THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD,
OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE
SECURITIES LAWS OR UNLESS OFFERED, SOLD, OR TRANSFERRED PURSUANT TO
AN AVAILABLE EXEMPTION FROM THE REGISTRATION OR QUALIFICATION
REQUIREMENTS OF THOSE LAWS.
Original Date of Issuance: April 1,
2004
Right to Purchase Up to 250,000 Shares of
Amended and Restated: March 19,
2009
Common Stock
AUXILIO, INC.
AMENDED AND RESTATED COMMON STOCK PURCHASE WARRANT
(“WARRANT”)
THIS CERTIFIES THAT, for value
received, Etienne Weidemann or its registered assigns (the
“ Holder ”) are entitled to purchase
from Auxilio, Inc. (the “ Company
”), a Nevada
corporation, at any time or from time to time during the period
specified in Section 1 hereof, up to two hundred fifty thousand
(250,000) fully paid and nonassessable shares of the
Company’s common stock (the “ Common
Stock ”), at an exercise price of $0.55 per share
(the “ Exercise Price ”) upon the terms
and conditions contained herein. The number of shares of Common
Stock purchasable hereunder (the “ Warrant
Shares ”) and the Exercise Price are subject to
adjustment as provided in Section 4 hereof. The term “
Warrant ” means this Warrant. This
Warrant is subject to the following terms, provisions, and
conditions.
1. Period of Exercise
. This Warrant is
exercisable at any time or from time to time on or after April 1,
2005 and before 5:00 P.M., Pacific Time on March 31, 2011 (the
“ Exercise Period ”).
2. Mechanics of Exercise
. Subject to the
provisions hereof, this Warrant may be exercised as
follows.
(i)
Vesting. The Warrant will vest as follows: (a) 83,333 vested
one year from the closing of the Mayo Merger Deal, on April 1,
2005. (b) 83,333 vesting contingent upon the company achieving a
minimum of the 2004 EBITDA targets set forth in the Mayo Group,
Inc. Merger (Exhibit H as amended and approved by the Board of
Directors from time to time) of final Agreement and Plan of Merger
between PeopleView, Inc., PeopleView Acquisition Corporation and
Alan Mayo and Associates, Inc. (c) 83,334 vesting contingent upon
the company achieving a minimum of the 2005 EBITDA targets set
forth in the Mayo Group, Inc. Merger (Exhibit H as amended and
approved by the Board of Directors from time to time) of final
Agreement and Plan of Merger between PeopleView, Inc., PeopleView
Acquisition
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Corporation and Alan Mayo and Associates,
Inc. Warrants subject to contingencies numbers 2 and 3 above will
be placed in Escrow and released to Holder within thirty days after
audited numbers are achieved and released for the applicable
periods. Should however, the actual 2004 and/or 2005 operating
budget EBITDA achieved be less than 100% but 75% or more of the
target set at closing, Executive will only be become entitled to an
equally reduced ratio of these warrants. In the event that less
than a 75% of the 2004 and/or 2005 operating target budgeted EBITDA
is achieved, Executive will not be entitled to any percentage of
the additional warrants.
(b) Manner of Exercise
. This Warrant may be
exercised by the Holder, in whole or in part, by the surrender of
this Warrant (or evidence of loss, theft, destruction, or
mutilation thereof in accordance with Section 8(c) hereof),
together with a completed exercise agreement in the Form of
Exercise Agreement attached hereto as Exhibit 1 (the “
Exercise Agreement ”), to the Company at the
Company’s principal executive offices (or such other office
or agency of the Company as it may designate by notice to the
Holder), together with (i) payment to the Company in cash, by
certified or official bank check, or by wire transfer for the
account of the Company of the Exercise Price for the Warrant Shares
specified in the Exercise Agreement. The Warrant Shares so
purchased will be deemed to be issued to the Holder or
Holder’s designees, as the record owner of such shares, as of
the date on which this Warrant has been surrendered, the completed
Exercise Agreement has been delivered, and payment has been made
for such shares as set forth above. In the event the
Company’s Common Stock becomes Publicly Traded, then in lieu
of the payment methods set forth above, when permitted by law and
applicable regulations (including Nasdaq and NASD rules), the
Holder may pay the Exercise Price through a “same day
sale” commitment from the Holder (and if applicable a
broker-dealer that is a member of the National Association of
Securities Dealers (a “ NASD Dealer ”)),
whereby the Holder irrevocably elects to exercise this Warrant and
to sell a portion of the Shares so purchased to pay for the
Exercise Price and the Holder (or, if applicable, the NASD Dealer)
commits upon sale (or, in the case of the NASD Dealer, upon
receipt) of such Warrant Shares to forward the Exercise Price
directly to the Company.
(c) Issuance of
Certificates .
Subject to Section 2(c), certificates for the Warrant Shares so
purchased, representing the aggregate number of shares specified in
the Exercise Agreement, will be delivered to the Holder within a
reasonable time, not exceeding three (3) business days, after this
Warrant has been so exercised (the “ Delivery
Period ”).
The certificates so delivered will be in such denominations as may
be reasonably requested by the Holder and will be registered in the
name of Holder or such other name as may be designated by such
Holder. If this Warrant has been exercised only in part, then,
unless this Warrant has expired, the Company will at its expense,
at the time of delivery of such certificates, deliver to the Holder
a new Warrant representing the number of shares with respect to
which this Warrant has not then been exercised.
(d) Exercise Disputes
. In the case of any
dispute with respect to an exercise, the Company will promptly
issue such number of shares of Common Stock as are not disputed in
accordance with this Section. If such dispute involves the
calculation of the Exercise Price, the Company will submit the
disputed calculations to a nationally recognized independent
accounting firm (selected by the Company) via facsimile within
three (3) business days of receipt of the Exercise Agreement. The
accounting firm will audit the calculations and notify the Company
and the converting Holder of the results no later than two (2)
business days from the date it receives the disputed
calculations. The accounting firm’s calculation will be
deemed conclusive, absent manifest error. The Company will then
issue the appropriate number of shares of Common Stock in
accordance with this Section.
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(e)
Fractional Shares . No fractional shares of Common
Stock are to be issued upon the exercise of this Warrant, but the
Company will pay a cash adjustment in respect of any fractional
share which would otherwise be issuable in an amount equal to the
same fraction of the Exercise Price of a share of Common Stock (as
determined for exercise of this Warrant into whole shares of Common
Stock); provided that in the event that sufficient funds are not
legally available for the payment of such cash adjustment any
fractional shares of Common Stock will be rounded up to the next
whole number.
3. Certain Agreements of the
Company . The Company
hereby covenants and agrees as follows.
(a) Shares to be Fully Paid
. All Warrant Shares
will, upon issuance in accordance with the terms of this Warrant,
be validly issued, fully paid, and non-assessable and free from all
taxes, liens, claims and encumbrances.
(b) Reservation of Shares
. During the Exercise
Period, the Company will at all times have authorized, and reserved
for the purpose of issuance upon exercise of this Warrant, a
sufficient number of shares of Common Stock to provide for the
exercise of this Warrant.
(c) Certain Actions
Prohibited . The
Company will not, by amendment of its charter or through any
reorganization, 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 by it hereunder, but will
at all times in good faith assist in the carrying out of all the
provisions of this Warrant and in the taking of all such actions as
may reasonably be requested by the Holder of this Warrant in order
to protect the exercise privilege of the Holder of this Warrant,
consistent with the tenor and purpose of this Warrant. Without
limiting the generality of the foregoing, the Company will take all
such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this
Warrant.
4. Antidilution Provisions
. During the Exercise
Period or until fully exercised, the Exercise Price and the number
of Warrant Shares will be subject to adjustment from time to time
as provided in this Section 4. In the event that any adjustment of
the Exercise Price as required herein results in a fraction of a
cent, such Exercise Price will be rounded up or down to the nearest
cent.
(a) Subdivision or Combination
of Common Stock . If the Company, at any time after the initial
issuance of this Warrant, subdivides (by any stock split, stock
dividend, recapitalization, reorganization, reclassification or
otherwise) its shares of Common Stock into a greater number of
shares, then, after the date of record for effecting such
subdivision, the Exercise Price in effect immediately prior to such
subdivision will be proportionately reduced. If the Company at any
time after the initial issuance of this Warrant combines (by
reverse stock split, recapitalization, reorganization,
reclassification or otherwise) its shares of Common Stock
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into a smaller number of shares, then,
after the date of record for effecting such combination, the
Exercise Price in effect immediately prior to such combination will
be proportionately increased.
(b) Adjustment in Number of
Shares . Upon each
adjustment of the Exercise Price pursuant to the provisions of this
Section 4, the number of shares of Common Stock issuable upon
exercise of this Warrant will be adjusted by multiplying a number
equal to the Exercise Price in effect immediately prior to such
adjustment by the number of shares of Common Stock issuable upon
exercise of this Warrant immediately prior to such adjustment and
dividing the product so obtained by the adjusted Exercise
Price.
(c) Merger . If the Company
consolidates or merges with any other corporation or entity (other
than a merger in which the Company is the survivi