbitration
Association, before a single arbitrator to be chosen from a panel
of persons qualified by education and training to pass on the
matter to be decided; or
(d) If
the Determination Date is the date of a liquidation, dissolution or
winding up, or any event deemed to be a liquidation, dissolution or
winding up pursuant to the Company’s charter, then all
amounts to be payable per share to holders of the Common Stock
pursuant to the charter in the event of such liquidation,
dissolution or winding up, plus all other amounts to be payable per
share in respect of the Common Stock in liquidation under the
charter, assuming for the purposes of this clause (d) that all of
the shares of Common Stock then issuable upon exercise of all of
the Warrants are outstanding at the Determination Date.
1.5.
Company Acknowledgment . The Company will, at the time of
the exercise of the Warrant, upon the request of the Holder hereof
acknowledge in writing its continuing obligation to afford to such
Holder any rights to which such Holder shall continue to be
entitled after such exercise in accordance with the provisions of
this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the
Company to afford to such Holder any such rights.
1.6.
Delivery of Stock Certificates, etc. on Exercise
. The Company agrees that the shares of Common Stock
purchased upon exercise of this Warrant shall be deemed to be
issued to the Holder hereof as the record owner of such shares as
of the close of business on the date on which this Warrant shall
have been surrendered and payment made for such shares as
aforesaid. As soon as practicable after the exercise of this
Warrant in full or in part, and in any event within three (3)
business days thereafter, the Company at its expense (including the
payment by it of any applicable issue taxes, if any) will cause to
be issued in the name of and delivered to the Holder hereof, or as
such Holder (upon payment by such Holder of any applicable transfer
taxes) may direct in compliance with applicable securities laws, a
certificate or certificates for the number of duly and validly
issued, fully paid and nonassessable shares of Common Stock (or
Other Securities) to which such Holder shall be entitled on such
exercise, plus, in lieu of any fractional share to which such
Holder would otherwise be entitled, cash equal to such fraction
multiplied by the then Fair Market Value of one full share of
Common Stock, together with any other stock or other securities and
property (including cash, where applicable) to which such Holder is
entitled upon such exercise pursuant to Section 1 or
otherwise.
2.1.
Reorganization, Consolidation, Merger, etc . In
c
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