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EXHIBIT 4.37
October 21, 1998
COMPLETE WELLNESS CENTERS, INC.
COMMON STOCK PURCHASE WARRANT
In consideration of good and valuable consideration, the receipt of which
is hereby acknowledged by COMPLETE WELLNESS CENTERS, INC. (the "Company"),
Structure Management, Inc., 000 Xxxxx Xxxx, Xxxxxxxxx, XX 00000 (the "Holder")
is hereby granted the right to purchase fully paid and non-assessable shares of
the Company's Common Stock, par value $0.0001665 per share (the "Common Stock")
in an amount of One Hundred Twenty Thousand (120,000) Shares at any time from
the date above until 5:00 P.M., Eastern time, on October 20, 2003 (the
"Expiration Date").
This Warrant is exercisable at the Exercise Price (as hereinafter
defined) per share of Common Stock issuable hereunder, payable in cash or by
certified or official bank check, or at Holder's option by means of tendering
this Warrant Certificate to the Company. Upon surrender of this Warrant 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 presently located at Suite 000, 000 Xxxxxxxx Xxxxxx, XX,
Xxxxxxxxxx, XX 00000, the registered Holder of this Warrant shall be entitled to
receive a certificate or certificates for the shares of Common Stock so
purchased.
1. Exercise of Warrant. 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 Common Stock), during the 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 hereof and
shall execute and deliver a new Warrant of like tenor for the balance of the
shares of Common Stock purchasable hereunder.
2. Issuance of Stock Certificate. 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 that
may be payable in respect thereof, and such certificates shall (subject to the
provisions of Section 3 hereof) 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 income tax to which the holder hereof may be subject
in connection with the issuance of this Warrant or of shares of Common Stock
upon the exercise of this Warrant; and provided further, that the Company shall
not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any 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.
3. Restrictions on Transfer.
3.1 Restrictions on Transfer. The holder of this Warrant, by
acceptance hereof, agrees that, absent an effective registration statement under
the Securities Act of 1933, as amended (the "Act"), covering the disposition of
the Warrant or Common Stock issued or issuable upon exercise hereof (the
"Warrant Shares"), such holder will not sell or transfer any or all of such
Warrant or Warrant Shares, as the case may be, without first providing the
Company with an opinion of counsel (which may be counsel for the Company) to the
effect that such sale or transfer will be exempt from the registration and
prospectus delivery requirements of the Act. Such holder consents to the Company
making a notation on its records
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giving instructions to any transfer agent of the Warrant or Warrant Shares in
order to implement such restrictions on transferability.
3.2 Transfer Restrictions Legend. Each certificate representing
Warrant Shares, unless at the time of exercise such Warrant Shares are
registered under the Act, shall bear a legend in substantially the following
form on the face thereof:
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933 AND MAY NOT BE TRANSFERRED OR RESOLD WITHOUT REGISTRATION
UNDER THE ACT, UNLESS IN THE OPINION OF COUNSEL TO THE ISSUER AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.
Any certificate issued at any time in exchange or substitution for any
certificate bearing such legend (except a new certificate issued upon completion
of a distribution under a registration statement covering the securities
represented thereby) shall also bear such legend unless, in the opinion of
counsel to the Company, the securities represented thereby may be transferred as
contemplated by such holder without violation of the registration requirements
of the Act.
4. Exercise Price and Redemption.
4.1 Initial and Adjusted Exercise Price. The initial exercise
price shall be $2.00 per share of Common Stock. The adjusted exercise price
shall be the price that shall result from time to time from any and all
adjustments of the initial exercise price in accordance with the provisions of
Section 6 hereof.
4.2 Exercise Price. The term "Exercise Price" herein shall mean
the initial exercise price or the adjusted exercise price depending upon the
context.
4.3 Market Value. The term "Market Value" herein shall be an
amount equal to the average closing "bid" price of a share of the Company's
publicly traded Common Stock for the five (5) trading days preceding the
Company's receipt of the Notice of Exercise form duly executed multiplied by the
number of shares of Common Stock to be issued upon surrender of this Warrant
Certificate.
5. Adjustments of Exercise Price and Number of Shares.
5.1 Computation of Adjusted Exercise Price. Except as
hereinafter provided, in case the Company shall at any time after the date
hereof issue or sell any shares of Common Stock (other than the issuances or
sales referred to in Section 5.5 hereof, the issuance or sale of any shares of
Common Stock resulting from the exercise or conversion of any of the Company's
securities outstanding as of the date hereof or any other securities sold on the
date hereof), including shares held in the Company's treasury, for a
consideration per share less than the Exercise Price in effect immediately prior
to the issuance or sale of such shares, or without consideration, then forthwith
upon such issuance or sale the Exercise Price shall (until another such issuance
or sale) be reduced to a price (calculated to the nearest full cent) determined
by dividing (A) an amount equal to the sum of (X) the total number of shares of
Common Stock outstanding (including shares deemed to be outstanding pursuant to
subparagraph (e) below) immediately prior to such issuance or sale, multiplied
by the Exercise Price in effect immediately prior to such issuance or sale, plus
(Y) the aggregate of the amount of all consideration, if any, received by the
Company upon such issuance or sale, by (B) the total number of shares of Common
Stock outstanding (including shares deemed to be outstanding pursuant to
subparagraph (e) below) immediately after such issuance or sale; provided,
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however, that in no event shall the Exercise Price be adjusted pursuant to this
computation to an amount in excess of the Exercise Price in effect immediately
prior to such computation, except in the case of a combination of outstanding
shares of Common Stock provided for in Section 5.3 hereof.
For the purposes of any adjustment to be made in accordance with this
Section 5.1, the following provisions shall be applicable:
(a) In case of the issuance or sale of shares of Common Stock
(or of other securities deemed hereunder to involve the issuance or sale of
shares of Common Stock) for a consideration part or all of which shall be cash,
the amount of the cash portion of the consideration therefor deemed to have been
received by the Company shall be (i) the subscription price, if shares of Common
Stock are offered by the Company for subscription, or (ii) the public offering
price (after deducting therefrom any compensation paid or discount allowed in
the sale, underwriting or purchase thereof by underwriters or dealers or others
performing similar services, but before deducting any other expenses incurred in
connection therewith), if such securities are sold to underwriters or dealers
for public offering without a subscription offering, or (iii) the net amount of
cash actually received by the Company for such securities, in any other case.
(b) In case of the issuance or sale (otherwise than as a
dividend or other distribution on any stock of the Company, and otherwise than
on the exercise of options, rights or warrants or the conversion or exchange of
convertible or exchangeable securities) of shares of Common Stock (or of other
securities deemed hereunder to involve the issuance or sale of shares of Common
Stock) for a consideration part or all of which shall be other than cash, the
amount of the consideration therefor other than cash deemed to have been
received by the Company shall be the value of such consideration as determined
in good faith by the Board of Directors of the Company on the basis of a record
of values of similar property or services.
(c) Shares of Common Stock issuable by way of dividend or other
distribution on any stock of the Company shall be deemed to have been issued
immediately after the opening of business on the day following the record date
for the determination of stockholders entitled to receive such dividend or other
distribution.
(d) The reclassification of securities of the Company other
than shares of Common Stock into securities including shares of Common Stock
shall be deemed to involve the issuance of such shares of Common Stock for a
consideration other than cash immediately prior to the close of business on the
date fixed for the determination of security holders entitled to receive such
shares, and the value of the consideration allocable to such shares of Common
Stock shall be determined as provided in subsection (b) of this Section 5.1.
(e) The number of shares of Common Stock at any one time
outstanding shall be deemed to include the aggregate maximum number of shares
issuable (subject to readjustment upon the actual issuance thereof) upon the
exercise of options, rights or warrants and upon the conversion or exchange of
convertible or exchangeable securities.
5.2 Subdivision and Combination of Common Stock. In case the
Company shall at any time subdivide (by any stock split, stock dividend or
otherwise) or combine (by any reverse stock split or otherwise) the outstanding
shares of Common Stock, the Exercise Price shall forthwith be proportionately
decreased in the case of subdivision or increased in the case of combination.
5.3 Adjustment in Number of Shares. Upon each adjustment of the
Exercise Price pursuant to
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the provisions of this Section 5, the aggregate number of shares of Common Stock
issuable upon the exercise of this Warrant (and of all the Warrants) shall be
obtained by multiplying the Exercise Price in effect immediately prior to such
adjustment by the number of shares of Common Stock issuable upon exercise of
this Warrant (and of all the Warrants) immediately prior to such adjustment and
dividing the product so obtained by the adjusted Exercise Price.
5.4 Reclassification, Consolidation, Merger, etc. In case of
any reclassification or change of the outstanding shares of Common Stock (other
than a change from no par value to par value or vice versa or a change in par
value, or as a result of a subdivision or combination), or in the case of any
consolidation of the Company with, or merger of the Company with or into,
another corporation (other than a consolidation or merger in which the Company
is the surviving corporation and which does not result in any reclassification
or change of the outstanding shares of Common Stock except a change as a result
of a subdivision or combination of such shares or a change in par value as
aforesaid), or in the case of a sale or conveyance to another corporation of the
property of the Company substantially as an entirety, the holder of this Warrant
shall thereafter (but only until the Expiration Date) have the right to purchase
the kind and number of shares of stock and/or other securities or property
receivable upon such reclassification, change, consolidation, merger, sale or
conveyance in respect of the number of shares issuable under this Warrant
immediately prior to the time of determination of stockholders of the Company
entitled to receive such shares of stock and/or other securities or property, at
a purchase price equal to the product of (x) the number of shares issuable under
this Warrant immediately prior to such determination, times (y) the Exercise
Price in effect immediately prior to such determination, as if such holder had
exercised this Warrant immediately prior to such determination. The Company
shall be obligated to retain and set aside, or otherwise make fair provision for
exercise of the right of the holder hereof to receive, the shares of stock
and/or other securities or property provided for in this Section 5.4.
5.5 No Adjustment of Exercise Price in Certain Cases. No
adjustment of the Exercise Price shall be made:
(a) Upon the issuance or sale of this Warrant or of any Warrant
Shares;
(b) Upon the issuance or sale of shares of Common Stock upon
the exercise of options, rights or warrants, or upon the conversion or exchange
of convertible or exchangeable securities, in any case (i) where the purchase
price was adjusted at the time of issuance of such options, rights or warrants,
or convertible or exchangeable securities, as contemplated by Section 5.2 hereof
or (ii) where such options, rights, warrants or convertible or exchangeable
securities were outstanding prior to the date hereof;
(c) Upon the issuance or sale of shares of Common Stock
resulting from the exercise or conversion of any of the Company's securities
outstanding as of the date hereof or of any agreements or contract rights to
purchase shares outstanding as of the date hereof; or
(d) If the amount of said adjustment shall be less than one
cent ($.01) per share, provided, however, that in such case any adjustment that
would otherwise be required then to be made shall be carried forward and shall
be made at the time of and together with the next subsequent adjustment that,
together with any adjustment so carried forward, shall amount to at least one 1
cent ($.01) per share.
6. Exchange and Replacement of Warrant. This Warrant is
exchangeable without expense, upon the surrender hereof by the registered holder
at the principal executive office of the Company, for a new Warrant or Warrants
of like tenor and date representing in the aggregate the right to purchase the
same
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number of shares as are purchasable hereunder in such denominations as shall be
designated by the registered holder hereof 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, and, in case of
loss, theft or destruction, upon receipt 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 this Warrant, if
mutilated, the Company will make and deliver a new Warrant of like tenor, in
lieu of this Warrant.
7. Elimination of Fractional Interests. The Company shall not
be required upon the exercise of this Warrant to issue stock certificates
representing fractions of shares of Common Stock, but shall instead pay in cash,
in lieu of any fractional share of Common Stock to which such holder would be
entitled if such fractional share were issuable, in an amount equal to the fair
market value of a share of Common Stock as of the date of such exercise.
8. Reservation of Shares. The Company shall at all times
reserve and keep available out of its authorized shares of Common Stock, solely
for the purpose of issuance upon the exercise of this Warrant, such number of
shares of Common Stock as shall be issuable upon the exercise hereof. The
Company covenants and agrees that, upon exercise of this Warrant and payment of
the Exercise Price therefor, all shares of Common Stock issuable upon such
exercise shall be duly and validly issued, fully paid and nonassessable.
9. Notices to Holders. Nothing contained in this warrant shall
be construed as conferring upon the holder hereof 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 or any other matter/ or as having any
rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of this warrant and prior to its exercise, any of the
following events shall occur:
(a) The Company shall take a record of the holders of its
shares of Common Stock for the purpose of entitling them to receive a dividend
or distribution in cash or otherwise;
(b) The Company shall offer to the holders of its Common Stock
any additional shares of capital stock of the Company or securities convertible
into or exchangeable for shares of capital stock of the Company, or any right to
subscribe for or purchase the same;
(c) A dissolution, liquidation or winding up of the Company
(other than in connection with a consolidation or merger) or a sale of all or
substantially all of its property, assets and business as an entirety shall be
proposed to be voted upon by the stockholders of the Company; or
(d) A merger or consolidation of the Company with or into any
other company shall be proposed to be voted upon by the stockholders of the
Company;
then, in any one or more of said events, the Company shall give written notice
of such event to the holder of this warrant at least fifteen (15) days prior to
the date fixed as a record date or the date of closing the transfer books for
the determination of the stockholders entitled to such dividend, distribution,
additional shares, convertible or exchangeable securities or subscription or
purchase rights, or entitled to vote on such proposed dissolution, liquidation,
winding up, sale, merger or consolidation. Such notice shall specify such record
date or the date of closing the transfer books, as the case may be. Failure to
give such notice or any
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defect therein shall not affect the validity of any action taken in connection
with the declaration or payment of any such dividend or distribution, or the
issuance of any shares of capital stock or convertible or exchangeable
securities or subscription or purchase rights, or any proposed dissolution,
liquidation, winding up, sale, merger or consolidation.
10. Notices. All notices, requests, consents and other
communications hereunder shall be in writing and shall be deemed to have been
duly made when delivered, or mailed by registered or certified mail, return
receipt requested:
(a) If to the registered holder of this Warrant, to the address
of such holder as shown on the books of the Company; or
(b) If to the Company, to the address set forth on the first
page of this Warrant;
or at such other address as the registered holder or the Company may hereafter
have advised the other.
11. Successors. All the covenants, agreements, representations
and warranties contained in this Warrant shall bind the parties hereto and their
respective heirs, executors, administrators, distributees, successors and
assigns.
12. Headings. The Section headings in this Warrant have been
inserted for purposes of convenience only and shall have no substantive effect.
13. Law Governing. This Warrant is delivered in the State of
Delaware and shall be construed and enforced in accordance with, and governed
by, the laws of the State of Delaware regardless of the jurisdiction of creation
or domicile of the Company or its successors or of the holder at any time
hereof.
WITNESS the signature of the duly authorized officer of the Company.
COMPLETE WELLNESS CENTERS, INC.
By:
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Title:
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SUBSCRIPTION FORM
(To Be Executed By The Registered Holder
In Order To Exercise The Warrant)
The undersigned hereby irrevocably elects to exercise the right to
purchase __________shares of Common Stock of COMPLETE WELLNESS CENTERS, INC.
covered by this Warrant according to the conditions hereof and herewith makes
payment of the Exercise Price of such shares in full.
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Signature
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Address
Dated: __________.
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