Exhibit 4.2
This Warrant and the underlying shares of Common Stock
represented by this Warrant have not been registered under the
Securities Act of 1933 (the “Act”), and are
“restricted securities” as that term is defined in
Rule 144 under 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, the availability of which is to be
established to the satisfaction of the Company.
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| April 14, 2008 |
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Warrant No. _____ |
***SMART MOVE, INC.***
WARRANT TO PURCHASE SHARES OF COMMON STOCK
Warrant to Purchase _____ Shares
(subject to adjustment as set forth herein)
Exercise Price $1.00 Per Share
(subject to adjustment as set forth herein)
VOID AFTER 3:00 P.M., MOUNTAIN TIME, ON
April 14, 2013
THIS CERTIFIES
THAT _____ is entitled to purchase from Smart Move,
Inc., a Delaware corporation (hereinafter called the
“Company”) with its principal office located at 5990
Greenwood Plaza Blvd., Suite 390, Greenwood Village, Colorado
80111, at any time before 3:00 P.M., Mountain Time, on
April 14, 2013 (the “Termination Date”), at the
purchase price of $1.00 per share, the number of shares (the
“Shares”) of the Company’s common stock, par
value $0.0001 per share (the “Common Stock”) set forth
above. This Warrant is one of a number of warrants covering an
aggregate 1,000,000 shares of Common Stock which are being issued
concurrently by the Company to those holders of existing secured
notes who are identified in Exhibit “A” hereto as
holders of secured debt aggregating $9,217,500, who have agreed to
release their respective liens pursuant to security interests
covering 800 existing proprietary shipping containers
(“SmartVaults™), used to transport household goods and
other goods, and is the agreed consideration for such release. The
number of Shares purchasable upon exercise of this Warrant and the
Exercise Price per Share shall be subject to adjustment from time
to time as set forth in Section 4 below if the number of
outstanding shares of Common Stock of the Company shall be
increased or decreased as a result of a stock split, a reverse
stock split or similar recapitalization or reclassification of
stock not involving any change in the shareholder’s equity or
the aggregate market value of shares outstanding as a result
thereof. The holder of this Warrant acknowledges that the Company
has listed its common stock on the American Stock Exchange and
understands that the issuance of the shares underlying the Notes
and warrants to purchase securities hereunder is subject to the
prior approval of the American Stock Exchange of such listing. The
holder further acknowledges, agrees and represents that this
Warrant is being issued pursuant to an exemption from registration
under Federal Rule 506 of Regulation D under the
Securities Act of 1933 and is based in part upon the holder’s
prior and concurrent representations to the Company regarding
suitability of the investment.
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SECTION 1. DEFINITIONS.
In addition to
the terms defined elsewhere in this Warrant, the terms set forth on
the Definitions Schedule to this Warrant shall have the meanings
set forth on such Schedule.
SECTION 2. COVERED SHARES; EXERCISE OF WARRANT.
Subject to the
conditions set forth in this Warrant, the Warrant may be exercised
in whole or in part during the Exercise Period, but in no event
subsequent to the end of the Exercise Period, by the surrender of
the Warrant (with the subscription form attached to this Warrant
duly completed and executed) at the principal office of the Company
at 5990 Greenwood Plaza Blvd, Suite 390, Greenwood Village,
Colorado 80111, and upon payment of the applicable Exercise Price
in cash or other immediately available funds.
The right
granted by the Warrant to acquire Shares shall expire at the end of
the Exercise Period, and such right shall be wholly null and void
to the extent the Warrant is not exercised before that time. The
Company shall pay all reasonable expenses, taxes and other charges
payable in connection with the preparation, execution and delivery
of any certificates or other documents evidencing the Shares under
this §2. Notwithstanding the surrender of the Warrant upon its
exercise, the rights and obligations of the Company and the Holders
as set forth in this Warrant shall continue in full force and
effect.
SECTION 3. RESERVATION.
At all times
during the Exercise Period, the Company shall reserve and keep
available the maximum number of authorized but unissued Shares,
solely for the purpose of issuing, upon the exercise of the
Warrant, a number of Shares equal to the number of Underlying
Shares.
SECTION 4. ADJUSTMENT OF NUMBER OF SHARES.
The number of
Warrant Shares and the Warrant Price shall be subject to adjustment
if the number of outstanding Shares of Common Stock of the Company
shall be increased or decreased as a result of a stock split, a
reverse stock split or similar recapitalization or reclassification
of stock not involving any change in the shareholder’s equity
or the aggregate market value of shares outstanding as a result
thereof. The Warrant Price and number of Shares shall be
proportionately adjusted so that the percentage of the Common Stock
acquirable by the Holder upon exercise immediately prior to the
event and immediately following the event remains the same.
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SECTION 5. DISSOLUTION OR LIQUIDATION; DIVIDENDS AND
DISTRIBUTIONS.
Upon any
proposed distribution of the assets of the Company in dissolution
or liquidation, the Company shall mail notice of such distribution
to each Holder and shall make no distribution to its shareholders
until the expiration of forty five (45) days from the date of
mailing of such notice. Upon receipt of such notice, each Holder
may exercise the Warrant at any time prior to the expiration of
such 45-day period and thereafter receive any distributions made to
shareholders of the Company in connection with such dissolution or
liquidation.
SECTION 6. FULLY PAID SHARES; TAXES; FRACTIONAL
SHARES.
The Company
covenants and agrees that the Warrant Shares will, at the time of
delivery upon the exercise of the Warrant, be validly issued and
outstanding and be fully paid and nonassessable. The Company
further covenants and agrees that it will pay when due and payable
any and all federal and state issuance taxes that may be payable in
respect of the Warrant or any Warrant Shares or certificates issued
upon the exercise of the Warrant. The Company shall not, however,
be required to pay any tax which may be payable in respect of any
Transfer involving a Transfer of Warrant Shares in the name other
than that of a Holder, and any such tax shall be paid by the Holder
requiring such Transfer. Fractional Warrant Shares shall be issued
upon the exercise of the Warrant in any case in which the
Underlying Shares are not a whole number and the Holder does not
agree to accept cash in lieu of such fractional Warrant
Shares.
SECTION 7. NOTIFICATION OF SHAREHOLDER MATTERS.
Prior to the
exercise in full of the Warrant, the Company shall use reasonable
efforts to cause any notice submitted to the shareholders of the
Company also to be provided to the Holder, but shall have no
liability to the Holder for failure to provide any such notice with
respect to any matters which are disclosed by the Company to its
shareholders or which are available to shareholders pursuant to the
Company’s electronic filings with the Securities and Exchange
Commission under the Securities Exchange Act of 1934.
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SECTION
8.
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RESTRICTIONS ON TRANSFERABILITY OF
WARRANTS AND SHARES; COMPLIANCE WITH LAWS. |
8.1. In
General . Neither the Warrant nor any Warrant Shares shall be
Transferred except upon the conditions specified in this Warrant,
which conditions are intended to insure compliance with the
provisions of the Securities Act (or any similar federal statute at
the time in effect) and any applicable state securities laws in
respect of any such Transfer.
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8.2.
Restrictive Legend . The Warrant Shares shall be
represented by certificates, and, unless otherwise permitted by the
provisions of this §8.2, shall be marked with a legend reading
substantially as follows:
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES HAVE
BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED OR
ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN
OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY
ACCEPTABLE TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT. ANY
SUCH SALE, ASSIGNMENT OR TRANSFER MUST ALSO BE MADE IN COMPLIANCE
WITH APPLICABLE STATE SECURITIES LAWS.
If a
registration statement covering the Warrant or any Warrant Shares
shall become effective under the Securiti
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