EXHIBIT 10.18
FORM OF WARRANT
THIS WARRANT AND THE SECURITIES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
STATE SECURITIES LAW, AND MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE ACT OR IN A TRANSACTION WHICH, IN THE OPINION OF COUNSEL
REASONABLY SATISFACTORY TO XXXXXX MEDICAL GROUP, INC., QUALIFIES AS AN EXEMPT
TRANSACTION UNDER THE ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.
XXXXXX MEDICAL GROUP, INC.
COMMON STOCK PURCHASE WARRANT
XXXXXX MEDICAL GROUP, INC., a Delaware corporation (the "Company"),
hereby certifies that, for value received, _____________________ (the "Holder"),
or assigns, is entitled, subject to the terms set forth below, to purchase from
the Company, at any time and from time to time during the period beginning on
___________ and ending on ___________, in whole or in part, an aggregate of
____________________________ (_____) fully paid and non-assessable shares of the
Common Stock of the Company at a purchase price, subject to the provisions of
Paragraph 3 hereof, of $3.166456 per share (the "Purchase Price"). The Purchase
Price and the number and character of such shares are subject to adjustment as
provided below and the term "Common Stock" shall mean, unless the context
otherwise requires, the stock or other securities or property at the time
deliverable upon the exercise of this Warrant. This Warrant is herein called the
"Warrant."
1. EXERCISE OF WARRANT. The purchase rights evidenced by this Warrant
shall be exercised by the holder surrendering this Warrant, with the form of
subscription at the end hereof duly executed by such holder, to the Company at
its office in Arlington, Tennessee, accompanied by payment of an amount (the
"Exercise Payment") equal to the Purchase Price multiplied by the number of
shares being purchased pursuant to such exercise, payable as follows: (i) by
payment to the Company in cash, by certified or official bank check, or by wire
transfer of the Exercise Payment, (ii) by surrender to the Company for
cancellation of securities of the Company having a Market Price (as hereinafter
defined) on the date of exercise equal to the Exercise Payment; or (iii) by a
combination of the methods described in clauses (i) and (ii) above. In lieu of
exercising the Warrant, the holder may elect to receive a payment equal to the
difference between (i) the Market Price multiplied by the number of shares as to
which the Warrant is then being exercised and (ii) the Exercise Payment with
respect to such shares, payable by the Company to the Holder only in shares of
Common Stock valued at the Market Price on the date of exercise. For purposes
hereof, the term "Market Price" shall mean the average closing price of a share
of Common Stock for the 15 consecutive trading days preceding
such day on the principal national securities exchange on which the shares of
Common Stock or securities are listed or admitted to trading or, if not listed
or admitted to trading on any national securities exchange, the average of the
reported bid and asked prices during such 15 trading day period in the
over-the-counter market as furnished by the National Quotation Bureau, Inc., or,
if such firm is not then engaged in the business of reporting such prices, as
furnished by any member of the National Association of Securities Dealers, Inc.
selected by the Company or, if the shares of Common Stock or securities are not
publicly traded, the Market Price for such day shall be the fair market value
thereof determined jointly by the Company and the holder of this Warrant;
PROVIDED, HOWEVER, that if such parties are unable to reach agreement within a
reasonable period of time, the Market Price shall be determined in good faith by
the independent investment banking firm selected jointly by the Company and the
holder of this Warrant or, if that selection cannot be made within 15 days, by
an independent investment banking firm selected by the American Arbitration
Association in accordance with its rules.
1.1. PARTIAL EXERCISE. This Warrant may be exercised for less
than the full number of shares of Common Stock, in which case the number of
shares receivable upon the exercise of this Warrant as a whole, and the sum
payable upon the exercise of this Warrant as a whole, shall be proportionately
reduced. Upon any such partial exercise, the Company at its expense will
forthwith issue to the holder hereof a new Warrant or Warrants of like tenor
calling for the number of shares of Common Stock as to which rights have not
been exercised, such Warrant or Warrants to be issued in the name of the holder
hereof or his nominee (upon payment by such holder of any applicable transfer
taxes).
2. DELIVERY OF STOCK CERTIFICATES ON EXERCISE. As soon as practicable
after the exercise of this Warrant and payment of the Purchase Price, and in any
event within ten (10) days thereafter, the Company, at its expense, will cause
to be issued in the name of and delivered to the holder hereof a certificate or
certificates for the number of fully paid and non-assessable shares or other
securities or property to which such holder shall be entitled upon such
exercise, plus, in lieu of any fractional share to which such holder would
otherwise be entitled, cash in an amount determined in accordance with Paragraph
3.9 hereof. The Company agrees that the shares so purchased shall be deemed to
be issued to the holder hereof as the record owner of such shares as of the
close of business on the date on which this Warrant shall have been surrendered
and payment made for such shares as aforesaid.
3. ANTI-DILUTION PROVISIONS AND OTHER ADJUSTMENTS. In order to prevent
dilution of the right granted hereunder, the Purchase Price shall be subject to
adjustment from time to time in accordance with this Paragraph 3. Upon each
adjustment of the Purchase Price pursuant to this Paragraph 3, the registered
Holder of this Warrant shall thereafter be entitled to acquire upon exercise, at
the Purchase Price resulting from such adjustment, the number of shares of the
Company's Common Stock obtainable by multiplying the Purchase Price in effect
immediately prior to such adjustment by the number of shares of the Company's
Common Stock acquirable immediately prior to such
adjustment and dividing the product thereof by the Purchase Price resulting from
such adjustment.
3.1. ADJUSTMENT FOR ISSUE OR SALE OF COMMON STOCK AT LESS THAN
PURCHASE PRICE Except as provided in Paragraph 3.2 or 3.5 below and except for
issuances upon exercise of (i) options issued under the 1999 Stock Option Plan
(as defined below), (ii) Series A Options (as defined below) and (iii) Warrants
(as defined below), if and whenever on or after the date of issuance hereof the
Company shall issue or sell, or shall in accordance with subparagraphs 3.1(1) to
(9), inclusive, be deemed to have issued or sold, any shares of its Common Stock
for a consideration per share less than the Purchase Price in effect immediately
prior to the time of such issue or sale, then forthwith upon such issue or sale
(the "Triggering Transaction"), the Purchase Price shall, subject to
subparagraphs (1) to (9) of this Paragraph 3.1, be reduced to the Purchase Price
(calculated to the nearest tenth of a cent) determined by dividing:
(i) an amount equal to the sum of (x) the product
derived by multiplying the Number of Common
Shares Deemed Outstanding immediately prior to
such Triggering Transaction by the Purchase
Price then in effect, plus (y) the
consideration, if any, received by the Company
upon consummation of such Triggering
Transaction, by
(ii) an amount equal to the sum of (x) the Number of
Common Shares Deemed Outstanding immediately
prior to such Triggering Transaction plus (y)
the number of shares of Common Stock issued (or
deemed to be issued in accordance with
subparagraphs 3.1(1) to (9)) in connection with
the Triggering Transaction.
For purposes of this Paragraph 3, the term "Number of Common Shares
Deemed Outstanding" at any given time shall mean the sum of (i) the number of
shares of the Company's Common Stock outstanding at such time, and (ii) the
number of shares of the Company's Common Stock deemed to be outstanding under
subparagraphs 3.1(1) to (9), inclusive, at such time.
For purposes of determining the adjusted Purchase Price under this
Paragraph 3.1, the following subsections (1) to (9), inclusive, shall be
applicable:
(1) In case the Company at any time shall in any manner grant
(whether directly or by assumption in a merger or otherwise)
any rights to subscribe for or to purchase, or any options for
the purchase of, Common Stock or any stock or other securities
convertible into or exchangeable for Common Stock (such rights
or options being herein called "Options" and such convertible
or exchangeable stock or securities being herein called
"Convertible Securities"), other than (A) options granted to
employees, directors and consultants pursuant to the Company's
1999 Stock Option
Plan which represent in the aggregate not in excess of 10% of
the Company's total outstanding shares of capital stock (on a
fully diluted basis assuming conversion of all of the issued
and outstanding Series A Preferred Stock, par value $.01 per
share, of the Company (the "Series A Preferred Stock") and
exercise of all of the issued and outstanding Warrants (as
defined below)) (the "1999 Stock Option Plan"), (B) options
granted to certain executive officers of the Company (the
"Series A Options") pursuant to the Series A Options (as
defined in the Amended and Restated Agreement and Plan of
Merger, dated as of December 7, 1999, by and among the
Company, Warburg, Xxxxxx Equity Partners, L.P., Xxxxxx
Acquisition Corp., Inc. and Xxxxxx Medical Technology, Inc.
(the "Merger Agreement"), (C) shares of Series A Preferred
Stock granted in exchange for a like amount of shares of
Series B Preferred Stock which were issued pursuant to the
Merger Agreement and (D) warrants to purchase Common Stock
issued to certain stockholders of the Company pursuant to the
Merger Agreement (the "Warrants"), whether or not such Options
or the right to convert or exchange any such Convertible
Securities are immediately exercisable and the price per share
for which the Common Stock is issuable upon exercise,
conversion or exchange (determined by dividing (x) the total
amount, if any, received or receivable by the Company as
consideration for the granting of such Options, plus the
minimum aggregate amount of additional consideration payable
to the Company upon the exercise of all such Options, plus, in
the case of such Options which relate to Convertible
Securities, the minimum aggregate amount of additional
consideration, if any, payable upon the issue or sale of such
Convertible Securities and upon the conversion or exchange
thereof, by (y) the total maximum number of shares of Common
Stock issuable upon the exercise of such Options or the
conversion or exchange of such Convertible Securities) shall
be less than the Purchase Price in effect immediately prior to
the time of the granting of such Option," then the total
maximum amount of Common Stock issuable upon the exercise of
such Options, or, in the case of Options for Convertible
Securities, upon the conversion or exchange of such
Convertible Securities, shall (as of the date of granting of
such Options) be deemed to be outstanding and to have been
issued and sold by the Company for such price PER share. No
adjustment of the Purchase Price shall be made upon the actual
issue of such shares of Common Stock or such Convertible
Securities upon the exercise of such Options, except as
otherwise provided in subparagraph (3) below.
(2) In case the Company at any time shall in any manner issue
(whether directly or by assumption in a merger or otherwise)
or sell any Convertible Securities, whether or not the rights
to exchange or convert thereunder are immediately exercisable,
and the price per share for which Common Stock is issuable
upon such conversion or exchange (determined by dividing (x)
the total amount received or receivable by the Company as
consideration for the issue or sale of such Convertible
Securities, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the
conversion or exchange thereof, by (y) the total maximum
number of shares of Common Stock issuable upon the conversion
or exchange of all such Convertible Securities) shall be less
than the Purchase Price in effect immediately prior to the
time of such issue or sale, then the total maximum number of
shares of Common Stock issuable upon conversion or exchange of
all such Convertible Securities shall (as of the date of the
issue or sale of such Convertible Securities) be deemed to be
outstanding and to have been issued and sold by the Company
for such price per share. No adjustment of the Purchase Price
shall be made upon the actual issue of such Common Stock upon
exercise of the rights to exchange or convert under such
Convertible Securities, except as otherwise provided in
subparagraph (3) below.
(3) If the purchase price provided for in any Options referred
to in subparagraph (1), the additional consideration, if any,
payable upon the conversion or exchange of any Convertible
Securities referred to in subparagraphs (1) or (2), or the
rate at which any Convertible Securities referred to in
subparagraph (1) or (2) are convertible into or exchangeable
for Common Stock shall change at any time (other than under or
by reason of provisions designed to protect against dilution
of the type set forth in Paragraph 3.1 or 3.3), the Purchase
Price in effect at the time of such change shall forthwith be
readjusted to the Purchase Price which would have been in
effect at such time had such Options or Convertible Securities
still outstanding provided for such changed purchase price,
additional consideration or conversion rate, as the case may
be, at the time initially granted, issued or sold. If the
purchase price provided for in any Option referred to in
subparagraph (1) or the rate at which any Convertible
Securities referred to in subparagraphs (1) or (2) are
convertible into or exchangeable for Common Stock, shall be
reduced at any time under or by reason of provisions with
respect thereto designed to protect against dilution, then in
case of the delivery of Common Stock upon the exercise of any
such Option or upon conversion or exchange of any such
Convertible Security, the Purchase Price then in effect
hereunder shall forthwith be adjusted to such respective
amount as would have been obtained had such Option or
Convertible Security never been issued as to such Common Stock
and had adjustments been made upon the issuance of the shares
of Common Stock delivered as aforesaid, but only if as a
result of such adjustment the Purchase Price then in effect
hereunder is hereby reduced.
(4) On the expiration of any Option or the termination of any
right to convert or exchange any Convertible Securities, the
Purchase Price then in effect
hereunder shall forthwith be increased to the Purchase Price
which would have been in effect at the time of such expiration
or termination had such Option or Convertible Securities, to
the extent outstanding immediately prior to such expiration or
termination, never been issued.
(5) In case any Options shall be issued in connection with the
issue or sale of other securities of the Company, together
comprising one integral transaction in which no specific
consideration is allocated to such Options by the parties
thereto, such Options shall be deemed to have been issued
without consideration.
(6) In case any shares of Common Stock, Options or Convertible
Securities shall be issued or sold or deemed to have been
issued or sold for cash, the consideration received therefor
shall be deemed to be the amount received by the Company
therefor. In case any shares of Common Stock, Options or
Convertible Securities shall be issued or sold for a
consideration other than cash, the amount of the consideration
other than cash received by the Company shall be the fair
value of such consideration as determined in good faith by the
Board of Directors of the Company. In case any shares of
Common Stock, Options or Convertible Securities shall be
issued in connection with any merger in which the Company is
the surviving corporation, the amount of consideration
therefor shall be deemed to be the fair value of such portion
of the net assets and business of the non-surviving
corporation as shall be attributed by the Board of Directors
of the Company in good faith to such Common Stock, Options or
Convertible Securities, as the case may be.
(7) The number of shares of Common Stock outstanding at any
given time shall not include shares owned or held by or for
the account of the Company, and the disposition of any shares
so owned or held shall be considered an issue or sale of
Common Stock for the purpose of this Paragraph 3.1.
(8) In case the Company shall declare a dividend or make any
other distribution upon the stock of the Company payable in
Options or Convertible Securities, then in such case any
Options or Convertible Securities, as the case may be,
issuable in payment of such dividend or distribution shall be
deemed to have been issued or sold without consideration.
(9) For purposes of this Paragraph 3.1, in case the Company
shall take a record of the holders of its Common Stock for the
purpose of entitling them (x) to receive a dividend or other
distribution payable in Common Stock, Options or in
Convertible Securities, or (y) to subscribe for or purchase
Common Stock, Options or Convertible Securities, then such
- record date shall be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued
or sold upon the declaration of such dividend or the making of
such other distribution or the date of the granting of such
right or subscription or purchase, as the case may be.
3.2. DIVIDENDS NOT PAID OUT OF EARNINGS OR EARNED SURPLUS. In
the event the Company shall declare a dividend upon the Common Stock (other than
a dividend payable in Common Stock) payable otherwise than out of earnings or
earned surplus, determined in accordance with generally accepted accounting
principles, including the making of appropriate deductions for minority
interests, if any, in subsidiaries (herein referred to as "Liquidating
Dividends"), then, as soon as possible after the exercise of this Warrant, the
Company shall pay to the person exercising such Warrant an amount equal to the
aggregate value at the time of such exercise of all Liquidating Dividends
(including but not limited to the Common Stock which would have been issued at
the time of such earlier exercise and all other securities which would have been
issued with respect to such Common Stock by reason of stock splits, stock
dividends, mergers or reorganizations, or for any other reason). For the
purposes of this Paragraph 3.2, a dividend other than in cash shall be
considered payable out of earnings or earned surplus only to the extent that
such earnings or earned surplus equal an amount equivalent to the fair value of
such dividend as determined in good faith by the Board of Directors of the
Company.
3.3. SUBDIVISIONS AND COMBINATIONS. In case the Corporation
shall at any time (i) subdivide the outstanding Common Stock or (ii) issue a
stock dividend on its outstanding Common Stock, the Purchase Price in effect
immediately prior to such subdivision or dividend shall be proportionately
reduced by the same ratio as the subdivision or dividend. In case the
Corporation shall at any time combine its outstanding Common Stock, Purchase
Price in effect immediately prior to such combination shall be proportionately
increased by the same ratio as the combination.
3.4. REORGANIZATION RECLASSIFICATION, CONSOLIDATION, MERGER OR
SALE OF ASSETS. If any capital reorganization or reclassification of the capital
stock of the Company, or consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of its assets to another
corporation shall be effected in such a way that holders of Common Stock shall
be entitled to receive stock, securities, cash or other property with respect to
or in exchange for Common Stock, then, as a condition of such reorganization,
reclassification, consolidation, merger or sale, lawful and adequate provision
shall be made whereby the holder of this Warrant shall have the right to acquire
and receive upon exercise of this Warrant such shares of stock, securities, cash
or other property issuable or payable (as part of the reorganization,
reclassification, consolidation, merger or sale) with respect to or in exchange
for such number of outstanding shares of the Company's Common Stock as would
have been received upon exercise of this Warrant at the Purchase Price then in
effect. The Company will not effect any such consolidation, merger or sale,
unless prior to the consummation thereof the successor corporation (if other
than the Company) resulting from such consolidation or merger or the corporation
purchasing such assets shall assume by written instrument mailed or delivered to
the holder of this Warrant at the last address of such holder appearing on the
books of the Company, the obligation to deliver to such holder such shares of
stock, securities or assets as, in accordance with the foregoing provisions,
such holder may be entitled to purchase. If a purchase, tender or exchange offer
is made to and accepted by the holders of more than 50% of the outstanding
shares of Common Stock of the Company, the Company shall not effect any
consolidation, merger or sale with the person having made such offer or with any
Affiliate of such person, unless prior to the consummation of such
consolidation, merger or sale the holder of this Warrant shall have been given a
reasonable opportunity to then elect to receive upon the exercise of this
Warrant either the stock, securities or assets then issuable with respect to the
Common Stock of the Company or the stock, securities or assets, or the
equivalent, issued to previous holders of the Common Stock in accordance with
such offer. For purposes hereof the term "Affiliate" with respect to any given
person shall mean any person controlling, controlled by or under common control
with the given person.
3.5. NO ADJUSTMENT FOR EXERCISE OF CERTAIN OPTIONS, WARRANTS,
ETC. The provisions of this Section 3 shall not apply to any Common Stock
issued, issuable or deemed outstanding under subparagraphs 3.1(1) to (9)
inclusive: (i) to any person pursuant to any stock option, stock purchase or
similar plan or arrangement for the benefit of employees, consultants or
directors of the Company or its subsidiaries in effect on the date of issuance
hereof or thereafter adopted by the Board of Directors (including the options
granted under the 1999 Stock Option Plan and the Series A Options), or (ii)
pursuant to options, warrants and conversion rights in existence on the date of
issuance hereof (including the Warrants) or (iii) on conversion of the Series A
Preferred Stock.
3.6. NOTICES OF RECORD DATE, ETC. In the event that:
---------------------------
(1) the Company shall declare any cash dividend upon its
Common Stock, or
(2) the Company shall declare any dividend upon its
Common Stock payable in stock or make any special dividend or
other distribution to the holders of its Common Stock, or
(3) the Company shall offer for subscription pro rata to
the holders of its Common Stock any additional shares of
stock of any class or other rights, or
(4) there shall be any capital reorganization or
reclassification of the stock of the Company, including any
subdivision or combination of its outstanding shares of Common
Stock, or consolidation or merger of the Company with, or sale
all or substantially all of its assets to, another
of corporation, or
(5) there shall be a voluntary or involuntary
dissolution, liquidation or winding, up of the Company;
then, in connection with such event, the Company shall give to
the holder of this Warrant:
(i) at least twenty (20) days' prior written notice of the
date on which the books of the Company shall close or a
record shall be taken for such dividend, distribution or
subscription rights or for determining rights to vote in
respect of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or
winding up; and
(ii) the case of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or
winding up, at least twenty (20) days' prior written
notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause (i) shall
also specify, in the case of any such dividend,
distribution or subscription rights, the date on which
the holders of Common Stock shall be entitled thereto,
and such notice in accordance with the foregoing clause
(ii) shall also specify the date on which the holders of
Common Stock shall be entitled to exchange their Common
Stock for securities or other property deliverable upon
such reorganization, reclassification consolidation,
merger, sale, dissolution, liquidation or winding up, as
the case may be. Each such written notice shall be given
by first class mail, postage prepaid, addressed to the
holder of this Warrant at the address of such holder as
shown on the books of the Company.
3.7. ADJUSTMENT BY BOARD OF DIRECTORS. If any event occurs as
to which, in the opinion of the Board of Directors of the Company, the
provisions of this Section 3 are not strictly applicable or if strictly
applicable would not fairly protect the rights of the holder of this Warrant in
accordance with the essential intent and principles of such provisions, then the
Board of Directors shall make an adjustment in the application of such
provisions, in accordance with such essential intent and principles, so as to
protect such rights as aforesaid, but in no event shall any adjustment have the
effect of increasing the Purchase Price as otherwise determined pursuant to any
of the provisions of this Section 3 except in the case of a combination of
shares of a type contemplated in Paragraph 3.3 and then in no event to an amount
larger than the Purchase Price as adjusted pursuant to Paragraph 3.3.
3.8. FRACTIONAL SHARES. The Company shall not issue fractions
of shares of Common Stock upon exercise of this Warrant or scrip in lieu
thereof. If any fraction of a share of Common Stock would, except for the
provisions of this Paragraph 3.8, be issuable upon exercise of this Warrant, the
Company shall in lieu thereof pay to the person entitled thereto an amount in
cash equal to the current value of such fraction, calculated to the nearest
one-hundredth (1/100) of a share, to be computed (i) if the Common Stock is
listed on any national securities exchange on the basis of the last sales price
of the Common Stock on such exchange (or the quoted closing bid price if there
shall have been no sales) on the date of conversion, or (ii) if the Common Stock
shall not be listed, on the basis of the mean between the closing bid and asked
prices for the Common Stock on the date of conversion as reported by NASDAQ, or
its successor, and if there are not such closing bid and asked prices, on the
basis of the fair market value per share as determined by the Board of Directors
of the Company.
3.9. OFFICERS' STATEMENT AS TO ADJUSTMENTS. Whenever the
Purchase Price shall be adjusted as
provided in Section 3 hereof, the Company shall forthwith file at each office
designated for the exercise of this Warrant, a statement, signed by the Chairman
of the Board, the President, any Vice President or Treasurer of the Company,
showing in reasonable detail the facts requiring such adjustment and the
Purchase Price that will be effective after such adjustment. The Company shall
also cause a notice setting forth any such adjustments to be sent by mail, first
class, postage prepaid, to the record holder of this Warrant at his or its
address appearing on the stock register. If such notice relates to an adjustment
resulting from an event referred to in Paragraph 3.6, such notice shall be
included as part of the notice required to be mailed and published under the
provisions of Paragraph 3.6 hereof.
4. NO DILUTION OR IMPAIRMENT. The Company will not, by amendment of its
charter or through reorganization, consolidation, merger, dissolution, sale of
assets or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all such
action as may be necessary or appropriate in order to protect the rights of the
holder hereof against dilution or other impairment. Without limiting the
generality of the foregoing, the Company will not increase the par value of any
shares of stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise, and at all times will take all such action
as may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and non-assessable stock upon the exercise of this
Warrant.
5. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF WARRANTS. The
Company shall at all times reserve and keep available out of its authorized but
unissued stock, solely for the issuance and delivery upon the exercise of this
Warrant and other similar Warrants, such number of its duly authorized shares of
Common Stock as from time to time shall be issuable upon the exercise of this
Warrant and all other similar Warrants at the time outstanding.
6. REPLACEMENT OF WARRANT. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to it, or (in the case of mutilation) upon surrender and
cancellation thereof, the Company will issue, in lieu thereof, a new Warrant of
like tenor.
7. REMEDIES. The Company stipulates that the remedies at law of the
holder of this Warrant in the event of any default by the Company in the
performance of or compliance with any of the terms of this Warrant are not and
will not be adequate, and that the same may be specifically enforced.
8. NEGOTIABILITY, ETC. This Warrant is issued upon the following terms,
to all of which each taker or owner hereof consents and agrees:
(a) Subject to the legend appearing on the first page
hereof, title to this Warrant may be transferred by
endorsement (by the holder hereof executing the form
of assignment at
the end hereof including guaranty of signature) and
delivery in the same manner as in the case of a
negotiable instrument transferable by endorsement and
delivery.
(b) Any person in possession of this Warrant properly
endorsed is authorized to represent himself as
absolute owner hereof and is granted power to transfer
absolute title hereto by endorsement and delivery
hereof to a bona fide purchaser hereof for value; each
prior taker or owner waives and renounces all of his
equities or rights in this Warrant in favor of every
such bona fide purchaser, and every such bona fide
purchaser shall acquire title hereto and to all rights
represented hereby.
(c) Until this Warrant is transferred on the books of the
Company, the Company may treat the registered holder
of this Warrant as the absolute owner hereof for all
purposes without being affected by any notice to the
contrary.
(d) Prior to the exercise of this Warrant, the holder
hereof shall not be entitled to any rights of a
shareholder of the Company with respect to shares for
which this Warrant shall be exercisable, including,
without limitation, the right to vote, to receive
dividends or other distributions or to exercise any
preemptive rights, and shall not be entitled to
receive any notice of any proceedings of the Company,
except as provided herein.
(e) The Company shall not be required to pay any Federal
or state transfer tax or charge that may be payable
in respect of any transfer involved in the transfer
or delivery of this Warrant or the issuance or
conversion or delivery of certificates for Common
Stock in a name other than that of the registered
holder of this Warrant or to issue or deliver any
certificates for Common Stock upon the exercise of
this Warrant until any and all such taxes and charges
shall have been paid by the holder of this Warrant or
until it has been established to the Company's
satisfaction that no such tax or charge is due.
9. SUBDIVISION OF RIGHTS. This Warrant (as well as any new warrants
issued pursuant to the provisions of this paragraph) is exchangeable, upon the
surrender hereof by the holder hereof, at the principal office of the Company
for any number of new warrants of like tenor and date representing in the
aggregate the right to subscribe for and purchase the number of shares of Common
Stock of the Company which may be subscribed for and purchased hereunder.
10. MAILING OF NOTICES, ETC. All notices and other communications from
the Company to the holder of this Warrant shall be mailed by first-class
certified mail, postage prepaid, to the address furnished to the Company in
writing by the last holder of this Warrant who shall have furnished an address
to the Company in writing.
11. HEADINGS, ETC. The headings in this Warrant are for purposes of
reference only, and shall not limit or otherwise affect the meaning hereof.
12. CHANGE, WAIVER, ETC. Neither this Warrant nor any term hereof may
be changed, waived, discharged or terminated orally but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge or termination is sought.
13. GOVERNING LAW. THIS WARRANT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.
XXXXXX MEDICAL GROUP, INC.
By
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Dated: __________________
Attest:
Warrant
[To be signed only upon exercise of Warrant]
To Xxxxxx Medical Group, Inc.:
The undersigned, the holder of the within Warrant, hereby
irrevocably elects to exercise the purchase right represented by such Warrant
for, and to purchase thereunder, shares of Common Stock of Xxxxxx Medical Group,
Inc. and herewith makes payment of ___________ therefor and requests that the
certificates for such shares be issued in the name of, and be delivered to
____________ whose address is ___________________________________________.
Dated:
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(Signature must conform in all respects to name of Holder as specified on the
face of the Warrant)
Address
[To be signed only upon transfer of Warrant]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto ___________________________________ the right represented by the
within Warrant to purchase the shares of the Common Stock of Xxxxxx Medical
Group, Inc. to which the within Warrant relates, and appoints
__________________________ attorney to transfer said right on the books of
Xxxxxx Medical Group, Inc. with full power of substitution in the premises.
Dated:
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(Signature must conform in all respects to name of Holder as specified on the
face of the Warrant)
Address
In the presence of