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.
J08-3
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Original Issue Date: October 3,
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 375,000 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