EXHIBIT 4.1
GLOBALOPTIONS GROUP, INC.
Warrant No.________
WARRANT TO PURCHASE COMMON STOCK
VOID AFTER 5:00 P.M., EASTERN TIME,
ON THE EXPIRATION DATE
THIS WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND
MAY NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT
COMPLIANCE WITH THE REGISTRATION OR QUALIFICATION PROVISIONS OF APPLICABLE
FEDERAL AND STATE SECURITIES LAWS OR WITHOUT DELIVERING AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
FOR VALUE RECEIVED, GLOBALOPTIONS GROUP, INC., a Nevada corporation
(the "Company"), hereby agrees to sell upon the terms and on the conditions
hereinafter set forth, at any time commencing on the date hereof but no later
than 5:00 p.m., Eastern Time, on _________, 2009 (the "Expiration Date") to
VERUS SUPPORT SERVICES INC., or registered assigns (the "Holder"), under the
terms as hereinafter set forth, FOUR HUNDRED THIRTY-EIGHT THOUSAND AND
NINETY-FIVE (438,095) fully paid and non-assessable shares of the Company's
Common Stock, par value $0.001 per share (the "Warrant Stock"), at a purchase
price per share of $2.00 (the "Warrant Price"), pursuant to this warrant (this
"Warrant"). The number of shares of Warrant Stock to be so issued and the
Warrant Price are subject to adjustment in certain events as hereinafter set
forth. The term "Common Stock" shall mean, when used herein, unless the context
otherwise requires, the stock and other securities and property at the time
receivable upon the exercise of this Warrant.
This Warrant is one of a series of the Company's Warrants to
purchase Common Stock (collectively, the "Warrants"), issued to advisors, a
placement agent and selected dealers pursuant to the Confidential Private
Placement Memorandum, dated April 18, 2005 (as supplemented, the "Memorandum").
Capitalized terms used and not otherwise defined herein shall have the
respective meanings attributed thereto in Section 10.
1. EXERCISE OF WARRANT.
(a) The Holder may exercise this Warrant according to its terms
by surrendering to the Company at the address set forth in Section 12, this
Warrant and the election to purchase form attached hereto having then been duly
executed by the Holder, accompanied by cash, certified check or bank draft in
payment of the purchase price, in lawful money of the United States of America,
for the number of shares of the Warrant Stock specified in the subscription
form, or as otherwise provided in this Warrant prior to 5:00 p.m., Eastern Time,
on the Expiration Date.
(b) The Holder may alternatively exercise this Warrant according
to its terms by surrendering this Warrant to the Company at the address set
forth in Section 11, the notice of cashless exercise attached hereto having then
been duly executed by the Holder, in which event the Company shall issue to the
Holder the number of shares of Warrant Stock determined as follows:
X = Y (A-B)/A
where:
X = the number of shares of Warrant Stock to be issued to the
Holder.
Y = the number of shares of Warrant Stock with respect to
which this Warrant is being exercised.
A = the closing sale price of the Warrant Stock for the
trading day immediately prior to the date of exercise.
B = the Warrant Price.
(c) This Warrant may be exercised in whole or in part so long as
any exercise in part hereof would not involve the issuance of fractional shares
of Warrant Stock. If exercised in part, the Company shall deliver to the Holder
a new Warrant, identical in form, in the name of the Holder, evidencing the
right to purchase the number of shares of Warrant Stock as to which this Warrant
has not been exercised, which new Warrant shall be signed by the Chairman, Chief
Executive Officer or President of the Company. The term Warrant as used herein
shall include any subsequent Warrant issued as provided herein.
(d) No fractional shares or scrip representing fractional shares
shall be issued upon the exercise of this Warrant. The Company shall pay cash in
lieu of fractions with respect to the Warrants based upon the fair market value
of such fractional shares of Common Stock (which shall be the closing price of
such shares on the exchange or market on which the Common Stock is then traded)
at the time of exercise of this Warrant.
(e) In the event of any exercise of the rights represented by
this Warrant, a certificate or certificates for the Warrant Stock so purchased,
registered in the name of the Holder, shall be delivered to the Holder within a
reasonable time after such rights shall have been so exercised. The person or
entity in whose name any certificate for the Warrant Stock is issued upon
exercise of the rights represented by this Warrant shall for all purposes be
deemed to have become the holder of record of such shares immediately prior to
the close of business on the date on which the Warrant was surrendered and
payment of the Warrant Price and any applicable taxes was made, irrespective of
the date of delivery of such certificate, except that, if the date of such
surrender and payment is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of such shares at
the opening of business on the next succeeding date on which the stock transfer
books are open. Except as provided in Section 4 hereof, the Company shall pay
any and all documentary stamp or similar issue or transfer taxes payable in
respect of the issue or delivery of shares of Common Stock on exercise of this
Warrant.
2. DISPOSITION OF WARRANT STOCK AND WARRANT.
(a) The Holder hereby acknowledges that this Warrant and any
Warrant Stock purchased pursuant hereto are not being registered (i) under the
Act on the ground that the issuance of this Warrant is exempt from registration
under Section 4(2) of the Act as not involving any public offering or (ii) under
any applicable state securities law because the issuance of this Warrant does
not involve any public offering; and that the Company's reliance on the Section
4(2) exemption of the Act and under applicable state securities laws is
predicated in part on the representations hereby made to the Company by the
Holder that it is acquiring this Warrant and will acquire the Warrant Stock for
investment for its own account, with no present intention of dividing its
participation with others or reselling or otherwise distributing the same,
subject, nevertheless, to any requirement of law that the disposition of its
property shall at all times be within its control.
The Holder hereby agrees that it will not sell or transfer all or
any part of this Warrant and/or Warrant Stock unless and until it shall first
have given notice to the Company describing such sale or transfer and furnished
to the Company either (i) an opinion, reasonably satisfactory to counsel for the
Company, of counsel (skilled in securities matters, selected by the Holder and
reasonably satisfactory to the Company) to the effect that the proposed sale or
transfer may be made without registration under the Act and without registration
or qualification under any state law, or (ii) an interpretative letter from the
Securities and Exchange Commission to the effect that no enforcement action will
be recommended if the proposed sale or transfer is made without registration
under the Act.
(b) If, at the time of issuance of the shares issuable upon
exercise of this Warrant, no registration statement is in effect with respect to
such shares under applicable provisions of the Act, the Company may at its
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election require that the Holder provide the Company with written reconfirmation
of the Holder's investment intent and that any stock certificate delivered to
the Holder of a surrendered Warrant shall bear legends reading substantially as
follows:
"TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE IS
SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN THE WARRANT
PURSUANT TO WHICH THESE SHARES WERE PURCHASED FROM THE
COMPANY. COPIES OF THOSE RESTRICTIONS ARE ON FILE AT THE
PRINCIPAL OFFICES OF THE COMPANY, AND NO TRANSFER OF SUCH
SHARES OR OF THIS CERTIFICATE, OR OF ANY SHARES OR OTHER
SECURITIES (OR CERTIFICATES THEREFOR) ISSUED IN EXCHANGE
FOR OR IN RESPECT OF SUCH SHARES, SHALL BE EFFECTIVE
UNLESS AND UNTIL THE TERMS AND CONDITIONS THEREIN SET
FORTH SHALL HAVE BEEN COMPLIED WITH."
"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND MAY NOT
BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL
SATISFACTORY TO THE ISSUER OF THIS CERTIFICATE THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT."
In addition, so long as the foregoing legend may remain on any stock certificate
delivered to the Holder, the Company may maintain appropriate "stop transfer"
orders with respect to such certificates and the shares represented thereby on
its books and records and with those to whom it may delegate registrar and
transfer functions.
3. RESERVATION OF SHARES. The Company hereby agrees that at all
times there shall be reserved for issuance upon the exercise of this Warrant
such number of shares of its Common Stock as shall be required for issuance upon
exercise of this Warrant. The Company further agrees that all shares which may
be issued upon the exercise of the rights represented by this Warrant will be
duly authorized and will, upon issuance and against payment of the exercise
price, be validly issued, fully paid and non-assessable, free from all taxes,
liens, charges and preemptive rights with respect to the issuance thereof, other
than taxes, if any, in respect of any transfer occurring contemporaneously with
such issuance and other than transfer restrictions imposed by federal and state
securities laws.
4. EXCHANGE, TRANSFER OR ASSIGNMENT OF WARRANT. This Warrant is
exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its stock transfer
agent, if any, for other Warrants of different denominations, entitling the
Holder or Holders thereof to purchase in the aggregate the same number of shares
of Common Stock purchasable hereunder. Upon surrender of this Warrant to the
Company or at the office of its stock transfer agent, if any, with the
Assignment Form annexed hereto duly executed and funds sufficient to pay any
transfer tax, the Company shall, without charge, execute and deliver a new
Warrant in the name of the assignee named in such instrument of assignment and
this Warrant shall promptly be canceled. This Warrant may be divided or combined
with other Warrants that carry the same rights upon presentation hereof at the
office of the Company or at the office of its stock transfer agent, if any,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued and signed by the Holder hereof.
5. CAPITAL ADJUSTMENTS. This Warrant is subject to the following
further provisions:
(a) RECAPITALIZATION, RECLASSIFICATION AND SUCCESSION. If any
recapitalization of the Company or reclassification of its Common Stock or any
merger or consolidation of the Company into or with a corporation or other
business entity, or the sale or transfer of all or substantially all of the
Company's assets or of any successor corporation's assets to any other
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corporation or business entity (any such corporation or other business entity
being included within the meaning of the term "successor corporation") shall be
effected, at any time while this Warrant remains outstanding and unexpired,
then, as a condition of such recapitalization, reclassification, merger,
consolidation, sale or transfer, lawful and adequate provision shall be made
whereby the Holder of this Warrant thereafter shall have the right to receive
upon the exercise hereof as provided in Section 1 and in lieu of the shares of
Common Stock immediately theretofore issuable upon the exercise of this Warrant,
such shares of capital stock, securities or other property as may be issued or
payable with respect to or in exchange for a number of outstanding shares of
Common Stock equal to the number of shares of Common Stock immediately
theretofore issuable upon the exercise of this Warrant had such
recapitalization, reclassification, merger, consolidation, sale or transfer not
taken place, and in each such case, the terms of this Warrant shall be
applicable to the shares of stock or other securities or property receivable
upon the exercise of this Warrant after such consummation.
(b) SUBDIVISION OR COMBINATION OF SHARES. If the Company at any
time while this Warrant remains outstanding and unexpired shall subdivide or
combine its Common Stock, the number of shares of Warrant Stock purchasable upon
exercise of this Warrant and the Warrant Price shall be proportionately
adjusted.
(c) STOCK DIVIDENDS AND DISTRIBUTIONS. If the Company at any time
while this Warrant is outstanding and unexpired shall issue or pay the holders
of its Common Stock, or take a record of the holders of its Common Stock for the
purpose of entitling them to receive, a dividend payable in, or other
distribution of, Common Stock, then the number of shares of Warrant Stock
purchasable upon exercise of this Warrant shall be adjusted to the number of
shares of Common Stock that Holder would have owned immediately following such
action had this Warrant been exercised immediately prior thereto.
(d) VALUATION ADJUSTMENT. (i) If, prior to exercise of the
Warrant, the Company has issued, or shall be deemed to have issued, Additional
Shares of Common Stock (as hereinafter defined) for a consideration per share
less than the Warrant Price or with a per share conversion, exercise or exchange
price of less than the Warrant Price (each, a "Triggering Issuance" and such
lesser consideration or per share conversion, exercise or exchange price, the
"Adjusted Price"), then and in such event, the number of shares of Warrant Stock
issuable upon exercise of this Warrant shall be adjusted to a number equal to
the original number of shares of Warrant Stock issuable upon exercise of this
Warrant multiplied by $2.00 and divided by the Adjusted Price, but in no event
shall the denominator be less than $.765 per share, and the Warrant Price shall
be reduced to the Adjusted Price, but in no event shall be reduced to less than
$.765 per share.
(ii) As used herein, "Additional Shares of Common Stock"
shall mean all shares of Common Stock, or any stock options, warrants,
convertible securities or other rights to purchase or acquire shares of Common
Stock, issued or deemed to be issued by the Company after the date hereof which
represent a Triggering Issuance. Notwithstanding the foregoing, no issuance or
deemed issuance (A) described in subsections (a), (b) or (c) of this Section 5,
(B) of Common Stock or options or warrants to purchase Common Stock issued to
officers, directors or employees of or consultants to the Company pursuant to
any compensation agreement, plan or arrangement, or the issuance of Common Stock
upon the exercise of any such options or warrants, (C) of any equity securities
of the Company in connection with a strategic alliance, business partnering
arrangement or other commercial business transaction, or (D) of any equity
securities of the Company issued to a third party in connection with any
financing transaction in which such equity is issued as a "kicker" and is not
the primary inducement for the third party to enter into such transaction, shall
be deemed the issuance of Additional Shares of Common Stock.
(e) Warrant Price Adjustment. Whenever the number of shares of
Warrant Stock purchasable upon exercise of this Warrant is adjusted pursuant to
Sections 5(a), 5(b) and 5(c), the Warrant Price payable upon the exercise of
this Warrant shall be proportionately adjusted.
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(f) CERTAIN SHARES EXCLUDED. The number of shares of Common Stock
outstanding at any given time for purposes of the adjustments set forth in this
Section 5 shall exclude any shares then directly or indirectly held in the
treasury of the Company.
(g) DEFERRAL AND CUMULATION OF DE MINIMIS ADJUSTMENTS. The
Company shall not be required to make any adjustment pursuant to this Section 5
if the amount of such adjustment would be less than one percent (1%) of the
Warrant Price in effect immediately before the event that would otherwise have
given rise to such adjustment. In such case, however, any adjustment that would
otherwise have been required to be made shall be made at the time of and
together with the next subsequent adjustment which, together with any adjustment
or adjustments so carried forward, shall amount to not less than one percent
(1%) of the Warrant Price in effect immediately before the event giving rise to
such next subsequent adjustment. All calculations under this Section 5 shall be
made to the nearest cent or to the nearest one-hundredth of a share, as the case
may be, but in no event shall the Company be obligated to issue fractional
shares of Common Stock or fractional portions of any securities upon the
exercise of the Warrants.
(h) DURATION OF ADJUSTMENT. Following each computation or
readjustment as provided in this Section 5, the new adjusted Warrant Price and
number of shares of Warrant Stock purchasable upon exercise of this Warrant
shall remain in effect until a further computation or readjustment thereof is
required.
6. NOTICE TO HOLDERS.
(a) NOTICE OF RECORD DATE. In case:
(i) the Company shall take a record of the holders of its
Common Stock (or other stock or securities at the time receivable
upon the exercise of this Warrant) for the purpose of entitling
them to receive any dividend (other than a cash dividend payable
out of earned surplus of the Company) or other distribution, or
any right to subscribe for or purchase any shares of stock of any
class or any other securities, or to receive any other right;
(ii) of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any
consolidation with or merger of the Company into another
corporation, or any conveyance of all or substantially all of the
assets of the Company to another corporation; or
(iii) of any voluntary dissolution, liquidation or winding-up
of the Company;
then, and in each such case, the Company will mail or cause to be mailed to the
Holder hereof at the time outstanding a notice specifying, as the case may be,
(i) the date on which a record is to be taken for the purpose of such dividend,
distribution or right, and stating the amount and character of such dividend,
distribution or right, or (ii) the date on which such reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or
winding-up is to take place, and the time, if any, is to be fixed, as of which
the holders of record of Common Stock (or such stock or securities at the time
receivable upon the exercise of this Warrant) shall be entitled to exchange
their shares of Common Stock (or such other stock or securities) for securities
or other property deliverable upon such reorganization, reclassification,
consolidation, merger, conveyance, dissolution or winding-up. Such notice shall
be mailed at least twenty (20) calendar days prior to the record date therein
specified, or if no record date shall have been specified therein, at least
twenty (20) days prior to such specified date.
(b) CERTIFICATE OF ADJUSTMENT. Whenever any adjustment shall be
made pursuant to Section 5 hereof, the Company shall promptly make available and
have on file for inspection a certificate signed by its Chairman, Chief
Executive Officer, President or Vice President, setting forth in reasonable
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detail the event requiring the adjustment, the amount of the adjustment, the
method by which such adjustment was calculated and the Warrant Price and number
of shares of Warrant Stock purchasable upon exercise of this Warrant after
giving effect to such adjustment.
7. LOSS, THEFT, DESTRUCTION OR MUTILATION. Upon receipt by the
Company of evidence satisfactory to it, in the exercise of its reasonable
discretion, of the ownership and the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, of indemnity
reasonably satisfactory to the Company and, in the case of mutilation, upon
surrender and cancellation thereof, the Company will execute and deliver in lieu
thereof, without expense to the Holder, a new Warrant of like tenor dated the
date hereof.
8. WARRANT HOLDER NOT A STOCKHOLDER. The Holder of this Warrant, as
such, shall not be entitled by reason of this Warrant to any rights whatsoever
as a stockholder of the Company, including but not limited to voting rights.
9. REGISTRATION RIGHTS. The Warrant Stock will be accorded the
registration rights under the Act set forth in that certain Subscription
Agreement between the Company and the Holders, a form of which agreement is
being furnished concurrently herewith.
10. DEFINITIONS. As used herein, unless the context otherwise
requires, the following terms have the respective meanings:
9 (a) "Affiliate": with respect to any Person, the following: (i)
any other Person that at such time directly or indirectly through one or more
intermediaries controls, or is controlled by or is under common control with
such first Person or (ii) any Person beneficially owning or holding, directly or
indirectly, 10% or more of any class of voting or equity interests of the
Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
10% of more of any class of voting or equity interests. As used in such
definition, "controls," "controlled by" and "under common control," as used with
respect to an Person, shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management policies of such
Person, whether through the ownership of voting securities, by agreement or
otherwise.
(b) "Person": any natural person, corporation, division of a
corporation, partnership, limited liability company, trust, joint venture,
association, company, estate, unincorporated organization or government or any
agency or political subdivision thereof.
(c) "Subsidiaries": with respect to any Person, any corporation,
association or other business entity (whether now existing or hereafter
organized) of which at least a majority of the securities or other ownership
interests having ordinary voting power for the election of directors is, at the
time as of which any determination is being made, owned or controlled by such
Person or one or more subsidiaries of such Person.
11. NOTICES. Any notice required or contemplated by this Warrant
shall be in writing and shall be deemed to have been duly given if delivered to
the addressee in person, deposited with a reputable overnight courier or
transmitted by registered or certified mail, return receipt requested, to the
Company at GlobalOptions Group, Inc., ▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇ ▇▇▇▇▇. Attention: Chief Financial Officer, or to the Holder at the name
and address set forth in the Warrant Register maintained by the Company, or to
such other addresses as any of them, by notice to the others, may designate from
time to time.
12. CHOICE OF LAW. THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL
PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK, WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAW RULES.
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IN WITNESS WHEREOF, the Company has duly caused this Warrant to be
signed on its behalf, in its corporate name and by a duly authorized officer, as
of this _____ day of _________ 2005.
GLOBALOPTIONS GROUP, INC.
By:________________________________
Name:
Title:
ELECTION TO PURCHASE
(To be executed by the registered holder if such holder desires to exercise the
within Warrants)
GlobalOptions Group, Inc.
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▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: Chief Financial Officer
The undersigned hereby (1) irrevocably elects to exercise his or its
rights to purchase ____________ shares of Common Stock covered by the within
Warrants, (2) makes payment in full of the Purchase Price by enclosure of cash,
a certified check or bank draft, (3) requests that certificates for such shares
of Common Stock be issued in the name of:
Please print name, address and Social Security or Tax Identification Number:
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and (4) if said number of shares of Common Stock shall not be all the shares
evidenced by the within Warrants, requests that a new warrant certificate for
the balance of the shares covered by the within Warrants be registered in the
name of, and delivered to:
Please print name and address:
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In lieu of receipt of a fractional share of Common Stock, the
undersigned will receive a check representing payment therefor.
Dated: _____________________ _________________________________
WARRANTHOLDER
By:_____________________________
Name:
Title:
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NOTICE OF CASHLESS EXERCISE
(To be executed upon exercise of warrant pursuant to Section 1(b))
The undersigned, the Holder of the attached Warrant, hereby
irrevocably elects to exchange its Warrant for _________ shares of Warrant Stock
pursuant to the cashless exercise provisions of the within Warrant, as provided
for in Section 1(b) of such Warrant, and requests that a certificate or
certificates for such shares of Warrant Stock (and any warrants or other
property issuable upon such exercise) be issued in the name of and delivered to
__________________________ whose address is _______________________________
(social security or taxpayer identification number ___________) and, if such
shares shall not include all of the shares issuable under such warrant, that a
new warrant of like tenor and date for the balance of the shares issuable
thereunder be delivered to the undersigned.
HOLDER:
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Signature
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Signature, if jointly held
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Date
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ASSIGNMENT FORM
FOR VALUE RECEIVED,
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hereby sells, assigns and transfers unto
Name:
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(Please typewrite or print in block letters)
Social Security or Taxpayer Identification Number :
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the right to purchase Common Stock of GLOBALOPTIONS GROUP, INC., a Nevada
corporation, represented by this Warrant to the extent of shares as to which
such right is exercisable and does hereby irrevocably constitute and appoint
____________________________, Attorney, to transfer the same on the books of the
Company with full power of substitution in the premises.
DATED: __________________
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Signature
Signature, if jointly held
Witness:
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