EXHIBIT
4.1
THIS WARRANT
AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
MAY NOT BE TRANSFERRED, ASSIGNED OR HYPOTHECATED EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT COVERING SUCH
SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR RULE
701 UNDER THE ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER,
ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.
ENHANCE SKIN PRODUCTS
INC.
FORM OF
COMMON STOCK PURCHASE
WARRANT
Warrant No.:
____
August __,
2008
THIS CERTIFICATE certifies that
____________________, having an address at
______________________________________, or permitted assignees is
the registered holder (the “ Holder ”)
of this Common Stock Purchase Warrant (the “
Warrant ”) to purchase shares of the common
stock, $.001 par value per share (the “ Common
Stock ”), of Enhance Skin Products Inc., a
corporation duly organized and validly existing under the laws of
the State of Nevada (the “ Company ”).
This Warrant has been issued to the Holder in connection with the
private placement of securities offered pursuant to a subscription
agreement, dated as of August __, 2008 (together with all documents
and filings attached thereto, the “ Subscription
Document ”).
FOR VALUE RECEIVED, the Company hereby certifies
that the Holder is entitled to purchase from the Company
____________ duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock (the “ Warrant
Shares ”) at a purchase price per share of Common
Stock equal to $1.40 (the “ Warrant Price
”), and subject to the terms, conditions and adjustments set
forth below in this Warrant and in the Subscription Document. The
person or entity in whose name this Warrant is registered on the
records of the Company regarding registration and transfers of this
Warrant (the “ Warrant Register ”) is
the owner and holder thereof for all purposes, except as described
in Section 8 hereof.
1.
Vesting of Warrant
. This Warrant shall vest and
become exercisable immediately following the
Closing (as defined in the Subscription
Document).
2.
Expiration of Warrant
. This Warrant shall expire at 5:00
p.m., Nevada local time, on August __, 2010, which is the second
anniversary date of the Closing (the " Expiration
Date ").
3.
Required Exercise of
Warrant .
This Warrant must be exercised
within 10 Business Days (as defined below) of written notice by the
Company to the Holder hereof that the Company has attained
$2,000,000 in sales revenue. If not exercised within such period,
this Warrant will expire worthless.
4.1
Manner of Exercise. This Warrant may
only be exercised by the Holder hereof, in accordance with the
terms and conditions hereof, in whole or in part with respect to
any portion of this Warrant, into shares of Common Stock, during
normal business hours on any day other than a Saturday or a Sunday
or a day on which commercial banking institutions in Carson City,
Nevada are authorized by law to be closed (a “
Business Day ”) on or prior to the
Expiration Date with respect to such portion of this Warrant, by
surrender of this Warrant to the Company at its office maintained
pursuant to Section 11.2(a) hereof, accompanied by an exercise
notice in substantially the form attached to this Warrant as
Exhibit A duly executed by or on behalf of the Holder together with
the payment of the Warrant Price in cash.
4.2
When Exercise Effective. Each
exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the Business Day on
which this Warrant shall have been surrendered to the Company as
provided in Section 4.1 hereof (“Exercise Date”), and,
at such time, the corporation, association, partnership,
organization, business, individual, government or political
subdivision thereof or a governmental agency (a “
Person ” or the “
Persons ”) in whose name or names any
certificate or certificates for shares of Common Stock shall be
issuable upon exercise as provided herein shall be deemed to have
become the holder or holders of record thereof.
4.3 Delivery of Stock Certificates. As soon as
practicable after each exercise of this Warrant, in whole or in
part, and in any event within five (5) Business Days thereafter,
the Company at its expense (including the payment by it of any
applicable issue taxes) will cause to be issued in the name of and
delivered to the Holder hereof or, subject to Section 10 hereof, as
the Holder (upon payment by the Holder of any applicable transfer
taxes) may direct:
(a) a
certificate or certificates (with appropriate restrictive legends,
as applicable) for the number of duly authorized, validly issued,
fully paid and nonassessable shares of Common Stock to which the
Holder shall be entitled upon exercise plus, in lieu of any
fractional share to which the Holder would otherwise be entitled,
all issuances of Common Stock shall be rounded up to the nearest
whole share.
(b) in case
exercise is in part only, a new Warrant of like tenor, dated the
date hereof and calling in the aggregate on the face thereof for
the number of shares of Common Stock equal to the number of shares
called for on the face of this Warrant minus the number of shares
designated by the Holder upon exercise as provided in Section 3.1
hereof (without giving effect to any adjustment
thereof).
4.4 Shares to be Fully Paid; Reservation of Shares.
The Company covenants and agrees that all shares of Common Stock
which may be issued upon the exercise of rights presented by this
Warrant will, upon issuance by the Company, be validly issued,
fully paid and nonassessable, and free from preemptive rights and
free from all taxes, liens and charges with respect thereto. The
Company further covenants and agrees that, from and after the date
of issuance of the Warrant and during the period within which the
rights represented by this Warrant may be exercised, the Company
will at all times have authorized, and reserve, free from
preemptive rights, out of its authorized but unissued shares of
Common Stock, solely for the purpose of effecting the exercise of
this Warrant, a sufficient number of shares of Common Stock to
provide for the exercise of the rights represented by this
Warrant.
4.5 Company to Reaffirm Obligations. The Company
will, at the time of each exercise of this Warrant, upon the
written request of the Holder hereof, acknowledge in writing its
continuing obligation to afford to the Holder all rights (including
without limitation any rights to registration of the shares of
Common Stock issued upon exercise) to which the Holder shall
continue to be entitled after exercise in accordance with the terms
of this Warrant; provided , however , that if the
Holder shall fail to make a request, the failure shall not affect
the continuing obligation of the Company to afford the rights to
such Holder.
5.
Anti-dilution
Adjustment .
5.1 Stock Dividends, Stock Splits, Etc. If the
Company declares or pays a dividend on its Common Stock payable in
Common Stock or other securities, or subdivides the outstanding
Common Stock into a greater amount of Common Stock, then upon
exercise of this Warrant, for each Warrant Share acquired, Holder
shall receive, without cost to Holder, the total number and kind of
securities to which Holder would have been entitled had Holder
owned the Warrant Shares of record as of the date the dividend or
subdivision occurred.
5.2 Reclassifications, Exchange or Substitution.
Upon any reclassification, exchange, substitution, or other event
that results in a change of the number and/or class of the
securities issuable upon exercise of this Warrant, Holder shall be
entitled to receive, upon exercise of this Warrant, the number and
kind of securities and property that Holder would have received for
the Warrant Shares if this Warrant had been exercised immediately
before such reclassification, exchange, substitution, or other
event. The Company or its successor shall promptly issue to Holder
a new Warrant for such new securities or other property. The new
Warrant shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in
this Section 4.2, including, without limitation, adjustments to the
Warrant Price and to the number of securities or property issuable
upon exercise of the new Warrant. The provisions of this
Section 5.2 shall similarly apply to successive
reclassifications, exchanges, substitutions, or other
events.
5.3 Adjustments for Combinations, Etc. If the
outstanding shares of Common Stock are combined or consolidated, by
reclassification or otherwise, into a lesser number of shares, the
Warrant Price shall be proportionately increased.
5.4 Merger or
Consolidation. In case of any consolidation of the Company with, or
merger of the Company into any other corporation, or in the case of
any sale or conveyance of all or substantially all of the assets of
the Company other than in connection with a plan of complete
liquidation of the Company, then as a condition of such
consolidation, merger or sale or conveyance, adequate provision
will be made whereby the registered holder of the Warrant will have
the right to acquire and receive upon exercise of this Warrant in
lieu of the shares of Common Stock immediately theretofore subject
to acquisition upon the exercise of this Warrant, such shares of
stock, securities or assets as may be issued or payable with
respect to or in exchange for the number of shares of Common Stock
immediately theretofore subject to acquisition and receivable upon
exercise of this Warrant had such consolidation, merger or sale or
conveyance not ta
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