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Exhibit 4.2
WARRANT AGREEMENT
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▇▇▇▇▇▇▇▇▇.▇▇▇, INC.
AND
INTERWEST TRANSFER CO., INC.
Warrant Agent
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THIS WARRANT AGREEMENT (the "Agreement") is dated effective as of______,
1999, between ▇▇▇▇▇▇▇▇▇.▇▇▇, Inc., a Nevada Corporation (the "Company"), and
Interwest Transfer Co., Inc., Salt Lake City, Utah (the "Warrant Agent").
WHEREAS, the Company proposes to distribute as a dividend with respect
to its Common Stock, and issue to the shareholders of record as of July 13,1998
(the record date), 1,110,000 Series A and 1,110,000 Series B Common Stock
Purchase Warrants (the "Warrants");
WHEREAS, in conjunction with the potential exercise of the Warrants, the
Company anticipates the issuance of up to 2,220,000 shares of its Common Stock
(the "Warrant Shares");
WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing so to act, in connection with the
issuance, registration, transfer and exchange of Warrant Certificates and
exercise of the Warrants.
NOW, THEREFORE, in consideration of the promises and the mutual
agreements hereinafter set forth, it is agreed that:
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1. Warrants/Warrant Certificates. Each Warrant will, in the future
during the period specified in the Warrant Certificate, upon fulfillment of the
conditions and subject to the terms set forth therein, entitle the holder (the
"Registered Holder" or, in the aggregate, the "Registered Holders") in whose
name the Warrant Certificate shall be registered on the books maintained by the
Warrant Agent to purchase one share of Common Stock on exercise thereof, subject
to modification and adjustment as provided in Section 8. Warrant Certificates
representing the right to purchase Warrant Shares shall be executed by the
Company's President and attested to by the Company's Secretary or Assistant
Secretary, or shall bear facsimile signatures of such officers, and shall be
delivered to the Warrant Agent upon execution of this Agreement for distribution
to the Company's shareholders pursuant to written instructions from the Company
to the Warrant Agent.
Subject to the provisions of Sections 3, 5, 6 and 8, the Warrant Agent
shall deliver Warrant Certificates in required whole number denominations to
Registered Holders in connection with any transfer or exchange permitted under
this Agreement. Except as provided in Section 6 hereof, no Warrant Certificates
shall be issued except (i) Warrant Certificates initially issued hereunder, (ii)
Warrant Certificates issued on or after the initial issuance date, upon the
exercise of any Warrants, to evidence the unexercised Warrants held by the
exercising Registered holder, and (iii) Warrant Certificates issued after the
initial issuance date, upon any transfer or exchange of Warrant Certificates or
replacements of lost or mutilated Warrant Certificates.
2. Form and Execution of Warrant Certificates. The Warrant Certificates
shall be substantially in the form attached hereto as Exhibits A and B. The
Warrant Certificates shall be dated as of the date of their issuance, whether on
initial issuance, transfer or exchange or in lieu of mutilated, lost, stolen or
destroyed Warrant Certificates.
Each Warrant Certificate shall be numbered serially with the designation
"Series A or Series B", respectively, appearing on each Warrant Certificate.
The Warrant Certificates shall be manually countersigned by the Warrant Agent
and shall not be valid for any purpose unless so
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countersigned. In the event any officer of the Company who executed the Warrant
Certificates shall cease to be an officer of the Company before the date of
issuance of the Warrant Certificates or before countersignature and delivery by
the Warrant Agent, such warrant Certificates may be countersigned, issued and
delivered by the Warrant Agent with the same force and effect as though the
person who signed such Warrant Certificates had not ceased to be an officer of
the Company.
3. Exercise. Subject to the provisions of Sections 4, 7 and 8, the
Warrants, when evidenced by a Warrant Certificate, may be exercised at a price
(the "Exercise Price") of $6.00 per share as to the Series A Warrants and $7.00
per share as to the Series B Warrants, in whole or in part, commencing on the
date of issuance (the "Initial Exercise Date") and terminating on __________,
2002, unless extended by the Company's Board of Directors (the "Exercise
Period"), at any time during such period that the Company's Registration
Statement with respect to the Warrant Shares is effective and current. The
Company shall promptly notify the Warrant Agent of the effectiveness of such
Registration Statement, any suspension of effectiveness and of any such
extension of the Exercise Periods. A Warrant shall be deemed to have been
exercised immediately prior to the close of business on the date (the "Exercise
Date") of the surrender for exercise of the Warrant Certificate. The exercise
form shall be executed by the Registered Holder thereof or his attorney duly
authorized in writing and will be delivered together with payment to the Warrant
Agent at ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, (the "Corporate
Office") or such other place as designated by the Company, in cash or by
official bank or certified check, of an amount equal to the aggregate Exercise
Price, in lawful money of the United States of America.
Unless Warrant Shares may not be issued as provided herein, the person
entitled to receive the number of Warrant Shares deliverable on such exercise
shall be treated for all purposes as the holder of such Warrant Shares as of the
close of business on the Exercise date. In addition, the Warrant Agent shall
also, at such time, verify that all of the conditions precedent to the issuance
of Warrant Shares set forth in Section 4 have been satisfied as of the Exercise
Date. If any one of the conditions precedent set forth in Section 4 are not
satisfied as of the Exercise Date, the Warrant Agent shall request written
instructions from
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the Company as to whether to return the Warrant and pertinent Exercise Price to
the exercising Registered Holder or to hold the same until all such conditions
have been satisfied. The Company shall not be obligated to issue any fractional
share interests in Warrant Shares issuable or deliverable on the exercise of any
Warrant or scrip or cash therefor and such fractional shares shall be of no
value whatsoever. If more than one Warrant shall be exercised at one time by the
same Registered Holder, the number of full Shares which shall be issuable on
exercise thereof shall be computed on the basis of the aggregate number of full
shares issuable on such exercise.
Within thirty days after the Exercise Date and in any event prior to the
pertinent Expiration Date, the Warrant Agent shall cause to be issued and
delivered to the person or persons entitled to receive the same, a certificate
or certificates for the number of Warrant Shares deliverable on such exercise.
No adjustment shall be made in respect of cash dividends on Warrant Shares
delivered on exercise of any Warrant. The Warrant Agent shall promptly notify
the Company in writing of any exercise and of the number of Warrant Shares
delivered and shall cause payment of an amount in cash equal to the pertinent
Exercise Price to be promptly made to the order of the Company.
Upon the exercise of any Warrant, the Warrant Agent shall promptly
deposit the payment into a segregated account established by mutual agreement of
the Company and the Warrant Agent at a federally insured commercial bank. All
funds deposited in the escrow account will be disbursed on a weekly basis to the
Company once they have been determined by the Warrant Agent to be collected
funds. Once the funds are determined to be collected the Warrant Agent shall
cause the share certificate(s) representing the exercised Warrants to be issued.
Expenses incurred by the Warrant Agent while acting in the capacity as
Warrant Agent will be paid by the Company. These expenses, including delivery of
exercised share certificates to the shareholder, will be deducted from the
exercise fee submitted prior to distribution of funds to the Company.
A detailed accounting statement relating to the number of shares
exercised and the net amount of exercised funds remitted will be given
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to the Company with the payment of each exercise amount. This will serve as an
interim accounting for the Company's use during the exercise periods. A complete
accounting will be made by the Warrant Agent to the Company concerning all
persons exercising Warrants, the number of shares issued and the amounts paid at
the completion of the Exercise Period.
The Company may deem and treat the Registered Holder of the Warrants at
any time as the absolute owner thereof for all purposes, and the Company shall
not be affected by any notice to the contrary. The Warrants shall not entitle
the holder thereof to any of the rights of shareholders or to any dividend
declared on the Common Stock unless the holder shall have exercised the Warrants
and purchased the shares of Common Stock prior to the record date fixed by the
Board of Directors of the Company for the determination of holders of Common
Stock entitled to such dividend or other right.
4. Reservation of Shares and Payment of Taxes. The Company covenants
that it will at all times reserve and have available from its authorized Common
Stock such number of shares as shall then be issuable on the exercise of all
outstanding Warrants. The Company covenants that all Warrant Shares which shall
be so issuable shall be duly and validly issued, fully paid and nonassessable,
and free from all taxes, liens and charges with respect to the issue thereof.
The Company and the Warrant Agent acknowledge that the Company will be
required, pursuant to the Securities Act of 1933, as amended (the "Act"), to
deliver to each Registered Holder, upon the exercise of Warrants and delivery of
Warrant Shares, a prospectus covering the issuance of the Warrant Shares which
meets the requirements of the Act, which prospectus must be a part of an
effective registration statement under the Act at the time that the Warrant is
exercised. No Warrants may be exercised nor may Warrant shares be issued by the
Company's transfer agent or delivered by the Warrant Agent unless, on the
Exercise Date: (i) the Company has an effective registration statement covering
the issuance of the Warrant Shares under the Act; (ii) the Warrant Agent has
copies of the prospectus which is a part of such effective registration
statement and which the Warrant Agent hereby agrees to deliver with the Warrant
Shares; and (iii) the Warrant Shares may legally be issued and
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delivered to the exercising Registered Holder under the securities laws of the
state in which such Registered Holder resides.
The Company agrees to use its best efforts to maintain, to the extent
required by the Act, an effective registration statement under the Act covering
the issuance of the Warrant Shares during the period the Warrants are
exercisable, but there may be times when no such registration statement will be
currently effective. The exercise of Warrants may be temporarily suspended
without liability to the Company during times when no such registration
statement is currently effective, or during times when, in the reasonable
opinion of the Board of Directors of the Company, such suspension is necessary
to preclude violation of any requirements of applicable law of regulatory bodies
having jurisdiction over the Company. If any Warrant would expire during such a
suspension, then if exercise of such Warrant is duly tendered before its
expiration, such Warrant shall be exercisable and exercised (unless the
attempted exercise is withdrawn) as of the first day after the end of such
suspension. The Company further agrees, from time to time, to furnish the
Warrant Agent with copies of the Company's prospectus to be delivered to
exercising Registered Holders, as set forth above.
If any shares of Common Stock to be reserved for the purpose of exercise
of Warrants hereunder require any other registration with or approval of any
government authority under any federal or state law before such shares may be
validly issued or delivered, then the Company covenants that it will in good
faith and as expeditiously as possible endeavor to secure such registration or
approval, as the case may be. No Warrant Shares shall be issued unless and until
any such registration requirements have been satisfied.
The Registered Holder shall pay all documentary, stamp or similar taxes
and other government charges that may be imposed with respect to the issuance of
the Warrants, or the issuance, transfer or delivery of any Warrant Shares on
exercise of the Warrants. In the event the Warrant Shares are to be delivered in
a name other than the name of the Registered Holder of the Warrant Certificate,
no such delivery shall be made unless the person requesting the same has paid to
the Warrant Agent the amount of any such taxes or charges incident thereto.
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In the event the Warrant Agent ceases to also serve as the stock
transfer agent for the Company, the Warrant Agent is irrevocably authorized to
requisition the Company's new transfer agent from time to time for Certificates
of Warrant Shares required upon exercise of the Warrants, and the Company will
authorize such transfer agent to comply with all such requisitions. The Company
will file with the Warrant Agent a statement setting forth the name and address
of its new transfer agent, for shares of Common Stock or other capital stock
issuable upon exercise of the Warrants and of each successor transfer agent.
5. Registration of Transfer. The Warrant Certificates may be transferred
in whole or in part if permitted by the Company. In any permitted transfer, the
Warrant Certificates to be exchanged shall be surrendered to the Warrant Agent
at its Corporate Office. The Company shall execute and the Warrant Agent shall
countersign, issue and deliver in exchange therefor the Warrant Certificate or
Certificates which the holder making the transfer shall be entitled to receive.
The Warrant Agent shall keep transfer books at its Corporate Office
which shall register Warrant Certificates and the transfer thereof. On due
presentment for registration of transfer of any Warrant Certificate at such
office, the Company shall execute and the Warrant Agent shall issue and deliver
to the transferee or transferees a new Warrant Certificate or Certificates
representing an equal aggregate number of Warrants. All Warrant Certificates
presented for registration of transfer or exercise shall be duly endorsed or be
accompanied by a written instrument or instruments or transfer in form
satisfactory to the Company and the Warrant Agent. At the time of exercise, the
transfer fee shall be paid by the Company. The Company may require payment of a
sum sufficient to cover any tax or other government charge that may be imposed
in connection therewith.
All Warrant Certificates so surrendered, or surrendered for exercise, or
for exchange in case of mutilated Warrant Certificates, shall be promptly
canceled by the Warrant Agent and thereafter retained by the Warrant Agent until
termination of the agency created by this Agreement. Prior to due presentment
for registration of transfer thereof, the Company and the Warrant Agent may
treat the Registered Holder of any Warrant Certificate as the absolute owner
thereof
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(notwithstanding any notations of ownership or writing thereon made by anyone
other than the Company or the Warrant Agent), and the parties hereto shall not
be affected by any notice to the contrary.
6. Loss or Mutilation. On receipt by the Company and the Warrant Agent
of evidence satisfactory as to the ownership of and the loss, theft, destruction
or mutilation of any Warrant Certificate, the Company shall execute, and the
Warrant Agent shall countersign and deliver in lieu thereof, a new Warrant
Certificate representing an equal aggregate number of Warrants. In the case of
loss, theft or destruction of any Warrant Certificate, the individual requesting
issuance of a new Warrant Certificate shall be required to indemnify the Company
and Warrant Agent in an amount satisfactory to each of them. In the event a
Warrant Certificate is mutilated, such certificate shall be surrendered and
canceled by the Warrant Agent prior to delivery of a new Warrant Certificate.
Applicants for a new Warrant Certificate shall also comply with such other
regulations and pay such other reasonable charges as the Company may prescribe.
7. Call Option. At any time, whether or not the Company's Registration
Statement with respect to the Warrant Shares is then current and effective, the
Company shall have the right and option with respect to each series of the
Warrants, upon thirty (30) days written notice to each Warrantholder (or such
longer period as is required under any applicable law), to call, redeem and
acquire all of the Warrants of either or both series which remain outstanding
and unexercised at the date specified for such redemption in such notice (the
"Redemption Date"), which Redemption Date shall be 30 days after the date of
such notice, for an amount equal to $.01 per Warrant; provided, however, that if
the Company's Registration Statement is then current and effective, the
Warrantholders shall have the right during the 30-day period immediately
following the date of such notice to exercise the Warrants in accordance with
the provisions of Section 3 hereof. In the event any Warrants are exercised
during such 30-day period, this call option shall be deemed not to have been
exercised by the Company as to the Warrants so exercised by the holders thereof.
Said notice of redemption shall require each Warrantholder to surrender to the
Company, on the Redemption Date, at the Corporate Office of the Warrant Agent
(or its successor), his certificate or certificates representing the Warrants to
be redeemed.
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Notwithstanding the fact that any Warrants called for redemption have not been
surrendered for redemption and cancellation on the Redemption Date, after the
Redemption Date, such Warrants shall be deemed to be expired and all rights of
the holders of such unsurrendered Warrants shall cease and terminate, other than
the right to receive the redemption price of $.01 per Warrant for such Warrants,
without interest provided, however, that such right to receive the redemption
price of $.01 per Warrant for such Warrants shall itself expire on the
Expiration Date of the Warrants. The Company shall notify the Warrant Agent
verbally, with confirmation in writing, of the call of the Warrants and of the
Redemption Date and the Company shall instruct the Warrant Agent accordingly as
to the procedures to be followed by the Warrant Agent in connection with the
redemption of the Warrants.
8. Adjustment of Exercise Price and Shares. After each adjustment of the
Exercise Price pursuant to this Section 8, the number of shares of Common Stock
purchasable on the exercise of each Warrant shall be the number derived by
dividing such adjusted pertinent Exercise Price into the original pertinent
Exercise Price. The pertinent Exercise Price shall be subject to adjustment as
follows:
(a) In the event, prior to the expiration of the Warrants by exercise or
by their terms, the Company shall issue any shares of its Common Stock as a
share dividend or shall subdivide the number of outstanding shares of Common
Stock into a greater number of shares, then, in either of such events, the
Exercise Price per share of Common Stock purchasable pursuant to the Warrants in
effect at the time of such action shall be reduced proportionately and the
number of shares purchasable pursuant to the Warrants shall be increased
proportionately. Conversely, in the event the Company shall reduce the number of
shares of its outstanding Common Stock by combining such shares into a smaller
number of shares, then, in such event, the Exercise Price per share purchasable
pursuant to the Warrants in effect at the time of such action shall be increased
proportionately and the number of shares of Common Stock at that time
purchasable pursuant to the Warrants shall be decreased proportionately. Any
dividend paid or distributed on the Common Stock in shares of any other class of
the Company or securities convertible into shares of Common Stock shall be
treated as a dividend paid in Common
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Stock to the extent that shares of Common Stock are issuable on the conversion
thereof.
(b) In the event the Company, at any time while the Warrants shall
remain unexpired and unexercised, shall sell all or substantially all of its
property, or dissolves, liquidates or winds up its affairs, prompt,
proportionate, equitable, lawful and adequate provision shall be made as part of
the terms of any such sale, dissolution, liquidation or winding up such that the
holder of a Warrant may thereafter receive, on exercise thereof, in lieu of each
share of Common Stock of the Company which he would have been entitled to
receive, the same kind and amount of any share, securities, or assets as may be
issuable, distributable or payable on any such sale, dissolution, liquidation or
winding up with respect to each share of Common Stock of the Company; provided,
however, that in the event of any such sale, dissolution, liquidation or winding
up, the right to exercise this Warrant shall terminate on a date fixed by the
Company, such date to be not earlier than 4:00 p.m., Eastern Time, on the 10th
day next succeeding the date on which notice of such termination of the right to
exercise the Warrants has been given by mail to the holders thereof at such
addresses as may appear on the books of the company.
(c) In the event, prior to the expiration of the Warrants by exercise or
by their terms, the Company shall determine to take a record of the holders of
its Common Stock for the purpose of determining shareholders entitled to receive
any share dividend or other right which will cause any change or adjustment in
the number, amount, price or nature of the shares of Common Stock or other
securities or assets deliverable on exercise of the Warrants pursuant to the
foregoing provisions, the Company shall give to the Registered Holders of the
Warrants at the addresses as may appear on the books of the Company at least 10
days prior written notice to the effect that it intends to take such a record.
Such notice shall specify the date as of which such record is to be taken; the
purpose for which such record is to be taken; and the number, amount, price and
nature of the Common Shares or other shares, securities or assets which will be
deliverable on exercise of the Warrants after the action for which such record
will be taken has been completed. Without limiting the obligation of the Company
to provide notice to the Registered Holders of the Warrant Certificates of any
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corporate action hereunder, the failure of the Company to give notice shall not
invalidate such corporate action of the Company.
(d) No adjustment of the Exercise Price shall be made as a result of or
in connection with (i) the issuance of Common Stock of the Company pursuant to
options, warrants and share purchase agreements outstanding or in effect on the
date hereof, (ii) the establishment of additional option plans of the Company,
the modification, renewal or extension of any plan now in effect or hereafter
created, or the issuance of Common Stock, on exercise of any options pursuant to
such plans, in connection with compensation arrangements for officers, employees
or agents of the Company or any subsidiary, and the like or (iii) the issuance
of Common Stock in connection with an acquisition or merger of any type
(therefore, the antidilution provisions of this Section 8 will not apply in the
event a merger or acquisition is undertaken by the Company).
(e) This Agreement shall be incorporated by reference on the Warrant
Certificates.
Upon any adjustment of the exercise Price required to be made pursuant
to this Section 8, the Company within 30 days thereafter shall (A) cause to be
filed with the Warrant Agent a certificate setting forth the pertinent Exercise
Price after such adjustment and setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based, and (B) cause to
be mailed to each of the Registered Holders of the Warrant Certificates written
notice of such adjustment.
9. Reduction in Exercise Price at Company's Option. In addition to any
adjustments made to the Exercise Price pursuant to Section 8, the Company's
Board of Directors may, at its sole discretion, reduce the Exercise Price of
either or both series of the Warrants in effect at any time either for the life
of the Warrants or any shorter period of time determined by the Company's Board
of Directors. The Company shall promptly notify the Warrant Agent and the
Registered Holders of any such reductions in the Exercise Price.
10. Duties. Compensation and Termination of Warrant Agent. The Warrant
Agent shall act hereunder as agent and in a ministerial capacity
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for the Company, and its duties shall be determined solely by the provisions
hereof. The Warrant Agent shall not, by issuing and delivering Warrant
Certificates or by any other act hereunder, be deemed to make any representation
as to the validity, value or authorization of the Warrant Certificates or the
Warrants represented thereby or of the Common Stock or other property delivered
on exercise of any Warrant. The Warrant Agent shall not at any time be under any
duty or responsibility to any holder of the Warrant Certificates to make or
cause to be made any adjustment of the Exercise Price or to determine whether
any fact exists which may require any such adjustments.
The Warrant Agent shall not (i) be liable for any recital or statement
of fact contained herein or for any action taken or omitted by it in reliance on
any Warrant Certificate or other document or instrument believed by it in good
faith to be genuine and to have been signed or presented by the proper party or
parties, (ii) be responsible for any failure on the part of the Company to
comply with any of its covenants and obligations contained in this Agreement
except for its own negligence or willful misconduct, or (iii) be liable for any
act or omission in connection with this Agreement except for its own negligence
or willful misconduct.
The Company agrees to indemnify the Warrant Agent against any and all
losses, expenses and liabilities which the Warrant Agent may incur in connection
with the delivery of copies of the Company's prospectus to exercising Registered
Holders upon the exercise of any Warrants as set forth in Section 4.
The Warrant Agent may at any time consult with counsel satisfactory to
it (which may be counsel for the Company) and shall incur no liability or
responsibility for any action taken or omitted by it in good faith in accordance
with the opinion or advice of such counsel. Any notice, statement, instruction,
request, direction, order or demand of the Company shall be sufficiently
evidenced by an instrument signed by its President and attested by its Secretary
or Assistant Secretary. The Warrant Agent shall not be liable for any action
taken or omitted by it in accordance with such notice, statement, instruction,
request, order or demand.
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The Company agrees to pay the Warrant Agent reasonable compensation for
its services hereunder and to reimburse the Warrant Agent for its reasonable
expenses. The Company further agrees to indemnify the Warrant Agent against any
and all losses, expenses and liabilities, including judgments, costs and counsel
fees, for any action taken or omitted by the Warrant Agent in the execution of
its duties and powers hereunder, excepting losses, expenses and liabilities
arising as a result of the Warrant Agent's negligence or willful misconduct.
The Warrant Agent may resign its duties or the Company may terminate the
Warrant Agent and the Warrant Agent shall be discharged from all further duties
and liabilities hereunder (except liabilities arising as a result of the Warrant
Agent's own negligence or willful misconduct), on 30 days' prior written notice
to the other party. At least 15 days prior to the date such resignation is to
become effective, the Warrant Agent shall cause a copy of such notice of
resignation to be mailed to the Registered Holder of each Warrant Certificate.
On such resignation or termination the Company shall appoint a new warrant
agent. If the Company shall fail to make such appointment within a period of 30
days after it has been notified in writing of the resignation by the Warrant
Agent, then the registered holder of any Warrant Certificate may apply to any
court of competent jurisdiction for the appointment of a new warrant agent.
After acceptance in writing of an appointment of a new warrant agent is
received by the Company, such new warrant agent shall be vested with the same
powers, rights, duties and responsibilities as if it had been originally named
herein as the Warrant Agent, without any further assurance, conveyance, act or
deed; provided, however, if it shall be necessary or expedient to execute and
deliver any further assurance, conveyance, act or deed, the same shall be done
at the expense of the Company and shall be legally and validly executed. The
Company shall file a notice of appointment of a new warrant agent with the
resigning Warrant Agent and shall forthwith cause a copy of such notice to be
mailed to the Registered Holder of each Warrant Certificate.
Any corporation into which the Warrant Agent or any new warrant agent
may be converted or merged, or any corporation resulting from any consolidation
to which the Warrant Agent or any new warrant agent shall
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be a party, or any corporation succeeding to the corporate trust business of the
Warrant Agent shall be a successor Warrant Agent under this Agreement, provided
that such corporation is eligible for appointment as a successor to the Warrant
Agent under the provisions of the preceding paragraph. Any such successor
Warrant Agent shall promptly cause notice of its succession as Warrant Agent to
be mailed to the Company and to the Registered Holder of each Warrant
Certificate. No further action shall be required for establishment and
authorization of such successor warrant agent.
The Warrant Agent, its officers or directors and its subsidiaries or
affiliates may buy, hold or sell Warrants or other securities of the Company and
otherwise deal with the Company in the same manner and to the same extent and
with like effect as though it were not Warrant Agent. Nothing herein shall
preclude the Warrant Agent from acting in any other capacity for the Company or
for any other legal entity.
11. Modification of Agreement. The Warrant Agent and the Company may by
supplemental agreement make any changes or corrections in this Agreement (i)
that they shall deem appropriate to cure any ambiguity or to correct any
defective or inconsistent provision or mistake or error herein contained; or
(ii) that they may deem necessary or desirable and which shall not adversely
affect the interests of the holders of Warrant Certificates; provided, however,
this Agreement shall not otherwise be modified, supplemented or altered in any
other respect except with the consent in writing of the registered holders of
Warrant Certificates representing not less than 51% of each class of Warrants
outstanding. Additionally, except as provided in Section 8, no change in the
number or nature of the Warrant Shares purchasable on exercise of a Warrant,
increase the purchase price therefor, or the acceleration of the Expiration Date
of a Warrant shall be made without the consent in writing of the Registered
Holder of the Warrant Certificate representing such Warrant, other than such
changes as are specifically prescribed or allowed by this Agreement.
12. Notices. All notices, demands, elections, opinions or requests
(however characterized or described) required or authorized hereunder shall be
deemed given sufficiently if in writing and sent by registered or certified
mail, return receipt requested and postage prepaid, or by
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tested telex, telegram or cable to the last known address of the Company, the
Warrant Agent and if to the Registered Holder of a Purchase Warrant Certificate,
at the address of such holder as set forth on the books maintained by the
Warrant Agent.
13. Binding Agreement. This Agreement shall be binding upon and inure to
the benefit of the Company, the Warrant Agent and their respective successors
and assigns, and the holders from time to time of Purchase Warrant Certificates.
Nothing in this Agreement is intended or shall be construed to confer upon any
other person any right, remedy or claim or to impose on any other person any
duty, liability or obligation.
14. Further Instruments. The parties shall execute and deliver any and
all such other instruments and shall take any and all other actions as may be
reasonably necessary to carry out the intention of this Agreement.
15. Severability. If any provision of this Agreement shall be held,
declared or pronounced void, voidable, invalid, unenforceable, or inoperative
for any reason by any court of competent jurisdiction, government authority or
otherwise, such holding, declaration or pronouncement shall not affect adversely
any other provision of this Agreement, which shall otherwise remain in full
force and effect and be enforced in accordance with its terms, and the effect of
such holding, declaration or pronouncement shall be limited to the territory or
jurisdiction in which made.
16. Waiver. All the rights and remedies of either party under this
Agreement are cumulative and not exclusive of any other rights and remedies as
provided by law. No delay or failure on the part of either party in the exercise
of any right or remedy arising from a breach of this Agreement shall operate as
a waiver of any subsequent right or remedy arising from a subsequent breach of
this Agreement. The consent of any party where required hereunder to act or
occurrence shall not be deemed to be a consent to any other action or
occurrence.
17. General Provisions. This Agreement shall be construed and enforced
in accordance with, and governed by, the laws of the State of Nevada. Except as
otherwise expressly stated herein, time is of the
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essence in performing hereunder. This Agreement embodies the entire agreement
and understanding between the parties and supersedes all prior agreements and
understandings relating to the subject matter hereof, and this Agreement may not
be modified or amended or any term or provisions hereof waived or discharged
except in writing signed by the party against whom such amendment, modification,
waiver or discharge is sought to be enforced. The headings of this Agreement are
for convenience in reference only and shall not limit or otherwise affect the
meaning hereof. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.
▇▇▇▇▇▇▇▇▇.▇▇▇, INC.
By
--------------------
Authorized Officer
THE WARRANT AGENT:
INTERWEST TRANSFER CO., INC.
By
--------------------
Authorized Officer
Exhibit A to Warrant Agency Agreement
dated __________________, 1999
NUMBER
------
W-A___________ __________SERIES A WARRANTS
VOID AFTER 5:00 P.M., CALIFORNIA TIME,
ON __________, 2002
17
CERTIFICATE FOR SERIES A WARRANTS
FOR THE PURCHASE OF COMMON STOCK, $.001 PAR VALUE, OF
▇▇▇▇▇▇▇▇▇.▇▇▇, INC.
Incorporated Under The Laws Of The State of Nevada
CUSIP N(0).______________________
THIS WARRANT CERTIFICATE CERTIFIES THAT, for value received,
___________________________________________________ or its registered assigns
("Holder"), is the registered holder of the number of warrants (Warrants) set
forth above, issued by ▇▇▇▇▇▇▇▇▇.▇▇▇, Inc., a Nevada corporation ("Company").
This Warrant Certificate is issued under and subject to all of the
terms, provisions and conditions of the Warrant Agency Agreement, dated as of ,
1999 the ("Warrant Agreement"), between the Company and Interwest Transfer
Company, Inc. (the "Warrant Agent"), to all of which terms, provisions and
conditions the holder of this Warrant consents by acceptance hereof. The Warrant
Agreement is incorporated herein by reference and made a part hereof, and
reference is made to the Warrant Agreement for a full description of the rights,
limitations of rights, obligations, duties and immunities of the Warrant Agent,
the Company and the Holders of the Warrant Certificates. Copies of the Warrant
Agreement are available for inspection at the offices of the Warrant Agent at
1981 East ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, or may be obtained
upon written request addressed to the Company at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇
▇▇▇, ▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
Each Warrant entitles the Holder thereof to purchase from the Company,
subject to the terms and conditions set forth hereinafter and in the Warrant
Agreement, one (1) fully paid and nonassessable share of common stock, $.001 par
value, of the Company ("Common Stock") upon presentation and surrender of this
Warrant Certificate with the exercise form hereon duly completed and executed,
at any time prior to 5:00 p.m., California time, on __________, 2002 ("Exercise
Period"), at the stock transfer office of the Warrant Agent or of any successor
warrant agent
18
or, if there be no successor warrant agent, at the corporate offices of the
Company, and upon payment of $6.00 per share of Common Stock ("Purchase Price")
and any applicable taxes paid either in cash, or by certified or official bank
check, payable in lawful money of the United States of America to the order of
the Company. The Holder may exercise all or any whole number of Warrants
evidenced hereby. The Purchase Price and the number of shares of Common Stock
issuable upon exercise of a Warrant are subject to adjustment in certain events
specified in the Warrant Agreement.
The purchase rights represented by this Warrant Certificate shall not be
exercisable with respect to a fraction of a share of Common Stock. As to any
fractions of a share which would otherwise be purchasable on the exercise of a
Warrant, the Company shall pay the cash value thereof determined as provided in
the Warrant Agreement. In case of the purchase of less than all the shares
purchasable under this Warrant Certificate, the Company shall cancel this
Warrant Certificate upon the surrender hereof and shall execute and deliver a
new Warrant Certificate of like tenor for the balance of shares purchasable
hereunder.
This Warrant Certificate shall not entitle the holder hereof to any
voting rights or other rights as a shareholder of the Company, or to any other
rights whatsoever except the rights herein expressed and such as are set forth,
and no dividends shall be payable or shall accrue in respect of the Warrants
represented by this Warrant Certificate except to the extent that such Warrants
shall be exercised.
Upon 30 days' prior written notice, the Company may at any time redeem
all or any portion of the outstanding Warrants for $0.01 per Warrant.
The Warrants are exercisable immediately, provided that a current
prospectus relating to the shares of Common Stock issuable upon exercise hereof
is in effect and that such shares are qualified for sale or deemed to be exempt
from qualification, under applicable state securities laws. All Warrants not
theretofore exercised or redeemed shall expire at 5:00 p.m., California time on
__________, 2002, and any Warrant not exercised by such time shall become void
unless extended by the Company.
19
This Warrant Certificate, with or without other Certificates, upon
presentation and surrender to the Warrant Agent, any successor warrant agent or,
in the absence of any successor warrant agent, at the corporate offices of the
Company, may be exchanged for another Warrant Certificate or Certificates
evidencing in the aggregate the same number of Warrants as the Warrant
Certificate or Certificates so surrendered, subject to such terms and conditions
set forth in the Warrant Agreement. If the Warrants evidenced by this Warrant
Certificate shall be exercised in part, the holder hereof shall be entitled to
receive upon surrender hereof another Warrant Certificate or Certificates
evidencing the number of Warrants not so exercised.
The Company shall not be required to issue or deliver any certificate
for shares of Common Stock or other securities upon the exercise of Warrants
evidenced by this Warrant Certificate until any tax which may be payable in
respect thereof by the Holder pursuant to the Warrant Agreement shall have been
paid.
This Warrant Certificate shall not be valid or obligatory for any
purpose until countersigned by the Warrant Agent.
Except as otherwise above provided, this Warrant Certificate and all
rights hereunder are transferable by the registered holder hereof in person or
by its duly authorized attorney on the books of the Warrant Agent upon surrender
of this Warrant Certificate, properly endorsed, to the Warrant Agent.
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be signed by its President and has caused a facsimile of its corporate seal to
be imprinted hereon.
---------------- ▇▇▇▇▇▇▇▇▇.▇▇▇, INC.
Date of Issuance
By:
------------------------
▇▇▇▇ ▇▇▇▇▇▇▇▇, President
20
COUNTERSIGNED:
(Corporate Seal)
Interwest Transfer Company, Inc.
As Warrant Agent
by:
--------------------
Authorized Signature
Exhibit B to Warrant Agency Agreement
dated _______________, 1999
NUMBER
------
W-B _____________ __________SERIES B WARRANTS
VOID AFTER 5:00 P.M., CALIFORNIA TIME,
ON __________, 2002
CERTIFICATE FOR SERIES B WARRANTS
FOR THE PURCHASE OF COMMON STOCK, $.001 PAR VALUE, OF
▇▇▇▇▇▇▇▇▇.▇▇▇, INC.
Incorporated Under The Laws Of The State of Nevada
CUSIP N(0)._____________
THIS WARRANT CERTIFICATE CERTIFIES THAT, for value received,
_____________________________________________________or its registered assigns
("Holder"), is the registered holder of the number of warrants (Warrants) set
forth above, issued by ▇▇▇▇▇▇▇▇▇.▇▇▇, Inc., a Nevada corporation ("Company").
21
This Warrant Certificate is issued under and subject to all of the
terms, provisions and conditions of the Warrant Agency Agreement, dated as of
_________________________, 1999 the ("Warrant Agreement"), between the Company
and Interwest Transfer Company, Inc. (the "Warrant Agent"), to all of which
terms, provisions and conditions the holder of this Warrant consents by
acceptance hereof. The Warrant Agreement is incorporated herein by reference and
made a part hereof, and reference is made to the Warrant Agreement for a full
description of the rights, limitations of rights, obligations, duties and
immunities of the Warrant Agent, the Company and the Holders of the Warrant
Certificates. Copies of the Warrant Agreement are available for inspection at
the offices of the Warrant Agent at 1981 East ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇ ▇▇▇▇
▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, or may be obtained upon written request addressed to the
Company at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
Each Warrant entitles the Holder thereof to purchase from the Company,
subject to the terms and conditions set forth hereinafter and in the Warrant
Agreement, one (1) fully paid and nonassessable share of common stock, $.001 par
value, of the Company ("Common Stock") upon presentation and surrender of this
Warrant Certificate with the exercise form hereon duly completed and executed,
at any time prior to 5:00 p.m., California time, on __________, 2002 ("Exercise
Period"), at the stock transfer office of the Warrant Agent or of any successor
warrant agent or, if there be no successor warrant agent, at the corporate
offices of the Company, and upon payment of $7.00 per share of Common Stock
("Purchase Price") and any applicable taxes paid either in cash, or by certified
or official bank check, payable in lawful money of the United States of America
to the order of the Company. The Holder may exercise all or any whole number of
Warrants evidenced hereby. The Purchase Price and the number of shares of Common
Stock issuable upon exercise of a Warrant are subject to adjustment in certain
events specified in the Warrant Agreement.
The purchase rights represented by this Warrant Certificate shall not be
exercisable with respect to a fraction of a share of Common Stock. As to any
fractions of a share which would otherwise be purchasable on the exercise of a
Warrant, the Company shall pay the cash value thereof determined as provided in
the Warrant Agreement. In case of the purchase
22
of less than all the shares purchasable under this Warrant Certificate, the
Company shall cancel this Warrant Certificate upon the surrender hereof and
shall execute and deliver a new Warrant Certificate of like tenor for the
balance of shares purchasable hereunder.
This Warrant Certificate shall not entitle the holder hereof to any
voting rights or other rights as a shareholder of the Company, or to any other
rights whatsoever except the rights herein expressed and such as are set forth,
and no dividends shall be payable or shall accrue in respect of the Warrants
represented by this Warrant Certificate except to the extent that such Warrants
shall be exercised.
Upon 30 days' prior written notice, the Company may at any time redeem
all or any portion of the outstanding Warrants for $0.01 per Warrant.
The Warrants are exercisable immediately, provided that a current
prospectus relating to the shares of Common Stock issuable upon exercise hereof
is in effect and that such shares are qualified for sale or deemed to be exempt
from qualification, under applicable state securities laws. All Warrants not
theretofore exercised or redeemed shall expire at 5:00 p.m., California time on
__________, 2002, and any Warrant not exercised by such time shall become void
unless extended by the Company.
This Warrant Certificate, with or without other Certificates, upon
presentation and surrender to the Warrant Agent, any successor warrant agent or,
in the absence of any successor warrant agent, at the corporate offices of the
Company, may be exchanged for another Warrant Certificate or Certificates
evidencing in the aggregate the same number of Warrants as the Warrant
Certificate or Certificates so surrendered, subject to such terms and conditions
set forth in the Warrant Agreement. If the Warrants evidenced by this Warrant
Certificate shall be exercised in part, the holder hereof shall be entitled to
receive upon surrender hereof another Warrant Certificate or Certificates
evidencing the number of Warrants not so exercised.
The Company shall not be required to issue or deliver any certificate
for shares of Common Stock or other securities upon the exercise of Warrants
evidenced by this Warrant Certificate until any tax
23
which may be payable in respect thereof by the Holder pursuant to the Warrant
Agreement shall have been paid.
This Warrant Certificate shall not be valid or obligatory for any
purpose until countersigned by the Warrant Agent.
Except as otherwise above provided, this Warrant Certificate and all
rights hereunder are transferable by the registered holder hereof in person or
by its duly authorized attorney on the books of the Warrant Agent upon surrender
of this Warrant Certificate, properly endorsed, to the Warrant Agent.
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be signed by its President and has caused a facsimile of its corporate seal to
be imprinted hereon.
---------------- ▇▇▇▇▇▇▇▇▇.▇▇▇, INC.
Date of Issuance
By:
------------------------
▇▇▇▇ ▇▇▇▇▇▇▇▇, President
COUNTERSIGNED:
(Corporate Seal) Interwest Transfer Company, Inc.
As Warrant Agent
By:
--------------------
Authorized Signature
