NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE...
EXHIBIT
99.1
NEITHER
THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.
ASIAN
FINANCIAL, INC.
WARRANT
[Warrant
No.]
|
Original
Issue Date: December 31, 2007
|
Asian
Financial, Inc., a Wyoming corporation (the “Company”),
hereby certifies that, pursuant to (i) provisions set forth in Section 2(e)
of
the Registration Rights Agreement dated as of October 24, 2006 between the
Company and the investors identified therein in respect of liquidated damages
that shall be paid by the Company, and (ii) the Investor Warrants Proposal
Supplemental Letter dated as of October 26, 2007 issued by the Company, the
Company grants to [INVESTOR] or its registered assigns (the “Holder”),
the
right to subscribe for and purchase from the Company up to a total of 47,772
shares of Common Stock (each such share of Common Stock issuable upon exercise
of this Warrant, a “Warrant Share” and all such shares, the “Warrant
Shares”),
at
any time during the Exercise Period (as defined below), and subject to the
following terms and conditions:
1.
DEFINITIONS. AS USED IN THIS WARRANT, THE FOLLOWING TERMS SHALL HAVE THE
RESPECTIVE DEFINITIONS SET FORTH IN THIS SECTION 1.
“Affiliate”
means
any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person, as such
terms are used in and construed under Rule 144.
“Business
Day”
means
any day except Saturday, Sunday and any day that is a federal legal holiday
in
the United States or a day on which banking institutions in the State of New
York are authorized or required by law or other government action to
close.
“Common
Stock”
means
the common stock of the Company, par value $0.001 per share, and any securities
into which such common stock may hereafter be reclassified.
“Exchange
Act”
means
the Securities Exchange Act of 1934, as amended.
“Exercise
Price”
means
$5.76 per share of Common Stock, subject to adjustment in accordance with
Section 9.
“Fundamental
Transaction”
means
any of the following: (1) the Company effects any merger or consolidation of
the
Company with or into another Person as a result of which stockholders of the
Company immediately prior to such merger or consolidation possess a minority
of
the voting power of the acquiring entity immediately following such transaction,
(2) the Company effects any sale of all or substantially all of its assets
in
one or a series of related transactions, (3) any tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for
other securities, cash or property, or (4) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property.
“New
York Courts”
means
the state and federal courts sitting in the City of New York, Borough of
Manhattan.
“Original
Issue Date”
means
the Original Issue Date first set forth on the first page of this
Warrant.
“Person”
means
an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any
kind.
“Rule
144”
means
Rule 144 promulgated by the Securities and Exchange Commission pursuant to
the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Securities and Exchange Commission
having substantially the same effect as such Rule.
“Securities
Act”
means
the Securities Act of 1933, as amended.
“Trading
Day”
means
(i) a day on which the Common Stock is traded on a Trading Market (other than
the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading
Market (other than the OTC Bulletin Board), a day on which the Common Stock
is
traded in the over-the-counter market, as reported by the OTC Bulletin Board,
or
(iii) if the Common Stock is not quoted on any Trading Market, a day on which
the Common Stock is quoted in the over-the-counter market as reported by the
Pink Sheets, LLC (or any similar organization or agency succeeding to its
functions of reporting prices); provided, that in the event that the Common
Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then
Trading Day shall mean a Business Day.
“Trading
Market”
means
whichever of the New York Stock Exchange, the American Stock Exchange, the
NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market
or OTC Bulletin Board on which the Common Stock is listed or quoted for trading
on the date in question.
2.
REGISTRATION OF WARRANT. THE COMPANY SHALL REGISTER THIS WARRANT UPON
RECORDS TO BE MAINTAINED BY THE COMPANY FOR THAT PURPOSE (THE “WARRANT
REGISTER”), IN THE NAME OF THE RECORD HOLDER HEREOF FROM TIME TO TIME. THE
COMPANY MAY DEEM AND TREAT THE REGISTERED HOLDER OF THIS WARRANT AS THE ABSOLUTE
OWNER HEREOF FOR THE PURPOSE OF ANY EXERCISE HEREOF OR ANY DISTRIBUTION TO
THE
HOLDER, AND FOR ALL OTHER PURPOSES, ABSENT ACTUAL NOTICE TO THE
CONTRARY.
3.
REGISTRATION OF TRANSFERS. THE COMPANY SHALL REGISTER THE TRANSFER OF ANY
PORTION OF THIS WARRANT IN THE WARRANT REGISTER, UPON SURRENDER OF THIS WARRANT,
WITH THE FORM OF ASSIGNMENT ATTACHED HERETO DULY COMPLETED AND SIGNED, TO THE
COMPANY AT ITS ADDRESS SPECIFIED HEREIN. UPON ANY SUCH REGISTRATION OR TRANSFER,
A NEW WARRANT TO PURCHASE COMMON STOCK, IN SUBSTANTIALLY THE FORM OF THIS
WARRANT (ANY SUCH NEW WARRANT, A “NEW WARRANT”), EVIDENCING THE PORTION OF THIS
WARRANT SO TRANSFERRED SHALL BE ISSUED TO THE TRANSFEREE AND A NEW WARRANT
EVIDENCING THE REMAINING PORTION OF THIS WARRANT NOT SO TRANSFERRED, IF ANY,
SHALL BE ISSUED TO THE TRANSFERRING HOLDER. THE ACCEPTANCE OF THE NEW WARRANT
BY
THE TRANSFEREE THEREOF SHALL BE DEEMED THE ACCEPTANCE BY SUCH TRANSFEREE OF
ALL
OF THE RIGHTS AND OBLIGATIONS OF A HOLDER OF A WARRANT.
2
4.
EXERCISE AND DURATION OF WARRANTS. ON THE TERMS AND SUBJECT TO THE
CONDITIONS CONTAINED HEREIN, THIS WARRANT SHALL BE EXERCISABLE BY THE HOLDER
ON
ANY BUSINESS DAY STARTING ON JUNE 30, 2008 AND ENDING AT 5:00 P.M., NEW YORK
CITY TIME, ON JUNE 30, 2013 (THE “EXERCISE PERIOD”) FOR ALL OR ANY PORTION OF
THE WARRANT SHARES. THE PORTION OF THIS WARRANT NOT EXERCISED PRIOR TO THE
EXPIRATION OF THE EXERCISE PERIOD SHALL BE AND BECOME VOID AND OF NO VALUE.
5.
DELIVERY OF WARRANT SHARES.
(a) To
effect exercises hereunder, the Holder shall not be required to physically
surrender this Warrant unless the aggregate Warrant Shares represented by this
Warrant is being exercised. Upon delivery of the Exercise Notice (in the form
attached hereto) to the Company (with the attached Warrant Shares Exercise
Log)
at its address for notice set forth herein and upon payment of the Exercise
Price multiplied by the number of Warrant Shares that the Holder intends to
purchase hereunder, the Company shall promptly (but in no event later than
three
Trading Days after the Date of Exercise (as defined herein)) issue and deliver
to the Holder, a certificate for the Warrant Shares issuable upon such exercise.
The Company shall, upon request of the Holder and subsequent to the date on
which a registration statement covering the resale of the Warrant Shares has
been declared effective by the Securities and Exchange Commission, use its
reasonable best efforts to deliver Warrant Shares hereunder electronically
through the Depository Trust Corporation or another established clearing
corporation performing similar functions, if available, provided, that, the
Company may, but will not be required to, change its transfer agent if its
current transfer agent cannot deliver Warrant Shares electronically through
the
Depository Trust Corporation. A“Date
of Exercise”means
the date on which the Holder shall have delivered to the Company: (i) the
Exercise Notice (with the Warrant Exercise Log attached to it), appropriately
completed and duly signed and (ii) if such Holder is not utilizing the cashless
exercise provisions set forth in this Warrant, payment of the Exercise Price
for
the number of Warrant Shares so indicated by the Holder to be
purchased.
(b) If
by the third Trading Day after a Date of Exercise the Company fails to deliver
the required number of Warrant Shares in the manner required pursuant to Section
5(a), then the Holder will have the right to rescind such
exercise.
(c) If
by the
fifth Trading Day after a Date of Exercise the Company has yet to deliver the
required number of Warrant Shares in the manner required pursuant to Section
5(a), and if after such fifth Trading Day and prior to the receipt of such
Warrant Shares, the Holder (i) has not then rescinded such exercise pursuant
to
Section 5(b) and (ii) purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of
the
Warrant Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”),
then
the Company shall (1) pay in cash to the Holder the amount by which (x) the
Holder's total purchase price (including brokerage commissions, if any) for
the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of Warrant Shares that the Company was required
to
deliver to the Holder in connection with the exercise at issue by (B) the
closing bid price of the Common Stock on the Date of Exercise (or, if on the
Date of Exercise, the Common Stock is not traded on any Trading Market, the
fair
market value of one share of the Common Stock on the Date of Exercise, as
determined by the Company’s Board of Directors) and (2) at the option of the
Holder, either reinstate the portion of the Warrant and equivalent number of
Warrant Shares for which such exercise was not honored or deliver to the Holder
the number of shares of Common Stock that would have been issued had the Company
on a timely basis complied with its exercise and delivery obligations hereunder.
The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In.
6.
CHARGES, TAXES AND EXPENSES. ISSUANCE AND DELIVERY OF WARRANT SHARES UPON
EXERCISE OF THIS WARRANT SHALL BE MADE WITHOUT CHARGE TO THE HOLDER FOR ANY
ISSUE OR TRANSFER TAX, WITHHOLDING TAX, TRANSFER AGENT FEE OR OTHER INCIDENTAL
TAX OR EXPENSE IN RESPECT OF THE ISSUANCE OF SUCH CERTIFICATES, ALL OF WHICH
TAXES AND EXPENSES SHALL BE PAID BY THE COMPANY; PROVIDED, HOWEVER, THAT
THE
COMPANY SHALL NOT BE REQUIRED TO PAY ANY TAX WHICH MAY BE PAYABLE IN RESPECT
OF
ANY TRANSFER INVOLVED IN THE REGISTRATION OF ANY CERTIFICATES FOR WARRANT
SHARES
OR WARRANTS IN A NAME OTHER THAN THAT OF THE HOLDER. THE HOLDER SHALL BE
RESPONSIBLE FOR ALL OTHER TAX LIABILITY THAT MAY ARISE AS A RESULT OF HOLDING
OR
TRANSFERRING THIS WARRANT OR RECEIVING WARRANT SHARES UPON EXERCISE
HEREOF.
3
7.
REPLACEMENT OF WARRANT. IF THIS WARRANT IS MUTILATED, LOST, STOLEN OR
DESTROYED, THE COMPANY SHALL ISSUE OR CAUSE TO BE ISSUED IN EXCHANGE AND
SUBSTITUTION FOR AND UPON CANCELLATION HEREOF, OR IN LIEU OF AND SUBSTITUTION
FOR THIS WARRANT, A NEW WARRANT, BUT ONLY UPON RECEIPT OF EVIDENCE REASONABLY
SATISFACTORY TO THE COMPANY OF SUCH LOSS, THEFT OR DESTRUCTION AND CUSTOMARY
AND
REASONABLE INDEMNITY (WHICH SHALL NOT INCLUDE A SURETY BOND), IF REQUESTED.
APPLICANTS FOR A NEW WARRANT UNDER SUCH CIRCUMSTANCES SHALL ALSO COMPLY WITH
SUCH OTHER REASONABLE REGULATIONS AND PROCEDURES AND PAY SUCH OTHER REASONABLE
THIRD-PARTY COSTS AS THE COMPANY MAY PRESCRIBE. IF A NEW WARRANT IS REQUESTED
AS
A RESULT OF A MUTILATION OF THIS WARRANT, THEN THE HOLDER SHALL DELIVER SUCH
MUTILATED WARRANT TO THE COMPANY AS A CONDITION PRECEDENT TO THE COMPANY’S
OBLIGATION TO ISSUE THE NEW WARRANT.
8.
RESERVATION OF WARRANT SHARES. THE COMPANY COVENANTS THAT IT WILL AT ALL
TIMES RESERVE AND KEEP AVAILABLE OUT OF THE AGGREGATE OF ITS AUTHORIZED BUT
UNISSUED AND OTHERWISE UNRESERVED COMMON STOCK, SOLELY FOR THE PURPOSE OF
ENABLING IT TO ISSUE WARRANT SHARES UPON EXERCISE OF THIS WARRANT AS HEREIN
PROVIDED, THE NUMBER OF WARRANT SHARES WHICH ARE THEN ISSUABLE AND DELIVERABLE
UPON THE EXERCISE OF THIS ENTIRE WARRANT, FREE FROM PREEMPTIVE RIGHTS OR
ANY
OTHER CONTINGENT PURCHASE RIGHTS OF PERSONS OTHER THAN THE HOLDER (TAKING
INTO
ACCOUNT THE ADJUSTMENTS AND RESTRICTIONS OF SECTION 9). THE COMPANY COVENANTS
THAT ALL WARRANT SHARES SO ISSUABLE AND DELIVERABLE SHALL, UPON ISSUANCE
AND THE
PAYMENT OF THE APPLICABLE EXERCISE PRICE IN ACCORDANCE WITH THE TERMS HEREOF,
BE
DULY AND VALIDLY AUTHORIZED, ISSUED AND FULLY PAID AND
NONASSESSABLE.
9.
CERTAIN ADJUSTMENTS. THE EXERCISE PRICE AND NUMBER OF WARRANT SHARES
ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO ADJUSTMENT FROM TIME
TO
TIME AS SET FORTH IN THIS SECTION 9.
(a) Stock
Dividends and Splits.
If the Company, at any time while this Warrant is outstanding, (i) pays a stock
dividend on its Common Stock or otherwise makes a distribution on any class
of
capital stock that is payable in shares of Common Stock, (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, or (iii)
combines outstanding shares of Common Stock into a smaller number of shares,
then in each such case the Exercise Price shall be multiplied by a fraction
of
which the numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be the number
of shares of Common Stock outstanding immediately after such event. Any
adjustment made pursuant to clause (i) of this paragraph shall become effective
immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution, and any adjustment pursuant to clause
(ii) or (iii) of this paragraph shall become effective immediately after the
effective date of such subdivision or combination.
4
(b) Fundamental
Transactions.
If, at any time while this Warrant is outstanding there is a Fundamental
Transaction, then the Holder shall have the right thereafter to receive, upon
exercise of this Warrant, the same amount and kind of securities, cash or
property as it would have been entitled to receive upon the occurrence of such
Fundamental Transaction if it had been, immediately prior to such Fundamental
Transaction, the holder of the number of Warrant Shares then issuable upon
exercise in full of this Warrant
(the“Alternate
Consideration”).
For
purposes of any such exercise, the determination of the Exercise Price shall
be
appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration
it
receives upon any exercise of this Warrant following such Fundamental
Transaction. At the Holder's option and request, the Company shall make
commercially reasonable efforts to procure that any successor to the Company
or
surviving entity in such Fundamental Transaction either (1) issue to the Holder
a new warrant substantially in the form of this Warrant and consistent with
the
foregoing provisions and evidencing the Holder's right to purchase the Alternate
Consideration for the aggregate Exercise Price upon exercise thereof, or (2)
purchase the Warrant from the Holder for a purchase price, payable in cash
within five Trading Days after such request (or, if later, on the effective
date
of the Fundamental Transaction), equal to the Black Scholes value of the
remaining unexercised portion of this Warrant on the date of such request.
The
Company shall make commercially reasonable efforts to procure that the terms
of
any agreement pursuant to which a Fundamental Transaction is effected include
terms requiring any such successor or surviving entity to comply with the
provisions of this paragraph (b) and insuring that the Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.
(c) Number
of Warrant Shares.
Simultaneously with any adjustment to the Exercise Price pursuant to this
Section 9, the number of Warrant Shares that may be purchased upon exercise
of
this Warrant shall be increased or decreased proportionately, so that after
such
adjustment the aggregate Exercise Price payable hereunder for the adjusted
number of Warrant Shares shall be the same as the aggregate Exercise Price
in
effect immediately prior to such adjustment.
(d) Calculations.
All calculations under this Section 9 shall be rounded to the nearest cent
or
the nearest one (1) share, as applicable. 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 such shares shall be
considered an issue or sale of Common Stock.
(e) Notice
of Adjustments.
Upon the occurrence of each adjustment pursuant to this Section 9, the Company
at its expense will promptly compute such adjustment in accordance with the
terms of this Warrant and prepare a certificate setting forth such adjustment,
including a statement of the adjusted Exercise Price and adjusted number or
type
of Warrant Shares or other securities issuable upon exercise of this Warrant
(as
applicable), describing the transactions giving rise to such adjustments and
showing in detail the facts upon which such adjustment is based. Upon written
request, the Company will promptly deliver a copy of each such certificate
to
the Holder and to the Company's Transfer Agent.
10.
PAYMENT OF EXERCISE PRICE. THE HOLDER MAY PAY THE EXERCISE PRICE IN ONE
OF THE FOLLOWING MANNERS:
(a) Cash
Exercise.
The Holder may deliver immediately available funds; or
5
(b) Cashless
Exercise.
The Holder may notify the Company in an Exercise Notice of its election to
utilize cashless exercise, in which event the Company shall issue to the Holder
the number of Warrant Shares determined as follows:
X
=
Y [(A-B)/A]
|
|
where:
|
|
X
=
the number of Warrant Shares to be issued to the
Holder.
|
|
Y
=
the number of Warrant Shares with respect to which this Warrant
is being
exercised.
|
|
A
=
the average of the closing prices for the five Trading Days immediately
prior to (but not including) the Date of Exercise.
|
|
B
=
the Exercise Price.
|
For
purposes of Rule 144, it is intended, understood and acknowledged that the
Warrant Shares issued in a cashless exercise transaction shall be deemed to
have
been acquired by the Holder, and the holding period for the Warrant Shares
shall
be deemed to have commenced, on the date this Warrant was originally
issued.
11.
LIMITATIONS ON EXERCISE. NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED HEREIN, THE NUMBER OF WARRANT SHARES THAT MAY BE ACQUIRED BY THE
HOLDER UPON ANY EXERCISE OF THIS WARRANT (OR OTHERWISE IN RESPECT HEREOF)
SHALL
BE LIMITED TO THE EXTENT NECESSARY TO INSURE THAT, FOLLOWING SUCH EXERCISE
(OR
OTHER ISSUANCE), THE TOTAL NUMBER OF SHARES OF COMMON STOCK THEN BENEFICIALLY
OWNED BY SUCH HOLDER AND ITS AFFILIATES AND ANY OTHER PERSONS WHOSE BENEFICIAL
OWNERSHIP OF COMMON STOCK WOULD BE AGGREGATED WITH THE HOLDER'S FOR PURPOSES
OF
SECTION 13(D) OF THE EXCHANGE ACT, DOES NOT EXCEED 9.999% OF THE TOTAL NUMBER
OF
ISSUED AND OUTSTANDING SHARES OF COMMON STOCK (INCLUDING FOR SUCH PURPOSE
THE
SHARES OF COMMON STOCK ISSUABLE UPON SUCH EXERCISE). FOR SUCH PURPOSES,
BENEFICIAL OWNERSHIP SHALL BE DETERMINED IN ACCORDANCE WITH SECTION 13(D)
OF THE
EXCHANGE ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER. THIS
PROVISION SHALL NOT RESTRICT THE NUMBER OF SHARES OF COMMON STOCK WHICH A
HOLDER
MAY RECEIVE OR BENEFICIALLY OWN IN ORDER TO DETERMINE THE AMOUNT OF SECURITIES
OR OTHER CONSIDERATION THAT SUCH HOLDER MAY RECEIVE IN THE EVENT OF A
FUNDAMENTAL TRANSACTION AS CONTEMPLATED IN SECTION 9 OF THIS WARRANT. THIS
RESTRICTION MAY NOT BE WAIVED.
12.
NO
FRACTIONAL SHARES. NO FRACTIONAL SHARES OF WARRANT SHARES WILL BE ISSUED IN
CONNECTION WITH ANY EXERCISE OF THIS WARRANT. IN LIEU OF ANY FRACTIONAL SHARES
WHICH WOULD, OTHERWISE BE ISSUABLE, THE COMPANY SHALL PAY CASH EQUAL TO THE
PRODUCT OF SUCH FRACTION MULTIPLIED BY THE CLOSING BID PRICE OF ONE WARRANT
SHARE AS REPORTED BY THE APPLICABLE TRADING MARKET ON THE DATE OF EXERCISE
(OR,
IF ON THE DATE OF EXERCISE, THE WARRANT SHARES ARE NOT TRADED ON ANY TRADING
MARKET, THE FAIR MARKET VALUE OF ONE WARRANT SHARE ON THE DATE OF EXERCISE,
AS
DETERMINED IN GOOD FAITH BY THE COMPANY’S BOARD OF DIRECTORS).
6
13.
CALL PROVISION. IF AT ANY TIME FOLLOWING THE ORIGINAL ISSUE DATE: (I) THE
COMMON STOCK IS LISTED OR QUOTED ON A TRADING MARKET DURING THE ENTIRE CALL
CONDITION PERIOD (AS DEFINED BELOW), (II) THE CLOSING BID PRICE OF THE COMMON
STOCK FOR ANY CONSECUTIVE TEN (10) TRADING DAY PERIOD (EACH SUCH TRADING
DAY
DURING THE CONSECUTIVE TEN (10) TRADING DAY PERIOD SHALL OCCUR FOLLOWING
THE
ORIGINAL ISSUE DATE) IS EQUAL TO OR GREATER THAN 200% OF THE EXERCISE PRICE
(SUBJECT TO ADJUSTMENT PURSUANT TO SECTION 9), AND (III) (A) THE HOLDER IS
ENTITLED, UPON EXERCISE OF THE WARRANT, TO REQUIRE THE COMPANY TO INCLUDE
THE
WARRANT SHARES FOR REGISTRATION PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
NAMING THE HOLDER AS A SELLING STOCKHOLDER THEREUNDER (AND THE PROSPECTUS
THEREUNDER IS AVAILABLE FOR USE BY THE HOLDER AS TO ALL WARRANT SHARES) OR
(B)
UPON EXERCISE OF THE WARRANT, THE WARRANT SHARES ARE FREELY TRANSFERABLE
WITHOUT
VOLUME RESTRICTIONS PURSUANT TO RULE 144, AS DETERMINED BY COUNSEL TO THE
COMPANY PURSUANT TO A WRITTEN OPINION LETTER ADDRESSED AND IN FORM AND SUBSTANCE
REASONABLY ACCEPTABLE TO THE HOLDER AND THE TRANSFER AGENT FOR THE COMMON
STOCK,
DURING THE ENTIRE TEN (10) TRADING DAY PERIOD REFERENCED IN (II) ABOVE THROUGH
THE EXPIRATION OF THE CALL DATE AS SET FORTH IN THE COMPANY’S NOTICE PURSUANT TO
THIS SECTION (THE “CALL CONDITION PERIOD”), THEN, SUBJECT TO
THE CONDITIONS SET FORTH IN THIS SECTION, THE COMPANY MAY, UPON WRITTEN NOTICE
TO THE HOLDER (THE “CALL NOTICE”), ELECT IN ITS SOLE DISCRETION
TO REQUIRE THAT THE HOLDER EXERCISE UP TO ALL OF THE THEN UNEXERCISED PORTION
OF
THIS WARRANT, ON THE DATE THAT IS TWENTY (20) DAYS FOLLOWING THE DELIVERY
OF THE
CALL NOTICE (SUCH TWENTIETH DAY SHALL BE KNOWN AS THE “CALL
DATE”) AT THE ADDRESS LAST SHOWN ON THE RECORDS OF THE COMPANY FOR THE
HOLDER OR GIVEN BY THE HOLDER TO THE COMPANY FOR THE PURPOSE OF NOTICE, AND
IF
SUCH EXERCISE IS NOT MADE BY THE HOLDER, ANY AND ALL RIGHTS TO EXERCISE ANY
THEN
UNEXERCISED PORTION OF THE WARRANT SHALL AUTOMATICALLY TERMINATE WITHOUT
ANY
FURTHER ACTION REQUIRED BY ANY PARTY; PROVIDED, THAT THE CONDITIONS TO GIVING
SUCH NOTICE MUST BE IN EFFECT AT ALL TIMES DURING THE CALL CONDITION PERIOD
(OTHER THAN AS TO CLAUSE (II) ABOVE WHICH ONLY NEEDS TO BE SATISFIED UP TO
THE
TIME OF THE DELIVERY OF THE CALL NOTICE) OR ANY SUCH CALL NOTICE SHALL BE
NULL
AND VOID. THE COMPANY AND THE HOLDER AGREE THAT, IF AND TO THE EXTENT SECTION
11
OF THIS WARRANT WOULD RESTRICT THE ABILITY OF THE HOLDER TO EXERCISE THIS
WARRANT IN THE EVENT OF A DELIVERY OF A CALL NOTICE, THEN NOTWITHSTANDING
ANYTHING TO THE CONTRARY SET FORTH IN THE CALL NOTICE, THE CALL NOTICE SHALL
BE
DEEMED AUTOMATICALLY AMENDED TO APPLY ONLY TO SUCH PORTION OF THIS WARRANT
AS
MAY BE EXERCISED BY THE HOLDER BY THE CALL DATE IN ACCORDANCE WITH SUCH SECTION.
THE HOLDER WILL PROMPTLY (AND, IN ANY EVENT, PRIOR TO THE CALL DATE) NOTIFY
THE
COMPANY IN WRITING FOLLOWING RECEIPT OF A CALL NOTICE IF SECTION 11 WOULD
RESTRICT ITS EXERCISE OF THE WARRANT, SPECIFYING THEREIN THE NUMBER OF WARRANT
SHARES SO RESTRICTED. THE COMPANY COVENANTS AND AGREES THAT IT WILL HONOR
ALL
EXERCISE NOTICES TENDERED THROUGH 5:00 P.M. (NEW YORK CITY TIME) ON THE CALL
DATE.
14.
NOTICES. ANY AND ALL NOTICES OR OTHER COMMUNICATIONS OR DELIVERIES
HEREUNDER (INCLUDING, WITHOUT LIMITATION, ANY EXERCISE NOTICE) SHALL BE IN
WRITING AND SHALL BE DEEMED GIVEN AND EFFECTIVE ON THE EARLIEST OF (I) THE
DATE
OF TRANSMISSION, IF SUCH NOTICE OR COMMUNICATION IS DELIVERED VIA FACSIMILE
AT
THE FACSIMILE NUMBER SPECIFIED IN THIS SECTION PRIOR TO 5:00 P.M. (NEW YORK
CITY
TIME) ON A BUSINESS DAY, (II) THE NEXT BUSINESS DAY AFTER THE DATE OF
TRANSMISSION, IF SUCH NOTICE OR COMMUNICATION IS DELIVERED VIA FACSIMILE
AT THE
FACSIMILE NUMBER SPECIFIED IN THIS SECTION ON A DAY THAT IS NOT A BUSINESS
DAY
OR LATER THAN 5:00 P.M. (NEW YORK CITY TIME) ON ANY BUSINESS DAY, (III) THE
BUSINESS DAY FOLLOWING THE DATE OF MAILING, IF SENT BY NATIONALLY RECOGNIZED
OVERNIGHT COURIER SERVICE, OR (IV) UPON ACTUAL RECEIPT BY THE PARTY TO WHOM
SUCH
NOTICE IS REQUIRED TO BE GIVEN. THE ADDRESSES FOR SUCH COMMUNICATIONS SHALL
BE:
(I) IF TO THE COMPANY, TO NO. 0 XXXXXXX XXXX, XXXXXX XXXXXXXX XXXXXXXXXX
XXXXXXXXXXX XXXX, XXXXXXX, XXXXX 102600, ATTN.: XXXXX XXXX, OR TO FACSIMILE
NO.:
x00 (00) 0000-0000 (OR SUCH OTHER ADDRESS AS THE COMPANY SHALL INDICATE IN
WRITING IN ACCORDANCE WITH THIS SECTION), OR (II) IF TO THE HOLDER, TO THE
ADDRESS OR FACSIMILE NUMBER APPEARING ON THE WARRANT REGISTER OR SUCH OTHER
ADDRESS OR FACSIMILE NUMBER AS THE HOLDER MAY PROVIDE TO THE COMPANY IN
ACCORDANCE WITH THIS SECTION.
7
15.
NO
STOCKHOLDER RIGHTS. THIS WARRANT, BY ITSELF, AS DISTINGUISHED FROM ANY
WARRANT SHARES ISSUED HEREUNDER, SHALL NOT ENTITLE THE HOLDER TO ANY OF THE
RIGHTS OF A STOCKHOLDER OF THE COMPANY.
16.
WARRANT AGENT. THE COMPANY SHALL APPOINT BNY MELLON SHAREOWNER SERVICES
AS ITS WARRANT AGENT UNDER THIS WARRANT. UPON 10 DAYS' NOTICE TO THE HOLDER,
THE
COMPANY MAY APPOINT A NEW WARRANT AGENT. ANY CORPORATION INTO WHICH THE COMPANY
OR ANY NEW WARRANT AGENT MAY BE MERGED OR ANY CORPORATION RESULTING FROM
ANY
CONSOLIDATION TO WHICH THE COMPANY OR ANY NEW WARRANT AGENT SHALL BE A PARTY
OR
ANY CORPORATION TO WHICH THE COMPANY OR ANY NEW WARRANT AGENT TRANSFERS
SUBSTANTIALLY ALL OF ITS CORPORATE TRUST OR SHAREHOLDERS SERVICES BUSINESS
SHALL
BE A SUCCESSOR WARRANT AGENT UNDER THIS WARRANT WITHOUT ANY FURTHER ACT.
ANY
SUCH SUCCESSOR WARRANT AGENT SHALL PROMPTLY CAUSE NOTICE OF ITS SUCCESSION
AS
WARRANT AGENT TO BE MAILED (BY FIRST CLASS MAIL, POSTAGE PREPAID) TO THE
HOLDER
AT THE HOLDER'S LAST ADDRESS AS SHOWN ON THE WARRANT REGISTER.
17.
HOLDER REPRESENTATIONS. THE HOLDER OF THIS WARRANT, BY ACCEPTANCE HEREOF,
ACKNOWLEDGES THAT THIS WARRANT IS BEING ISSUED BY THE COMPANY IN RELIANCE
UPON
THE FOLLOWING REPRESENTATIONS OF THE HOLDER:
(a) the
Holder is an entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of
its
organization with the requisite power and authority to enter into and to
consummate the transactions contemplated by the Warrant and otherwise to carry
out its obligations hereunder. The acceptance of the Warrant has been duly
authorized by all necessary action and will constitute the valid and legally
binding obligation of such Holder, enforceable against it in accordance with
the
terms hereunder;
(b) that
as of the date hereof,
the Holder is an “accredited investor” as defined in Rule 501(a) under the
Securities Act and
such Holder has such experience in business and financial matters that it is
capable of evaluating the merits and risks of the
Warrant. The Holder acknowledges that returns
based upon
the Warrant are
speculative and involve
a high degree of risk;
(c) the
Holder is not acquiring the Warrant as a result of any advertisement, article,
notice, meeting or other communication regarding the Warrant published in any
newspaper, magazine or similar media or broadcast over television or radio
or
presented at any seminar or any other general solicitation or general
advertisement;
8
(d) the
Holder acknowledges that it has the information (or access to such information)
with respect to the Company that is necessary for it to make the decision to
acquire the Warrant and has been afforded (i) the opportunity to ask such
questions
as it has deemed necessary of, and to receive answers from, representatives
of
the Company concerning the terms and conditions of the offering of the Warrant
and the merits and risks of acquiring the Warrant;
(ii) information or access to information about the Company and its subsidiaries
as disclosed in the Company’s filings with the Commission
and their respective financial conditions, results of operations, business,
properties, management and prospects sufficient to enable it to evaluate
the
Warrant;
and (iii) the opportunity to obtain such additional information that the Company
possesses or can acquire without reasonable effort or expense that is necessary
to make an informed decision
with respect to the Warrant;
(e) the
Holder has independently evaluated the merits of its decision to acquire the
Warrant and such Holder confirms that it has not relied on the advice of any
business or legal counsel in making such decision;
(f) the
Holder
is acquiring the
Warrant as principal for its own account and
not with a view to or for distributing or reselling this
Warrant,
any part thereof, or
any Warrant Shares, without
prejudice, however, to the Holder’s right at all times to sell or otherwise
dispose of all or any part of the
Warrant in compliance with applicable federal and state securities
laws.
The Holder is acquiring the Warrant in the ordinary course of its business.
The
Holder does not have any agreement or understanding, directly or indirectly,
with any person to distribute the Warrant or any portion
hereof;
(g) the
Holder understands that the Warrant and any Warrant Shares must be held
indefinitely unless they are registered
under the Securities Act or
an exemption from registration
is available. The Holder acknowledges that it is familiar with Rule 144 and
that
such Xxxxxx has been advised that Rule 144 permits resales only under certain
circumstances. The Holder understands that to the extent that Rule 144 is not
available, such Holder will be unable to sell any portion of the Warrant or
Warrant Shares without either registration under the Securities Act or the
existence of another exemption from such registration requirement;
and
(h) the
Holder understands that the Warrant is
being offered and issued
in reliance on a transactional exemption from the registration requirements
of
federal and state securities laws
and the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgements and understandings of the Holder set
forth herein in order to determine the applicability of such exemptions and
the
suitability of the Holder to acquire the Warrant.
The Holder understands that no United States federal or state agency or any
government or governmental agency has passed upon or made any recommendation
or
endorsement of the Warrant.
18.
RELEASE
AND SATISFACTION.
THE
HOLDER HEREBY (A) ACKNOWLEDGES AND CONFIRMS THAT THE ISSUANCE OF THIS WARRANT
CONSTITUTES THE SATISFACTION IN FULL OF THE COMPANY’S OBLIGATIONS TO THE HOLDER
UNDER SECTION 2(E) OF THAT CERTAIN REGISTRATION RIGHTS AGREEMENT DATED AS
OF
OCTOBER 24, 2006 BY AND AMONG THE COMPANY AND THE INVESTORS IDENTIFIED THEREIN
AND SECTION 4.11 OF THAT CERTAIN SECURITIES PURCHASE AGREEMENT DATED AS OF
OCTOBER 24, 2006 BY AND AMONG THE COMPANY AND THE INVESTORS IDENTIFIED THEREIN
(THE “PENALTY PROVISIONS”) AND (B) IRREVOCABLY RELEASES AND FOREVER DISCHARGES
THE COMPANY FROM ANY AND ALL CLAIMS, LIABILITIES, OBLIGATIONS, COVENANTS
OR
AGREEMENTS ARISING UNDER OR IN CONNECTION WITH THE PENALTY
PROVISIONS.
9
19.
MISCELLANEOUS.
(a) This
Warrant shall be binding on and inure to the benefit of the parties hereto
and
their respective successors and assigns. Subject to the preceding sentence,
nothing in this Warrant shall be construed to give to any Person other than
the
Company and the Holder
any legal or equitable right, remedy or cause of action under this Warrant.
This
Warrant may be amended only in writing signed by the Company and the Holder
and
their successors and assigns.
(b) All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of this
Warrant and the transactions herein contemplated (“Proceedings”) (whether
brought against a party hereto or its respective Affiliates, employees or
agents) shall be commenced exclusively in the New York Courts. Each party hereto
hereby irrevocably submits to the exclusive jurisdiction of the New York Courts
for the adjudication of any dispute hereunder or in connection herewith or
with
any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any Proceeding, any claim that it is not
personally subject to the jurisdiction of any New York Court, or that such
Proceeding has been commenced in an improper or inconvenient forum. Each party
hereto hereby irrevocably waives personal service of process and consents to
process being served in any such Proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Warrant
and
agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any
way
any right to serve process in any manner permitted by law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or
relating to this Warrant or the transactions contemplated hereby. If either
party shall commence a Proceeding to enforce any provisions of this Warrant,
then the prevailing party in such Proceeding shall be reimbursed by the other
party for its attorney’s fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such
Proceeding.
(c) The
headings herein are for convenience only, do not constitute a part of this
Warrant and shall not be deemed to limit or affect any of the provisions
hereof.
(d) In
case
any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining
terms and provisions of this Warrant shall not in any way be affected or
impaired thereby and the parties will attempt in good faith to agree upon a
valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.
(e) Prior
to exercise of this Warrant, the Holder hereof shall not, by reason of by being
a Holder, be entitled to any rights of a stockholder with respect to the Warrant
Shares.
[REMAINDER
OF XXXX INTENTIONALLY LEFT BLANK,
SIGNATURE
PAGE FOLLOWS]
10
IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by
its
authorized officer as of the date first indicated above.
ASIAN
FINANCIAL, INC.
|
|
By:
/s/ Xxxxxx Xxx
|
|
Name:
Xxxxxx Xxx
|
|
Title:
Chief Executive Officer
|
Acceptance
of this Warrant, including the exhibits attached
hereto,
|
||
and
the terms and conditions herein acknowledged by:
|
||
[INVESTOR]
|
||
By:
|
||
Name:
|
||
Title:
|
11
EXERCISE
NOTICE
Asian
Financial, Inc.
WARRANT
DATED DECEMBER 31, 2007
The
undersigned Holder hereby irrevocably elects to purchase _____________ shares
of
Common Stock pursuant to the above referenced Warrant. Capitalized terms used
herein and not otherwise defined have the respective meanings set forth in
the
Warrant.
(1)
|
The
undersigned Holder hereby exercises its right to purchase
_________________ Warrant Shares pursuant to the
Warrant.
|
(2)
|
The
Holder intends that payment of the Exercise Price shall be made as
(check
one):
|
________
|
“Cash
Exercise” under Section 10
|
|||
________
|
“Cashless
Exercise” under Section 10
|
(3)
|
If
the holder has elected a Cash Exercise, the holder shall pay the
sum of
$____________ to the Company in accordance with the terms of the
Warrant.
|
(4)
|
Pursuant
to this Exercise Notice, the Company shall deliver to the holder
_______________ Warrant Shares in accordance with the terms of the
Warrant.
|
(5)
|
By
its delivery of this Exercise Notice, the undersigned is
hereby making the same representations and warranties as of the date
of
exercise as those set forth in Section 16 of the Warrant.
|
(6)
|
By
its delivery of this Exercise Notice, the undersigned represents
and
warrants to the Company that in giving effect to the exercise evidenced
hereby the Holder will not beneficially own in excess of the number
of
shares of Common Stock (determined in accordance with Section 13(d)
of the
Securities Exchange Act of 1934) permitted to be owned under Section
11 of
this Warrant to which this notice
relates.
|
Dated:
|
______________, |
Name
of Xxxxxx:
|
|
(Print)
|
|||
By:
|
|||
Name:
|
|||
Title:
|
|||
(Signature
must conform in all respects to name of holder as specified on
the face of
the Warrant)
|
12
Warrant
Shares Exercise Log
Date
|
Number
of Warrant Shares Available to be Exercised
|
Number
of Warrant Shares Exercised
|
Number
of Warrant Shares Remaining to be Exercised
|
|
13
ASIAN
FINANCIAL, INC.
WARRANT
DATED DECEMBER 31, 2007
[WARRANT
NO.]
FORM
OF
ASSIGNMENT
[To
be
completed and signed only upon transfer of Warrant]
FOR
VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers unto
________________________________ the right represented by the above-captioned
Warrant to purchase ____________ shares of Common Stock to which such Warrant
relates and appoints ________________ attorney to transfer said right on the
books of the Company with full power of substitution in the
premises.
Dated:
|
_________________,___
|
||||||
|
|||||||
|
(Signature must conform in all respects to name of holder as specified on the face of the Warrant) | ||||||
__________________________________
|
|||||||
Address
of Transferee
|
|||||||
__________________________________
|
|||||||
__________________________________
|
|||||||
In
the presence of:
|
|||||||
___________________________
|
14
EXHIBIT
99.1
FORM
OF
WARRANT
15