EXHIBIT 4.2
NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE
SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE
IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS THEREUNDER AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.
CHARTER CORPORATE SERVICES, INC.
a Colorado corporation
CLASS A REDEEMABLE COMMON STOCK PURCHASE
WARRANT
VOID AFTER 5:00 PM PACIFIC STANDARD TIME ON
SEPTEMBER 10, 2010
No. W __________
1. This
certifies that, FOR VALUE RECEIVED, _______________________, or
registered assigns (the “Registered Holder”), is the
owner of the number of Redeemable Class A Common Stock Purchase
Warrants (each, “Warrant” and collectively, the
“Warrants” specified above). Each Warrant initially
entitles the Registered Holder to purchase, subject to the terms
and conditions set forth in this Warrant Certificate, one share of
fully paid and nonassessable share of common stock, without par
value, of CHARTER CORPORATE SERVICES, INC., a Colorado corporation
(the “Company”), at any time between September 10,
2008, and September 10, 2010, the Expiration Date (as hereinafter
defined), upon the presentation and surrender of this Warrant
Certificate with the subscription form hereon duly executed, at the
principal office of the Company, accompanied by payment of $0.10,
subject to adjustment as hereinafter provided (the “Exercise
Price”), in lawful money of the United States of America in
cash or by official bank check or certified check made payable to
the Company.
Each
Warrant represented hereby is exercisable at the option of the
Registered Holder, but no fractional shares of Common Stock will be
issued. In the case of the exercise of less than all of the
Warrants represented hereby, the Company shall cancel this warrant
Certificate upon the surrender hereof and shall execute and deliver
a new Warrant Certificate or warrant Certificates of like tenor for
the balance of such Warrants. Each Warrant shall be deemed to have
been exercised immediately prior to the close of business on the
Exercise Date and the person entitled to receive the securities
deliverable upon such exercise shall be treated for all purposes as
the holder of those securities upon the exercise of the Warrant as
of the close of business on the Exercise Date. Promptly following,
and in any event within five Business Days after the Exercise Date,
the Company shall cause to be issued to the person or persons
entitled to receive the same, a certificate or certificates for the
securities deliverable upon such exercise (plus a certificate for
any remaining unexercised Warrants of the Registered Holder),
unless prior to the date of issuance of such certificates, the
Company refrains from issuing certificates pending clearance of
checks received in payment of the Exercise Price of such
Warrants.
1
The
following terms will have the following definitions when used in
this Warrant Certificate, unless the context otherwise expressly
requires:
“Common Stock” means
capital stock of the Company of any class, whether now or hereafter
authorized, which has the right to participate in the distribution
of earnings and assets of the Company without limit as to amount or
percentage.
“Board” means the
board of directors of the Company or its successor as the same may
be constituted from time to time.
“Business Day” means
a day which, in the State of California, is not a public holiday or
a day on which banks are permitted or required to be
closed.
“Exercise Date”
means, as to the Warrants represented by this Warrant Certificate,
the date on which the Company shall have received both (1) this
Warrant Certificate, with the subscription form hereon duly
executed by the Registered Holder hereof or his attorney duly
authorized in writing, and (2) payment in cash, by electronic funds
transfer to a deposit account designated by the Company or by
official bank check or certified check made payable to the Company,
of an amount in lawful money of the United States of America equal
to the applicable Exercise Price.
“Exercise Price”
means the price to be paid upon exercise of each Warrant in
accordance with the terms hereof, subject to (i) adjustment from
time to time pursuant to the adjustment provisions of this Warrant
Certificate and (ii) the Company’s right to reduce the
Exercise Price as provided herein.
“Expiration Date”
means 5:00 PM Pacific Standard Time on September 10, 2010, or such
earlier date as the Warrants shall be redeemed. If such date shall
not be a Business Day, then the Expiration Date shall mean 5:00 PM
Pacific Standard Time on the next succeeding day which is a
Business Day. The Company shall have the right to extend the
Expiration Date, provided prior notice is given to all Registered
Holders.
“Issue Date” means,
with respect to the Warrants represented by this certificate,
September 10, 2008.
“Redemption Price”
means the price at which the Company may, at its option, redeem the
Warrants represented by this certificate, in accordance herewith,
which price shall be $0.001 per Warrant.
“Registered Holder”
means as to any Warrant and as of any particular date, the person
in whose name a Warrant Certificate shall be registered on that
date on the books maintained by the Company for such
purpose.
“Registration Shares”
means Shares of the Company that were issued at a time when a
registration statement is in effective as approved by the
Securities and Exchange Commission.
“Shares” means Common
Shares of stock of the Company.
|
|
|
|
3.
|
Disposition of Warrants or
Shares.
|
The
stock certificates of the Company that will evidence the Shares
with respect to which this Warrant may be exercisable will be
imprinted with a conspicuous legend in substantially the following
form:
|
|
|
|
|
“The securities represented
by this certificate have not been registered under either the
Securities Act of 1933 (the “Act”) or applicable state
securities laws (the “State Acts”) and shall not be
sold, pledged, hypothecated, or otherwise transferred by the holder
except upon the issuance to the Company of a favorable opinion of
its counsel or submission to the Company of such other evidence as
may be satisfactory to counsel of the Company, in each such case,
to the effect that any such transfer shall not be in violation of
the Act and the State Acts.”
|
2
|
|
|
|
4.
|
Reservation of Shares; Payment
of Taxes.
|
(a)
The Company will at all times reserve and keep available out of its
authorized Common Stock, solely for the purpose of issue upon
exercise of the Warrants, such number of whole shares of Common
Stock as shall then be issuable upon the exercise of all
outstanding Warrants. Shares of Common Stock issuable upon exercise
of Warrants shall, at the time of delivery, be duly and validly
issued, fully paid, nonassessable and free from all taxes
(including, but not limited to, transfer taxes), liens and charges
with respect to the issue thereof (other than those taxes, liens or
charges which the Company shall promptly pay or discharge), and
upon issuance, such shares shall be listed on each national
securities exchange or eligible for inclusion in each automated
quotation system, if any, on or in which the other shares of
outstanding Common Stock of the Company are then listed or eligible
for inclusion.
(b)
If any securities to be reserved for the purpose of exercise of
Warrants hereunder require registration with, or approval of, any
governmental authority under any federal securities law before such
securities may be validly issued or delivered upon such exercise,
then the Company will, in good faith and as expeditiously as
reasonably possible, endeavor to secure such registration or
approval. The Company will use commercially reasonable efforts to
obtain appropriate approvals or registrations under applicable
state securities laws. With respect to any such securities,
however, Warrants may not be exercised by, or shares of Common
Stock issued to, any Registered Holder in any state in which such
exercise would be unlawful.
(c)
The Company will pay all documentary, stamp or similar taxes and
other governmental charges that may be imposed with respect to the
issuance of Warrants, or the issuance, or delivery of any shares of
Common Stock upon exercise of the Warrants; provided, however, that
if the shares of Common Stock are to be delivered in a name other
than the name of the Registered Holder, then no such delivery shall
be made unless the person requesting the same has paid to the
Company the amount of transfer taxes or charges incident thereto,
if any.
|
|
|
|
5.
|
Exchange and Registration of
Transfer.
|
(a)
This Warrant Certificate may be exchanged for other Warrant
Certificates representing an equal aggregate number of Warrants of
the same class or may be transferred in whole or in part. Warrant
Certificates to be exchanged shall be surrendered to the Company at
its principal office, and upon satisfaction of the terms and
provisions hereof, the Company shall execute, issue and deliver in
exchange therefor, the Warrant Certificate or Certificates which
the Registered Holder making the exchange shall be entitled to
receive.
(b)
The Company shall keep at its principal office books in which it
shall register Warrant Certificates and the transfer thereof. Upon
due presentment for registration of transfer of any Warrant
Certificate at such office, the Company shall execute, issue and
deliver to the transferee or transferees, a new Warrant Certificate
or Certificates representing an equal aggregate number of
Warrants.
(c)
If this Warrant Certificate is presented for registration of
transfer, or for exchange or exercise, the subscription or
assignment form, as applicable, hereon shall be duly endorsed, or
be accompanied by a written instrument or instruments of transfer
or subscription, as applicable in form satisfactory to the Company,
duly executed by the Registered Holder or his attorney-in-fact duly
authorized in writing.
(d)
A service charge may be imposed by the Company for any exchange or
registration of transfer of Warrant Certificates.
3
Upon
receipt by the Company of evidence satisfactory to it of the
ownership of, and loss, theft, destruction or mutilation of, this
Warrant Certificate and, in case of loss, theft or destruction, of
indemnity satisfactory to it, and, in the case of mutilation, upon
surrender and cancellation thereof, the Company shall, in the
absence of notice that this Warrant Certificate has been acquired
by a bona fide purchaser, execute, sign and deliver to the
Registered Holder, in lieu thereof, a new Warrant Certificate of
like tenor representing an equal aggregate number of Warrants.
Applicants for a substitute Warrant Certificate shall comply with
such other reasonable regulations and pay such other reasonable
charges as the Company may prescribe.
(a)
Upon not less than 30 days notice given at any time after the date
of issuance, the outstanding Warrants represented by this Warrant
Certificate may be redeemed, at the option of the Company, at a
Redemption Price of $0.001 per Warrant. All Warrants must be
redeemed if any are redeemed.
(b)
If the conditions set forth in clause (a) above are satisfied, and
the Company desires to exercise its rights to redeem Warrants, it
shall request the Warrant Agent to send a notice of redemption to
each of the Registered Holders of the Warrants to be redeemed,
first class mail, postage prepaid, not later than the 30th day
before the Redemption Date, at their last address as shall appear
on the Warrant register maintained by the Company. Any notice
mailed in the manner provided herein shall be conclusively presumed
to have been duly given whether or not the Registered Holder
receives such notice.
(c)
The notice of redemption shall specify: (i) the Redemption Price;
(ii) the date fixed for redemption (the “Redemption
Date”); (iii) the place where Warrant Certificates shall be
delivered and the redemption price paid; and (iv) that the right to
exercise the Warrants shall terminate at 5:00 p.m. (Pacific Time)
on the Business Day immediately preceding the Redemption Date. No
failure to mail such notice nor any defect therein or in the
mailing thereof shall affect the validity of the proceedings for
such redemption, except as to a Registered Holder (a) to whom
notice was not mailed or (b) whose notice was defective. An
affidavit of the Secretary or an Assistant Secretary of the
Compan