THE TRANSFERABILITY OF THIS WARRANT IS RESTRICTED AS PROVIDED IN SECTION 3
NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
THE
TRANSFERABILITY OF THIS WARRANT IS
RESTRICTED
AS PROVIDED IN SECTION 3
|
No.
2009-__
|
May
__, 2009
|
COMMON
STOCK PURCHASE WARRANT
For
good and valuable consideration, the receipt of which is hereby acknowledged by
SKINNY NUTRITIONAL CORP., a Nevada corporation (the “Company”),
______________ (the “Holder”), is hereby granted the right to
purchase, at any time from and after the date specified in Section 1.1 below
until 5:00 P.M., New York City time, on May __, 2014 (the “Warrant Exercise
Term”), up to _______ fully-paid and non-assessable shares of the Company's
Common Stock, $.001 par value per share (“Common Stock”).
l.
Exercise
of Warrant
1.1 This
Warrant shall only be exercisable commencing at 9:00 a.m. on the first business
day following the effective date of the acceptance by the Secretary of State of
the State of Nevada of an amendment to the Company’s Articles of Incorporation
to increase the number of authorized shares of Common Stock in an amount
sufficient to permit the exercise of all of the Warrant Shares (as defined
below). During the Warrant Exercise Term, this Warrant shall be exercisable at a
per share price of $0.08 (the “Exercise Price”), subject to adjustment as
provided in Section 2 hereof, payable in cash or by certified or official bank
check in New York Clearing House funds. Upon surrender of this warrant
certificate with the annexed Subscription Form duly executed, together with
payment of the Exercise Price for the shares of Common Stock purchased at the
Company’s principal executive offices the registered Holder of the Warrant shall
be entitled to receive a certificate or certificates for the shares of Common
Stock so purchased (the “Warrant Shares”). The purchase rights represented by
this Warrant are exercisable at the option of the Holder hereof, in whole or in
part (but not as to fractional shares of the Common Stock) during any period in
which this Warrant may be exercised as set forth above. In the case of the
purchase of less than all the shares of Common Stock purchasable under this
Warrant, the Company shall cancel this Warrant upon the surrender thereof and,
upon the written request of the Holder, the Company shall execute and deliver a
new Warrant of like tenor for the balance of the shares of Common Stock
purchasable hereunder.
1.2 The
issuance of certificates for shares of Common Stock upon the exercise of this
Warrant shall be made without charge to the Holder hereof including, without
limitation, any tax which may be payable in respect of the issuance thereof, and
such certificates shall be issued in the name of, or in such names as may be
directed by, the Holder hereof; 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 issuance and delivery of such certificate in a name other than that of
the Holder and the Company shall not be required to issue or deliver such
certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been
paid.
1.3
The Company covenants that it will at all times reserve and keep available out
of its authorized Common Stock, solely for the purpose of issuance upon exercise
of this Warrant as herein provided, such number of shares of Common Stock as
shall then be issuable upon the exercise of this Warrant. The Company
covenants that all shares of Common Stock which shall be so issuable shall be
duly and validly issued and fully-paid and non-assessable.
1.4 Cashless
Exercise. At any time during the Warrant Exercise Term the
Holder may effect a Cashless Exercise by surrendering this Warrant to the
Company and noting on the Exercise Notice that the Holder wishes to effect a
Cashless Exercise, upon which the Company shall issue to the Holder the number
of Warrant Shares determined as follows:
X = Y x (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
Market Price (as defined in below) as of the Exercise Date;
and
B = the
Exercise Price.
As used
herein, the term “Market Price” means, as of a particular date, the average of
the closing price for the ten (10) consecutive trading days occurring
immediately prior to (but not including) such date, as reported in the principal
market on which the Company’s Common Stock is traded. For purposes of
Rule 144, it is intended 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 required by Rule 144 shall
be deemed to have been commenced, on the date this Warrant was originally issued
by the Company.
2.
Adjustments and
Extraordinary Events
2.1
Stock Dividends, Subdivisions,
Reclassifications or Combinations. If the Corporation shall
(A) declare a dividend or make a distribution on its Common Stock in shares of
its Common Stock, (B) subdivide or reclassify the outstanding shares of Common
Stock into a greater number of shares, or (C) combine or reclassify the
outstanding Common Stock into a smaller number of shares, the Exercise Price in
effect at the time of the record date for such dividend or distribution or the
effective date of such subdivision, combination or reclassification shall be
proportionately adjusted. Any adjustment made herein which results in a decrease
(or increase) in the Exercise Price shall also effect a proportional increase
(or decrease) in the number of shares of Common Stock into which this Warrant is
exercisable. Successive adjustments in the Exercise Price shall be made whenever
any event specified above shall occur.
2
2.2 Reorganization, Reclassification,
Merger, Consolidation or Disposition of Assets. In case the Company shall
reorganize its capital, reclassify its capital stock, consolidate or merge with
or into another corporation (where the Company is not the surviving corporation
or where there is a change in or distribution with respect to the Common Stock
of the Company), or sell, transfer or otherwise dispose all or substantially all
of its property, assets or business to another corporation and, pursuant to the
terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of any
nature whatsoever (including warrants or other subscription or purchase rights)
in addition to or in lieu of common stock of the successor or acquiring
corporation (“Other Property”), are to be received by or distributed to the
holders of Common Stock of the Company, then the Holder shall have the right
thereafter to receive, upon exercise of this Warrant, the number of shares of
common stock of the successor or acquiring corporation or of the Company, if it
is the surviving corporation, and Other Property receivable upon or as a result
of such reorganization, reclassification, merger, consolidation or disposition
of assets by a Holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to such event. In case of any such
reorganization, reclassification, merger, consolidation or disposition of assets
(“Extraordinary Transaction”), the successor or acquiring corporation (if other
than the Company) shall expressly assume the due and punctual observance and
performance of each and every covenant and condition of this Warrant to be
performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as
determined in good faith by resolution of the Board of Directors of the Company)
in order to provide for adjustments of Warrant Shares for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section
2.2. As soon as commercially practicable following the
Extraordinary Transaction, the successor or acquiring corporation (if other than
the Company), shall deliver to Holder a new warrant in repacement of this
Warrant consistent with the provisions referenced in the immediately preceding
sentence against receipt by such successor or acquiring corporation of the
original of this Warrant. For purposes of this Section 2.2, “common
stock of the successor or acquiring corporation” shall include stock of such
corporation of any class which is not preferred as to dividends or assets over
any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such stock. The foregoing provisions of this Section 2.2 shall
similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.
2.3 Notice of Adjustment.
Whenever the number of Warrant Shares or number or kind of securities or other
property purchasable upon the exercise of this Warrant or the Exercise Price is
adjusted, as herein provided, the Company shall give prior written notice
thereof to the Holder of at least 15 days prior to the date on which the Company
closes its books or takes a record for determining the particular event, which
notice shall state the number of Warrant Shares (and other securities or
property) purchasable upon the exercise of this Warrant and the Exercise Price
of such Warrant Shares (and other securities or property) after such adjustment,
setting forth a brief statement of the facts requiring such adjustment and
setting forth the computation by which such adjustment was made.
3.
Restrictions on
Transfer
The Holder acknowledges that he has
been advised by the Company that this Warrant and the Warrant Shares issuable
upon exercise thereof (collectively the “Securities”) have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”), that the
Warrant is being issued, and the shares issuable upon exercise of the Warrant
will be issued, on the basis of the statutory exemption provided by section 4(2)
of the Securities Act relating to transactions by an issuer not involving any
public offering, and that the Company's reliance upon this statutory exemption
is based in part upon the representations made by the Holder contained
herein. The Holder acknowledges that he has been informed by the
Company of, or is otherwise familiar with, the nature of the limitations imposed
by the Securities Act and the rules and regulations thereunder on the transfer
of securities. In particular, the Holder agrees that no sale, assignment or
transfer of the Securities shall be valid or effective, and the Company shall
not be required to give any effect to any such sale, assignment or transfer,
unless (i) the sale, assignment or transfer of the Securities is registered
under the Securities Act, and the Company has no obligations or intention to so
register the Securities except as may otherwise be provided herein, or (ii) the
Securities are sold, assigned or transferred in accordance with all the
requirements and limitations of Rule 144 under the Securities Act or such sale,
assignment, or transfer is otherwise exempt from registration under the
Securities Act. The Holder represents and warrants that he has acquired this
Warrant and will acquire the Securities for his own account for investment and
not with a view to the sale or distribution thereof or the granting of any
participation therein, and that he has no present intention of distributing or
selling to others any of such interest or granting any participation therein.
The Holder acknowledges that the Warrant and Warrant Shares must be held
indefinitely unless a subsequent disposition thereof is registered under the
Securities Act or registered or qualified under any applicable state securities
or “blue-sky” laws or is exempt from registration and/or qualification. The
Holder has no need for liquidity in its investment in the Company, and is able
to bear the economic risk of such investment for an indefinite period and to
afford a complete loss thereof. The Holder is an “accredited investor” as such
term is defined in Rule 501 (the provisions of which are known to the Holder)
promulgated under the Act.
3
The
Holder acknowledges that the securities shall bear the following
legend:
“These
securities have not been registered under the Securities Act of
1933. Such securities may not be sold or offered for sale,
transferred, hypothecated or otherwise assigned in the absence of an effective
registration statement with respect thereto under such Act or an opinion of
counsel to the Company that an exemption from registration for such sale, offer,
transfer, hypothecation or other assignment is available under such
Act.”
4.
Redemption.
4.1 The
Company may, subject to the conditions set forth herein, redeem some or all of
the Warrants then outstanding upon not less than thirty (30) days nor more than
sixty (60) days prior written notice to the Warrant Holders at any time, provided: (i) this
Warrant has been issued by the Company; (ii) the closing bid price of the
Company's Common Stock for each of the twenty (20) consecutive trading days
prior to the date of the notice of redemption is at least $1.50, as
proportionately adjusted to reflect any stock splits, stock dividends,
combination of shares or like events and (iii) all of the Warrant Shares have
been registered for resale and continue to be covered by an effective
and current registration statement with the Securities and Exchange
Commission. Notice will be effective upon mailing and the time of
mailing is the “Effective Date of the Notice”. The Notice will state a
redemption date not less than thirty (30) days nor more than sixty (60) days
from the Effective Date of the Notice (the “Redemption Date”). No Notice shall
be mailed unless all funds necessary to pay for redemption of the Warrants to be
redeemed shall have first been set aside by the Company for the benefit of the
Warrant Holders so as to be and continue to be available therefor. The
redemption price to be paid to the Warrant Holders will be $.10 for each share
of Common Stock of the Company to which the Warrant Holder would then be
entitled upon exercise of the Warrant being redeemed, as adjusted from time to
time as provided herein (the “Redemption Price”). The Warrant Holders may
exercise their Warrants between the Effective Date of the Notice and 5:00 p.m.
Eastern Time on the business day immediately prior to the Redemption Date, such
exercise being effective if done in accordance with Section 1 hereof, and if the
Warrant Certificate, with form of election to purchase duly executed and the
Warrant Price, as applicable for such Warrant subject to redemption for each
share of Common Stock to be purchased is actually received by the Company at its
principal offices prior to 5:00 p.m. Eastern Time on the business day
immediately prior to the Redemption Date.
4
4.2 If
any Warrant Holder does not wish to exercise any Warrant being redeemed, he
should mail such Warrant to the Company at its principal offices after receiving
the Notice of Redemption required by this Section 4. If such Notice of
Redemption shall have been so mailed, and if on or before the Effective Date of
the Notice all funds necessary to pay for redemption of the Warrants subject to
redemption shall have been set aside by the Company for the benefit of such
Warrant Holders, then, on and after said Redemption Date, notwithstanding that
any Warrant subject to redemption shall not have been surrendered for
redemption, the obligation evidenced by all Warrants not surrendered for
redemption or effectively exercised shall be deemed no longer outstanding, and
all rights with respect thereto shall forthwith cease and terminate, except only
the right of the holder of each Warrant subject to redemption to receive the
Redemption Price for each share of Common Stock to which he would be entitled if
he exercised the Warrant upon receiving notice of redemption of the Warrant
subject to redemption held by him.
5.
Exchange and Replacement of
Warrant Certificates.
This Warrant Certificate is
exchangeable without expense, upon the surrender hereof by the registered Holder
at the principal executive office of the Company, for a new Warrant Certificate
of like tenor and date representing in the aggregate the right to purchase the
same number of Warrant Shares in such denominations as shall be designated by
the Holder thereof at the time of such surrender.
Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of
this Warrant Certificate, and, in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it, and reimbursement to the
Company of all reasonable expenses incidental thereto, and upon surrender and
cancellation of the Warrants, if mutilated, the Company will make and deliver a
new Warrant of like tenor, in lieu thereof and any such lost, stolen, destroyed
or mutilated warrant shall thereupon become void.
6.
Elimination of Fractional
Interests.
The Company shall not be required to
issue certificates representing fractions of the shares of Common Stock and
shall not be required to issue scrip or pay cash in lieu of fractional
interests, it being the intent of the parties that all fractional interests
shall be eliminated by rounding any fraction up or down to the nearest whole
number of shares of Common Stock.
7.
Rights of Warrant
Holders.
Nothing contained in this Agreement
shall be construed as conferring upon the Holder any rights whatsoever as a
stockholder of the Company, either at law or in equity, including without
limitation, or Holders the right to vote or to consent or to receive notice as a
stockholder in respect of any meetings of stockholders for the election of
directors the right to receive dividends or any other matter.
8.
Miscellaneous
8.1 All
the covenants and agreements made by the Company in this Warrant shall bind its
successors and assigns. This Warrant shall be for the sole and exclusive benefit
of the Holder and nothing in this Warrant shall be construed to confer upon any
person other than the Holder any legal or equitable right, remedy or claim
hereunder.
8.2 No
recourse shall be had for any claim based hereon or otherwise in any manner in
respect hereof, against any incorporator, stockholder, officer or director,
past, present or future, of the Company or of any predecessor corporation,
whether by virtue of any constitutional provision or statute or rule of law, or
by the enforcement of any assessment or penalty or in any other manner, all such
liability being expressly waived and released by the acceptance hereof and as
part of the consideration for the issue hereof.
5
8.3 No
course of dealing between the Company and the Holder hereof shall operate as a
waiver of any right of any Holder hereof, and no delay on the part of the Holder
in exercising any right hereunder shall so operate.
8.4 This
Warrant may be amended only by a written instrument executed by the Company and
the Holder hereof. Any amendment shall be endorsed upon this Warrant,
and all future Holders shall be bound thereby.
8.5 All
communications provided for herein shall be sent, except as may be otherwise
specifically provided, by registered or certified mail: if to the
Holder of this Warrant, to the address shown on the books of the Company; and if
to the Company, to Three Bala Xxxxx Xxxx, Xxxxx 000, Xxxx Xxxxxx, XX 00000,
attention: Office of the President, or to such other address as the Company may
advise the Holder of this Warrant in writing. Notices shall be deemed
given when mailed.
8.6 The
provisions of this Warrant shall in all respects be constructed according to,
and the rights and liabilities of the parties hereto shall in all respects be
governed by, the laws of the State of New York. This Warrant shall be
deemed a contract made under the laws of the State of New York and the validity
of this Warrant and all rights and liabilities hereunder shall be determined
under the laws of said State.
8.7 The
headings of the Sections of this Warrant are inserted for convenience only and
shall not be deemed to constitute a part of this Warrant.
IN
WITNESS WHEREOF, SKINNY NUTRITIONAL CORP. has caused this Warrant to be executed
in its corporate name by its officer, and its seal to be affixed
hereto.
Dated: May
__, 0000
Xxxx Xxxxxx, Xxxxxxxxxxxx
|
By:
|
|
| Chief Executive Officer | |
6
SUBSCRIPTION
FORM
|
|
Three
Xxxx Xxxxx Xxxx, Xxxxx 000
|
|
|
Xxxx
Xxxxxx, XX 00000
|
The undersigned Holder hereby
irrevocably elects to exercise the right to
purchase _______________________ shares of Common Stock covered by this
Warrant according to the conditions hereof and herewith makes full payment of
the Exercise Price of such shares.
The undersigned, by marking the box
following this sentence, indicates his or her intention to exercise this Warrant
on a cashless basis in accordance with the terms of this
Warrant: ¨
Kindly deliver to the undersigned a
certificate representing the Shares.
INSTRUCTIONS
FOR DELIVERY
Name: ____________________________________________________________
(please typewrite or print in block
letters)
Address:
__________________________________________________________
Tax I.D.
No. or Social Security No.: ____________________________________
Dated:
_________________________
Signature
________________________________
STATE OF
___________)
COUNTY OF
_________) ss:
On this __ day of ___________, before
me personally came ________, to me known, who being by me duly sworn, did depose
and say that he resides at __________________, that he is the holder of the
foregoing instrument and that he executed such instrument and duly acknowledged
to me that he executed the same.
|
Notary
Public
|
7
[FORM OF
ASSIGNMENT]
(To be
executed by the registered holder if such holder
desires
to transfer the Warrant Certificate.)
FOR VALUE
RECEIVED ______________________ hereby sells, assigns and transfers
unto ________________________________________________________________________________________________
this
Warrant Certificate, together with all right, title and interest therein, and
does hereby irrevocably constitute and appoint _________________, Attorney, to
transfer the within Warrant Certificate on the books of SKINNY NUTRITIONAL
CORP., with full power of substitution.
|
Dated:
_________________
|
Signature:
|
|
(Signature
must conform in all respects to name of holder as specified on the face of
the Warrant Certificate)
|
__________________________
__________________________
(Insert
Social Security or Other
Identifying
Number of Assignee)
STATE OF
___________)
COUNTY OF
_________) ss:
On this __ day of ___________, before
me personally came ________, to me known, who being by me duly sworn, did depose
and say that he resides at __________________, that he is the holder of the
foregoing instrument and that he executed such instrument and duly acknowledged
to me that he executed the same.
|
Notary
Public
|
8
