EXHIBIT 10.1
VOID AFTER 5:00 P.M., EASTERN TIME,
ON SEPTEMBER 30, 2010
THIS WARRANT AND THE SHARES OF COMMON STOCK UNDERLYING THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND MAY NOT BE SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OR IN A
TRANSACTION THAT, IN THE OPINION OF COUNSEL TO JAVELIN PHARMACEUTICALS, INC.,
QUALIFIES AS AN EXEMPT TRANSACTION UNDER THE SECURITIES ACT AND THE RULES AND
REGULATIONS PROMULGATED THEREUNDER.
No. 2005 CS-92 25,000 Shares
JAVELIN PHARMACEUTICALS, INC.
COMMON STOCK PURCHASE WARRANT AGREEMENT
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JAVELIN PHARMACEUTICALS, INC., a Delaware corporation (the "Company"), hereby
grants to THE INVESTOR RELATIONS GROUP INC., (the "Initial Holder"), subject to
the terms set forth in this Common Stock Purchase Warrant Agreement (the
"Warrant Agreement"), the right to exercise Common Stock Purchase Warrants (the
"Warrants") for the purchase from the Company of up to 25,000 shares (the
"Shares") of the Company's Common Stock, at an exercise price of $3.00 per
share, subject to adjustment from time to time pursuant to Section 3 hereof (the
"Exercise Price"). The term "Common Stock" means, unless the context otherwise
requires, the Company's Common Stock, par value $.001 per share, or other
securities or property at the time deliverable upon the exercise of this
Warrant.
This Warrant is issued to the Initial Holder in consideration of the March 22,
2005 letter agreement between the Initial Holder and Intrac, Inc. Effective
September 7, 2005, Intrac merged with and into the Company, and the Company
assumed all outstanding warrants to purchase Intrac common stock on the same
terms as the Intrac warrants, except exercisable for shares of the Company's
Common Stock.
EXERCISE.
Timing of Exercise. The Warrants shall be exercisable at any time in whole or in
part from time to time commencing as of the date hereof and expiring at 5:00
P.M., New York time, on September 30, 2010 (the "Expiration Date"), subject to
earlier termination as provided herein, and may not be exercised thereafter.
Manner of Exercise. The purchase rights evidenced by this Warrant Agreement
shall be exercised by the Initial Holder or any person permitted by Section 6
hereof (collectively, "the Holder"), by surrendering this Warrant Agreement,
together with the Notice of Exercise in the form of Exhibit A annexed hereto
duly executed by the Holder, to the Company at the address in Section 11 hereof
for sending of notices, accompanied by payment (in cash, by wire transfer or by
certified or official bank check or checks) of the applicable Exercise Price.
Net Issue Exercise.
In lieu of making payment a monetary payment as provided in Section 1.2 hereof
upon exercise, the Holder may elect, in its sole discretion, to receive shares
of Common Stock equal to the value (as determined below) of the Warrants then
being exercised by surrender of this Warrant Agreement to the Company, together
with the Notice of Exercise and notice of the net issue election. Thereupon, the
Company shall issue to the Holder the number of Shares computed using the
following formula:
X = Y(A-B)/A
Where: X = the number of Shares to be issued to the Holder pursuant to
this Section 1.3.
Y = the number of Shares in respect of which the net issue
exercise is being made.
A = the current fair market value of one share of Common Stock.
B = the Exercise Price at the time the net issue exercise is
being made.
For the purpose of this Section, the fair market value of the Shares shall mean
with respect to each share of Common Stock:
If the Shares are listed on any national securities exchange or quoted on the
Nasdaq National Market, Nasdaq Small Cap Market or the OTC Bulletin Board, the
average of the closing prices of the Shares, sold on the primary securities
exchange or market on which the Shares are at the time listed or traded, for the
ten (10) trading days immediately prior to the day the Notice of Exercise is
received by the Company;
or
If the Shares are not quoted on any national securities exchange or quoted on
the Nasdaq National Market, Nasdaq Small Cap Market or the OTC Bulletin Board,
the average of the mean between the highest bid and lowest asked price on such a
day in the domestic over-the-counter market as reported by the National
Quotation Bureau or any similar successor organization, for the thirty (30)
calendar days immediately prior to the day the Notice of Exercise is received by
the Company;
If there is no public market for the Shares, the price determined by the Board
of Directors of the Company acting in good faith.
Partial Exercise. This Warrant may be exercised for less than the full number of
Shares available for exercise at the time the Notice of Exercise is submitted,
in which case the number of Shares receivable upon the exercise of this Warrant
as a whole, and the amount payable upon the exercise of this Warrant as a whole,
shall be proportionately reduced. Upon any such partial exercise, the Company at
its expense will forthwith issue to the Holder a new Warrant Agreement of like
tenor calling for Warrants to purchase the number of shares of Common Stock as
to which rights have not been exercised.
Delivery of Stock Certificates Upon Exercise. As soon as practicable after the
exercise of any Warrants, and in any event within five (5) business days
thereafter, the Company, at its expense, will cause to be issued in the name of
and delivered to the Holder or other person specified in the Notice of Exercise
a certificate or certificates for the number of fully paid and non-assessable
shares of Common Stock to which the Holder shall be entitled upon such exercise,
subject to compliance with Section 7 hereof. Any shares of Common Stock as to
which this Warrant is exercised shall be deemed issued on and as of the date of
such exercise, and the Holder shall thereupon be deemed to be the owner of
record of such Shares.
Anti-Dilution Adjustments.
Change in Capitalization. If the Company shall at any time prior to the
Expiration Date subdivide its outstanding Common Stock, by forward stock split
or otherwise, or combine its outstanding Common Stock (including a reverse
split), or issue additional shares of its Common Stock in payment of a stock
dividend in respect of its Common Stock, the Shares shall forthwith be
proportionately increased in the case of a subdivision or stock dividend, or
proportionately decreased in the case of a combination, and the Exercise Price
then applicable to the Shares covered by the unexercised portion of the Warrants
shall forthwith be proportionately decreased in the case of a subdivision or
stock dividend, or proportionately increased in the case of a combination.
Reclassification. In case of any reclassification, capital reorganization or
change of the outstanding Common Stock of the Company (other than as a result of
a subdivision, combination or stock dividend covered by Section 3.1 hereof), at
any time prior to the Expiration Date, then, as a condition of such
reclassification, reorganization or change, lawful provision shall be made, and
duly executed documents evidencing the same from the Company or its successor
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shall be delivered to the Holder, so that the Holder shall have the right prior
to the Expiration Date to purchase, at a total price not to exceed that payable
upon the exercise of the unexercised portion of the Warrants, the kind and
amount of shares of stock and other securities and property receivable upon such
reclassification, reorganization or change, by a holder of the number of shares
of Common Stock of the Company which might have been purchased by the Holder
immediately prior to such reclassification, reorganization or change, and in any
such case appropriate provisions shall be made with respect to the rights and
interest of the Holder to the end that the provisions hereof (including without
limitation, provisions for the adjustment of the Exercise Price and of the
number of Shares purchasable upon exercise of the Warrants) shall thereafter be
applicable in relation to any shares of stock and other securities and property
thereafter deliverable upon exercise hereof.
Consolidation, Merger and Sale of Assets. In case of any consolidation of the
Company with or a merger of the Company into another corporation or in case of
any sale or conveyance and to another corporation of the property of the Company
as an entirety or substantially as an entirety, upon any such consolidation,
merger, sale or conveyance (i) the surviving entity or its parent corporation is
a public reporting company under the Securities Exchange Act of 1934, as
amended, and (ii) the consideration to be received by the holders of the
Company's Common Stock includes publicly traded equity securities in the
surviving entity or parent corporation, the Company agrees that a condition of
such transaction will be that the successor or purchasing corporation, as the
case may be, shall assume the obligations of the Company hereunder in writing.
In the case of any such consolidation, merger or sale or conveyance, the Holder
shall have the right until the Expiration Date upon payment of the Exercise
Price in effect immediately prior to such action, to receive the kind and amount
of shares and other securities and/or property which it would have owned or have
been entitled to receive after the happening of such consolidation, merger, sale
or conveyance had this Warrant been exercised immediately prior to such action,
subject to adjustments which shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Section 3. The provisions of this
Section 3.3 shall similarly apply to successive consolidations, mergers, sales
or conveyances.
Non-Public Successor. In case of any consolidation of the Company with or a
merger of the Company into another corporation or in case of any sale or
conveyance to another corporation of the property of the Company as an entirety
or substantially as an entirety, upon any such consolidation, merger, sale or
conveyance (i) the surviving entity is not a public reporting company (as
defined above), or (ii) the consideration to be received by the holders of the
Company's Common Stock does not include any publicly traded equity securities in
the surviving entity or its parent corporation, the Company agrees that a
condition of such transaction will be that the Company shall mail to the Holder
at the earliest applicable time (and, in any event not less than ten (10) days
before any record date for determining the persons entitled to receive the
consideration payable in such transaction) written notice of such record date.
Such notice shall also set forth facts as shall indicate the effect of such
action (to the extent such effect may be known at the date of such notice) on
the Exercise Price of and the kind and amount of the Shares and other securities
and property deliverable upon exercise of the Warrants. Upon the closing of the
transaction referenced in the foregoing notice, this Warrant Agreement and the
Warrants hereunder to the extent then unexercised shall terminate.
Exchanges and Distributions With Respect to Common Stock. If the Company shall
exchange for its Common Stock or distribute with respect to its Common Stock
other securities issued by it, the Company shall give notice thereof to the
Holder, and the Holder shall have the right thereafter (until the Expiration
Date) to exercise the Warrants for the kind and amount of shares of stock and
other securities retained or received by a holder of the number of shares of
Common Stock of the Company into which the Warrants might have been exercised
immediately prior to such exchange or distribution, subject to adjustment as
provided hereinabove.
Officer's Certificate. Whenever the Exercise Price or the number of shares of
Common Stock subject to this Warrant Agreement is adjusted, the Company shall
promptly mail to the Holder a notice of adjustment. The notice of adjustment
shall include a brief statement of the facts requiring the adjustment and the
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manner of computing it, and shall be certified by the chief financial officer of
the Company. The determination of the adjustment shall be made by the Company in
its sole discretion and shall be final and binding upon the Holder.
Shares to Be Fully Paid; Reservation of Capital Stock Issuable Upon Exercise of
Warrants. The Company covenants and agrees that any Shares issued hereunder
will, upon issuance, be fully paid and non-assessable and free from all taxes,
liens and charges with respect to the issuance thereof. The Company shall at all
times reserve and keep available out of its authorized but unissued capital
stock, solely for the issuance and delivery upon the exercise of the Warrants,
such number of its duly authorized shares of Common Stock as from time to time
shall be issuable upon the exercise of the Warrants.
Fractional Shares. The Company shall not issue fractions of shares of Common
Stock upon exercise of the Warrants or scrip in lieu thereof. If any fraction of
a share of Common Stock would, except for the provisions of this Section 5, be
issuable upon exercise of the Warrants, then the number of shares of Common
Stock to be issued shall be rounded up or down to the nearest whole share.
Transfer Restrictions. A Holder, including the Initial Holder or any subsequent
Holder, may transfer this Warrant Agreement only to (i) any entity controlled
by, controlling or under common control of the Holder, or for which the Holder
is acting as the representative, (ii) one or more of its shareholders,
directors, officers, members, employees or limited or general partners, or (iii)
any member of the immediate family (which shall be deemed to include a spouse,
parent, or child) of an individual Holder or trust for the benefit of any such
individual. Prior to any such transfer, the Holder must deliver the Assignment
Form in the form of Exhibit B hereto and provide information to the Company, in
writing, regarding the proposed transferee sufficient for the Company to
determine the eligibility of such transferee under this Section 6.
Securities Law Compliance.
Investment. Unless the Shares to be issued upon exercise of the Warrants are
then included in an effective registration statement filed under the Securities
Act of 1933, as amended (the "Securities Act"), the Holder, by accepting this
Warrant Agreement, covenants and agrees that, at the time of exercise hereof,
and at the time of any proposed transfer of the Warrants of Shares acquired upon
exercise hereof, the Holder shall deliver to the Company a written statement
that the securities acquired by the Holder upon exercise hereof are for the
account of the Holder or are being held by the Holder as trustee, investment
manager, investment advisor or as any other fiduciary for the account of the
beneficial owner or owners for investment and are not acquired with a view to,
or for sale in connection with, any distribution thereof (or any portion
thereof) and with no present intention (at any such time) of offering and
distributing such securities (or any portion thereof), and including such other
representations as may be reasonably requested by counsel to the Company.
Further, the Holder shall comply with such provisions of applicable state
securities laws as counsel to the Company or other counsel reasonably acceptable
to the Company shall advise.
Legend. Unless the Shares issuable upon exercise of the Warrants are registered
under the Securities Act, upon exercise of any part of the Warrants and the
issuance of any of such Shares, the Company shall instruct its transfer agent to
enter stop transfer orders with respect to such Shares, and all certificates
representing the Shares issued upon exercise hereof shall bear on the face
thereof substantially the following legend, insofar as is consistent with
applicable law:
"The shares of Common Stock represented by this Certificate
have not been registered under the Securities Act of 1933, as
amended, and may not be sold, offered for sale, assigned,
transferred or otherwise disposed of unless registered
pursuant to the provisions of that Act or an opinion of
counsel to the Company is obtained stating that such
disposition is in compliance with an available exemption from
such registration."
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No Registration Rights. The Holder acknowledges that it will have no demand,
"piggy-back" or other rights for inclusion of the Shares in any registration
statement which may hereafter be filed by the Company under the Securities Act.
Replacement of Warrant Agreement. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant Agreement and (in the case of loss, theft or destruction) upon
delivery of an indemnity agreement, and if requested by the Board of Directors,
a bond in an amount reasonably satisfactory to it, or (in the case mutilation)
upon surrender and cancellation hereof, the Company will issue in lieu thereof a
new Warrant Agreement of like tenor.
Rights as a Warrant Holder. The Holder shall not, by virtue hereof, be entitled
to any rights of a stockholder in the Company, either at law or equity except
with respect to certificates representing shares of Common Stock issued upon
exercise of this Warrant. The rights of the Holder are limited to those
expressed in this Warrant Agreement and are not enforceable against the Company
except to the extent set forth herein. Prior to due presentment for transfer of
this Warrant Agreement, the Company may deem and treat the Holder as the
absolute owner of this Warrant Agreement for purposes of any exercise hereof and
for all other purposes and such right of the Company shall not be affected by
any notice to the contrary.
Subdivision of Rights. This Warrant Agreement (as well as any new Warrants
issued pursuant to the provisions of this Section) is exchangeable upon the
surrender hereof by the Holder at the principal office of the Company for any
number of new Warrants of like tenor and date representing in the aggregate the
right to subscribe for and purchase the number of shares of Common Stock of the
Company that may be purchased hereunder.
Sending of Notices. All notices and other communications with respect to this
Warrant Agreement shall be in writing and sent by express mail or courier
service or by personal delivery, if to the Holder, to the address set forth at
the end of this Warrant Agreement, and if to the Company, to 000 XxxxxxxxxXxxx
Xxxxx, Xxxxxxxxx, Xxxxxxxxxxxxx 00000, or to such other address as either party
hereto may duly give to the other.
Headings. The headings in this Warrant Agreement are for purposes of reference
only and shall not limit or otherwise affect the meaning of the terms hereof.
Change, Waiver, Discharge or Termination. This Warrant Agreement sets forth the
entire agreement between the Company and the Holder with respect to the matters
herein, and supersedes any warrant agreement between the Initial Holder and
Intrac as to the the right to purchase Intrac securities. Neither this Warrant
Agreement nor any term hereof may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought.
Binding. This Warrant Agreement shall be binding upon and inure to the benefit
of the Company and the Holder, and their respective successors and assigns.
Governing Law. This Warrant Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without giving effect to
principles of conflicts of law.
JAVELIN PHARMACEUTICALS, INC.
By: ______________________________
Dated: September 30, 2005 Name: Xxxxxx X. Xxxx, MD
Title: Chief Executive Officer
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Agreed to:
THE INVESTOR RELATIONS GROUP, INC.
By: _______________________________
Name:
Title:
00 Xxxxx Xxxxxx 0xx, Xxxxx
New York, NY 10004
__________________________
Tax Identification No.
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