THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE
SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER
THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED.
SERIES A WARRANT TO
PURCHASE
SHARES OF COMMON STOCK
OF
SOUTHERN SAUCE COMPANY,
INC.
Expires July 18, 2013
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No.: W-J-08- __
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Number of Shares: Up to ___________
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Date of
Issuance: July 18, 2008
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FOR VALUE RECEIVED, the undersigned, Southern
Sauce Company, Inc., a Florida corporation (together with its
successors and assigns, the “ Issuer ”), hereby
certifies that ____________________________________ (the “
Holder ”) is entitled to subscribe for and purchase,
during the Term (as hereinafter defined), up to
____________________________________ (_____________) shares
(subject to adjustment as hereinafter provided) of the duly
authorized, validly issued, fully paid and non-assessable Common
Stock of the Issuer, at an exercise price per share equal to the
Warrant Price then in effect, subject, however, to the provisions
and upon the terms and conditions hereinafter set forth.
Capitalized terms used in this Warrant and not otherwise defined
herein shall have the respective meanings specified in Section 9
hereof.
1. Term .
The term of this Warrant shall commence on July 18, 2008 and shall
expire at 6:00 p.m., Eastern Time, on July 18, 2013 (such period
being the “ Term ” and such date, the “
Termination Date ”).
2. Method of Exercise; Payment; Issuance of New
Warrant; Transfer and Exchange .
(a) Time of Exercise . The purchase rights represented by this
Warrant may be exercised in whole or in part during the Term for
such number of shares of Common Stock set forth above, which number
is equal to one hundred twenty percent (120%) of the number of
shares of Common Stock into which the Series A Convertible
Preferred Stock issued by the Issuer to the Holder on the Original
Issue Date pursuant to the Purchase Agreement may be
converted.
(b) Method of Exercise . The Holder hereof may exercise this Warrant,
in whole or in part, by the surrender of this Warrant (with the
exercise form attached hereto duly executed) at the principal
office of the Issuer, and by the payment to the Issuer of an amount
of consideration therefor equal to the Warrant Price in effect on
the date of such exercise multiplied by the number of shares of
Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder’s election (i) by certified
or official bank check or by wire transfer to an account designated
by the Issuer, (ii) by “cashless exercise” in
accordance with Section 2(c), but only when a registration
statement under the Securities Act providing for the resale of the
Warrant Stock is not then in effect, or (iii) by a combination of
the foregoing methods of payment selected by the Holder of this
Warrant.
(c) Cashless Exercise . Notwithstanding any provision herein to the
contrary and commencing eighteen (18) months following the Original
Issue Date if a registration statement under the Securities Act
providing for the resale of the Warrant Stock (A) has not been
declared effective by the Securities and Exchange Commission by the
date such registration statement is required to be effective
pursuant to the Registration Rights Agreement (as defined in
Section 8) as to any portion of the Warrant Stock issuable
hereunder (“Non-Registered Warrant Stock”), or (B) is
not effective at the time of exercise of this Warrant such that
there is Non-Registered Warrant Stock, unless the registration
statement is not effective as a result of the Issuer exercising its
rights under Section 3(n) of the Registration Rights Agreement, in
lieu of exercising this Warrant by payment of cash, the Holder may
exercise this Warrant by a cashless exercise for the Non-Registered
Warrant Stock and shall receive the number of shares of Common
Stock equal to an amount (as determined below) by surrender of this
Warrant at the principal office of the Issuer together with the
properly endorsed Notice of Exercise in which event the Issuer
shall issue to the Holder a number of shares of Common Stock
computed using the following formula:
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X = Y -
(A)(Y)
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Where
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X =
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the number of
shares of Common Stock to be issued to the Holder.
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Y =
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the number of
shares of Non-Registered Warrant Stock purchasable upon exercise of
all or part of the Warrant.
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A =
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the Warrant
Price.
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B =
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the Per Share
Market Value of one share of Common Stock.
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(d) Issuance of Stock Certificates
. In the event of any exercise of
this Warrant in accordance with and subject to the terms and
conditions hereof, certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to
the Holder hereof within a reasonable time, not exceeding three (3)
Trading Days after such exercise (the “ Delivery Date
”) or, at the request of the Holder (provided that a
registration statement under the Securities Act providing for the
resale of the Warrant Stock is then in effect or that the shares of
Warrant Stock are otherwise exempt from registration), issued and
delivered to the Depository Trust Company (“ DTC
”) account on the Holder’s behalf via the Deposit
Withdrawal Agent Commission System (“ DWAC ”)
within a reasonable time, not exceeding three (3) Trading Days
after such exercise, and the Holder hereof shall be deemed for all
purposes to be the holder of the shares of Warrant Stock so
purchased as of the date of such exercise. Notwithstanding the
foregoing to the contrary, the Issuer or its transfer agent shall
only be obligated to issue and deliver the shares to the DTC on a
holder’s behalf via DWAC if such exercise is in connection
with a sale or other exemption from registration by which the
shares may be issued without a restrictive legend and the Issuer
and its transfer agent are participating in DTC through the DWAC
system. The Holder shall deliver this original Warrant, or an
indemnification undertaking with respect to such Warrant in the
case of its loss, theft or destruction, at such time that this
Warrant is fully exercised. With respect to partial exercises of
this Warrant, the Issuer shall keep written records for the Holder
of the number of shares of Warrant Stock exercised as of each date
of exercise.
(e) Compensation for Buy-In on Failure to Timely
Deliver Certificates Upon Exercise . In addition to any other rights available to
the Holder, if the Issuer fails to cause its transfer agent to
transmit to the Holder a certificate or certificates representing
the Warrant Stock pursuant to an exercise on or before the Delivery
Date, and if after such date the Holder is required by its broker
to purchase (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Holder of
the Warrant Stock which the Holder anticipated receiving upon such
exercise (a “ Buy-In ”), then the Issuer shall
(1) pay in cash to the Holder the amount by which (x) the
Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the amount obtained by multiplying (A) the number of
shares of Warrant Stock that the Issuer was required to deliver to
the Holder in connection with the exercise at issue times (B) the
price at which the sell order giving rise to such purchase
obligation was executed, and (2) at the option of the Holder,
either reinstate the portion of the Warrant and equivalent number
of shares of Warrant Stock for which such exercise was not honored
or deliver to the Holder the number of shares of Common Stock that
would have been issued had the Issuer timely complied with its
exercise and delivery obligations hereunder. For example, if the
Holder purchases Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted exercise of
shares of Common Stock with an aggregate sale price giving rise to
such purchase obligation of $10,000, under clause (1) of the
immediately preceding sentence the Issuer shall be required to pay
the Holder $1,000. The Holder shall provide the Issuer written
notice indicating the amounts payable to the Holder in respect of
the Buy-In, together with applicable confirmations and other
evidence reasonably requested by the Issuer. Nothing herein shall
limit a Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with
respect to the Issuer’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of
this Warrant as required pursuant to the terms hereof.
(f) Transferability of Warrant
. Subject to Section 2(h) hereof,
this Warrant may be transferred by a Holder, in whole or in part,
without the consent of the Issuer. If transferred pursuant to this
paragraph, this Warrant may be transferred on the books of the
Issuer by the Holder hereof in person or by duly authorized
attorney, upon surrender of this Warrant at the principal office of
the Issuer, properly endorsed (by the Holder executing an
assignment in the form attached hereto) and upon payment of any
necessary transfer tax or other governmental charge imposed upon
such transfer. This Warrant is exchangeable at the principal office
of the Issuer for Warrants to purchase the same aggregate number of
shares of Warrant Stock, each new Warrant to represent the right to
purchase such number of shares of Warrant Stock as the Holder
hereof shall designate at the time of such exchange. All Warrants
issued on transfers or exchanges shall be dated the Original Issue
Date and shall be identical with this Warrant except as to the
number of shares of Warrant Stock issuable pursuant
thereto.
(g) Continuing Rights of Holder
. The Issuer will, at the time of or
at any time after each exercise of this Warrant, upon the request
of the Holder hereof, acknowledge in writing the extent, if any, of
its continuing obligation to afford to such Holder all rights to
which such Holder shall continue to be entitled after such exercise
in accordance with the terms of this Warrant, provided that if any
such Holder shall fail to make any such request, the failure shall
not affect the continuing obligation of the Issuer to afford such
rights to such Holder.
(h) Compliance with Securities Laws
.
(i) The Holder of this Warrant, by acceptance
hereof, acknowledges that this Warrant and the shares of Warrant
Stock to be issued upon exercise hereof are being acquired solely
for the Holder’s own account and not as a nominee for any
other party, and for investment, and that the Holder will not
offer, sell or otherwise dispose of this Warrant or any shares of
Warrant Stock to be issued upon exercise hereof except pursuant to
an effective registration statement, or an exemption from
registration, under the Securities Act and any applicable state
securities laws.
(ii) Except as provided in paragraph (iii) below,
this Warrant and all certificates representing shares of Warrant
Stock issued upon exercise hereof shall be stamped or imprinted
with a legend in substantially the following form:
THIS WARRANT
AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND
MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE
SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS
OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.
(iii) The Issuer agrees to reissue this Warrant or
certificates representing any of the Warrant Stock, without the
legend set forth above if at such time, prior to making any
transfer of any such securities, the Holder shall give written
notice to the Issuer describing the manner and terms of such
transfer. Such proposed transfer will not be effected until: (a)
either (i) the Issuer has received an opinion of counsel reasonably
satisfactory to the Issuer, to the effect that the registration of
such securities under the Securities Act is not required in
connection with such proposed transfer, (ii) a registration
statement under the Securities Act covering such proposed
disposition has been filed by the Issuer with the Securities and
Exchange Commission and has become effective under the Securities
Act, (iii) the Issuer has received other evidence reasonably
satisfactory to the Issuer that such registration and qualification
under the Securities Act and state securities laws are not
required, or (iv) the Holder provides the Issuer with reasonable
assurances that such security can be sold pursuant to Rule 144
under the Securities Act; and (b) either (i) the Issuer has
received an opinion of counsel reasonably satisfactory to the
Issuer, to the effect that registration or qualification under the
securities or “blue sky” laws of any state is not
required in connection with such proposed disposition, or (ii)
compliance with applicable state securities or “blue
sky” laws has been effected or a valid exemption exists with
respect thereto. The Issuer will respond to any such notice from a
holder within three (3) Trading Days. In the case of any proposed
transfer under this Section 2(h), the Issuer will use reasonable
efforts to comply with any such applicable state securities or
“blue sky” laws, but shall in no event be required, (x)
to qualify to do business in any state where it is not then
qualified, (y) to take any action that would subject it to tax or
to the general service of process in any state where it is not then
subject, or (z) to comply with state securities or “blue
sky” laws of any state for which registration by coordination
is unavailable to the Issuer. The restrictions on transfer
contained in this Section 2(h) shall be in addition to, and not by
way of limitation of, any other restrictions on transfer contained
in any other section of this Warrant. Whenever a certificate
representing the Warrant Stock is required to be issued to the
Holder without a legend, in lieu of delivering physical
certificates representing the Warrant Stock, the Issuer shall cause
its transfer agent to electronically transmit the Warrant Stock to
the Holder by crediting the account of the Holder or Holder’s
Prime Broker with DTC through its DWAC system (to the extent not
inconsistent with any provisions of this Warrant or the Purchase
Agreement).
(i) Accredited Investor Status
. In no event may the Holder
exercise this Warrant in whole or in part unless the Holder is an
“accredited investor” as defined in Regulation D under
the Securities Act.
3. Stock Fully Paid; Reservation and Listing of
Shares; Covenants .
(a) Stock Fully Paid . The Issuer represents, warrants, covenants
and agrees that all shares of Warrant Stock which may be issued
upon the exercise of this Warrant or otherwise hereunder will, when
issued in accordance with the terms of this Warrant, be duly
authorized, validly issued, fully paid and non-assessable and free
from all taxes, liens and charges created by or through the Issuer.
The Issuer further covenants and agrees that during the period
within which this Warrant may be exercised, the Issuer will at all
times have authorized and reserved for the purpose of the issuance
upon exercise of this Warrant a number of authorized but unissued
shares of Common Stock equal to at least one hundred fifty percent
(150%) of the number of shares of Common Stock issuable upon
exercise of this Warrant without regard to any limitations on
exercise.
(b) Reservation . If any shares of Common Stock required to be
reserved for issuance upon exercise of this Warrant or as otherwise
provided hereunder require registration or qualification with any
Governmental Authority under any federal or state law before such
shares may be so issued, the Issuer will in good faith use its best
efforts as expeditiously as possible at its expense to cause such
shares to be duly registered or qualified. If the Issuer shall list
any shares of Common Stock on any securities exchange or market it
will, at its expense, list thereon, and maintain and increase when
necessary such listing, of, all shares of Warrant Stock from time
to time issued upon exercise of this Warrant or as otherwise
provided hereunder (provided that such Warrant Stock has been
registered pursuant to a registration statement under the
Securities Act then in effect), and, to the extent permissible
under the applicable securities exchange rules, all unissued shares
of Warrant Stock which are at any time issuable hereunder, so long
as any shares of Common Stock shall be so listed. The Issuer will
also so list on each securities exchange or market, and will
maintain such listing of, any other securities which the Holder of
this Warrant shall be entitled to receive upon the exercise of this
Warrant if at the time any securities of the same class shall be
listed on such securities exchange or market by the
Issuer.
(c) Covenants . The Issuer shall not by any action including,
without limitation, amending the Certificate of Incorporation or
the by-laws of the Issuer, or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of
securities or any other action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of the Holder hereof
against dilution (to the extent specifically provided herein) or
impairment. Without limiting the generality of the foregoing, the
Issuer will (i) not permit the par value, if any, of its Common
Stock to exceed the then effective Warrant Price, (ii) not amend or
modify any provision of the Certificate of Incorporation or by-laws
of the Issuer in any manner that would adversely affect the rights
of the Holders of the Warrants, (iii) take all such action as may
be reasonably necessary in order that the Issuer may validly and
legally issue fully paid and nonassessable shares of Common Stock,
free and clear of any liens, claims, encumbrances and restrictions
(other than as provided herein) upon the exercise of this Warrant,
and (iv) use its best efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having
jurisdiction thereof as may be reasonably necessary to enable the
Issuer to perform its obligations under this Warrant.
(d) Loss, Theft, Destruction of Warrants
. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft,
destruction or mutilation of any Warrant and, in the case of any
such loss, theft or destruction, upon receipt of indemnity or
security satisfactory to the Issuer or, in the case of any such
mutilation, upon surrender and cancellation of such Warrant, the
Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same number of shares of
Common Stock.
(e) Payment of Taxes . The Issuer will pay any documentary stamp
taxes attributable to the initial issuance of the Warrant Stock
issuable upon exercise of this Warrant; provided ,
however , that the Issuer shall not be required to pay any
tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates
representing Warrant Stock in a name other than that of the Holder
in respect to which such shares are issued.
4. Adjustment of Warrant Price
. The price at which such shares of
Warrant Stock may be purchased upon exercise of this Warrant shall
be subject to adjustment from time to time as set forth in this
Section 4. The Issuer shall give the Holder notice of any event
described below which requires an adjustment pursuant to this
Section 4 in accordance with the notice provisions set forth in
Section 5.
(a) Recapitalization, Reorganization,
Reclassification, Consolidation, Merger or Sale
.
(i) In case the Issuer after the Original Issue
Date shall do any of the following (each, a “ Triggering
Event ”): (a) consolidate or merge with or into any other
Person and the Issuer shall not be the continuing or surviving
corporation of such consolidation or merger, or (b) permit any
other Person to consolidate with or merge into the Issuer and the
Issuer shall be the continuing or surviving Person but, in
connection with such consolidation or merger, any Capital Stock of
the Issuer shall be changed into or exchanged for Securities of any
other Person or cash or any other property, or (c) transfer all or
substantially all of its properties or assets to any other Person,
or (d) effect a capital reorganization or reclassification of its
Capital Stock, then, and in the case of each such Triggering Event,
proper provision shall be made to the Warrant Price and the number
of shares of Warrant Stock that may be purchased upon exercise of
this Warrant so that, upon the basis and the terms and in the
manner provided in this Warrant, the Holder of this Warrant shall
be entitled upon the exercise hereof at any time after the
consummation of such Triggering Event, to the extent this Warrant
is not exercised prior to such Triggering Event, to receive at the
Warrant Price in effect at the time immediately prior to the
consummation of such Triggering Event, in lieu of the Common Stock
issuable upon such exercise of this Warrant prior to such
Triggering Event, the Securities, cash and property to which such
Holder would have been entitled upon the consummation of such
Triggering Event if such Holder had exercised the rights
represented by this Warrant immediately prior thereto (including
the right of a shareholder to elect the type of consideration it
will receive upon a Triggering Event), subject to adjustments
(subsequent to such corporate action) as nearly equivalent as
possible to the adjustments provided for elsewhere in this Section
4; provided , however , the Holder at its option may
elect to receive an amount in unregistered shares of the common
stock of the surviving entity equal to the value of this Warrant
calculated in accordance with the Black-Scholes formula;
provided , further , such shares of Common Stock
shall be valued at a twenty percent (20%) discount to the VWAP of
the Common Stock for the twenty (20) Trading Days immediately prior
to the Triggering Event. Immediately upon the occurrence of a
Triggering Event, the Issuer shall notify the Holder in writing of
such Triggering Event and provide the calculations in determining
the number of shares of Warrant Stock issuable upon exercise of the
new warrant and the adjusted Warrant Price. Upon the Holder’s
request, the continuing or surviving corporation as a result of
such Triggering Event shall issue to the Holder a new warrant of
like tenor evidencing the right to purchase the adjusted number of
shares of Warrant Stock and the adjusted Warrant Price pursuant to
the terms and provisions of this Section 4(a)(i). Notwithstanding
the foregoing to the contrary, this Section 4(a)(i) shall only
apply if the surviving entity pursuant to any such Triggering Event
is a company that has a class of equity securities registered
pursuant to the Securities Exchange Act of 1934, as amended (the
“ Exchange Act ”), and its common stock is
listed or quoted on a national securities exchange, national
automated quotation system or the OTC Bulletin Board. In the event
that the surviving entity pursuant to any such Triggering Event is
not a public company that is registered pursuant to the Exchange
Act or its common stock is not listed or quoted on a national
securities exchange, national automated quotation system or the OTC
Bulletin Board, then the Holder shall have the right to demand that
the Issuer pay to the Holder an amount in cash equal to the value
of this Warrant calculated in accordance with the Black-Scholes
formula.
(ii) In the event that the Holder has elected not to
exercise this Warrant prior to the consummation of a Triggering
Event and has also elected not to receive an amount in cash equal
to the value of this Warrant calculated in accordance with the
Black-Scholes formula pursuant to the provisions of Section 4(a)(i)
above, so long as the surviving entity pursuant to any Triggering
Event is a company that has a class of equity securities registered
pursuant to the Exchange Act and its common stock is listed or
quoted on a national securities exchange, national automated
quotation system or the OTC Bulletin Board, the surviving entity
and/or each Person (other than the Issuer) which may be required to
deliver any Securities, cash or property upon the exercise of this
Warrant as provided herein shall assume, by written instrument
delivered to, and reasonably satisfactory to, the Holder of this
Warrant, (A) the obligations of the Issuer under this Warrant (and
if the Issuer shall survive the consummation of such Triggering
Event, such assumption shall be in addition to, and shall not
release the Issuer from, any continuing obligations of the Issuer
under this Warrant) and (B) the obligation to deliver to such
Holder such Securities, cash or property as, in accordance with the
foregoing provisions of this subsection (a), such Holder shall be
entitled to receive, and the surviving entity and/or each such
Person shall have similarly delivered to such Holder an opinion of
counsel for the surviving entity and/or each such Person, which
counsel shall be reasonably satisfactory to such Holder, or in the
alternative, a written acknowledgement executed by the President or
Chief Financial Officer of the Issuer, stating that this Warrant
shall thereafter continue in full force and effect and the terms
hereof (including, without limitation, all of the provisions of
this subsection (a)) shall be applicable to the Securities, cash or
property which the surviving entity and/or each such Person may be
required to deliver upon any exercise of this Warrant or the
exercise of any rights pursuant hereto.
(b) Stock Dividends, Subdivisions and
Combinations . If at any
time the Issuer shall:
(i) make or issue or set a record date for the
holders of the Common Stock for the purpose of entitling them to
receive a dividend payable in, or other distribution of, shares of
Common Stock,
(ii) subdivide its outstanding shares of Common
Stock into a larger number of shares of Common Stock, or
(iii) combine its outstanding shares of Common Stock
into a smaller number of shares of Common Stock,
then (1) the
number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event
shall be adjusted to equal the number of shares of Common Stock
which a record holder of the same number of shares of Common Stock
for which this Warrant is exercisable immediately prior to the
occurrence of such event would own or be entitled to receive after
the happening of such event, and (2) the Warrant Price then in
effect shall be adjusted to equal (A) the Warrant Price then in
effect multiplied by the number of shares of Common Stock for which
this Warrant is exercisable immediately prior to the adjustment
divided by (B) the number of shares of Common Stock for which this
Warrant is exercisable immediately after such
adjustment.
(c) Certain Other Distributions
. If at any time the Issuer shall
make or issue or set a record date for the holders of the Common
Stock for the purpose of entitling them to receive any dividend or
other distribution of:
(ii) any evidences of its indebtedness, any shares
of stock of any class or any other securities or property of any
nature whatsoever (other than cash, Common Stock Equivalents or
Additional Shares of Common Stock), or
(iii) any warrants or other rights to subscribe for
or purchase any evidences of its indebtedness, any shares of stock
of any class or any other securities or property of any nature
whatsoever (other than cash, Common Stock Equivalents or Additional
Shares of Common Stock),
then (1) the
number of shares of Common Stock for which this Warrant is
exercisable shall be adjusted to equal the product of the number of
shares of Common Stock for which this Warrant is exercisable
immediately prior to such adjustment multiplied by a fraction (A)
the numerator of which shall be the Per Share Market Value of
Common Stock at the date of taking such record and (B) the
denominator of which shall be such Per Share Market Value minus the
amount allocable to one share of Common Stock of any such cash so
distributable and of the fair value (as determined in good faith by
the Board of Directors of the Issuer and supported by an opinion
from an investment banking firm mutually agreed upon by the Issuer
and the Holder) of any and all such evidences of indebtedness,
shares of stock, other securities or property or warrants or other
subscriptio
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