NEITHER THESE
SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT
BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE
OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE
SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT SECURED BY SUCH SECURITIES.
ORGANIC TO GO FOOD
CORPORATION
WARRANT
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Warrant No.
J08-2
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Original Issue Date: September 5,
2008
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Organic To Go Food Corporation, a Delaware
corporation (the "Company" ), hereby certifies
that, for value received, W.Health L.P., a limited partnership
organized under the laws of the Bahamas or its registered assigns
(the "Holder" ), is entitled to purchase from the
Company a total of 250,000 shares of Common Stock (each such share,
a "Warrant Share" and all such shares, the
"Warrant Shares" ), at any time and from time to
time from and after the Original Issue Date and through and
including five years following the Original Issue Date (the
"Expiration Date" ), and subject to the following
terms and conditions:
1. Definitions . As used in this
Warrant, the following terms shall have the respective definitions
set forth in this Section 1. Capitalized terms that are used and
not defined in this Warrant that are defined in the Note and
Warrant Purchase Agreement (as defined below) shall have the
respective definitions set forth in the Note and Warrant Purchase
Agreement.
"Business Day" means any day except Saturday, Sunday and any
day that is a federal legal holiday in the United States or in
Switzerland, or a day on which banking institutions in the State of
New York are authorized or required by law or other government
action to close.
"Common Stock" means the common stock of the Company, par value
$0.001 per share, and any securities into which such common stock
may hereafter be reclassified.
"Exercise Price" means $3.00, subject to adjustment in accordance
with Section 9.
"Fundamental Transaction"
means any of the following: (1) the
Company effects any merger or consolidation of the Company with or
into another Person, (2) the Company effects any sale of all or
substantially all of its assets in one or a series of related
transactions, (3) any tender offer or exchange offer (whether by
the Company or another Person) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (4) the Company
effects any reclassification of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or
property.
“Original Issue
Date” means
the Original Issue Date first set forth on the first page of this
Warrant.
"Note and Warrant Purchase
Agreement" means the
Note and Warrant Purchase Agreement, dated June 1, 2008, to which
the Company and the original Holder are parties.
"Trading Day" means (i) a day on which the Common Stock is
traded on a Trading Market (other than the OTC Bulletin Board), or
(ii) if the Common Stock is not listed on a Trading Market (other
than the OTC Bulletin Board), a day on which the Common Stock is
traded in the over-the-counter market, as reported by the OTC
Bulletin Board, or (iii) if the Common Stock is not quoted on any
Trading Market, a day on which the Common Stock is quoted in the
over-the-counter market as reported by the Pink Sheets LLC (or any
similar organization or agency succeeding to its functions of
reporting prices); provided, that in the event that the Common
Stock is not listed or quoted as set forth in (i), (ii) and (iii)
hereof, then Trading Day shall mean a Business Day.
2. Registration of Warrant . The
Company shall register this Warrant upon records to be maintained
by the Company for that purpose (the "Warrant
Register" ), in the name of the record Holder hereof from
time to time. The Company may deem and treat the registered Holder
of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all
other purposes, absent actual notice to the contrary.
3. Registration of Transfers . The
Company shall register the transfer of any portion of this Warrant
in the Warrant Register, upon surrender of this Warrant, with the
Form of Assignment attached hereto duly completed and signed, to
the Company at its address specified herein. Upon any such
registration or transfer, a new Warrant to purchase Common Stock,
in substantially the form of this Warrant (any such new Warrant, a
"New Warrant" ), evidencing the portion of this
Warrant so transferred shall be issued to the transferee and a New
Warrant evidencing the remaining portion of this Warrant not so
transferred, if any, shall be issued to the transferring Holder.
The acceptance of the New Warrant by the transferee thereof shall
be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of a Warrant.
4. Exercise and Duration of
Warrants . This Warrant shall be exercisable by the registered
Holder, in whole or in part, at any time and from time to time on
or after the Original Issue Date through and including the
Expiration Date. At 6:30 p.m., New York City time on the Expiration
Date, the portion of this Warrant not exercised prior thereto shall
be and become void and of no value. The Company may not call or
redeem any portion of this Warrant without the prior written
consent of the affected Holder.
5. Delivery of Warrant Shares
.
(a) To effect exercises hereunder, the
Holder shall not be required to physically surrender this Warrant
unless the aggregate Warrant Shares represented by this Warrant is
being exercised. Upon delivery of the Exercise Notice (in the form
attached hereto) to the Company (with the attached Warrant Shares
Exercise Log) at its address for notice set forth herein and upon
payment of the Exercise Price multiplied by the number of Warrant
Shares that the Holder intends to purchase hereunder, the Company
shall promptly (but in no event later than three Trading Days after
the Date of Exercise (as defined herein)) issue and deliver to the
Holder, a certificate for the Warrant Shares issuable upon such
exercise, which, unless otherwise required by the Note and Warrant
Purchase Agreement, shall be free of restrictive legends. The
Company shall, subsequent to the date on which a registration
statement covering the resale of the Warrant Shares has been
declared effective by the Securities and Exchange Commission, use
its reasonable best efforts to deliver Warrant Shares hereunder
electronically through the Depository Trust Corporation or another
established clearing corporation performing similar functions, if
available, provided , that, the Company may, but will not be
required to change its transfer agent if its current transfer agent
cannot deliver Warrant Shares electronically through the Depository
Trust Corporation. A " Date of Exercise " means
the date on which the Holder shall have delivered to the Company:
(i) the Exercise Notice (with the Warrant Exercise Log attached to
it), appropriately completed and duly signed and (ii) if such
Holder is not utilizing the cashless exercise provisions set forth
in this Warrant, payment of the Exercise Price for the number of
Warrant Shares so indicated by the Holder to be
purchased.
(b) If by the third Trading Day after a
Date of Exercise the Company fails to deliver the required number
of Warrant Shares in the manner required pursuant to Section 5(a),
then the Holder will have the right to rescind such
exercise.
(c) If by the third Trading Day after a
Date of Exercise the Company fails to deliver the required number
of Warrant Shares in the manner required pursuant to Section 5(a),
and if after such third Trading Day and prior to the receipt of
such Warrant Shares, the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which
the Holder anticipated receiving upon such exercise (a "
Buy-In "), then the Company shall (1) pay in cash
to the Holder the amount by which (x) the Holder's total purchase
price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of Warrant Shares that the Company was
required to deliver to the Holder in connection with the exercise
at issue by (B) the closing bid price of the Common Stock on the
Date of Exercise and (2) at the option of the Holder, either
reinstate the portion of the Warrant and equivalent number of
Warrant Shares for which such exercise was not honored or deliver
to the Holder the number of shares of Common Stock that would have
been issued had the Company timely complied with its exercise and
delivery obligations hereunder. The Holder shall provide the
Company written notice indicating the amounts payable to the Holder
in respect of the Buy-In.
(d) The Company's obligations to issue and
deliver Warrant Shares in accordance with the terms hereof are
absolute and unconditional, irrespective of any action or inaction
by the Holder to enforce the same, any waiver or consent with
respect to any provision hereof, the recovery of any judgment
against any Person or any action to enforce the same, or any
setoff, counterclaim, recoupment, limitation or termination, or any
breach or alleged breach by the Holder or any other Person of any
obligation to the Company or any violation or alleged violation of
law by the Holder or any other Person, and irrespective of any
other circumstance which might otherwise limit such obligation of
the Company to the Holder in connection with the issuance of
Warrant Shares. Nothing herein shall limit a Holder's right to
pursue any other remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company's
failure to timely deliver certificates representing Warrant Shares
upon exercise of the Warrant as required pursuant to the terms
hereof.
6. Charges, Taxes and Expenses .
Issuance and delivery of Warrant Shares upon exercise of this
Warrant shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other
incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the
Company; provided, however, that the Company shall not be required
to pay any tax which may be payable in respect of any transfer
involved in the registration of any certificates for Warrant Shares
or Warrants in a name other than that of the Holder. The Holder
shall be responsible for all other tax liability that may arise as
a result of holding or transferring this Warrant or receiving
Warrant Shares upon exercise hereof.
7. Replacement of Warrant . If this
Warrant is mutilated, lost, stolen or destroyed, the Company shall
issue or cause to be issued in exchange and substitution for and
upon cancellation hereof, or in lieu of and substitution for this
Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or
destruction and customary and reasonable indemnity (which shall not
include a surety bon