THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO...
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Exhibit 4.5 |
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THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. |
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MULTICELL TECHNOLOGIES, INC. |
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WARRANT TO PURCHASE COMMON STOCK |
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Warrant No. 84 |
August 1, 2005 |
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Void After July 31, 2010 |
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This Certifies That, for value received, Xxxxxxx X. Xxxxxxx, or his assigns (the "Holder"), is entitled to subscribe for and purchase at the Exercise Price (defined below) from MultiCell Technologies, Inc., a Delaware corporation, with its principal office at 000 Xxxxxx Xxxxxxxxxx Xxxxxxx, Xxxxxxx, XX 00000 (the "Company") up to 2,000,000 shares of Common Stock of the Company (the "Common Stock"). |
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1. |
Definitions. As used herein, the following terms shall have the following respective meanings: |
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(a) |
"Agreement" shall mean the Director and Consulting Agreement effective as of February 10, 2005 (the "Effective Date"), between the Company and the Holder. |
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(b) |
"Exercise Period" shall mean the period commencing with the date hereof and ending on the earlier of (i) the termination of the Agreement or (ii) July 31, 2010. |
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(c) |
"Exercise Price" shall mean $1.40 per share, subject to adjustment pursuant to Section 5 below. |
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(d) |
"Exercise Shares" shall mean the shares of the Company's Common Stock issuable upon exercise of this Warrant, subject to adjustment pursuant to the terms herein, including but not limited to adjustment pursuant to Sections 2 and 6 below. |
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(e) |
"Necessary Consents" shall mean approval, by both the board of directors of the Company (the "Board") and the stockholders of the Company, of an amendment to the Company's Certificate of Incorporation (the "Amended Certificate") to either (i) increase the authorized number of shares of Common Stock of the Company to a number that is sufficient to cover the Exercise Shares (in addition to the outstanding shares of capital stock of the Company and agreements and instruments exercisable for or convertible into capital stock of the Company) or (ii) effect a reverse split of the Company's outstanding Common Stock which results in a number of authorized but unissued shares of Common Stock sufficient to cover the Exercise Shares (in addition to the outstanding shares of capital stock of the Company and agreements and instruments exercisable for or convertible into capital stock of the Company). |
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2. |
Conditions to Exercise. |
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2.1 |
Time Based Exercisability. Subject to the terms of this Warrant, one million (1,000,000) of the Exercise Shares shall become exercisable in equal monthly installments over three (3) years, commencing on the Effective Date (the "Initial Shares"). One thirty-sixth of the Initial Shares will become exercisable on the tenth day of each month following the Effective Date; provided, however, that in the event that the remaining one million (1,000,000) Exercise Shares become exercisable pursuant to the provisions in Section 2.2 below, then any then unexercisable Initial Shares under this Section 2.1 shall also then become exercisable. |
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2.2 |
Arrangement of Financing. Subject to the terms of this Warrant, following the Effective Date, if the Company closes an equity financing that has been arranged by Holder, as determined by the Board, with investors that were first introduced to the Company by Holder, equal to at least ten million dollars ($10,000,000) on terms acceptable to the Board, in its sole discretion, then the remaining one million (1,000,000) Exercise Shares shall become exercisable thirty (30) days after the closing date of such round of financing. |
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2.3 |
Not Exercisable Until Necessary Consents Obtained. Notwithstanding Sections 2.1 and 2.2 above, or any other provisions of this Warrant, this Warrant will not be exercisable until the Company has received the Necessary Consents and filed the Amended Certificate with the Delaware Secretary of State. |
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3. |
Mechanics of Exercise. |
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3.1 |
Subject to the limitations on exercise set forth in Section 2 above, the rights exercisable under this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Company at its address set forth above (or at such other address as it may designate by notice in writing to the Holder): |
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(a) |
An executed Notice of Exercise in the form attached hereto; |
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(b) |
Payment of the Exercise Price either (i) in cash or by check, or (ii) by cancellation of indebtedness; and |
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(c) |
This Warrant. |
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Upon the exercise of the rights represented by this Warrant, a certificate or certificates for the Exercise Shares so purchased, registered in the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and delivered to the Holder within a reasonable time after the rights represented by this Warrant shall have been so exercised. |
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The person in whose name any certificate or certificates for Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such certificate or certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open. |
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3.2 |
Net Exercise. If the fair market value of one share of the Company's Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula: |
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X = Y (A-B) |
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Where |
X = |
the number of shares of Common Stock to be issued to the Holder |
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Y = |
the number of shares of Common Stock purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of this Warrant being canceled (at the date of such calculation) |
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A = |
the fair market value of one share of the Company's Common Stock (at the date of such calculation) |
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B = |
Exercise Price (as adjusted to the date of such calculation) |
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For purposes of the above calculation, the fair market value of one share of Common Stock shall be equal to the closing sales price (or the closing bid if no sales were reported) for one share of Common Stock of the Company as quoted on the Over The Counter Bulletin Board ("OTB"), the American Stock Exchange, or such other stock exchange as the Common Stock is then trading, on the last market trading day prior to the day of determination; if the Common Stock is not then trading on the OTB or other exchange, the fair market value shall be determined in good faith by the Board. |
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4. |
Covenants of the Company. |
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4.1 |
Covenants as to Exercise Shares. The Company covenants and agrees that all Exercise Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. |
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4.2 |
Notices of Record Date. In the event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters) or other distribution, the Company shall mail to the Holder, at least ten (10) days prior to the date specified herein, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution. |
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5. |
Representations of Holder. |
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5.1 |
Acquisition of Warrant for Personal Account. The Holder represents and warrants that it is acquiring this Warrant and the Exercise Shares solely for its account for investment and not with a view to or for sale or distribution of this Warrant or Exercise Shares or any part thereof. The Holder also represents that the entire legal and beneficial interests of this Warrant and Exercise Shares the Holder is acquiring is being acquired for, and will be held for, Holder's account only. |
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5.2 |
Securities Are Not Registered. |
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(a) |
The Holder understands that this Warrant and the Exercise Shares have not been registered under the Securities Act of 1933, as amended (the "Act") on the basis that no distribution or public offering of the stock of the Company is to be effected. The Holder realizes that the basis for the exemption may not be present if, notwithstanding his representations, the Holder has a present intention of acquiring the securities for a fixed or determinable period in the future, selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the securities. The Holder has no such present intention. |
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(b) |
The Holder recognizes that this Warrant and the Exercise Shares must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available. The Holder recognizes that the Company has no obligation to register this Warrant or the Exercise Shares of the Company, or to comply with any exemption from such registration. |
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(c) |
The Holder is aware that neither this Warrant nor the Exercise Shares may be sold pursuant to Rule 144 adopted under the Act unless certain conditions are met, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Company, the resale following the required holding period under Rule 144 and the number of shares being sold during any three month period not exceeding specified limitations. |
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5.3 |
Disposition of Warrant and Exercise Shares. |
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(a) |
The Holder further agrees not to make any disposition of all or any part of this Warrant or Exercise Shares in any event unless and until: the Company shall have received a letter secured by the Holder from the Securities and Exchange Commission stating that no action will be recommended to the Commission with respect to the proposed disposition; there is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with said registration statement; or the Holder shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if reasonably requested by the Company, the Holder shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, for the Holder to the effect that such disposition will not require registration of this Warrant or Exercise Shares under the Act or any applicable state securities laws. |
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(b) |
The Holder understands and agrees that all certificates evidencing the shares to be issued to the Holder may bear a legend substantially as follows: |
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THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. |
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6. |
Adjustment of Exercise Price. In the event of changes in the outstanding Common Stock of the Company by reason of stock dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations, or the like, the number and class of shares available under this Warrant in the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of this Warrant, on exercise for the same aggregate Exercise Price, the total number, class, and kind of shares as the Holder would have owned had this Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the event requiring adjustment; provided, however, that such adjustment shall not be made with respect to, and this Warrant shall terminate if not exercised prior to, the events set forth in Section 8 below. The form of this Warrant need not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant. |
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7. |
Fractional Shares. No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share. If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current fair market value (determined in accordance with Section 3.2) of an Exercise Share by such fraction. |
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8. |
Early Termination. In the event of, at any time during the Exercise Period, any capital reorganization, or any reclassification of the capital stock of the Company (other than a change in par value or from par value to no par value or no par value to par value or as a result of a stock dividend or subdivision, split-up or combination of shares), or the consolidation or merger of the Company with or into another corporation (other than a merger solely to effect a reincorporation of the Company into another state), or the sale or other disposition of all or substantially all the properties and assets of the Company in its entirety to any other person, the Company shall provide to the Holder twenty (20) days advance written notice of such event, and this Warrant shall terminate unless exercised prior to the date of such event. |
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9. |
Market Stand-Off Agreement. Holder shall not sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Common Stock (or other securities) of the Company held by Holder, for a period of time specified by the managing underwriter(s) (not to exceed ninety (90) days) following the effective date of a registration statement of the Company filed under the Act. Holder agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the managing underwriter(s) which are consistent with the foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to such Common Stock (or other securities) until the end of such period. The underwriters of the Company's stock are intended third party beneficiaries of this Section 9 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. |
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10. |
No Stockholder Rights. This Warrant in and of itself shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company. |
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11. |
Transfer of Warrant. Subject to applicable laws and the restriction on transfer set forth on the first page of this Warrant, this Warrant and all rights hereunder are transferable, by the Holder in person or by duly authorized attorney, upon delivery of this Warrant and the form of assignment attached hereto to any transferee designated by Holder. The transferee shall sign an investment letter in form and substance satisfactory to the Company. |
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12. |
Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone. |
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Notices, etc. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at the address listed on the signature page and to Holder at 000 Xxxxxxx Xxxxxx, Xxxx, XX 00000, or at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other parties hereto. |
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14. |
Acceptance. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein. |
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15. |
Governing Law. This Warrant and all rights, obligations and liabilities hereunder shall be governed by the laws of the State of California. |
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In Witness Whereof, the Company has caused this Warrant to be executed by its duly authorized officer as of August 1, 2005. |
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MultiCell Technologies, Inc. |
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By: |
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Address: 000 Xxxxxx Xxxxxxxxxx Xxxxxxx |
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NOTICE OF EXERCISE
TO: MultiCell Technologies, Inc.
(1) The undersigned hereby elects to purchase ________ shares of Common Stock of MultiCell Technologies, Inc. (the "Company") pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.
(2) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:
________________________
(Name)
________________________
________________________
(Address)
(3) The undersigned represents that (i) the aforesaid shares of Common Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned's own interests; (iv) the undersigned understands that the shares of Common Stock issuable upon exercise of this Warrant have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), by reason of a specific exemption from the registration provisions of the Securities Act, which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Securities Act, they must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid shares of Common Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information to the public about the Company; and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of Common Stock unless and until there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said registration statement, or, if requested, the undersigned has provided the Company with an opinion of counsel satisfactory to the Company, stating that such registration is not required.
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ASSIGNMENT FORM
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(To assign the foregoing Warrant execute this form and supply required information. Do not use this form to purchase shares.) |
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For Value Received, the foregoing Warrant and all rights evidenced thereby are hereby assigned to |
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Name: |
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(Please Print) |
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Address: |
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(Please Print) |
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Dated: , 20__ |
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Holder's |
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Holder's |
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NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant. |
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