EXHIBIT 4.20
THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
UNDER ANY APPLICABLE STATE SECURITIES LAWS. ALL SUCH SECURITIES ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE OFFERED FOR SALE,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED (A "TRANSFER")
WITHOUT REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION
IS NOT REQUIRED BECAUSE THE TRANSFER IS EXEMPT FROM REGISTRATION OR THE TRANSFER
MAY BE MADE PURSUANT TO RULE 144 OR RULE 144A UNDER THE ACT. INVESTORS SHOULD BE
AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT
FOR AN INDEFINITE PERIOD OF TIME.
COMMON STOCK WARRANT
For the Purchase of Shares of Common Stock of CYTOMEDIX, INC.
October 1, 2003
THIS CERTIFIES THAT, IVC GROUP, for value received, and its successors and
assigns (collectively, "Warrantholder"), is entitled to subscribe for and
purchase, subject to the terms hereof, from Cytomedix, Inc., a Delaware
corporation (the "Company"), FOUR HUNDRED THOUSAND (400,000) fully-paid and
non-assessable shares (the "Shares") of the Company's Common Stock, par value
$0.0001 per share ("Common Stock"), at a price per share equal to $1.00 (the
"Warrant Exercise Price"), such price and such number of shares being subject to
adjustment upon the occurrence of the contingencies set forth in this Warrant.
This Warrant is granted in connection with the Services Agreement, of even date
herewith, by and between the Company and Warrantholder (the "Services
Agreement").
1. Term. Except as otherwise provided for herein, the FOUR HUNDRED THOUSAND
(400,000) Shares represented by this Warrant shall be exercisable, in whole or
in part, at any time and from time to time, after the original issuance date of
this Warrant and ending at 5:00 p.m., central standard time, on the third
anniversary of the original issuance date of this Warrant (the "Expiration
Date").
2. Number of Shares; Vesting of Shares. Subject to the terms and conditions
set forth herein, including the Expiration Date, the Warrantholder is entitled,
upon surrender of this Warrant and payment of the Warrant Exercise Price, to
purchase from the Company the Shares represented by this Warrant. This Warrant
shall be exercisable, in whole or in part, at any time and from time to time,
after the original issuance date of this Warrant until the Expiration Date. Such
numbers of Shares are subject to adjustment upon the occurrence of the
contingencies set forth in this Warrant.
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3. Method of Exercise; Payment; Issuance of New Warrant. The purchase right
represented by this Warrant may be exercised by the holder hereof, in whole or
in part and from time to time, by the surrender of this Warrant (together with
the notice of exercise form attached hereto as Exhibit A, duly executed) at the
principal office of the Company and by the payment to the Company, by check or
bank draft, of an amount equal to the then applicable Warrant Exercise Price per
share multiplied by the number of Shares then being purchased. The person or
persons in whose name(s) any certificate(s) representing the Shares shall be
issuable upon exercise of this Warrant shall be deemed to have become the
holder(s) of record of, and shall be treated for all purposes as the record
holder(s) of, the Shares represented thereby (and such Shares shall be deemed to
have been issued) immediately prior to the close of business on the date or
dates upon which this Warrant is exercised. In the event of any exercise of the
rights represented by this Warrant, certificates for the Shares of stock so
purchased shall be delivered to the holder hereof as soon as possible and in any
event within 30 days of receipt of such notice and, unless this Warrant has been
fully exercised or expired, a new Warrant representing the portion of the
Shares, if any, with respect to which this Warrant shall not then have been
exercised shall also be issued to the holder hereof as soon as possible and in
any event within such 30-day period.
4. Stock Fully Paid; Reservation of Shares. All Shares that may be issued
upon the exercise of the rights represented by this Warrant shall, upon
issuance, be fully paid and nonassessable, and free from all taxes, liens and
charges with respect to the issue thereof. During the period within which the
rights represented by the Warrant may be exercised, the Company shall at all
times have authorized and reserved for the purpose of issuance upon exercise of
the purchase rights evidenced by this Warrant, a sufficient number of shares of
its Common Stock to provide for the exercise of the rights represented by this
Warrant.
5. Adjustment of Warrant Exercise Price and Number of Shares. The number
and kind of securities purchasable upon the exercise of the Warrant and the
Warrant Exercise Price shall be subject to adjustment from time to time upon the
occurrence of certain events, as follows:
(a) Reclassification or Merger. In case of any reclassification, change or
conversion of securities of the class issuable upon exercise of this Warrant
(other than a change in par value, or from par value to no par value, or from no
par value to par value, or as a result of a subdivision or combination), or in
case of any merger of the Company with or into another corporation (other than a
merger with another corporation in which the Company is a continuing corporation
and which does not result in any reclassification or change of outstanding
securities issuable upon exercise of this Warrant), or in case of any sale of
all or substantially all of the assets of the Company, the Company, or such
successor or purchasing corporation, as the case may be, shall execute a new
Warrant (in form and substance satisfactory to the Warrantholder) providing that
the holder of this Warrant shall have the right to exercise such new Warrant and
upon such exercise to receive, the kind and amount of shares of stock, other
securities, money and property receivable upon such reclassification, change or
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merger by a holder of one share of Common Stock. Such new Warrant shall provide
for adjustments that shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 5, and appropriate adjustments shall be
made to the purchase price per share payable hereunder, provided the aggregate
purchase price shall remain the same. The provisions of this subsection (a)
shall similarly apply to successive reclassification, changes, mergers and
transfers.
(b) Subdivisions or Combination of Shares. If the Company at any time while
this Warrant remains outstanding and unexpired shall subdivide or combine its
Common Stock, the Warrant Exercise Price and the number of shares of Common
Stock issuable upon exercise hereof shall be proportionately adjusted such that
the aggregate exercise price of this Warrant shall at all times remains equal.
Any adjustments under this subsection (b) shall become effective at the close of
business on the date the subdivision or combination becomes effective.
(c) Stock Dividends. If the Company at any time while this Warrant is
outstanding and unexpired shall pay a dividend payable in shares of Common Stock
(except any distribution specifically provided for in the foregoing subsections
(a) and (b)), then the Warrant Exercise Price shall be adjusted, from and after
the date of determination of shareholders entitled to receive such dividend or
distribution, to that price determined by multiplying the Warrant Exercise Price
in effect immediately prior to such date of determination by a fraction, (i) the
numerator of which shall be the total number of shares of Common Stock
outstanding immediately prior to such dividend or distribution and (ii) the
denominator of which shall be the total number of shares of Common Stock
outstanding immediately after such dividend or distribution and the number of
shares of Common Stock subject to this Warrant shall be proportionately
adjusted. Any adjustment under this subsection (c) shall become effective as of
the record date of such dividend, or in the event that no record date is fixed,
upon the making of such dividend.
(d) No Impairment. The Company will not, by amendment of its Articles of
Incorporation (as amended, restated, supplemented or otherwise modified from
time) or through any reorganization, recapitalization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this
Section 5 and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holder of this Warrant against
impairment.
6. Notice of Adjustments. Whenever the Warrant Exercise Price shall be
adjusted pursuant to the provisions hereof, the Company shall within 10 days of
such adjustment deliver a certificate signed by its chief executive officer or
chief financial officer to the registered holder(s) hereof setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated and the Warrant
Exercise Price after giving effect to such adjustment.
7. Fractional Shares. No fractional shares will be issued in connection
with any exercise hereunder, but in lieu of such fractional shares the Company
shall make a cash payment therefor upon the basis of the Warrant Exercise Price
then in effect.
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8. Transfers and Exchanges. This Warrant may be transferred upon the prior
written consent of the Company, which consent shall not be unreasonably
withheld, provided that no such consent shall be required for the transfer of
this Warrant by operation of law.
9. Rights as Shareholders. No holder of this Warrant, as such, shall be
entitled to vote or receive dividends or be deemed the holder of Common Stock,
nor shall anything contained herein be construed to confer upon the holder of
this Warrant, as such, any of the rights of a shareholder of the Company or any
right to vote for the election of directors or upon any matter submitted to
shareholders at any meeting thereof, or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until this Warrant shall
have been exercised and the shares of Common Stock purchasable upon the exercise
hereof shall have become deliverable, as provided herein. However, nothing in
this Section 9 shall limit the right of the Warrantholder to be provided the
notices required under this Warrant.
10. Modification and Waiver. Any term of this Warrant may be amended and
the observance of any term of this Warrant may be waived (either generally or in
a particular instance and either retroactively or prospectively), with the
written consent of the Company and the holders of a majority of shares of Common
Stock issued or issuable upon exercise of this Warrant. Any waiver or amendment
effected in accordance with this Section shall be binding upon each holder of
any Shares issuable upon exercise of this Warrant.
11. Notices. Any notice, request or other document required or permitted to
be given or delivered to the holder hereof or the Company shall be delivered, or
shall be sent by certified or registered mail, postage prepaid, to each such
holder at his, her or its address as shown on the books of the Company or to the
Company at the address indicated on the signature page of this Warrant.
12. Assumption of Warrant. If at any time, while this Warrant, or any
portion thereof, is outstanding and unexpired there shall be (i) an acquisition
of the Company by another entity by means of a merger, consolidation or other
transaction or series of related transactions resulting in the exchange of the
outstanding shares of the Company's capital stock such that shareholders of the
Company prior to such transaction own, directly or indirectly, less than 50% of
the voting power of the surviving entity or (ii) a sale or transfer of all or
substantially all of the Company's assets to any other person, then, as a part
of such acquisition, sale or transfer, lawful provision shall be made so that
the Warrantholder shall thereafter be entitled to receive upon exercise of this
Warrant, during the period specified herein and upon payment of the Warrant
Exercise Price then in effect, the number of shares of stock or other securities
or property of the successor corporation resulting from such acquisition, sale
or transfer which a holder of the shares deliverable upon exercise of this
Warrant would have been entitled to receive in such acquisition, sale or
transfer if this Warrant had been exercised immediately before such acquisition,
sale or transfer, all subject to further adjustment as provided in this Section
12; and in any such case, appropriate adjustment (as determined in good faith by
the Company's Board of Directors) shall be made in the application of the
provisions herein set forth with respect to the rights and interests thereafter
of the Warrantholder to the end that the provisions set forth herein (including
provisions with respect to changes in and other adjustments of the number of
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Shares of the Warrantholder is entitled to purchase) shall thereafter by
applicable, as nearly as possible, in relation to any shares of Common Stock or
other securities or other property thereafter deliverable upon the exercise of
this Warrant.
13. Binding Effect on Successors. This Warrant shall be binding
upon any corporation succeeding the Company by merger, consolidation or
acquisition of all or substantially all of the Company's assets, and all of the
obligations of the Company relating to the Common Stock issuable upon the
exercise of this Warrant shall survive the exercise and termination of this
Warrant and all of the covenants and agreements of the Company shall inure to
the benefit of the successors and assigns of the Warrantholder. The Company
will, at the time of the exercise of this Warrant, in whole or in part, upon
request of the Warrantholder but at the Company's expense, acknowledge in
writing its continuing obligation to the Warrantholder in respect of any rights
to which the Warrantholder shall continue to be entitled after such exercise in
accordance with this Warrant; provided, that the failure of the Warrantholder to
make any such request shall not affect the continuing obligation of the Company
to the Warrantholder in respect of such rights.
14. Lost Warrants or Stock Certificates. The Company covenants to the
holder hereof that upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant or any
stock certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity reasonably satisfactory to the Company, or in the case
of any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, the Company will make and deliver a new Warrant or stock
certificate, or like tenor, in lieu of the lost, stolen, destroyed or mutilated
Warrant or stock certificate.
15. Legend on Warrant Shares. The certificates representing the Warrant
Shares shall bear a legend substantially similar to the following:
THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933 OR THE SECURITIES LAW OF ANY STATE AND ARE BEING OFFERED AND SOLD IN
RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
OF 1933 AND SUCH LAWS. THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED UNDER THE SECURITIES ACT OF 1933 AND SUCH LAWS PURSUANT TO
REGISTRATION OR EXEMPTION THEREFROM.
16. Registration Rights. The Holder shall be entitled to registration
rights pursuant to the terms of that certain Registration Rights Agreement
between the Company and the signatories thereto of even date herewith.
17. Descriptive Headings. The descriptive headings of the several sections
of this Warrant are inserted for convenience only and do not constitute a part
of this Warrant.
18. Governing Law. This Warrant shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Arkansas.
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19. Counterparts. This Common Stock Warrant may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
IN WITNESS WHEREOF, this Common Stock Warrant is executed effective as of the
date first above written.
CYTOMEDIX, INC.
By: ______________________________________
Address:
0000 Xxxxx Xxxxxx Xx., Xxxxx X
Xxxxxx Xxxx, Xxxxxxxx 00000
Accepted and Agreed:
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Xxxx X. Xxxxxxxx, Chairman of IVC Group
Address:
802 Grand Pavilion
P.O. Box 30543 SMB
Grand Cayman,Cayman Islands
British West Indies
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EXHIBIT A
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NOTICE OF EXERCISE
To: ___________________
___________________
___________________
Attn: _________________
1. The undersigned hereby elects to purchase ___________ shares of Common
Stock of Cytomedix, Inc. pursuant to the terms of the attached Warrant, and
tenders herewith payment of the purchase price of such shares in full in the
amount of ___________ by wire transfer or by certified or bank check.
2. Please issue a certificate or certificates representing said shares in
the name of the undersigned or in such other name or names as are specified
below
Name: __________________
Address: ______________
______________
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(Date) (Signature)
A-1
