As filed with the Securities and Exchange Commission on May 5, 2000.
Registration No. 333-_______
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
----------------
WarpRadio.com, Inc.
(Exact name of Registrant as specified in its charter)
----------------
Nevada 87-0538158
- -------------------------------- ------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
---------------
6535 South Dayton Street, Suite 3000, Greenwood Village, Colorado 80111
-----------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
1999 Stock Option Plan
----------------------
(Full title of the plan)
Denise Sutton, Chief Executive Officer
6535 South Dayton Street, Suite 3000
Greenwood Village, Colorado 80111
(303) 799-9118
------------------------------------------------------------
(Name, address, including zip code, and
telephone number, including area code, of agent for service)
Approximate date of commencement of proposed sale to public: From time to
time after the Registration Statement becomes effective.
---------------------------
Exhibit Index Begins at Page II-5
<PAGE>
================================================================================
CALCULATION OF REGISTRATION FEE
================================================================================
Title of Amount to be Proposed Proposed Amount of
Securities Registered (1) Maximum Maximum Registration
to be Offering Aggregate Fee
Registered Price Per Offering
Security (2) Price (2)
- --------------------------------------------------------------------------------
Common Stock, 1,000,000 $3.25 $3,250,000 $959
$.001 par value Shares
================================================================================
(1) This Registration Statement, pursuant to Rule 416, covers any
additional shares of no par value Common Stock ("shares") which become issuable
under the 1999 Stock Option Plan ("Plan") set forth herein by reason of any
stock dividend, stock split, recapitalization or any other similar transaction
without receipt of consideration which results in an increase in the number of
shares outstanding.
(2) Estimated solely for the purpose of computing the amount of the
Registration fee under Rule 457 of the Securities Act of 1933, as amended. A
total of 1,000,000 shares are issuable under the Plan at an offering price per
share based upon the closing price of the Common Stock on the Electronic
Bulletin Board on May 1, 2000, of $3.25 per share.
ii
<PAGE>
WarpRadio.com, Inc.
PART I
------
Cross Reference Sheet Required by Item 501
Item in Form S-8 Caption In Prospectus
---------------- ---------------------
1. General Plan Information...............Cover Page; Issuer and Participating
Employees; Description of the Plan;
Tax Consequences
2. Registrant Information and
Employee Plan Annual
Information............................Available Information
3. Incorporation of Documents
by Reference...........................Incorporation by Reference
4. Description of Securities..............Description of the Plan
5. Interests of Named Experts
and Counsel............................Legal Matters
6. Indemnification of
Directors and Officers.................Indemnification of Directors and
Officers--Part II
7. Exemption from Registration
Claimed................................Not Applicable
8. Exhibits...............................Not Applicable (See Part II, Item 8)
9. Undertakings...........................Not Applicable (See Part II, Item 9)
INFORMATION RN THE SECTION 10(a) PROSPECTUS
Pursuant to the requirements of the Note to Part I of Form S-8 and Rule
428(b)(1) of the Rules under the Securities Act of 1933, as amended, the
information required by Part I of Form S-8 is included in the Reoffer Prospectus
which follows. The Reoffer Prospectus together with the documents incorporated
by reference pursuant to Item 3 of Part II of this Registration Statement
constitute the Section 10(a) Prospectus.
iii
<PAGE>
REOFFER PROSPECTUS
The material which follows, up to but not including the page beginning Part
II of this Registration Statement, constitutes a prospectus, prepared on Form
S-3, in accordance with General Instruction C to Form S-8, to be used in
connection with resales of securities acquired under the Registrant's 1999 Stock
Option Plan by directors of the Registrant, as defined in Rule 405 under the
Securities Act of 1933, as amended.
iv
<PAGE>
1,000,000 SHARES
COMMON STOCK
WarpRadio.com, Inc.
---------------
1999 STOCK OPTION PLAN
---------------
This reoffer prospectus relates to the offering by WarpRadio.com, Inc. and
our employees, officers, directors and consultants of up to 1,000,000 shares
(subject to adjustment in certain circumstances) of our $.001 par value common
stock, purchasable by our employees, officers, directors and consultants under
common stock options under our 1999 Stock Option Plan. As of the date hereof,
575,000 options issued under our plan are outstanding.
---------------
This Prospectus will also be used by our non-affiliates as well as persons
who are "affiliates" (as that term is defined under the Securities Act of 1933)
to effect resales of the shares. We will receive no part of the proceeds of any
such sales although we will receive the exercise price of the options.
---------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
---------------
No person is authorized to give any information or to make any
representation not contained in this prospectus in connection with the offer
made hereby, and, if given or made, such information or representation must not
be relied upon as having been authorized by us. The delivery of this prospectus
at any time does not imply that the information herein is correct as of the time
subsequent to this date.
----------------
The date of this prospectus is May 5, 2000.
1
<PAGE>
AVAILABLE INFORMATION
---------------------
We are subject to the informational requirements of the Securities Exchange
Act of 1934, as amended, including Sections 14(a) and 14(c) relating to proxy
and information statements, and in accordance therewith file reports and other
information with the Securities and Exchange Commission. Reports and other
information filed by us can be inspected and copied at the public reference
facilities maintained by the Commission at 450 Fifth Street N.W., Washington,
D.C. 20549; 500 West Madison Street, Suite 1400, Chicago, Illinois 60661; 7
World Trade Center, New York, New York 10048; and 5670 Wilshire Boulevard, Los
Angeles, California 90036. Copies of such material can also be obtained from the
Public Reference Section of the Commission, 450 Fifth Street N.W., Washington,
D.C. 20549 at prescribed rates and on the Commission's website at www.sec.gov.
Our common stock is traded on the Electronic Bulletin Board under the symbol
"WRPR."
We furnish annual reports to our shareholders which include audited
financial statements. We may furnish such other reports as may be authorized,
from time to time, by our Board of Directors.
INCORPORATION BY REFERENCE
Certain documents have been incorporated by reference into this prospectus,
either in whole or in part. We will provide without charge (1) to each person to
whom a prospectus is delivered, upon written or oral request of such person, a
copy of any and all of the information that has been incorporated by reference
(not including exhibits to the information unless such exhibits are specifically
incorporated by reference into the information), and (2) documents and
information required to be delivered to our directors pursuant to Rule 428(b).
Requests for such information shall be addressed to us at 6535 South Dayton
Street, Suite 3000, Greenwood Village, Colorado 80111, (303) 799-9118.
2
<PAGE>
TABLE OF CONTENTS
-----------------
INTRODUCTION................................................................ 4
SELLING STOCKHOLDERS........................................................ 4
METHOD OF SALE.............................................................. 4
SEC POSITION REGARDING INDEMNIFICATION...................................... 5
DESCRIPTION OF THE PLAN..................................................... 5
APPLICABLE SECURITIES LAW RESTRICTIONS...................................... 6
TAX CONSEQUENCES............................................................ 7
LEGAL MATTERS............................................................... 8
EXPERTS ................................................................... 8
3
<PAGE>
INTRODUCTION
We own and operate an Internet site on the World Wide Web that broadcasts
"streaming" radio station programming 24 hours a day, seven days a week.
Streaming is a new technology that permits the simultaneous transmission and
playback of digitized audio streams over the Internet. We currently offer live,
uninterrupted radio programming from more than 125 radio stations across the
United States, free of charge. Our audience is able to receive local radio
programming online (without the use of a traditional radio) and outside the
listener's geographic area, allowing users to select from dozens of stations and
formats. While listening to our radio programming, users can continue to perform
other tasks on their computers.
SELLING STOCKHOLDERS
This prospectus covers possible sales by our officers and directors, as
well as employees whose names are not included herein, of shares they acquire
through exercise of options granted under the plan. The names of such officers
and directors who may be selling stockholders from time to time are listed
below, along with the number of shares of common stock currently owned by them
and the number of shares offered for sale hereby. The number of shares offered
for sale by such individuals may be updated in supplements to this prospectus,
which will be filed with the Securities and Exchange Commission in accordance
with Rule 424(b) under the Securities Act of 1933, as amended. The stockholders
listed below have sole voting and investment powers with respect to the shares.
Their addresses are in care of us.
Number of
Name of Selling Shareholdings Shares Offered
Stockholder Number (1) Percent for Sale (1)
----------- ---------- ------- ------------
Denise A. Sutton 6,544,500 62.9 175,000
James H. Comstock 175,000 1.7 175,000
(1) Represents shares underlying stock options issued under the plan.
METHOD OF SALE
Sales of the shares offered by this prospectus will be made on the
Electronic Bulletin Board where our common stock is listed for trading, in other
markets where our common stock may be traded, or in negotiated transactions.
Sales will be at prices current when the sales take place and will generally
involve payment of customary brokers' commissions. There is no present plan of
distribution.
4
<PAGE>
SEC POSITION REGARDING INDEMNIFICATION
Our Articles of Incorporation and Bylaws provide for indemnification of
officers and directors, among other things, in instances in which they acted in
good faith and in a manner they reasonably believed to be in, or not opposed to,
our best interests and in which, with respect to criminal proceedings, they had
no reasonable cause to believe their conduct was unlawful.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933, as amended, may be permitted to directors, officers or persons
controlling us under the provisions described above, we have been informed that
in the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in that Act and is therefore unenforceable.
DESCRIPTION OF THE PLAN
In October 1999, our stockholders approved our 1999 Stock Option Plan for
the benefit of our employees, officers, directors and consultants. We believe
that the plan provides an incentive to individuals to act as employees,
officers, directors and consultants and to maintain a continued interest in our
operations and future. All options are non-qualified stock options.
The terms of the plan provide that we are authorized to grant options to
purchase shares of common stock, which we refer to as "options" or "option
shares" to our employees, officers, directors and consultants upon the majority
consent of our Board of Directors acting as the Stock Option Committee. Any
employee, officer, director or consultant is eligible to receive options under
the plan. The option price to be paid by optionees for shares may be less than
the fair market value of the options shares as reported by the Electronic
Bulletin Board on the date of the grant, and fair market value is defined as the
mean price between the bid and offer prices on the grant date. Options must be
exercised within 10 years following the date of grant (or sooner at the
discretion of the Board of Directors), and the optionee must exercise options
during service to us, or within three months of termination of such service, 12
months in the event of death on disability. In the event an optionee is
terminated for cause, the option terminates immediately. The Board of Directors
may set and thereafter accelerate the times at which the options are exercisable
or extend the termination date of any options.
A total of 1,000,000 shares of our authorized but unissued common stock
have been reserved for issuance under the plan of which 575,000 options are
currently outstanding at exercise prices ranging from $1.00 to $5.00 per share.
Options under the plan may not be transferred, except by will or by the
laws of intestate succession. The number of shares and price per share of the
options under the plan will be proportionately adjusted to reflect forward and
reverse stock splits. The holder of an option under the plan has none of the
rights of a shareholder until shares are issued.
The plan is administered by our Board of Directors, acting as the
Committee, which has the power to interpret the plan, determine which persons
are to be granted options and the amount of such options.
5
<PAGE>
The provisions of the Federal Employee Retirement Income Security Act of
1974 do not apply to the plan. Shares issuable upon exercise of options will not
be purchased in open market transactions but will be issued by us from
authorized shares.
Payment for shares must be made by optionees in cash from their own funds.
No payroll deductions or other installment plans have been established. No
reports will be made to optionees under the plan except in the form of updated
information for the prospectus.
There are no assets administered under the plan and, accordingly, no
investment information is furnished.
Shares issuable under the plan may be sold in the open market, without
restrictions, as free trading securities. No options may be assigned,
transferred, hypothecated or pledged by the option holder. No person may create
a lien on any securities under the plan, except by operation of law. However,
there are no restrictions on the resale of the shares underlying the options.
The plan will remain in effect until December 2009, but may be terminated
or extended by our Board of Directors. Additional information concerning the
plan and its administrators may be obtained from us at the address and telephone
number indicated under "Incorporation by Reference" above.
APPLICABLE SECURITIES LAW RESTRICTIONS
If the plan optionee is deemed to be an "affiliate," as that term is
defined under the Securities Act of 1933, as amended, the resale of the shares
purchased upon exercise of options covered hereby will be subject to certain
restrictions and requirements. Our legal counsel may be called upon to discuss
these applicable restrictions and requirements with any optionee who may be
deemed to be an affiliate, prior to exercising an option.
In addition to the requirements imposed by the Securities Act of 1933, the
anti-fraud provisions of the Securities Exchange Act of 1934 and the rules
thereunder, including Rule 10b-5, are applicable to any sale of shares acquired
pursuant to options.
Up to 1,000,000 shares may be issued under the plan. We have authorized
50,000,000 shares of common stock of which 10,228,996 shares were outstanding as
of March 31, 2000. Common shares outstanding and those to be issued upon
exercise of options are fully paid and nonassessable, and each share of stock is
entitled to one vote at all shareholders' meetings. All shares are equal to each
other with respect to lien rights, liquidation rights and dividend rights. There
are no preemptive rights to purchase additional shares by virtue of the fact
that a person is our shareholder. Shareholders do not have the right to cumulate
their votes for the election of directors unless a candidate's name has been
placed in nomination prior to commencement of voting and a shareholder has given
notice prior to commencement of the voting of the shareholder's intention to
cumulate votes.
6
<PAGE>
Directors must comply with certain reporting requirements and resale
restrictions pursuant to Sections 16(a) and 16(b) of the Securities Exchange Act
of 1934 and the rules thereunder upon the receipt or disposition of any options.
TAX CONSEQUENCES
If an option is exercised and if the optionee does not dispose of the
shares acquired pursuant to the exercise within two years of the date of the
granting of the option nor within one year from the issuance of the shares
pursuant to exercise of the options, then there will not be any federal income
tax consequences to us from either the exercise of the option or the receipt of
the proceeds with respect to the exercise of the option. In such circumstances,
the optionee would not be required to recognize any taxable income upon the
exercise of the option. Furthermore, the sale of the shares received upon
exercise of the option would result in long-term capital gain or long-term
capital loss to the optionee based on the difference between the amount received
with respect to such sale and the amount paid upon the exercise of the option.
If an optionee exercised an option and sold the shares acquired pursuant to
such exercise either within two years from the date of the granting of the
option or within one year from the date of the transfer of such shares to him
pursuant to his exercise of the option, then in general we would be entitled to
a deduction for federal income tax purposes equal to lessor of: (1) the fair
market value of the stock on the date of exercise over the option price of the
stock; or (2) the amount realized on disposition over the adjusted basis of the
stock. The optionee would recognize income equal to the amount of our deduction.
Our deduction would be allowed, and the optionee's income would be taxable, in
the year the optionee disposed of the shares. However, if the disposition occurs
within two years of the date of the grant and the disposition is a sale or
exchange with respect to which a loss, if sustained, would be recognized
(generally any disposition other than to a related party), then the optionee's
income and our deduction would not exceed the excess (if any) of the amount
realized on such sale or exchange over the adjusted basis of such shares. We
expect that optionees will be required to exercise their options within ten
years from the date of grant although optionees may hold the shares issuable
upon exercise of the options indefinitely.
For options exercised after 1987, an individual generally must include in
alternative minimum taxable income the amount by which the option price paid is
exceeded by the fair market value at the time the individual's rights to the
shares are freely transferable or are not subject to a substantial risk of
forfeiture. The alternative minimum tax is payable only if the alternative
minimum tax exceeds the regular income tax liability.
The provision of Section 401(a) of the Code, relating to "qualified"
pension, profit sharing and stock bonus plans, do not apply to the options or
underlying shares covered hereby.
LEGAL MATTERS
The validity of the shares of common stock offered hereby upon exercise of
options will be passed on for us by Gary A. Agron, 5445 DTC Parkway, Suite 520,
Englewood, Colorado 80111.
7
<PAGE>
EXPERTS
Our financial statements which were incorporated by reference to our Annual
Report on Form 10K-SB for the years ended December 31, 1999, were audited by
Angell & Deering, independent public accountants and are incorporated herein by
reference.
8
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 3. Incorporation of Documents by Reference.
The Registrant hereby incorporates by reference in this Registration
Statement the following documents previously filed with the Securities and
Exchange Commission:
(a) The Registrant's Annual Report on Form 10K-SB for the year
ended December 31, 1999, filed pursuant to Section 13(a) of the
Securities Exchange Act of 1934 (the "Exchange Act");
(b) The description of the Registrant's common stock contained
in the Registrant's Registration Statement on Form 10-SB filed under
the Securities Exchange Act of 1934, as amended (Registration No.
0-28089), including any amendments or reports filed for the purpose of
updating such description.
(c) All other reports and subsequent reports filed pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended.
All reports and definitive proxy or information statements filed by the
Registrant pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act
after the date of this Registration Statement and prior to the filing of a
post-effective amendment which indicates that all securities offered hereby have
been sold or which deregisters all securities then remaining unsold at the time
of such amendment will be deemed to be incorporated by reference into this
Registration Statement and to be a part hereof from the date of filing of such
documents. Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Registration Statement to the extent that a statement
contained herein or in any other subsequently filed document which also is or is
deemed to be incorporated by reference herein modifies or supersedes such
statement. Any such statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this Registration
Statement.
Item 4. Description of Securities.
Not applicable.
Item 5. Interests of Named Experts and Counsel.
None.
II-1
<PAGE>
Item 6. Indemnification of Directors and Officers.
Incorporated by reference to the Registrant's Registration Statement on
Form 10-SB, File Number 0-28089.
Item 7. Exemption from Registration Claimed.
Not applicable.
Item 8. Exhibits.
The following is a list of Exhibits filed as part of the Registration
Statement:
4.0 1999 Stock Option Plan.
4.1 Non-Statutory Stock Option Agreement and Notice of Exercise.
5. Opinion of Gary A. Agron.
24. Consent of Angell & Deering, independent certified
public accountants.
Item 9. Undertakings.
The Registrant hereby undertakes (1) to file, during any period in which
offers or sales are being made, a post-effective amendment to this Registration
Statement; to include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933; (2) to reflect in the prospectus any facts or events
arising after the effective date of the Registration Statement (or the most
recent post- effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in
Registration Statement; (3) that, for the purpose of determining any liability
under the Securities Act of 1933, each post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof; and (4) to remove from registration by means
of a post-effective amendment any of the securities being registered which
remain unsold at the termination of the plan.
The Registrant hereby undertakes to deliver or cause to be delivered with
the prospectus to each person to whom the prospectus is sent or given, the
latest annual report to security holders that is incorporated by reference in
the prospectus and furnished pursuant to and meeting the requirements of Rule
14a-3 or Rule 14c-3 under the Securities Exchange Act of 1934; and, where
interim financial information required to be presented by Article 3 of
Regulation S-X are not set forth in the prospectus, to deliver, or cause to be
delivered to each person to whom the prospectus is sent or given, the latest
quarterly report that is specifically incorporated by reference in the
prospectus to provide such interim financial information.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
II-2
<PAGE>
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than payment by the Registrant of expenses incurred or
paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted against the
Registrant by such director, officer or controlling person in connection with
the securities being registered, the Registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the 1933 Act, as amended, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements of filing on Form S-8 and has caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in Greenwood Village, Colorado, on May 5, 2000.
WarpRadio.com, Inc.
By: /s/ Denise Sutton
------------------------------------------
Denise Sutton, Chief Executive Officer
Pursuant to the requirements of the 1933 Act, as amended, this Registration
Statement has been signed below by the following persons on the dates indicated.
Signature Title Date
--------- ----- ----
/s/ Denise Sutton Chief Executive Officer, May 5, 2000
- ---------------------------- Chief Financial Officer
Denise Sutton (Principal Accounting Officer)
/s/ James A. Comstock President and Director May 5, 2000
- ----------------------------
James A. Comstock
/s/ Denise Sutton Vice President May 5, 2000
- ----------------------------
Jo S. Hadley
II-4
<PAGE>
EXHIBIT INDEX
Exhibit No.: Exhibit:
------------ --------
4.0 1999 Stock Option Plan.
4.1 Non-Statutory Stock Option Agreement.
5. Opinion of Gary A. Agron.
23. Consent of Angell & Deering, independent certified
public accountants.
II-5
Exhibit 4.0
WARPRADIO.COM, INC.
1999 STOCK OPTION PLAN
Article I. Establishment and Purpose
------------------------------------
1.1 Establishment. WarpRadio.com, Inc., a Nevada corporation (the
"Company"), hereby establishes a stock option plan for officers, directors,
employees and consultants who provide services to the Company, as described
herein, which shall be known as the WarpRadio.com, Inc. 1999 Stock Option Plan
(the "Plan"). It is intended that options issued under the Plan shall constitute
"Nonstatutory Options" within the meaning of section 422A of the Internal
Revenue Code ("Code").
1.2 Purpose. The purpose of the Plan is to enhance the Company's
stockholder value and financial performance by attracting, retaining and
motivating the Company's officers, directors, employees and consultants and to
encourage stock ownership by such individuals by providing them with a means to
acquire a proprietary interest in the Company's success through stock ownership.
Article II. Definitions
-----------------------
2.1 Definitions. Whenever used herein, the following capitalized terms
shall have the meanings set forth below, unless the context clearly requires
otherwise.
(a) "Board" means the Board of Directors of the Company.
(b) "Code" means the Internal Revenue Code of 1986, as amended.
(c) "Committee" shall mean the Committee provided for by Article IV
hereof.
(d) "Company" means WarpRadio.com, Inc., a Nevada corporation.
(e) "Consultant" means any person or entity, including an officer or
director of the Company who provides services to the Company and shall
include a Nonemployee Director, as defined below.
(f) "Date of Exercise" means the date the Company receives notice, by an
Optionee, of the exercise of an Option pursuant to section 8.1 of the
Plan. Such notice shall indicate the number of shares of Stock the
Optionee intends to exercise.
(g) "Employee" means any person, including an officer or director of the
Company who is employed by the Company.
(h) "Fair Market Value" means the fair market value of Stock upon which an
Option is granted under this Plan.
1
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(i) "Nonemployee Director" means a member of the Board who is not an
employee of the Company at the time an Option is granted hereunder.
(j) "Nonstatutory Option" means an Option granted under the Plan which is
not intended to qualify as an Incentive Stock Option within the
meaning of section 422A of the Code. Nonstatutory Options may be
granted at such times and subject to such restrictions as the Board
shall determine without conforming to the statutory rules of section
422A of the Code applicable to Incentive Stock Options.
(k) "Option" means the right, granted under the Plan, to purchase Stock of
the Company at the option price for a specified period of time.
(l) "Optionee" means an officer, director, employee or consultant holding
an Option under the Plan.
(m) "Parent Corporation" shall have the meaning set forth in section
425(e) of the Code with the Company being treated as the employer
corporation for purposes of this definition.
(n) "Significant Shareholder" means an individual who, within the meaning
of section 422A(b)(6) of the Code, owns securities possessing more
than ten percent of the total combined voting power of all classes of
securities of the Company. In determining whether an individual is a
Significant Shareholder, an individual shall be treated as owning
securities owned by certain relatives of the individual and certain
securities owned by corporations in which the individual is a
shareholder; partnerships in which the individual is a partner; and
estates or trusts of which the individual is a beneficiary, all as
provided in section 425(d) of the Code.
(o) "Stock" means the $.001 par value common stock of the Company.
2.2 Gender and Number. Except when otherwise indicated by the context, any
masculine terminology when used in this Plan also shall include the feminine
gender, and the definition of any term herein in the singular also shall include
the plural.
Article III. Eligibility and Participation
------------------------------------------
3.1 Eligibility and Participation. All officers, directors, employees and
consultants are eligible to participate in this Plan and receive Nonstatutory
Options hereunder. Optionees in the Plan shall be selected by the Board from
among those officers, directors, employees and consultants who, in the opinion
of the Board, are in a position to contribute materially to the Company's
continued growth and development and to its long-term financial success.
2
<PAGE>
Article IV. Administration
--------------------------
4.1 Administration. The Board shall be responsible for administering the
Plan.
The Board is authorized to interpret the Plan; to prescribe, amend, and
rescind rules and regulations relating to the Plan; to provide for conditions
and assurances deemed necessary or advisable to protect the interests of the
Company; and to make all other determinations necessary or advisable for the
administration of the Plan, but only to the extent not contrary to the express
provisions of the Plan. Determinations, interpretations or other actions made or
taken by the Board, pursuant to the provisions of this Plan, shall be final and
binding and conclusive for all purposes and upon all persons.
The Plan shall be administered by the Board of Directors, acting as a
compensation committee. The Committee shall have full power and authority,
subject to the limitations of the Plan and any limitations imposed by the Board,
to construe, interpret and administer the Plan and to make determinations which
shall be final, conclusive and binding upon all persons, including, without
limitation, the Company, the stockholders, the directors and any persons having
any interests in any Options which may be granted under the Plan, and, by
resolution or resolution providing for the creation and issuance of any such
Option, to fix the terms upon which, the time or times at or within which, and
the price or prices at which any Stock may be purchased from the Company upon
the exercise of Options, which terms, time or times and price or prices shall,
in every case, be set forth or incorporated by reference in the instrument or
instruments evidencing such Option, and shall be consistent with the provisions
of the Plan.
The Committee shall select one of its members as Chairman, and shall hold
meetings at such times and places as the Chairman may determine. A majority of
the Committee at which a quorum is present, or acts reduced to or approved in
writing by all of the members of the Committee, shall be the valid acts of the
Committee. A quorum shall consist of a majority of the members of the Committee.
Where the Committee has been created by the Board, references herein to
actions to be taken by the Board shall be deemed to refer to the Committee as
well, except where limited by the Plan or the Board.
The Board shall have all of the enumerated powers of the Committee but
shall not be limited to such powers. No member of the Board or the Committee
shall be liable for any action or determination made in good faith with respect
to the Plan or any Option granted under it.
4.2 Special Provisions for Grants to Officers or Directors. Rule 16b-3 of
the Securities and Exchange Act of 1934 (the "Act") provides that the grant of a
stock option to a director or officer of a company subject to the Act will be
exempt from the provisions of section 16(b) of the Act if the conditions set
forth in said Rule are satisfied. Unless otherwise specified by the Board,
grants of Options hereunder to individuals who are officers or directors of the
Company shall be made in a manner that satisfies the conditions of said Rule.
3
<PAGE>
Article V. Stock Subject to the Plan
------------------------------------
5.1 Number. The total number of shares of Stock hereby made available and
reserved for issuance under the Plan shall be 1,000,000. The aggregate number of
shares of Stock available under this Plan shall be subject to adjustment as
provided in section 5.3. The total number of shares of Stock may be authorized
but unissued shares of Stock, or shares acquired by purchase as directed by the
Board from time to time in its discretion, to be used for issuance upon exercise
of Options granted hereunder.
5.2 Unused Stock. If an Option shall expire or terminate for any reason
without having been exercised in full, the unpurchased shares of Stock subject
thereto shall (unless the Plan shall have terminated) become available for other
Options under the Plan.
5.3 Adjustment in Capitalization. In the event of any change in the
outstanding shares of Stock by reason of a stock dividend or split,
recapitalization, reclassification or other similar corporate change, the
aggregate number of shares of Stock set forth in section 5.1 shall be
appropriately adjusted by the Board to reflect such change. The Board's
determination shall be conclusive; provided, however, that fractional shares
shall be rounded to the nearest whole share. In any such case, the number and
kind of shares of Stock that are subject to any Option (including any Option
outstanding after termination of employment) and the Option price per share
shall be proportionately and appropriately adjusted without any change in the
aggregate Option price to be paid therefor upon exercise of the Option.
Article VI. Duration of the Plan
--------------------------------
6.1 Duration of the Plan. The Plan shall be in effect until December 31,
2009 unless extended by the Company's shareholders. Any Options outstanding at
the end of said period shall remain in effect in accordance with their terms.
The Plan shall terminate before the end of said period, if all Stock subject to
it has been purchased pursuant to the exercise of Options granted under the
Plan.
Article VII. Terms of Stock Options
-----------------------------------
7.1 Grant of Options. Subject to section 5.1, Options may be granted to
officers, directors, employees and consultants at any time and from time to time
as determined by the Board. The Board shall have complete discretion in
determining the number of Options granted to each Optionee. In making such
determinations, the Board may take into account the nature of services rendered
by such officers, directors, employees or consultants, their present and
potential contributions to the Company, and such other factors as the Board in
its discretion shall deem relevant.
4
<PAGE>
The Board is expressly authorized to issue amended or replacement Options
with respect to shares of Stock subject to an Option previously granted
hereunder. An amended Option amends the terms of an Option previously granted
(including an extension of the terms of such Option) and thereby supersedes the
previous Option. A replacement Option is similar to a new Option granted
hereunder except that it provides that it shall be forfeited to the extent that
a previously granted Option is exercised, or except that its issuance is
conditioned upon the termination of a previously granted Option.
7.2 No Tandem Options. Options shall not contain terms pursuant to which
the exercise of the Option would affect the Optionee's right to exercise another
Option, or vice versa.
7.3 Option Agreement; Terms and Conditions to Apply Unless Otherwise
Specified. As determined by the Board on the date of grant, each Option shall be
evidenced by an Option agreement (the "Option Agreement") that includes the
nontransferability provisions required by section 10.2 hereof and specifies: the
Option price; the term (duration) of the Option; the number of shares of Stock
to which the Option applies; any vesting or exercisability restrictions which
the Board may impose; and any other terms or conditions which the Board may
impose. All such terms and conditions shall be determined by the Board at the
time of grant of the Option.
If not otherwise specified by the Board or by a written agreement between
the Company and the Optionee, the following terms and conditions shall apply to
Options granted under the Plan:
(a) Term. The Option shall be exercisable to purchase Stock for a period
of ten years from the date of grant, as evidenced by the execution
date of the Option Agreement.
(b) Exercise of Option. Unless an Option is terminated as provided
hereunder, an Optionee may exercise his Option for up to, but not in
excess of, the number of shares of Stock subject to the Option
specified below, based on the Optionee's number of years of continuous
service with the Company from the date on which the Option is granted.
In the case of an Optionee who is an officer or employee, continuous
service shall mean continuous employment; in the case of an Optionee
who is a director or consultant, continuous service shall mean the
continuous provision of directorial or consulting services. In
applying said limitations, the amount of shares, if any, previously
purchased by the Optionee under the Option shall be counted in
determining the amount of shares the Optionee can purchase at any
time. The Optionee may exercise his Option in the following amounts:
(i) After one (1) year of continuous services to the Company, the
Optionee may purchase up to 50% of the shares of Stock subject to
the Option;
5
<PAGE>
(ii) After two (2) years of continuous services to the Company, the
Optionee may purchase the remaining 50% of the shares of Stock
subject to the Option.
The Board may specify terms and conditions other than those set forth
above, in its discretion.
All Option Agreements shall incorporate the provisions of the Plan by
reference.
7.4 Option Price. Options granted pursuant to this Plan may have an Option
price that is less than the Fair Market Value of the Stock on the date the
Option is granted.
7.5 Term of Options. Each Option shall expire at such time as the Board
shall determine, provided, however, that no Option shall be exercisable later
than ten years from the date of its grant.
7.6 Exercise of Options. Options granted under the Plan shall be
exercisable at such times and be subject to such restrictions and conditions as
the Board shall in each instance approve, which need not be the same for all
Optionees.
7.7 Payment. Payment for all shares of Stock shall be made at the time that
an Option, or any part thereof, is exercised, and no shares shall be issued
until full payment therefor has been made. Payment shall be made (i) in cash or
certified funds, or (ii) if acceptable to the Board, in Stock or in some other
form of payment.
Article VIII. Written Notice, Issuance of
Stock Certificates, Stockholder Privileges
------------------------------------------
8.1 Written Notice. An Optionee wishing to exercise an Option shall give
written notice to the Company, in the form and manner prescribed by the Board.
Full payment for the shares exercised pursuant to the Option must accompany the
written notice.
8.2 Issuance of Stock Certificates. As soon as practicable after the
receipt of written notice and payment, the Company shall deliver to the Optionee
or to a nominee of the Optionee a certificate or certificates for the requisite
number of shares of Stock.
8.3 Privileges of a Stockholder. An Optionee or any other person entitled
to exercise an Option under this Plan shall not have stockholder privileges with
respect to any Stock covered by the Option until the date of issuance of a stock
certificate for such stock.
Article IX. Termination of Employment or Services
-------------------------------------------------
Except as otherwise expressly specified by the Board for Nonstatutory
Options, all Options granted under this Plan shall be subject to the following
termination provisions:
6
<PAGE>
9.1 Death. If an Optionee's employment in the case of an Officer, or
provision of services as a Director or Consultant, terminates by reason of
death, the Option may thereafter be exercised at any time prior to the
expiration date of the Option or within 12 months after the date of such death,
whichever period is the shorter, by the person or persons entitled to do so
under the Optionee's will or, if the Optionee shall fail to make a testamentary
disposition of an Option or shall die intestate, the Optionee's legal
representative or representatives. The Option shall be exercisable only to the
extent that such Option was exercisable as of the date of Optionee's death.
9.2 Termination Other Than For Cause or Due to Death. In the event of an
Optionee's termination of employment, in the case of an officer or employee, or
termination of services as a director or consultant, other than by reason of
death, the Optionee may exercise such portion of his Option as was exercisable
by him at the date of such termination (the "Termination Date") at any time
within three (3) months of the Termination Date; provided, however, that where
the Optionee is terminated due to disability within the meaning of Code section
422A, he may exercise such portion of his Option as was exercisable by him on
his Termination Date within one year of his Termination Date. In any event, the
Option cannot be exercised after the expiration of the term of the Option.
Options not exercised within the applicable period specified above shall
terminate.
In the case of an officer, a change of duties or position within the
Company, shall not be considered a termination of employment for purposes of
this Plan. The Option Agreements may contain such provisions as the Board shall
approve with reference to the effect of approved leaves of absence upon
termination of employment.
9.3 Termination for Cause. In the event of an Optionee's termination of
employment, in the case of an officer or employee or termination of services as
a director or consultant, which termination is by the Company for cause, any
Options held by him under the Plan, to the extent not exercised before such
termination, shall forthwith terminate.
Article X. Rights of Optionees
------------------------------
10.1 Service. Nothing in this Plan shall interfere with or limit in any way
the right of the Company to terminate any employee's employment, or any
consultant's services, at any time, nor confer upon any officer, director,
employee or consultant any right to continue in the employ of the Company or to
provide services to the Company.
10.2 Nontransferability. Options granted under this Plan shall be
nontransferable by the Optionee, other than by will or the laws of descent and
distribution, and shall be exercisable during the Optionee's lifetime only by
the Optionee.
7
<PAGE>
Article XI. Optionee-Officer's
Transfer or Leave of Absence
----------------------------
11.1 Optionee's Transfer or Leave of Absence. For Plan purposes a transfer
or leave of absence by an Optionee who is an officer or employee shall not be
deemed a termination of employment. However, an Optionee may not exercise an
Option during any leave of absence, unless authorized by the Board.
Article XII. Amendment, Modification
and Termination of the Plan
---------------------------
12.1 Amendment, Modification, and Termination of the Plan. The Board may at
any time terminate, and from time to time may amend or modify the Plan. No
amendment, modification or termination of the Plan shall in any manner adversely
affect any outstanding Option under the Plan without the consent of the Optionee
holding the Option.
Article XIII. Acquisition, Merger and Liquidation
-------------------------------------------------
13.1 Acquisition. In the event that an Acquisition occurs with respect to
the Company, the Company shall have the option, but not the obligation, to
cancel Options outstanding as of the effective date of Acquisition, whether or
not such Options are then exercisable, in return for payment to the Optionees of
an amount equal to a reasonable estimate of an amount (hereinafter the "Spread")
equal to the difference between the net amount per share of Stock payable in the
Acquisition, or as a result of the Acquisition, less the exercise price of the
Option. In estimating the Spread, appropriate adjustments to give effect to the
existence of the Options shall be made, such as deeming the Options to have been
exercised, with the Company receiving the exercise price payable thereunder, and
treating the shares receivable upon exercise of the Options as being outstanding
in determining the net amount per share. For purposes of this section, an
"Acquisition" shall mean any transaction in which substantially all of the
Company's assets are acquired or in which a controlling amount of the Company's
outstanding shares are acquired, in each case by a single person or entity or an
affiliated group of persons and/or entities. For purposes of this section a
controlling amount shall mean more than 50% of the issued and outstanding shares
of stock of the Company. The Company shall have such an option regardless of how
the Acquisition is effectuated, whether by direct purchase, through a merger or
similar corporate transaction, or otherwise. In cases where the acquisition
consists of the acquisition of assets of the Company, the net amount per share
shall be calculated on the basis of the net amount receivable with respect to
shares upon a distribution and liquidation by the Company after giving effect to
expenses and charges, including but not limited to taxes, payable by the Company
before the liquidation can be completed.
Where the Company does not exercise its option under this section 13.1, the
remaining provisions of this Article XIII shall apply, to the extent applicable.
8
<PAGE>
13.2 Merger or Consolidation. Subject to any required action by the
stockholders, if the Company shall be the surviving corporation in any merger or
consolidation, any Option granted hereunder shall pertain to and apply to the
securities to which a holder of the number of shares of Stock subject to the
Option would have been entitled in such merger or consolidation.
13.3 Other Transactions. A dissolution or a liquidation of the Company or a
merger and consolidation in which the Company is not the surviving corporation
shall cause every Option outstanding hereunder to terminate as of the effective
date of such dissolution, liquidation, merger or consolidation. However, the
Optionee either (i) shall be offered a firm commitment whereby the resulting or
surviving corporation in a merger or consolidation will tender to the Optionee
an option (the "Substitute Option") to purchase its shares on terms and
conditions both as to number of shares and otherwise, which will substantially
preserve to the Optionee the rights and benefits of the Option outstanding
hereunder granted by the Company, or (ii) shall have the right immediately prior
to such dissolution, liquidation, merger, or consolidation to exercise any
unexercised Options whether or not then exercisable, subject to the provisions
of this Plan. The Board shall have absolute and uncontrolled discretion to
determine whether the Optionee has been offered a firm commitment and whether
the tendered Substitute Option will substantially preserve to the Optionee the
rights and benefits of the Option outstanding hereunder. In any event, any
Substitute Option for an Incentive Stock Option shall comply with the
requirements of Code section 425(a).
Article XIV. Securities Registration
------------------------------------
14.1 Securities Registration. In the event that the Company shall deem it
necessary or desirable to register under the Securities Act of 1933, as amended,
or any other applicable statute, any Options or any Stock with respect to which
an Option may be or shall have been granted or exercised, or to qualify any such
Options or Stock under the Securities Act of 1933, as amended, or any other
statute, then the Optionee shall cooperate with the Company and take such action
as is necessary to permit registration or qualification of such Options or
Stock.
Unless the Company has determined that the following representation is
unnecessary, each person exercising an Option under the Plan may be required by
the Company, as a condition to the issuance of the shares pursuant to exercise
of the Option, to make a representation in writing (a) that the Optionee is
acquiring such shares for his own account for investment and not with a view to,
or for sale in connection with, the distribution of any part thereof, (b) that
before any transfer in connection with the resale of such shares, the Optionee
will obtain the written opinion of counsel for the Company, or other counsel
acceptable to the Company, that such shares may be transferred. The Company may
also require that the certificates representing such shares contain legends
reflecting the foregoing.
9
<PAGE>
Article XV. Tax Withholding
---------------------------
15.1 Tax Withholding. Whenever shares of Stock are to be issued in
satisfaction of Options exercised under this Plan, the Company shall have the
power to require the recipient of the Stock to remit to the Company an amount
sufficient to satisfy federal, state and local withholding tax requirements.
Article XVI. Indemnification
----------------------------
16.1 Indemnification. To the extent permitted by law, each person who is or
shall have been a member of the Board shall be indemnified and held harmless by
the Company against and from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by him in connection with or resulting from
any claim, action, suit, or proceeding to which he may be a party or in which he
may be involved by reason of any action taken or failure to act under the Plan
and against and from any and all amounts paid by him in settlement thereof, with
the Company's approval, or paid by him in satisfaction of judgment in any such
action, suit or proceeding against him, provided he shall give the Company an
opportunity, at its own expense, to handle and defend the same before he
undertakes to handle and defend it on his own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Company's articles of incorporation
or bylaws, as a matter of law, or otherwise, or any power that the Company may
have to indemnify them or hold them harmless.
Article XVII. Requirements of Law
---------------------------------
17.1 Requirements of Law. The granting of Options and the issuance of
shares of Stock upon the exercise of an Option shall be subject to all
applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.
17.2 Governing Law. The Plan and all agreements hereunder shall be
construed in accordance with and governed by the laws of the State of Nevada.
Article XVIII. Effective Date of Plan
-------------------------------------
18.1 Effective Date. The Plan shall be effective on December 14, 1999.
Article XIX. No Obligation to Exercise Option
---------------------------------------------
20.1 No Obligation to Exercise. The granting of an Option shall impose no
obligation upon the holder thereof to exercise such Option.
Dated at Denver, Colorado, December 14, 1999.
WARPRADIO.COM, INC.
By________________________________
Denise Sutton, Chief Executive Officer
<PAGE>
WarpRadio.com, Inc.
NOTICE OF EXERCISE OF STOCK OPTION
ISSUED UNDER THE 1999 STOCK OPTION PLAN
To: Compensation Committee
WarpRadio.com, Inc.
6535 South Dayton Street, Suite 3000
Greenwood Village, CO 80111
I hereby exercise my Option dated _____________________________ to purchase
__________ shares of no par value common stock of the Company at the option
exercise price of $__________ per share. Enclosed is a certified or cashier's
check in the total amount of $__________, or payment in such other form as the
Company has specified.
I represent to you that I am acquiring said shares for investment purposes
and not with a view to any distribution thereof. I understand that my stock
certificate may bear an appropriate legend restricting the transfer of my shares
and that a stock transfer order may be placed with the Company's transfer agent
with respect to such shares.
I request that my shares be issued in my name as follows:
- --------------------------------------------------------------------------------
(Print your name in the form in which you wish to have the shares registered)
- --------------------------------------------------------------------------------
(Social Security Number)
- --------------------------------------------------------------------------------
(Street and Number)
- --------------------------------------------------------------------------------
(City) (State) (Zip Code)
- --------------------------------------------------------------------------------
(Date)
- --------------------------------------------------------------------------------
(Signature)
Exhibit 4.1
WarpRadio.com, Inc.
NON-STATUTORY STOCK OPTION AGREEMENT
UNDER THE 1999 STOCK OPTION PLAN
Between:
WarpRadio.com, Inc. (the "Company") and ________________________ (the
"Optionee") dated _________________________________________ , 2000.
The Company hereby grants to the Optionee an option (the "Option") to
purchase __________ shares of the Company's common stock ("Stock") under the
WarpRadio.com, Inc. 1999 Stock Option Plan (the "Plan") upon the following terms
and conditions:
1. Purchase Price. The purchase price of the Stock shall be $__________ per
share.
2. Non-Statutory Option. The Option shall be a Non-Statutory Option, as
defined in the Plan.
3. Period of Exercise. Unless otherwise agreed to in writing, the Option
will expire ten (10) years from the date of this Agreement. The Option may be
exercised only while the Optionee is actively providing services to the Company
and as provided in Section 5 dealing with termination of services.
4. Unless otherwise agreed to in writing, the Option may be exercised for
up to, but not in excess of, the amounts of shares subject to the Option
specified below, based on the Optionee's number of years of continuous services
with the Company from the date hereof. In applying the following limitations,
the amount of shares, if any, previously purchased by Optionee shall be counted
in determining the amount of shares the Optionee can purchase at any time in
accordance with said limitations. The Optionee may exercise the Option in the
following amounts and in accordance with the conditions set forth in paragraph
7.3 of the Plan:
a. After one (1) year of continuous services to the Company, the
Optionee may purchase up to fifty percent (50%) of the shares of Stock subject
to the Option;
b. After two (2) years of continuous services to the Company, the
Optionee may purchase the remaining fifty percent (50%) of the shares of Stock
subject to the Option.
In the event the Optionee's services with the Company are terminated due to
Optionee's disability or death as described in paragraphs 5(a) and 5(b), the
foregoing vesting schedule shall be accelerated and the Option shall upon such
disability or death become exercisable in whole or in part. This Option may not
be exercised for less than fifty (50) shares at any time unless the number of
shares purchased is the total number purchasable at the time under the Option.
-1-
<PAGE>
5. Transferability. This Option is not transferable except by will or the
laws of descent and distribution, and may be exercised during the lifetime of
the Optionee only by him.
6. Termination of Services. In the event of a termination in the providing
of services by Optionee to the Company, including serving as a Non-Employee
Director as defined in the Plan, the Option may be exercised (to the extent
exercisable at the date of his termination) by the Optionee within three months
after the date of such termination provided, however, that:
a. If the Optionee's consulting relationship is terminated because he
is disabled within the meaning of Internal Revenue Code section 422A, the
Optionee shall have one year rather than three months to exercise the Option (to
the extent exercisable at the date of his termination).
b. If the Optionee dies, the Option may be exercised (to the extent
exercisable by the Optionee at the date of his death) by his legal
representative or by a person who acquired the right to exercise such option by
bequest or inheritance or by reason of the death of the Optionee, but the Option
must be exercised within one year after the date of the Optionee's death.
c. If the Optionee's relationship is terminated for cause, this Option
shall terminate immediately.
d. In no event (including death of the Optionee) may this Option be
exercised more than ten (10) years from the date hereof.
7. No Guarantee of Services. This Agreement shall in no way restrict the
right of the Company to terminate Optionee's relationship at any time.
8. Investment Representation; Legend. The Optionee (and any other purchaser
under paragraphs 5(a) or 5(b) hereof) represents and agrees that all shares of
Stock purchased by him under this Agreement will be purchased for investment
purposes only and not with a view to distribution or resale. The Company may
require that an appropriate legend be inscribed on the face of any certificate
issued under this Agreement, indicating that transfer of the Stock is
restricted, and may place an appropriate stop transfer order with the Company's
transfer agent with respect to the Stock.
9. Method of Exercise. The Option may be exercised, subject to the terms
and conditions of this Agreement, by written notice to the Company. The notice
shall be in the form attached to this Agreement and will be accompanied by
payment (in such form as the Company may specify) of the full purchase price of
the Stock to be issued, and in the event of an exercise under the terms of
paragraphs 5(a) or 5(b) hereof, appropriate proof of the right to exercise the
Option. The Company will issue and deliver certificates representing the number
of shares purchased under the Option, registered in the name of the Optionee (or
other purchaser under paragraph 5 hereof) as soon as practicable after receipt
of the notice.
-2-
<PAGE>
10. Incorporation of Plan. This Agreement is made pursuant to the
provisions of the Plan, which Plan is incorporated by reference herein. Terms
used herein shall have the meaning employed in the Plan, unless the context
clearly requires otherwise. In the event of a conflict between the provisions of
the Plan and the provisions of this Agreement, the provisions of the Plan shall
govern.
Dated:
-----------------------------
WarpRadio.com, Inc.
By:
---------------------------------------
Denise Sutton, Chief Executive Officer
ACCEPTED:
- ------------------------------
Optionee
-3-
Exhibit 5
May 5, 2000
WarpRadio.com, Inc.
6535 South Dayton Street, Suite 3000
Greenwood Village, Colorado 80111
Ladies and Gentlemen:
We have assisted in the preparation and filing by WarpRadio.com, Inc. (the
"Company") of a Registration Statement on Form S-8 (the "Registration
Statement") with the Securities and Exchange Commission relating to 1,000,000
shares of $.001 par value Common Stock (the "Option Shares") of the Company
issuable upon exercise of options granted under the Company's 1999 Stock Option
Plan, as amended (the "Option").
We have examined such records and documents and have made such examination
of laws as we considered necessary to form a basis for the opinions set forth
herein. In our examination, we have assumed the genuineness of all signatures,
the authenticity of all documents submitted to us as originals, and the
conformity with the originals of all documents submitted to us as copies
thereof.
Based upon and subject to the foregoing, we are of the opinion that the
Option Shares have been duly authorized and reserved for issuance and such
Option Shares, when issued in accordance with the terms of the Option against
payment therefor, will be duly and validly issued, fully paid and nonassessable.
The foregoing assumes that all requisite steps will be taken to comply with
the requirements of the Securities Act of 1933, as amended, and applicable state
laws relating to the offer and sales of securities.
We consent to the filing of a copy of this opinion in the Registration
Statement and the use of our opinion in connection therewith.
Very truly yours,
/s/ Gary A. Agron
-----------------
Gary A. Agron
Exhibit 23
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
As independent certified public accountants, we hereby consent to the
incorporation by reference in the Registration Statement on Form S-8 for the
1999 Stock Option Plan of WarpRadio.com, Inc. ("Registration Statement") of our
report dated January 26, 2000, which appears on page F-2 of WarpRadio.com,
Inc.'s Annual Report on Form 10-KSB for the year ended December 31, 1999 and to
the reference made to our firm under the caption "Experts" included in or made
part of this Registration Statement.
/s/ ANGELL & DEERING
--------------------
ANGELL & DEERING
Certified Public Accountants
Denver, Colorado
April 26, 2000
