Exibit 4.3
THESE WARRANTS HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED HYPOTHECATED OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF (i) AN EFFECTIVE REGISTRATION
STATEMENT WITH RESPECT TO THE WARRANTS UNDER SUCH ACT, OR (ii) AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.
A4S SECURITY, INC.
BRIDGE WARRANT
Warrant to Purchase Shares of
Common Stock
This
certifies that pursuant to the terms of this Common Stock Warrant
(this “Bridge Warrant”), for value received, A4S
Security, Inc., a Colorado corporation (the “Company”),
hereby grants to [NAME ] (the “Holder”), or its
registered assigns, the right to purchase from the Company during
the Exercise Period specified in Section 1 below, up to [
x,xxx] shares of the Company’s common stock
(“Common Stock”) at an Exercise Price of $6.00 per
share (the “Exercise Price”). All capitalized terms not
defined herein shall have the meanings given to them in the
Financing Terms Agreement dated April 12, 2005 pursuant to which
the Holder acquired this Bridge Warrant.
1.
Exercise of Warrant .
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1.2
Except as restricted as
set forth in Section 1.3 below, Holder may exercise this Bridge
Warrant, in whole or in part, at any time and from time to time
commencing October 21, 2005 and prior to 5:00 p.m. (central
standard time) on July 18, 2010 (the “Expiration
Date”);
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1.3
Procedure for
Exercising Bridge Warrant.
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(a)
This Bridge Warrant will be deemed to have been exercised at such
time as the Company has received all of the following items (the
“Exercise Date”):
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(i)
A completed Exercise
Agreement, in substantially the form set forth in Exhibit A
hereto and as described in Section 1.4 below, executed by the
person exercising all or part of the purchase rights represented by
this Bridge Warrant (the “Purchaser”);
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(ii)
This Bridge
Warrant;
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(iii)
If this Bridge Warrant
is not registered in the name of the Purchaser, an Assignment in
the form set forth in Exhibit B , evidencing the assignment
of this Bridge Warrant to the Purchaser and the consent of the
Company thereto; and
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(iv)
A check payable to the
Company in an amount equal to the product of the Exercise Price
multiplied by the number of shares of Common Stock being purchased
upon such exercise.
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(v)
In the case of a
“Conversion Right” pursuant to Section 2.3 herein, the
“Exercise Date” shall be the date the Company receives
the notice of conversion or the date specified by Holder in the
notice of conversion.
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(b)
Certificates representing shares of Common Stock purchased upon
exercise of this Bridge Warrant will be delivered by the Company to
the Purchaser within 10 days after the Exercise Date. Unless this
Bridge Warrant has expired or all of the purchase rights
represented hereby have been exercised, Company will prepare a new
Bridge Warrant, substantially identical hereto, representing the
rights formerly represented by this Bridge Warrant which have not
expired or been exercised. The Company will deliver such new Bridge
Warrant to the person designated to receive it in the Exercise
Agreement.
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(c)
The Common Stock issuable upon the exercise of this Bridge Warrant
will be deemed to have been issued to the Purchaser on the Exercise
Date, and the Purchaser will be deemed for all purposes to have
become the record holder of such Common Stock on the Exercise
Date.
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(d)
The issuance of certificates for shares of Common Stock upon
exercise of this Bridge Warrant will be made without charge to the
Holder or the Purchaser for any issuance tax in respect thereof or
any other cost incurred by the Company in connection with such
exercise and the related issuance of shares.
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1.4
Exercise
Agreement . The Exercise Agreement will be substantially in the
form set forth in Exhibit A hereto, except that if the
shares of Common Stock are not to be issued in the name of the
Holder, the Exercise Agreement will also state the name of the
person to whom the certificates representing the shares of Common
Stock are to be issued, and if the number of shares of Common Stock
to be issued does not include all the shares of Common Stock
purchasable hereunder, it will also state the name of the person to
whom a new Bridge Warrant for the unexercised portion of the rights
hereunder is to be delivered.
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1.5
Fractional Shares
. The Company is not required to issue any fraction of a share of
Common Stock upon exercise of this Bridge Warrant.
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1.6
Securities Acts
Compliance . As a condition to its delivery of the certificates
representing the Common Stock, the Company may require the
Purchaser to deliver to the Company, in writing, representations
regarding the Purchaser’s sophistication, accredited investor
status (as defined in Rule 501 of Regulation D promulgated by the
U.S. Securities and Exchange Commission), investment intent,
acquisition for his, her or its own account and such other matters
as are reasonable and customary for purchasers of securities in an
unregistered private offering, and Company may place conspicuously
upon each certificate representing the Common Stock a legend
restricting the assignment, transfer or other disposition of the
shares of Common Stock, unless such shares have been registered or
qualified under the Act and applicable blue sky laws or there has
been delivered to the Company an opinion of counsel, satisfactory
to the Company, to the effect that such registration and
qualification is not required.
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2.
Adjustment in Shares of Common Stock and Exercise Price .
The number of shares of Common Stock purchasable upon the exercise
of this Bridge Warrant and the Exercise Price per share are subject
to adjustment from time to time as provided in this Section 2;
provided , however , that the Exercise Price per
share will not be less than $.01 per share.
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2.1
Subdivision or
Combination of Shares . If the Company at any time subdivides
its outstanding shares of Common Stock into a greater number of
shares (including a stock split effected as a stock dividend) or
combines its outstanding shares of Common Stock into a lesser
number of shares, the number of shares issuable upon exercise of
this Bridge Warrant will be adjusted to such number as is obtained
by multiplying the number of shares issuable upon exercise of this
Bridge Warrant immediately prior to such subdivision or combination
by a fraction, the numerator of which is the aggregate number of
shares of Common Stock outstanding immediately after giving effect
to such subdivision or combination and the denominator of which is
the aggregate number of shares of Common Stock outstanding
immediately prior to such subdivision or combination, and the
Exercise Price will be correspondingly adjusted to such amount as
will, when multiplied by the number of shares issuable upon full
exercise of this Bridge Warrant (as increased or decreased to
reflect each subdivision or combination of outstanding shares of
Common Stock, as the case may be), equal the product of the
Exercise Price in effect immediately prior to such subdivision or
combination multiplied by the number of shares issuable upon
exercise of this Bridge Warrant immediately prior to such
subdivision or combination.
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2.2
Effect of Sale, Merger or Consolidation . If any capital
reorganization or reclassification of the capital stock of the
Company, or consolidation or merger of the Company with another
corporation, or sale of all or substantially all of the
Company’s assets to another corporation, is effected after
the date hereof in such a way that holders of Common Stock will be
entitled to receive stock, securities or assets with respect to or
in exchange for Common Stock, then, as a condition of such
reorganization, reclassification, consolidation, merger or sale,
lawful and adequate provision will be made whereby the Holder will
thereafter have the right to purchase and receive, upon the basis
and the terms and conditions specified in this Bridge Warrant and
in lieu of the shares immediately theretofore purchasable and
receivable upon the exercise of this Bridge Warrant, such shares of
stock, securities or assets as may be issued or payable with
respect to or in exchange for a number of outstanding shares of
Common Stock equal to the number of shares of Common Stock
immediately theretofore purchasable and receivable upon the
exercise of this Bridge Warrant, and in any such case appropriate
provision will be made with respect to the rights and interests of
the Holder to the end that the provisions of this Bridge Warrant
(including, without limitation, provisions for adjustments of the
Exercise Price and of the number of shares issuable upon the
exercise of this Bridge Warrant) will thereafter be applicable, as
nearly as may be possible, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise of
this Bridge Warrant. The Company will not effect any such
consolidation, merger or sale unless prior to or simultaneously
with the consummation thereof the successor corporation (if other
than the Company) resulting from such consolidation or merger or
the corporation purchasing such assets assumes, by written
instrument executed and delivered to the Holder at its last address
appearing on the books of the Company, the obligation to deliver to
the Holder such shares of stock, securities or assets as, in
accordance with the foregoing sentence, the Holder may be entitled
to purchase.
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2.3
Conversion Right
. The Holder shall have the right (the “Conversion
Right”) to convert this Warrant into shares of the
Company’s Common Stock as provided in this Section 2.3 if,
but only if, at any time after April 18, 2006 and prior to the
Expiration Date, there is no effective registration statement
(including a current prospectus) registering the issuance
or resale of the Common Stock issued or issuable upon
exercise of this Bridge Warrant.
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