WARRANT PURCHASE AGREEMENT by and between CAPRIUS, INC. and VINTAGE CAPITAL GROUP, LLC Dated as of January 22, 2010
Exhibit
4.1
by
and between
CAPRIUS,
INC.
and
VINTAGE
CAPITAL GROUP, LLC
Dated
as of January 22, 2010
TABLE
OF CONTENTS
1.
|
Terms
of Warrant
|
1
|
|
1.1
|
Warrant
|
1
|
|
1.2
|
Closing
|
1
|
|
2.
|
Representations
and Warranties of the Company
|
2
|
|
2.1
|
Organization,
Good Standing, and Qualification
|
2
|
|
2.2
|
Authorization
|
2
|
|
2.3
|
Valid
Issuance of Capital Stock
|
2
|
|
2.4
|
Subsidiaries
|
3
|
|
2.5
|
No
Conflicts
|
3
|
|
2.6
|
Warrant
Coverage
|
3
|
|
3.
|
Representations
and Warranties of the Purchaser
|
3
|
|
3.1
|
Authorization
|
3
|
|
3.2
|
Purchase
Entirely for Own Account
|
3
|
|
3.3
|
Disclosure
of Information
|
4
|
|
3.4
|
Investment
Experience
|
4
|
|
3.5
|
Accredited
Investor
|
4
|
|
3.6
|
Restricted
Securities
|
4
|
|
3.7
|
Further
Limitations on Disposition
|
4
|
|
3.8
|
Legends
|
4
|
|
4.
|
Original
Issue Discount Calculation
|
5
|
|
5.
|
California
Corporate Securities Law
|
5
|
|
6.
|
Miscellaneous
|
5
|
|
6.1
|
Successors
and Assigns; Assignments
|
5
|
|
6.2
|
Governing
Law
|
6
|
|
6.3
|
Consent
to Forum
|
6
|
|
6.4
|
Waiver
of Trial by Jury
|
6
|
|
6.5
|
Counterparts
|
7
|
|
6.6
|
Titles
and Subtitles
|
7
|
|
6.7
|
Notices
|
7
|
|
6.8
|
Finder’s
Fee
|
8
|
|
6.9
|
Expenses
|
8
|
|
6.10
|
Entire
Agreement; Amendments and Waivers
|
8
|
|
6.11
|
Severability
|
9
|
i
EXHIBITS
Exhibit A
|
—
|
Warrant
|
Exhibit B
|
—
|
Registration
Rights Agreement
|
Exhibit C
|
—
|
Equity
Rights Agreement
|
ii
THIS
WARRANT PURCHASE AGREEMENT (“Agreement”) is made
as of January 22, 2010, by and between Caprius, Inc., a Delaware
corporation (the “Company”), and
Vintage Capital Group, LLC, a Delaware limited liability company (the “Purchaser”).
(a) The
closing (the “Closing”) of the
purchase of the Warrant by the Purchaser in return for the payment to the
Company by the Purchaser of $0.01 (the “Purchase Price”)
shall take place at the offices of Klee, Tuchin, ▇▇▇▇▇▇▇▇▇ & ▇▇▇▇▇ LLP, 1999
Avenue of the Stars, ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, at 10:00
a.m. Los Angeles time, January 22, 2010 or at such other time and place as
the Company and the Purchaser mutually agree.
(b) At
the Closing:
(i) the
Purchaser shall deliver the Purchase Price to the Company and the Company shall
deliver to the Purchaser the executed Warrant in return for the consideration
provided to the Company;
(ii) the
Company shall deliver an executed copy of the Registration Rights Agreement in
the form attached hereto as Exhibit B;
(iii) the
Company shall deliver an executed copy of the Equity Rights Agreement in the
form attached hereto as Exhibit C;
(iv) the
Company shall deliver an opinion of counsel to the Company, in form and
substance satisfactory to the Purchaser in its sole and absolute discretion,
which shall include, without limitation, opinions as to the authorization of the
Warrant and the Warrant Shares and the entry into, and enforceability of, this
Agreement, the Equity Rights Agreement and the Registration Rights
Agreement;
(v) the
Company shall deliver a certificate signed by the Chief Executive Officer of the
Company, certifying on behalf of the Company (1) that the representations
and warranties set forth in Section 2 are
true and correct, (2) that all conditions to Closing have been satisfied
and (3) as to the capitalization of the Company as of the
Closing;
(vi) the
Company shall deliver a certified copy of its Certificate of Incorporation as in
effect as of the Closing;
(vii) the
Company shall deliver a good standing certificate, issued by the State of
Delaware, dated as of the most recent practicable date prior to the Closing;
and
(viii) the
Company shall deliver resolutions or consents of (1) its Board of Directors
approving and authorizing the execution, delivery and performance of this
Agreement, the Warrant, the Equity Rights Agreement and the Registration Rights
Agreement and the amendments to the Company’s Certificate of Incorporation
necessary or desirable to comply with the terms and conditions of this Agreement
and the Warrant and (2) its stockholders approving and authorizing the
amendments to the Company’s Certificate of Incorporation necessary or desirable
to comply with the terms and conditions of this Agreement and the
Warrant.
2.1 Organization, Good Standing,
and Qualification. The Company is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Delaware and has all requisite corporate power and authority to carry on its
business as now conducted and as proposed to be conducted. The
Company is duly qualified to transact business and is in good standing in each
jurisdiction in which the failure so to qualify would have a material adverse
effect on its business or properties.
2
3
(a) There
is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with such registration
statement; or
(b) (i) The
Purchaser 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 (ii) if reasonably requested by
the Company, the Purchaser shall have furnished the Company with an opinion of
counsel, reasonably satisfactory to the Company, that such disposition will not
require registration of such shares under the Act. It is agreed that
the Company will not require opinions of counsel for transactions made pursuant
to Rule 144 except in extraordinary circumstances.
“These
securities have not been registered under the Securities Act of
1933. They may not be sold, offered for sale, pledged, hypothecated,
or otherwise transferred except pursuant to an effective registration statement
under the Securities Act of 1933 or an opinion of counsel satisfactory to the
Company that registration is not required under such Act or unless sold pursuant
to Rule 144 under such Act.”
4
5
6.2 Governing
Law. IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE (WITHOUT REGARD TO THE
CHOICE OF LAW OR CONFLICTS OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA.
6
If to the
Purchaser:
Vintage
Capital Group, LLC
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇
Attention:
|
▇▇▇▇▇▇
▇▇▇▇▇▇▇
|
Telephone:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
Facsimile:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
E-Mail:
|
▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇-▇▇▇.▇▇▇
|
With a
copy to:
Klee,
Tuchin, ▇▇▇▇▇▇▇▇▇ & ▇▇▇▇▇ LLP
1999
Avenue of the Stars, ▇▇▇▇ ▇▇▇▇▇
▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention:
|
▇▇▇▇
▇. ▇▇▇▇▇▇
|
Telephone:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
Facsimile:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
E-Mail:
|
▇▇▇▇▇▇▇@▇▇▇▇▇▇▇.▇▇▇
|
7
If to the
Company, to:
Caprius,
Inc.
▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇
Attention:
|
▇▇▇▇▇▇
▇▇▇▇▇▇
|
Telephone:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
Facsimile:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
E-Mail:
|
▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇
|
With a
copy to:
▇▇▇▇▇▇
▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇ LLP
▇ ▇▇▇▇
▇▇▇▇▇▇
▇▇▇ ▇▇▇▇,
▇▇ ▇▇▇▇▇
Attention:
|
▇▇▇▇▇
▇. ▇▇▇▇
|
Telephone:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
Facsimile:
|
(▇▇▇)
▇▇▇-▇▇▇▇
|
E-Mail:
|
▇▇▇▇@▇▇▇.▇▇▇
|
or at
such other address or addresses as the Purchaser or the Company, as the case may
be, may specify by written notice given in accordance with this Section 6.6.
8
9
CAPRIUS,
INC.,
a
Delaware corporation
|
||||
|
By:
|
/s/▇▇▇▇▇▇ ▇▇▇▇▇▇
|
||
Name:
Title:
|
▇▇▇▇▇▇ ▇▇▇▇▇▇
Chief Executive
Officer
|
|||
VINTAGE
CAPITAL GROUP, LLC,
a
Delaware limited liability company
|
||||
|
By:
|
/s/▇▇▇▇ ▇.
▇▇▇▇▇
|
||
Name:
Title:
|
▇▇▇▇ ▇. ▇▇▇▇▇
Chairman
|
|||
[SIGNATURE
PAGE TO WARRANT PURCHASE AGREEMENT]
PAGE
2