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EXHIBIT 4.11
WARRANT
THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933,
AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
SOLD OR
OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR
THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE
ACCEPTABLE TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
PROVECTUS PHARMACEUTICALS, INC.
COMMON STOCK PURCHASE WARRANT
1. Issuance; Certain Definitions. In consideration of good and
valuable
consideration, the receipt of which is hereby acknowledged by
PROVECTUS
PHARMACEUTICALS, INC., a Nevada corporation (the "Company"),
_________________
(the "Holder"), a registered assign of Network 1 Financial
Securities, Inc., is
hereby granted the right to purchase at any time until 5:00
p.m., New York City
time, August 15, 2007, up to _________________ (__________)
fully paid and
nonassessable shares of the Company's Common Stock, $0.001 par
value per share
(the "Common Stock"), at an exercise price per share (the
"Exercise Price") of
$1.00 per share, subject to adjustment as set forth herein.
Capitalized terms
not otherwise herein defined shall have the meanings ascribed to
them in the
Financial Advisory and Investment Banking Agreement between the
Company and the
Holder dated August 15, 2004 (the "Agreement").
2. Exercise of Warrants.
2.1 Method of Exercise.
(a) This Warrant is exercisable in whole or in part at any time
and from
time to time. Such exercise shall be effectuated by submitting
to the
Company (either by delivery to the Company or by facsimile
transmission as provided in Section 8 hereof) a completed and
duly
executed Notice of Exercise (substantially in the form attached
to
this Warrant) as provided in this paragraph. The date such
Notice of
Exercise is faxed to the Company shall be the "Exercise
Date,"
provided that the Holder of this Warrant tenders this
Warrant
Certificate to the Company within five (5) business days
thereafter.
The Notice of Exercise shall be executed by the Holder of this
Warrant
and shall indicate the number of shares then being purchased
pursuant
to such exercise. Upon surrender of this Warrant Certificate,
together
with appropriate payment of the Exercise Price for the shares
of
Common Stock purchased, the Certificate(s) representing the
Shares
being purchased shall be delivered to the Holder or his
assignees
within a reasonable time, not exceeding ten (10) days, after
the
rights represented by this Warrant have been so exercised.
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(b) If the Notice of Exercise form elects a "cashless" exercise,
the
Holder shall thereby be entitled to receive a number of shares
of
Common Stock computed using the following formula:
X = Y (A-B)
-------
A
For purposes of this formula, the following applies:
X = the number of shares of Common Stock to be
issued to the Holder
Y = the number of shares of Common Stock
purchasable under this Warrant or, if only a
portion of this Warrant is being exercised,
the portion of this Warrant being exercised
(at the date of such calculation)
A = the Market Price as of the date of exercise
B = the Exercise Price as of the date of exercise
For the purposes of this Warrant, the term "Market Price"
shall be the closing price of the Common Stock as reported
by the Reporting Service for the relevant date. The holder
may not elect a "cashless" exercise until one year from the
date hereof or any time when there is a currently effective
Registration Statement for the shares of Common Stock
underlying the warrants.
(c) If the Notice of Exercise form elects a "cash" exercise, the
Exercise
Price per share of Common Stock for the shares then being
exercised
shall be payable in cash or by certified or official bank
check.
(d) The Holder shall be deemed to be the holder of the shares
issuable to
it in accordance with the provisions of this Section 2.1 on
the
Exercise Date.
2.2 Limitation on Exercise. Notwithstanding the provisions of
this Warrant,
the Agreement or of the other Transaction Agreements, in no
event (except (i) as
specifically provided in this Warrant as an exception to this
provision, (ii)
while there is outstanding a tender offer for any or all of the
shares of the
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Company's Common Stock, or (iii) at the Holder's option, on at
least sixty-five
(65) days' advance written notice from the Holder) shall the
Holder be entitled
to exercise this Warrant, or shall the Company have the
obligation to issue
shares upon such exercise of all or any portion of this Warrant
to the extent
that, after such exercise the sum of (1) the number of shares of
Common Stock
beneficially owned by the Holder and its affiliates (other than
shares of Common
Stock which may be deemed beneficially owned through the
ownership of the
unexercised portion of the Warrants or other rights to purchase
Common Stock),
and (2) the number of shares of Common Stock issuable upon the
exercise of the
Warrants with respect to which the determination of this proviso
is being made,
would result in beneficial ownership by the Holder and its
affiliates of more
than 9.99% of the outstanding shares of Common Stock (after
taking into account
the shares to be issued to the Holder upon such exercise). For
purposes of the
proviso to the immediately preceding sentence, beneficial
ownership shall be
determined in accordance with Section 13(d) of the Securities
Exchange Act of
1934, as amended (the "1934 Act"), except as otherwise provided
in clause (1) of
such sentence. The Holder, by its acceptance of this Warrant,
further agrees
that if the Holder transfers or assigns any of the Warrants,
such assignment
shall be made subject to the transferee's or assignee's specific
agreement to be
bound by the provisions of this Section 2.2 as if such
transferee or assignee
were the original Holder hereof.
3. Reservation of Shares. The Company hereby agrees that at all
times during the
term of this Warrant there shall be reserved for issuance upon
exercise of this
Warrant such number of shares of its Common Stock as shall be
required for
issuance upon exercise of this Warrant (the "Warrant
Shares").
4. Mutilation or Loss of Warrant. Upon receipt by the Company of
evidence
satisfactory to it of the loss, theft, destruction or mutilation
of this
Warrant, and (in the case of loss, theft or destruction) receipt
of reasonably
satisfactory indemnification, and (in the case of mutilation)
upon surrender and
cancellation of this Warrant, the Company will execute and
deliver a duplicate
Warrant and any such lost, stolen, destroyed or mutilated
Warrant shall
thereupon become void.
5. Rights of the Holder. The Holder shall not, by virtue hereof,
be entitled to
any rights of a stockholder in the Company, either at law or
equity, and the
rights of the Holder are limited to those expressed in this
Warrant and are not
enforceable against the Company except to the extent set forth
herein.
6. Protection Against Dilution and Other Adjustments.
6.1 Adjustment Mechanism. If an adjustment of the Exercise Price
is
required pursuant to this Section 6, the Holder shall be
entitled to purchase
such number of additional shares of Common Stock as will cause
(i) the total
number of shares of Common Stock Holder is entitled to purchase
pursuant to this
Warrant, multiplied by (ii) the adjusted Exercise Price per
share, to equal
(iii) the dollar amount of the total number of shares of Common
Stock Holder is
entitled to purchase before adjustment multiplied by the total
Exercise Price
immediately before adjustment.
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6.2 Capital Adjustments. In case of any stock split or reverse
stock split,
stock dividend, reclassification of the Common Stock,
recapitalization, merger
or consolidation, or like capital adjustment affecting the
Common Stock of the
Company prior to the exercise of this Warrant or its applicable
portion, the
provisions of this Section 6 shall be applied as if such capital
adjustment
event had occurred immediately prior to the exercise date of
this Warrant and
the original Exercise Price had been fairly allocated to the
stock resulting
from such capital adjustment; and in other respects the
provisions of this
Section shall be applied in a fair, equitable and reasonable
manner so as to
give effect, as nearly as may be, to the purposes hereof.
6.3 Spin Off. If, for any reason, prior to the exercise of this
Warrant in
full, the Company spins off or otherwise divests itself of a
part of its
business or operations or disposes all or of a part of its
assets in a
transaction (the "Spin Off") in which the Company does not
receive compensation
for such business, operations or assets, but causes securities
of another entity
to be issued to security holders of the Company, then the
Company shall notify
the Holder at least thirty (30) days prior to the record date
with respect to
such Spin-Off.
6.4 Dissolution, Liquidation. In case of the voluntary or
involuntary
dissolution, liquidation or winding up of the Company (other
than in connection
with a reorganization, consolidation, merger, or other
transaction covered by
paragraph 6.2 above) is at any time proposed, the Company shall
give at least
thirty days prior written notice to the Holder. Such notice
shall contain: (a)
the date on which the transaction is to take place; (b) the
record date (which
shall be at least thirty (30) days after the giving of the
notice) as of which
holders of Common Stock will be entitled to receive
distributions as a result of
the transaction; (c) a brief description of the transaction, (d)
a brief
description of the distributions to be made to holders of Common
Stock as a
result of the transaction; and (d) an estimate of the fair value
of the
distributions. On the date of the transaction, if it actually
occurs, this
Warrant and all rights under this Warrant shall terminate.
6.5 Notice of Adjustment. On the happening of an event requiring
an
adjustment of the Exercise Price or the shares purchasable under
this Warrant,
the Copmany shall immediately give written notice to the Holder
stating the
adjusted Exercise Price and the adjusted number and kind of
securities or other
property purchasable under this Warrant resulting from the event
and setting
forth in reasonable detail the method of calculation and the
facts upon which
the calculation is based.
7. Rights of Holder. The Company shall deliver to the Holder all
notices and
other information provided to its holders of shares of Common
Stock or other
securities which may be issuable hereunder concurrently with the
delivery of
such information to the holders. This Warrant does not entitle
the Holder to any
voting rights or, except for the foregoing notice provisions,
any other rights
as a shareholder of the Company. No dividends are payable or
will accrue on this
Warrant or the shares of Common Stock purchasable under this
Warrant until, and
except to the extent that, this Warrant is exercised. Upon the
surrender of this
Warrant and payment of the Exercise Price as provided above, the
person or
entity entitled to receive the shares of Common Stock issuable
upon such
exercise shall be treated for all purposes as the record holder
of such shares
as of the close of business on the date of the surrender of this
Warrant for
exercise as provided above. Upon the exercise of this Warrant,
the Holder shall
have all of the rights of a shareholder in the Company.
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8. Exchange for Other Denominations. This Warrant is
exchangeable, on its
surrender by the Holder to the Company, for a new Warrant of
like tenor and date
representing in the aggregate the right to purchase the balance
of the number of
shares purchasable under this Warrant in denominations and
subject to
restrictions on transfer contained herein, in the names
designated by the Holder
at the time of surrender.
9. Transfer to Comply with the Securities Act; Registration
Rights.
9.1 Transfer. This Warrant has not been registered under the
Securities Act
of 1933, as amended, (the "Act") and has been issued to the
Holder for
investment and not with a view to the distribution of either the
Warrant or the
Warrant Shares. Except for transfers to officers, employees and
affiliates of
the Holder, neither this Warrant nor any of the Warrant Shares
or any other
security issued or issuable upon exercise of this Warrant may be
sold,
transferred, pledged or hypothecated in the absence of an
effective registration
statement under the Act relating to such security or an opinion
of counsel
satisfactory to the Company that registration is not required
under the Act.
Each certificate for the Warrant, the Warrant Shares and any
other security
issued or issuable upon exercise of this Warrant shall contain a
legend on the
face thereof, in form and substance satisfactory to counsel for
the Company,
setting forth the restrictions on transfer contained in this
Section.
9.2 Registration Rights. As used in this Section 9.2, the
following terms
shall have the following respective meanings:
"Registrable Securities" shall mean (i) the Warrant Shares, and
(ii) any
sh
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