THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM SUCH
REGISTRATION REQUIREMENTS FOR SUCH LAWS AS MAY THEN BE IN EFFECT, OR AN OPINION
OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED.
WARRANT TO PURCHASE SHARES
OF COMMON STOCK
Company: CV Therapeutics, Inc., a Delaware corporation (the
"Company"), and any corporation that shall succeed to the
obligations of the Company under this Warrant.
Number of Shares:
Class of Stock: Common Stock
Initial Warrant Price: per share
Expiration Date: September 27, 2001
Date of Grant: September 27, 1996
---------------------
THIS CERTIFIES THAT, for value received, _______________________________
or nominees, is entitled to purchase the above number (as adjusted pursuant
to Section 5 hereof) of fully paid and nonassessable shares of the above
Class of Stock of the Company at the Initial Warrant Price above (as adjusted
pursuant to Section 5 hereof), subject to the provisions and upon the terms
and conditions set forth herein.
1. DEFINITIONS.
As used herein, the following terms, unless the context otherwise
requires, shall have the following meanings:
(a) "Act" shall mean the Securities Act of 1933, as amended, or any
similar federal statute, and the rules and regulations thereunder, as shall be
in effect at the time.
(b) "Common Stock" shall mean shares of the presently
authorized common stock of the Company and any stock into which such common
stock may hereafter by exchanged.
(c) "Holder" shall mean any person who shall at the time be the
holder of this Warrant.
(d) "Shares" shall mean the shares of the Class of Stock that the
Holder is entitled to purchase upon exercise of this Warrant, as adjusted
pursuant to Section 5 hereof.
(e) "Warrant Price" shall mean the Initial Warrant Price at which
this Warrant may be exercised, as adjusted pursuant to Section 5 hereof.
2. TERM.
The purchase right represented by this Warrant is exercisable, in whole or
in part, at any time on or before the Expiration Date.
3. EXERCISE OF WARRANT; PAYMENT; ISSUANCE OF NEW WARRANT
3.1. Subject to Section 2 hereof, the purchase rights represented by
this Warrant may be exercised by the Holder, in whole or in part, by the
surrender of this Warrant (with the notice of exercise form attached hereto as
Appendix A duly executed) at the principal office of the Company and by the
payment to the Company, by check made payable to the Company drawn on a United
States bank and for United States dollars, or by wire transfer to an account of
the Company, of an amount equal to the then applicable Warrant Price per share
multiplied by the number of Shares then being purchased. In the event of any
exercise of the purchase right represented by this Section 3, certificates for
the Shares so purchased shall be delivered to the Holder within thirty (30)
days of receipt of such payment and, unless this Warrant has been fully
exercised or expired, a new Warrant (dated as of the date hereof) 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 within such thirty
(30) day period.
3.2 The Company may require that such certificate or certificates
contain on the face thereof a legend substantially as follows:
"The securities evidenced by this certificate have not been
registered under the Securities Act of 1933, as amended, or
applicable state securities laws and rules. No sale, offer to sell
or transfer of the shares represented by this certificate shall be
made unless a registration statement under such act, and applicable
state securities laws with respect to such shares is then in effect,
or an exemption from such registration requirements for such laws is
then in effect."
4. EXERCISE PRICE. The Warrant Price at which this Warrant may be
exercised shall be the Initial Warrant Price, as adjusted from time to time
pursuant to Section 5 hereof.
5. ADJUSTMENT OF NUMBER AND KIND OF SHARES AND ADJUSTMENT OF WARRANT
PRICE.
5.1 CERTAIN DEFINITIONS. As used in this Section 5 the following
terms shall have the following respective meanings:
(a) OPTIONS: rights, options or warrants to subscribe for,
purchase or otherwise acquire shares of Common Stock or Convertible
Securities.
(b) CONVERTIBLE SECURITIES: any evidence of indebtedness, shares
of stock or other securities directly or indirectly convertible into or
exchangeable for Common Stock.
5.2 ADJUSTMENTS. The number and kind of securities purchasable upon
the exercise of this Warrant and the Warrant Price shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows:
(a) RECLASSIFICATION, REORGANIZATION, CONSOLIDATION OR MERGER.
In the case of any reclassification of the Common Stock, or any
reorganization, consolidation or merger of the Company with or into
another corporation (other than a merger or reorganization with respect to
which the Company is the continuing corporation and which does not result
in any reclassification of the Common Stock), the Company, or such
successor corporation, as the case may be, shall execute a new warrant,
providing that the Holder shall have the right to exercise such new
warrant and upon such exercise to receive, in lieu of each share of the
Class of Stock theretofore issuable upon exercise of this Warrant, the
number and kind of securities receivable upon such reclassification,
reorganization, consolidation or merger by a holder of shares of the same
Class of Stock of the Company for each such share of such Class of Stock.
The aggregate Warrant Price of the new warrant shall be the aggregate
Warrant Price in effect immediately prior to the reclassification,
reorganization, consolidation or merger and the Warrant Price per share
shall be appropriately increased or decreased. Such new warrant shall
provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Section 5 including,
without limitation, adjustments to the Warrant Price and to the number of
share issuable upon exercise of this Warrant. The provisions of this
subsection (a) shall similarly apply to successive reclassification,
reorganizations, consolidations or mergers.
(b) SPLIT, SUBDIVISION OR COMBINATION OF SHARES. If the
Company at any time while this Warrant remains outstanding and unexpired
shall split, subdivide or combine the Class of Stock for which this
Warrant is then exercisable, the Warrant Price shall be proportionately
decreased in the case of a split or subdivision or proportionately
increased in the case of a combination. Any adjustment under this
subsection (b) shall become effective when the split, subdivision or
combination becomes effective.
(c) STOCK DIVIDENDS. If the Company at any time while this
Warrant remains outstanding and unexpired shall pay a dividend with
respect to the Class of Stock for which this Warrant is then exercisable,
payable in shares of that Class of Stock, Options, or Convertible
Securities, the Warrant Price shall be adjusted, from and after the date
of determination of the shareholders entitled to receive such dividend or
distributions, to that price determined by multiplying the Warrant 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 that
Class of Stock outstanding immediately prior to such dividend or
distribution, and (ii) the denominator of which shall be the total number
of shares of the same Class of Stock outstanding immediately after such
dividend or distribution (including shares of that Class of Stock issuable
upon exercise, conversion or exchange of any Option or Convertible
Securities issued as such dividend or distribution). If the Options or
Convertible Securities issued as such dividend or distribution by their
terms provide, with the passage of time or otherwise, for any decrease in
the consideration payable to the Company, or any increase by the number of
shares issuable upon exercise, conversion or exchange thereof (by change
of rate or otherwise), the Warrant Price shall, upon any such decrease or
increase becoming effective, be reduced to reflect such decrease or
increase as if such decrease or increase became effective immediately
prior to the issuance of the Options or Convertible Securities as the
dividend or distribution. Any adjustment under this subsection (c) shall
become effective on the record date.
(d) OTHER SECURITIES. In the event the Company at any time
or from time to time after the issuance of this Warrant makes, or fixes
a record date for the determination of Holders of Common Stock entitled
to receive, a dividend or other distribution payable in securities of
the Company other than shares of Common Stock, then, and in each such
event, provision shall be made so that the Holder shall receive, upon
exercise hereof, in addition to the number of shares of Common Stock
receivable thereupon, the amount of securities of the Company which the
Holder would have received had this Warrant been exercised for such
Common Stock on the date of such event and had the Holder thereafter,
during the period from the date of such event to and including the date
of exercise, retained such securities receivable by such Holder as
aforesaid during such period, subject to all other adjustments called
for during such period under this Section 5 with respect to the rights
of the Holder.
5.3 ADJUSTMENT OF NUMBER OF SHARES. Upon each adjustment in the Warrant
Price pursuant to subsection 9(b) and (c) of this Article 5, the number of
Shares issuable upon exercise of this warrant shall be adjusted to the product
obtained by multiplying the number of Shares issuable immediately prior to such
adjustment in the Warrant Price by a fraction (i) the numerator of which shall
be the Warrant Price immediately prior to such adjustment, and (ii) the
denominator of which shall be the Warrant Price immediately after such
adjustment.
6. NOTICE OF ADJUSTMENTS. Whenever the Warrant Price shall be
adjusted pursuant to Section 5 hereof, the Company shall issue a certificate
signed by its chief financial officer or chief executive officer 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 Price after giving effect to such adjustment and shall cause a copy
of such certificate to be mailed (by first class mail, postage prepaid) to
the Holder.
7. RIGHT TO CONVERT WARRANT INTO STOCK.
7.1 RIGHT TO CONVERT. In addition to the rights granted under
Section 3 of this Warrant, the Holder shall have the right to require the
Company to convert (the "Conversion Right") into shares of the Class of Stock
for which the Warrant is then exercisable, as provided in this Section 7. Upon
exercise of the Conversion Right, the Company shall deliver to the Holder
(without payment by the Holder of any Warrant Price) that number of shares of
stock equal to the quotient obtained by dividing (x) the value of this Warrant
at the time of the Conversion Right is exercised (determined by subtracting the
aggregate Warrant Price immediately prior to the exercise of the Conversion
Right from the aggregate Conversion Price (as hereinafter determined) by (y)
the Conversion Price.
7.2 METHOD OF EXERCISE. The Conversion Right may be exercised at
any time by the Holder by the surrender of this Warrant at the principal office
of the Company together with a written statement specifying that the Holder
thereby intends to exercise the Conversion Right. Certificates of the shares
of stock issuable upon exercise of the Conversion Right shall be delivered to
the Holder within thirty (30) days following the Company's receipt of this
Warrant together with the aforesaid written statement.
7.3 AUTOMATIC CONVERSION PRIOR TO EXPIRATION. To the extent this
Warrant is not previously exercised, and if the fair market of one share of the
Class of Stock issuable upon exercise of this Warrant is greater than the
Warrant Price per share, this Warrant shall be deemed automatically exercised
in accordance with Section 7.1 hereof (even if not surrendered) immediately
before its expiration. To the extent this Warrant or any portion thereof is
deemed automatically exercised pursuant to this Section 7.3, the
Company agrees to notify Holder within a reasonable period of time of the
number of shares of the Class of Stock, if any, Holder is to receive by
reason of such automatic exercise. The Company shall issue to the Holder
certificates for the Shares issued upon such automatic conversion in
accordance with Section 7.2 above, although the Company may condition receipt
of the certificate upon surrender of the Warrant to the Company.
7.4 CONVERSION PRICE. The Conversion is determined as, for the three months
prior to any conversion of the Warrant into Common Stock:
(a) The highest closing sale price or, if no closing sale price
is reported, the highest value that is the average between the ask and bid
prices of the Common Stock quoted on any exchange or over the-counter
market on which the Common Stock is listed, whichever is applicable, as
published in the Western Edition of THE WALL STREET JOURNAL, if the Common
Stock is publicly traded; or,
(b) if the Common Stock is not traded in an over-the-counter
market or on an exchange, the highest fair market value of a single share
of Common Stock shall be as determined in good faith by the Company's
Board of Directors' provided; however, that if the Holder disputes in
writing the fair market value determined by the Board of Directors within
thirty (30) days of being informed of such fair market value, the fair
market value shall be determined by an independent appraiser, appointed in
good faith by the Company's Board of Directors.
8. TRANSFERABILITY AND NON-NEGOTIABILITY OF WARRANTS AND SHARES. This
Warrant and the Shares issued upon exercise thereof may not be transferred or
assigned in whole or in part without compliance with applicable federal and
state securities laws by the transferor and the transferee (including, without
limitation, the delivery of investment representation letters and legal
opinions reasonably satisfactory to the Company, if reasonably requested by the
Company). Subject to the provisions of this Section 8, title to the Warrant
may be transferred in the same manner as a negotiable instrument transferable
by endorsement and delivery.
9. NOTICES. The Company shall mail to the registered Holder of the
Warrant, at its last known post office address appearing on the books of the
Company, not less than twenty (20) days prior to the date on which (a) a record
will be taken for the purpose of determining the Holders of Common Stock
entitled to dividends or subscription rights, or (b) a record will be taken (or
in lieu thereof, the transfer books will be closed) for the purpose of
determining the Holders of Common Stock entitled to notice of and to vote at a
meeting of shareholders at which any capital reorganization, reclassification
of shares of Common Stock, consolidation, merger, dissolution, liquidation,
winding up or sales of substantially all of the Company's assets shall be
considered and acted upon.
10. MISCELLANEOUS. No fractional shares of the Shares shall 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
Price then in effect. The terms and provisions of this Warrant shall inure to
the benefit of, and be binding upon, the Company and the Holders hereof and
their respective successors and assigns. This Warrant shall be governed by and
construed under the laws of the State of California as applied to contracts
entered into between residents of the State of California to wholly performed
in the State of California. The representations, warranties and agreements
herein contained shall survive the exercise of the Warrant. References to the
"holder of" include the immediate Holder of shares purchased on the exercise
of this Warrant, and the word "Holder" shall include the plural thereof. The
titles of the section and the subscriptions of this Warrant are for convenience
only and are not to be considered in construing this Warrant. All pronouns
used in the Warrant shall be deemed to include masculine, feminine and neuter
forms.
All shares of Common Stock or other securities issued upon the exercise of
this Warrant shall be validly issued, fully paid and nonassessable, and the
Company will pay all taxes in respect of the issuance thereof (other than any
income or capital gain taxes payable by the Holder)
IN WITNESS WHEREOF, the Warrant has been duly executed by the undersigned, as
of the 27th day of September, 1996.
CV THERAPEUTICS, INC.
By: /s/ Xxxxxxxx Xxxxxxxx
---------------------------------
(Signature)
Name: Xxxxxxxx Xxxxxxxx
---------------------------------
(Printed)
Title: Chief Financial Officer
---------------------------------
APPENDIX A
NOTICE OF EXERCISE
The undersigned, the Holder of the foregoing Warrant, hereby irrevocably
elects, pursuant to Section 3 of the Warrant, to exercise purchase rights
represented by such Warrant for, and to purchase thereunder, ______ shares
of the Common Stock of CV Therapeutics, Inc. (the "Company") to which such
Warrant relates and herewith makes payment of $_______ therefor in cash, wire
transfer or by certified check and requests to be delivered to the undersigned,
the address for which is set forth below the signature of the undersigned.
Dated:
----------------------
Name of Holder:
-------------------------------------------
By:
---------------------------------------
(Signature of Authorized Officer)
Title:
------------------------------------
APPENDIX B
NOTICE OF EXCHANGE
The undersigned, the Holder of the foregoing Warrant, hereby elects
pursuant to Section 7 of the Warrant, to exchange the purchase rights to
purchase ________ shares of the Common Stock covered by such Warrant and
herewith makes payment in full therefor by surrender of such ____________
Warrant, and requests that certificates for such shares (and any other
securities or property deliverable upon such exchange including a revised
warrant) be issued in the name of the undersigned and delivered to its address
as set forth in the Warrant.
Dated:
----------------------
Name of Holder:
---------------------------------------------
By:
-----------------------------------------
(Signature of Authorized Officer)
Title:
--------------------------------------
